The Agricultural and Horticultural Development Board (AHDB) has highlighted a rise in demand for malting barley in the UK.
Barley usage by brewers, maltsters and distillers (BMD) saw a modest rise in May, up 12.9Kt on the month, and 7.8Kt year-on-year, to 156.4Kt.
May was the first month of the 2024/25 season that saw an increase in usage compared to 2023/24 levels.
This slight uplift was likely buoyed somewhat by optimism following the India/UK trade deal reached in May. In addition, the warm and dry weather ordinarily supports alcohol sales and could also be a driving factor.
However, looking from July 2024 to May 2025, usage remained notably lower year-on-year. Total usage stands at 1.63Mt, down from 1.75Mt over the same period in 2023/24, and below the five-year average of 1.69Mt.
This decline is largely in line with expectations for the 2024/25 marketing year, with earlier forecasts indicating weaker demand in human and industrial (H&I) barley usage, primarily driven by the BMD sector.
The ongoing cost-of-living pressures continue to weigh on consumer spending, while a long-term trend of reduced alcohol consumption among younger people is also affecting demand.
Premiums remain steady
Ex-farm malting barley premiums remained relatively low throughout much of the 2024/25 season.
According to AHDB Corn Returns, the average ex-farm price for premium malting barley (spot delivery) was £172.20/t for the week ending March 6 (the latest available price).
This was at just a £12.80/t premium compared to feed barley.
Factors driving this lower premium include reduced demand from the BMD sector, sufficient supplies last season, and steady exports of both barley and malt.
Although slightly higher than in 2023/24, malt export volumes in the 2024/25 marketing year remain below the historical average.
From July 2024 to April 2025, malt exports reached 94.5Kt, which is 20% below the five-year average for the same period.
Looking ahead
As the 2025/26 season beckons, attention is now on prospects for the 2025 malting barley crop.
According to the latest AHDB Planting and Variety survey, the area of barley planted with varieties suitable for malting, brewing,and distilling is expected to be smaller in 2025.
In addition, spring barley crop condition ratings across the UK at the end of June were significantly below the same point last season.
However, the warm dry weather so far this summer and optimism linked to the UK-India trade deal, as well as a smaller malting barley harvest, could help support premiums to an extent in the coming season.
Meanwhile, the barley carry-in stocks are expected to be significant, though the cost of living is still impacting alcohol demand – a trend that remains on a downward trajectory.
