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Opportunities for UK barley exports open up in Spain

Spanish weather woes have opened up opportunities for UK barley exporters if UK feed barley prices remain competitive on the continent.



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Opportunity for UK barley exports opens up in Spain #clubhectare

Spanish weather woes have opened up opportunities for UK barley exporters if UK feed barley prices remain competitive on the continent.

 

Hot and dry weather hit the Spanish crop, which has led to increased demand for imports. The UK is historically a large supplier of barley to Spain, accounting for 28 per cent on average of Spanish barley imports between the 2011/12 and 2015/16 seasons.

 

Volume

 

According to AHDB, there has already been a ‘sizeable volume’ of UK feed barley loaded for export to Spain.

 

In the week beginning July 24, UK feed barley was almost £7/t cheaper than French supplies and almost £30/t cheaper than the Spanish barley leaving silos.

 

The EU commission estimated Spanish barley production would fall to its lowest level since 2005, down to 5.6 million tonnes following hot and dry weather this year.

 

Helen Plant, senior grain analyst at AHDB, said based on trends in previous years, it could lead to increased Spanish imports.

 

Trend

 

“While not exact due to the influence of stocks plus the availability of other grains, there is a general trend between the level of Spanish barley output and imports,” she said.

 

“With 2017 barley output being estimated at just 5.6mt last month by the EU Commission, this suggests that imports could be set to rise.

 

“Indeed, private forecaster Strategie Grains suggests the increase from 2016/17 import levels could be in excess of 50 per cent.”

 

In the UK, a larger barley area could potentially mean larger volumes of barley headed to Spain, although this would be subject to yields, quality and price. Exports were likely to continue to gather pace if UK feed barley remained competitive into the EU compared with other origins.


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