Malting barley price increase: reasons and forecast

Malting barley prices continue to rise, and experts expect this trend to continue in 2025. The reason was a decrease in the harvest in 2024 due to adverse weather. The gross harvest of barley decreased by -27.4% compared to the previous year, according to Rosstat, to 17.9 million tons in bunker weight, which is due to a decrease in acreage by 13%, May frosts and a dry summer.

According to StatBeer, the gross harvest of malting barley decreased by -16.7% compared to the previous year to 2 million tons. At the same time, the production of beer and beer drinks in Russia increased by 10.1% in the ten months of 2024, while market participants doubt the announced growth in beer production, paying attention to the fact that the real growth is likely to be within the lower single digits.

The increase in prices for malting barley, which has risen in price by more than 21.4% (from 13.3 to 15.9 thousand rubles per ton from August to December 2024), increases the pressure on the cost of beer products. If the trend continues, manufacturers will have to revise prices or look for ways to optimize production.

For a more detailed and in-depth analysis of the current market situation and factors affecting the business, we recommend that you familiarize yourself with our analytical materials, which will help you better understand current trends and forecasts.