Ukraine: interest in malting barley production is steadily growing
The profitability of production of malting barley, which is one of the major crops in the niche segment of the grain market of Ukraine, currently remains rather high.
According to data of the polling, conducted by experts of APK-Inform Agency, in 2012, 75% of the questioned companies got the profit from production of malting barley at the level of below 30% (in 2011 the share of these companies totaled 86%). In particular, in 2012 the share of companies with the profitability of below 10% totaled 36%, with the profitability within 10-20% - 26%, and with the profitability of 21-30% - 13%.
Besides, in recent seasons Ukraine faced an increased interest in malting barley from agricultural producers. The situation is facilitated by sufficiently attractive grain prices and the stable demand on the domestic market. According to the monitoring data of APK-Inform Agency, the difference between the bid prices for malting and feed barley on EXW terms reached 670 UAH/t (2300 UAH/t against 1630 UAH/t, respectively).
Therefore, APK-Inform Agency forecasts the further increase of production and processing volumes of the grain in the following seasons.
The market of niche crops of Ukraine (malting barley, sorghum, peas, oats, millet, buckwheat, rye, rice, mustard seed, flaxseed) is analyzed in detail in the same-name study of our Agency, which can be purchased by calling: +38 0562 32 15 95 (ext. 115), +7 (495) 789 44 19,
or by email: firstname.lastname@example.org .
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