September 17, 2007

US barley exports up on tight global supplies

Poor barley crops in major producing countries such Ukraine and Australia have shoot up the grain's exports from the United States, according to president and CEO of US Grains Council Ken Hobbie.

As growing and production problems hound barley producers Ukraine and Australia, US farmers are currently filling the world supply gap left by tripling US barley exports from last year's level, said Hobbie.

In the past month, world barley prices have jumped US$80 per tonne, which is a 25 percent increase, to a record US$350 per tonne. The Ukraine previously accounted for 16 percent of world exports until government restrictions on exports and adverse weather conditions hampered global trade. In addition, Australia, which normally supplies one-third of world exports, is also facing lower crop prospects and depleted old crop exportable supplies, according to statistics by the US Department of Agriculture.

Hobbie said the increase was also due to USGC's programmes across the globe on educating feed mills and other importers of the benefits of US barley as a feed alternative. The Council currently has feeding trials encouraging the use of barley in the livestock sector in Mexico, Japan, Taiwan and Vietnam. Hobbie said the Council is planning to conduct feeding trials in Mexico using barley and distiller's dried grains. In December, trials will be conducted in Vietnam's aquaculture sector using barley as the feed ingredient.

Free trade agreements currently up for review by Congress will create additional opportunities for US barley producers, according to Kevin Natz, USGC's trade policy director.

The Congress' final approval of free trade pacts with Peru, Panama, Colombia and South Korea will give the USGC an opportunity to heighten demand and broaden access for feed barley, he said.