Continuing fall-off in demand projected for malting barley
The Agricultural and Horticultural Development Board (AHDB) is projecting a significant fall-off in demand for malting barley.
This assessment reflects both a sustained UK and international trend.
Speaking at a recent webinar event, AHDB’s senior grain market analyst, Helen Plant, highlighted that the continuing cost of living crisis is impacting negatively on the sale of alcoholic drinks.
She added: “But there is also strong evidence showing that younger people are not consuming as much alcohol as would have been the case a number of years ago.
“In addition, consumers are also becoming more selective in terms of the alcoholic drink options that they choose.”
AHDB is projecting a 7.0% reduction in demand for barley that is used for malting and other industrial purposes over the next 12 months.
Significantly, AHDB has predicted a continuing decline in the area of oats grown in the UK with the growing use of the cereal within compound animal feeds now a discernible trend.
International grain markets
Meanwhile, international grain markets will be very much supply: demand driven over the next 12 months.
In the short-term, this means further pressure on prices.
According to Plant, both Australia and Argentina are confirming record cereal harvests at the present time, while Russia is also active on export markets right now.
A sluggish demand for cereals is also adding to the pressure on grain.
This trend may be further exacerbated into 2026 as farm gate milk prices continue to come under pressure while beef cattle numbers remain at historically high levels.
2026 harvest
Looking ahead, the 2026 harvest prospects across the UK and Europe is looking very strong at the present time, in terms of projected yields.
Winter cereal crops were planted out in excellent conditions and have grown on accordingly.
AHDB is reporting that oilseed prices have been reasonably well supported over recent months.
Adding to a degree of optimism for the future where these crops are concerned is the prospect of a growing demand for biofuels in 2026.
However, these trends have not gone unnoticed at grower level, with significant increases in the 2025/2026 winter oilseed rape planted area already confirmed for most of Europe, the UK, and Ireland.
Looking further ahead, the prospect of an El Nino effect impacting on grain and soya crops in South America during the second half of 2026 could have a significant impact on world grain markets.
However, this presumes that the predicted weather patterns actually take effect.
