In September, beer production is growing (+14.1%), malt production is falling (-7.6%)

In Russia, beer production increased significantly in September 2024, increasing by as much as 14.1%. Such an increase can be attributed to the abnormally hot September – historical highs were updated in a number of regions. Also, the increase in production can be associated with the introduction of the “Chestny Znak” system not only in production, but also in retail. However, against the background of the growth of beer production, the opposite trend is observed in the production of malt, a key ingredient for beer production.

In September 2024, malt production decreased by 7.6% compared to September 2023, in the 3rd quarter of 2024, malt production decreased by 1.7% compared to 2023. This decrease is a consequence of logistical and production difficulties in the Kursk region due to the KTO regime and the active use of previously accumulated reserves of raw materials.

In conditions of increased demand and growth in beer production, barley stocks are depleted much faster than they were in the previous 4 years and reached a minimum of 1.6 million tons against 2 million tons a year earlier. Under these conditions, the price of malting barley will continue to rise.