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World Barley Market

07 July 201510 min reading
Barley production in the world was 129 million tons in 2012/13 season and this amount has risen to 145 million tons in 2013/14 season, and then dropped to 141 million tons in 2014/15 season. The greatest share of world barley consumption, as in its production, belongs to European Union countries. European Union has consumed around 51-53 million tons of barley between 2011/12 and 2014/15 seasons. The amount or barley subject to world trade within the last three seasons was between 19 and 30 million tons. arastirmas Barley is a grain from graminae family and it has been considered as an important cultivated plant throughout the history. The grains of barley are used as malt and fodder, and therefore it is considered as one of the most important plants economically. It is assumed that barley was first produced in Mesopotamia and Eastern Mediterranean. Barley that was cultivated back in those times is known as wild barley today and it is a sub-type firstly discovered in Turkey. It is known that people have used this sub-type, which is also known as wild barley, as an important food source for the last 18.000-19.000 years. People have improved barley in different parts of the world starting from 10.000 years ago and developed the barley we use today. Barley is resistant to heat and cold and it can be produced in all types of soil which are not too dry or too marshy. Barley is the fourth most produced product in the world following corn, wheat and rice; and it has the second place in Turkey following the wheat. Barley was consumed as an important food source by millions of people since the Neolithic period, but today it is mostly used as animal fodder and for beer production. In 1980s, its nutritive value was understood in Europe and America, so it had appeared in food sector again. But, the importance of barley for food did not change for some cultures in Asia and North Africa since the first ages. Also, in Polar Regions and in mountainous areas where wheat cannot be cultivated, barley is produced and used as a food product. Today, 65 percent of worldwide barley production is used as animal fodder, 33 percent for malt beer, whiskey and biodiesel production and 2 percent is used in food industry. In Turkey, 90 percent of the consumption is as fodder, while the remaining part is used in beer and food industry. The amount used in food industry is very low, as the amount used for beer industry gradually increases. Barley used as fodder has to contain high protein rates. High amount of husk decreases the nutritive value. Therefore, barley with high protein and low husk is used for fodder. For the barley used in beer production, the protein levels are expected to be low (9-10,5 %). Therefore, the malt required for beer production is obtained from binary lined white barley. BARLEY PRODUCTION IN THE WORLD AND MAJOR PRODUCERS According to the report of International Grain Council (IGC) dated June 25, 215; barley production in the world was 129 million tons in 2012/13 season, and it has risen to 145 million tons in 2013/14 season, followed by a drop to 141 million tons in 2014/15. IGC has predicted 137 million tons of production for the 2015/16 season in May, and updated this assumption to 136 million tons in June by decreasing 1 million. This means a decrease of 5 million tons when compared with the previous season. The data of United States Department of Agriculture Foreign Agriculture Service (USDA FAS) on production are compatible with IGC. But, the assumptions of USDA data for 2015/16 season are 2 million tons more. USDA has made a prediction of 139,6 million tons of barley production for 2015/16 season in May, and dropped this by 1 million tons in June. But, this new assumption of 138,4 million tons is still 2 million tons more than IGC predictions. According to USDA data, European Union countries take the lead in world barley production for 2014/15 season with 60 million tons. It is assumed that the barley production of European Union countries will drop in 2015/16 season and be realized as 58,5 million tons. The biggest producer as a single country is Russia. Russia has produced 20 million tons of barley in 2014/15 season and it is predicted that this amount will be 16,5 million tons for 2015/16 season. Ukraine follows Russia with 9,4 million tons in 2014/15 season. It is assumed that the barley production will drop in Ukraine, as in European Union and in Russia, for 2015/16 season (6 million tons). Australia has the 4th place, following Ukraine; but it experiences a different case. Australia has produced 7,9 million tons of barley in 2014/15 season, and it is assumed that this amount will increase to 8,6 million tons in 2015/16 season, thereby the country will have the second place in world barley production. Canada (7,1 million tons) and Turkey (7 million tons) follow these countries. USA has the seventh place in world barley production with 3,8 million tons of production. But, the USDA data on the barley production in Turkey do not match with the data provided by Turkish Statistical Institute. There is a difference between the TUIK and USDA data. WORLD BARLEY CONSUMPTION AND MAJOR CONSUMER COUNTRIES When we consider the barley consumption worldwide, we see that world consumption was always a little bit more than the production, except for 2013/14 season. According to IGC report, there was 129 million tons of production and 133 million tons of consumption in 2012/13 season. Consumption was 141 million tons in 2014/14 season, and it reached to 142 million tons in 2014/15 season. Production in the same period was consecutively 145 and 141 million tons. It is also assumed that the amount of consumption will be more than production for 2015/15 season. But it is assumed that the total consumption will be less than the amount in previous seasons. According to the report of IGC, world barley consumption will be 138 million tons, in parallel with the decrease in production. USDA has almost the same numbers with IGC about the consumption data for previous seasons, but it points higher numbers for production and consumption in 2015/16 season. According to USDA, world barley production will be around 141 million tons in 2015/16 season, just like the previous season. According to USDA data, the highest rate of barley consumption, as in its production, belongs to European Union countries. European Union has consumed 51-53 tons of barley between 2011/12 and 2014/15 seasons. Russia continues to take the lead as single country in world barley consumption. Russia’s barley consumption rate for 2014/15 season is 14,1 million tons. Other countries are China (9,5 million tons), Saudi Arabia (8 million tons), Canada (6,4 million tons) and Turkey (5,3 million tons). It is assumed that barley consumption of China and Saudi Arabia will decrease in 2015/16 season; as the greatest increase in consumption will be for Turkey with 1,3 million tons. BARLEY TRADE IN WORLD According to IGC data on June 25, barley trade worldwide has risen from 19 to 30 million tons in the last three seasons. But it is assumed that this will drop to 25 million tons in 2015/16 season. USDA data on world barley trade is different than IGC. USDA data also points that the world barley trade has increased, but the numbers are different. According to USDA data, world barley trade was 21,3 million tons in 2011/12 season, and it reached to 22,1 million tons in 2012/13, then 23,8 million tons in 2013/14 and finally to 25,6 million tons in 2014/15 season. The assumption of USDA for 2015/16 season is 23,2 million tons. According to USDA data, 8,5 million tons of total world barley trade (25,6 million tons) in 2014/15 season was done by European Union countries. Australia has the second place with 5,5 million tons. Other countries are Russia (5 million tons), Ukraine (2,7 million tons), Argentina (1,5 million tons) and Canada (1,3 million tons). It is assumed that the export amounts of EU, Russia and Ukraine will drop as the amounts of Argentina and Canada will increase for 2015/16 season. Saudi Arabia has long been in the first place for world barley import. But in 2014/15 season, China has taken the lead. China has imported between 2,5-4,8 million tons of barley between 2011/12 and 2013/14 seasons; and this amount has increased to 8 million tons in 2014/15 season, placing the country on the first place in world barley import. Saudi Arabia has imported around 8,5 million tons of barley between 2011/12 and 2013/14 seasons, but this amount has dropped to 6,5 million tons in 2014/15 season. Saudi Arabia is followed by Iran (1,5 million tons), Japan (1,3 million tons), Jordan (900 thousand tons) and Algeria (750 thousand tons). It is assumed that China’s barley import will decrease by 1 million tons for 2015/16 season, but it will remain at the first place in world barley import. The assumptions for other countries are almost at the same level with 2014/15 season. BARLEY PRODUCTION IN TURKEY Barley can be produced almost in all regions of Turkey and it has the second place after wheat in terms of cultivated area and production. Barley is produced in all regions of Turkey; but the Central Anatolian region (Konya, Eskisehir, Ankara and Kirsehir) and Southeastern Anatolia (Sanliurfa, Diyarbakir and Mardin) are the two important regions for barley production. There is a fluctuation in the cultivated area, production and productivity of barley in Turkey. Highest rate of production was in 2006 between the years 2004-2014. The highest cultivated area between the same years was reached in 2005 and the highest productivity rate was in 2013 According to Turkish Statistical Institute (TUIK) data, Turkey has cultivated barley in 36 million decare of area in 2004, with 9 million tons of production. The cultivated area has reached to its highest level for the last 10 years in 2005 by 36,5 million decares, and the production has risen to 9,5 million tons. In 2006 the production has increased even more. But, in the following years, both the production and the cultivated area have decreased. Turkey had 27,2 million decares of barley cultivation in 2013 with 7,9 million tons of production. In 2014, it can be seen that Turkey has produced 6 million tons of barley on 27,8 million decares of cultivated land. The productivity in the same year is 226 kg per decare. The reason of low rate of productivity of barley in Turkey is the dry production conditions. The production rises and drops depending on climate. The productivity rate in recent years has increased to almost 250 kg. per decare; but the cultivated area has dropped, causing lower production rates. Turkey consumes almost all of its barley production. In Turkey, 90 percent of the consumption is as fodder, while the remaining part is used in beer and food industry. The amount used in food industry is very low, as the amount used for beer industry gradually increases. BARLEY TRADE IN TURKEY According to the data of TUIK, highest amount of barley export in Turkey between the years 2005-2014 was in 2010 with 500 thousand tons. The value of this export is 74,8 million dollars. There are fluctuations in barley tarde of Turkey. Turkey has exported only 3.221 tons of barley in 2011, and this amount has increased to 100 thousand tons in 2012, and decreased to 110 tons in 2013. The amount of exported barley in 2014 is 13 998 tons. The value of this amount is 6,4 million dollars. The barley import of Turkey was 256,811 tons in 2013 and this amount has increased to 675,993 tons in the following season. Between 2005 and 2012, the import amount was above 100 thousand tons only in 2008 (253 thousand tons), but remained below 100 thousand tons in the rest. When we examine the barley import of Turkey on a value-based level, it is seen that the highest import amount was reached in 2014 by 164 million dollars.
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