Exports to Laos may increase pressure on malting barley prices in Russia

Laos is showing interest in Russian malting barley, which opens up new opportunities for external supplies, but at the same time increases risks for the domestic market. At the Eastern Economic Forum, Lao Prime Minister Sonxai Siphandon announced plans to produce national beer using Russian raw materials, stressing that the country intends to buy barley from Russia along with equipment and fertilizers. To ensure logistics, Russia is considering routes through China and Vietnam, which will expand the volume of container traffic.

Although the beer market in Laos is small — about 30 million dal per year – its provision will require about 42 thousand tons of malt or 53 thousand tons of malting barley. Against the background of lower yields and export restrictions, even such a volume can affect the situation. In 2024, the gross harvest of barley in Russia amounted to over 16 million tons, which is lower than last year’s level, and exports in the 2023/2024 season fell from 9 to 4.6 million tons in 2024/2025. An additional factor was the introduction of a zero export quota from February 15 to June 30, 2025, aimed at prioritizing the domestic market.

Nevertheless, demand from Laos and other external partners will continue, and with a malting barley harvest of about 1.7–2.1 million tons, the balance remains tense. Even a relatively small new contract in Asia can additionally “take away” tens of thousands of tons from the available supply within the country. This will lead to increased competition between breweries and higher prices for raw materials.