When brewers realize that it is necessary to hold together, the industry to develop harmoniously – A.Mordovin
In order to continue the niche crops subject we paid attention on the malting barley. In the recent year in Russia on the malting barley market there have been different tendencies of its production. What caused the current situation and will “Beijing program 2012-2015” help to change the situation of the malting barley on the grain market of the Russian Federation told the President of Barley, malt and beer Union, Alexander Mordovin.
- What is the dynamics of the malting barley production in Russia in the recent years?
In 2007 and 208 the country produced 2.5 mln tonnes of barley owing the beer production increase. At the same time, the followed decrease of the beer production and consumption, and the general economic crisis caused barley crop decrease. Besides it is niche crops which means there is very limited number of its consumers and the large number of producers, besides the costs for agricultural technologies and chemical protection following are significant. Thus due to the certain technical changes in 2011 the malting barley crop totaled 700 thsd tonnes, meanwhile its imports increased to 500 thsd tonnes. In 2012 owing the Federal Law-218 the malting barley production increased by 500 thsd tonnes.
- How will the beer production decrease impact the malting barley production?
The stated fact will not impact because the beer realization due to the decrease of the officially declared volumes does not fall which means there is the stable demand. Unfortunately this will influence on the illegal market of the beer products increase.
- What is the profitability of malting barley production in Russia? Please, also note the price tendencies.
As for the price situation on the barley market, the situation is complicated. If the production is in the agricultural project, the prices could reach 9 thsd RUR on the basis of Free on wagon supplier station. At the same time the free market prices is at the level of 7000-7800 RUR/tonne. But it depends on the barley qualitative parameters. As for the profitability, it is at the level of nearly 50% if you produce barley not for the first time.
- Provide us with the details of “Beijing program 2012-2015”.
China is the largest beer producer, and the country produces nearly 49 bln l of beer annually while importing over 2 mln tonnes of malting barley mostly from Canada, Australia, EU. But still there is no Russia in the suppliers list, though we have everything to be in. Thus our Union in cooperation with Chinese colleagues under the support of the Ministries developed the program “Beijing program 2012-2015”.
Chinese brewers are not interested in the domestic raw-material because the producing companies are small-scale and are not able to provide with homogeneous parties of barley. Also malting barley is the only grain in China which does not receive donation from the government, so China faces interest for Russian products. The forecasted volume of the Russian malting barley exports to China totals nearly 5 mln tonnes.
- And how do you plan to reach the stated production volumes of malting barley?
In Russia the farmers produce nearly 90% of feed barley and 10% of malting one. We have the grade owing both qualitative parameters. And if you follow the agrarian technologies you can get only malting or feed barley. But there are some who do not follow them, because in order to sell malting barley to brewing companies the protein content should be at the level of 12%, and the maximum use for live-stock is when you feed it with 15% protein content barley.
Interviewed by EvgeniyaSeverina
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