MAGB Malting Barley breakfast meeting supported by

MAGB Malting Barley breakfast meeting
supported by HGCA (incorporating Meet the
Processor)
Tuesday 21 January 2014
Fakenham Racecourse, followed by tour at Crisp Malting
Group Ltd
Malting Barley Market Outlook
Dr Amandeep Kaur Purewal
Senior Analyst - Cereals & Oilseeds
AHDB Market Intelligence
Global Grains Production - predicted to
break records this year
Production & Consumption (Mt)
2,500
2,300
2,100
1,900
1,700
1,500
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
Jan. f'cast
Source: USDA
As a result, prices move lower – particularly
for maize
UK feed wheat
Paris m. wheat
Chicago m. wheat
Chicago maize
220
200
£ per tonne
180
160
140
120
100
Source: AHDB/HGCA
Global Maize S&D - a much needed surplus,
but not out of the woods
Production
Consumption
STU
20%
950
900
15%
850
10%
800
STU (%)
Production & Consumption (Mt)
1000
750
5%
700
650
600
0%
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14 Jan
f'cast
Source: USDA
Global Wheat S&D - persistent premiums to
maize could undermine feed demand
Production
Consumption
STU
35
690
30
670
25
650
630
20
610
590
15
570
550
10
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14 Jan
f'cast
Source: USDA
STU (%)
Production & Consumption (Mt)
710
Global Barley S&D - uplift in production, but
no major stock rebuild
Consumption
STU
30
150
25
140
20
130
15
120
10
110
5
Stocks-to-use (STU) ratio (%)
Production & Consumption (Mt)
Production
160
0
100
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14 Jan
f'cast
Source: USDA
Year-on-year change in global barley
availability from main suppliers
Canada
P: +1.4Mt
E: +0.2Mt
P = Production
E = Exports
EU-28
P: +4.8Mt
E: -0.3Mt
Argentina
P: -0.7Mt
E: +0.7Mt
Ukraine
P: +0.5Mt
E: 0Mt
Russia
P: +2.6Mt
E: +0.3Mt
Australia
P: +0.7Mt
E: -0.4Mt
Global production 2012/13: 129.5Mt; 2013/14 forecast: 142.8Mt
Total exports 2012/13: 19.5Mt; 2013/14 forecast: 19.1Mt
Source: IGC
EU Barley S&D – good export pace so far,
but likely to slow down
Exports (LH axis)
Stocks-to-use (RH axis)
80
35%
70
30%
M tonnes
60
7.8
50
7.0
25%
20%
40
15%
30
10%
20
Stocks-to-use
Dom. Demand (LH axis)
Total supply (LH axis)
5%
10
0%
0
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
Dec f'cast
Source: EU Commission
EU Malting Barley prices
UK malting barley, S.Coast
French, feed barley
French, malting barley
Euros per tonne
270
240
210
180
150
Source: RM International
UK Situation
UK wheat production and demand - stocks,
imports and alternative feed grains important
Domestic demand
Production
18
17
M tonnes
16
15
14
13
12
11
10
Harvest year
Source: AHDB/HGCA, Defra
UK barley production and demand - largest
crop in 15 yrs = more feed demand / exports
BMD* demand
Feed demand
Production
8
7
M tonnes
6
5
4
3
2
1
0
Harvest year
Source: AHDB/HGCA, Defra
How are we dealing with the biggest
barley crop in 15 years?
Barley usage (Jul-Nov)
Brewing, distilling & malting
Exports
GB feed compounders and IPU*
2,000
1,800
Other key areas
1,600
K tonnes
1,400
1,200
1,000
636
202
245
436
800
390
333
333
690
723
404
341
398
386
280
391
320
385
673
720
735
On farm feeding
424
End season
stocks
600
400
767
634
200
776
Intervention
0
*Integrated Poultry Units
Source: Defra, HMR&C
England & Wales ex-farm wheat and
barley prices
Feed wheat
Malting barley
Feed barley
210
£ per tonne
190
170
150
130
110
90
70
2009/10
2010/11
2011/12
2012/13
2013/14
Source: AHDB/HGCA
UK Malting Barley Market
The geography of UK malting barley–strong
distilling demand using more English barley
Strong distilling demand
Northern England moving
toward spring distilling
varieties
E. Anglia typically in deficit,
but looking at distilling
demand
South of England remains
key for exports and
regional ‘buffering’
Source: AHDB/HGCA
UK malt exports - a key fulfiller of malting
capacity, but now a reduced need
UK malt exports (Jul-Nov)
200
180
160
‘000s Tonnes
140
120
100
80
60
40
20
0
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14
Source: HMR&C
Outlook
Five-year global outlook for barley - 1.8%
average increase in production
Production
Demand
155
150
145
Tonnes
140
135
130
125
120
115
12/13
13/14
14/15
15/16
16/17
17/18
18/19
Source: IGC
EU barley prospects for 2014 - forecast 8%
drop in spring area could be useful
EU-28 total barley area
Winter
Key northern EU spring barley
producers
Spring
2012
14
2013
2014 f'cast
1.2
12
1
8
7.93
7.51
6
0.6
0.4
4
2
0.8
6.94
M Ha
M Ha
10
4.52
4.8
4.84
0.2
0
0
2012
2013
2014 f'cast
Source: Strategie Grains
Summary
• Grain prices are lower due to record global production this year
• However, recovery in global grain demand and strong EU
exports have helped provide some support
• UK barley exports to non-EU countries are important to deal
with the largest crop in 15 years - but face competition due to
higher global production
• 2014 may provide better opportunities with lower EU/UK
spring barley areas expected
Thank you
[email protected]
Grain skinning: What can growers do to
help hit malting specification?
Dhan Bhandari
Research & KT Manager
HGCA
Slides courtesy of Maree Brennan and Steve Hoad Crop Science Team, SRUC
Grain skinning & UK malting
Detachment of the barley husk (skinning ) reduces malting efficiency
- wasted time coping with variability
- over-modification, loss of sugar to plant
Malting:
Barley
Steeping
Germination
Water uptake for
germination
Conversion of
starch to sugars
Kilning
Germination
halted
The whole supply chain is affected:
Breeders  Growers  Maltsters  Brewers & Distillers
“Hassle”
“Despair”
“Extra work”
“Unbelievable”
25
What are we doing?
Helping industry to grow varieties
with no physical defects
Variety Improvement – funded by
BBSRC’s Crop Improvement
Research Club
• Characterise varieties
• Grain structure and genetics
• Grain assessment and variety screening
Industry intelligence – funded by
HGCA
•
•
•
•
Industry samples and data
Field screening tests
Industry protocols
Identify risk factors
from: Maree Brennan & Steve Hoad (SRUC)
Outputs so far…
• Development of variety screens for breeders
• Developing a new scoring protocol for industry
• Identifying risk factors to inform growers
from: Maree Brennan, Steve Hoad, Linda McCloskey and Kairsty Topp (SRUC)
27
Skinning weakness was
evident in 2012
• Wide range of skinning (4% to 67%) recorded in field trial
• Many Recommended List varieties ( ) performed poorly
• Dispelling industry myth that brewing varieties ( ) are resistant
*
from: Maree Brennan & Steve Hoad (SRUC) and Bill Thomas (JHI)
28
Screening for grain skinning
Controlled environment screens are being compared to help the industry
identify resistant and susceptible varieties
- misting post-anthesis simulated a summer with wet and dry spells
- shading post-anthesis simulated low light and poor grain-filling (2012)
Misting
Shading
29
Tests for grain skinning
Grains must be subjected to mechanical force to distinguish varietal
susceptibility to skinning (coded A to F)
In this test, hand-harvested ears were mechanically threshed for 5 or 20
seconds
18
% Skinned grains
16
14
Hand
5s
20 s
12
10
8
6
4
2
0
A
B
C
D
E
F
30
Results from the misting screen
Varieties with larger grains
are not more susceptible to
skinning
Varietal differences must be
caused by other factors
% Skinning
Grain wt
Wt loss
Ear length
Floret #
Grain #
31
Identifying high- and low-risk
varieties
Phenotypic expression among contrasting environments
- 2012 field trial at JHI, Dundee (poor grain-filling)
- 2013 field trial at SRUC, Edinburgh (more typical season)
- Glasshouse post-anthesis misting screen (wetting and drying effect)
Test for significance of rank order among environments
- Kendall’s coefficient of concordance, W
32
High- and low-risk varieties
Skinning expressed relative to the population mean
The final order is based on the average rank across environments
4
W = 0.525, P = 0.011
2012
2013
Misting
Skinning (relative to mean)
3.5
3
2.5
2
1.5
1
0.5
0
33
Understanding the husk
adhesion process
A lipid cementing layer is required for husk adhesion
The structure of this layer gives insight into varietal differences in
husk-caryopsis adhesion
Testa
Cementing layer
Aleurone
Endosperm
Pericarp
Cuticle proper
Cuticle
Husk
Cuticular layer
Cell wall
34
Have we found the glue?
Le
Pe
35
Summary of findings so far…
• Most current varieties had some weakness in 2012, a year of poor grainfilling and a prolonged harvesting period
• Crops were much less susceptible in 2013, though weaker varieties
skinned under SRUC under lab tests
• Skinning can be induced by repeated (prolonged) wet-dry spells
• Dispelled the myth that brewing varieties were less susceptible to
skinning
• Variety and environmental influences on a glue-like material are being
investigated
from: Maree Brennan & Steve Hoad (SRUC)
36
What can growers do?
• It is too early to recommend a low risk variety, but some variety differentiation
is emerging
• Follow the HGCA Project on ‘Supporting UK malting barley with improved
market intelligence on grain skinning’
 A variety guide to skinning will be an output from this project
• Ideally, grow more than one variety to reduce risk in a bad year
• Liaise with maltsters on revised thresholds in a difficult season
• Consider changes to combine settings to reduce abrasive/handling effects on
weaker varieties
• Attention to plant health: Although too soon to confirm, avoidance of plant
stress before flowering and during grain-filling should help to offset any
mismatch between husk and grain development
37
Project Team
Maree Brennan
SRUC, Post-Doctoral Research Assistant
Christine Hackett
JHI, Data Management
Pete Hedley
JHI, Genome Facility
Steve Hoad
SRUC, Principal Investigator
Monika Lenty
SRUC, PhD Student
Linda McCloskey
SRUC, Technical Support
Brian Pool
SRUC, Glasshouse
Tom Shepherd
JHI, Lipid Analysis
Bill Thomas
JHI, Principal Investigator
Kairsty Topp
SRUC, Data Management
Thank you, Any Questions?
Market requirements from a maltster’s
perspective
Bob King
Commercial Director
Crisp Malting Group
Malting Barley Production and Purchases
East Anglia Planted Areas
800
Thousand Ha
700
600
500
400
300
200
100
0
Wheat
Barley
Total Cereals
Oil Seed Rape
Source: Defra
East Anglia Barley Areas
Thousand Ha
120
100
80
60
40
20
0
Winter Barley
Spring Barley
Source: Defra
East Anglia Barley Production
1200
Thousand tonnes
1000
800
600
400
200
0
2001
2002
2003
2004
Winter Barley
2005
2006
2007
2008
Spring Barley
2009
2010
Total Barley
MAGB England Malting Barley
Purchases
1400000
1200000
Tonnes
1000000
800000
600000
400000
200000
0
Winter
Spring
2011
Total
2012
2013
Source: Defra
Malt Market
UK malt supply by sector –
Free market
700
600
Thousand tonnes
500
400
300
200
100
0
2006
2007
2008
Brewing
2009
Distilling
2010
Food
2011
2012
2013E
Export
Source: MAGB Industry data
Usage of UK Produced Malt 2013E
Distilling
Brewing
Export
Food
East Anglia Malting Capacity 2014
MAGB Members ‘Wish List’ 2014
Malting Barley Specifications
Importance of Barley Specification
• High quality malt requires high quality malting barley
• Malting barley specification ensures that customer malt
specification requirements can be achieved
• Ensuring that the malting barley delivered meets specification is
key control activity
Quality Requirements
•
•
•
•
•
•
Germination – 98%+
Moisture
Grain size
Grain nitrogen – wish list
Admixture
Food Safety
Importance of Germinative
Capacity
• Germinative capacity measures the viability of the barley
• The changes that convert barley to malt wholly dependent on the
grains ability to germinate
• Non-viable grains do not germinate and pass through the malting
process unchanged
• These non-germinated grains will have a significant detrimental
effect on malt quality
Importance of Moisture Content
• Risk that high moisture barley may have damaged germinative
capacity
• Storage of high moisture barley for even short time period can
result in fungal growth and possible mycotoxin formation
• Legal limits in place for ochratoxin A (OTA) which may be result
from fungal growth
• Visit www.hgca.com/grainstorage for management information
and tools
Field mycotoxins
• Legal maximum levels apply to DON and ZEA when cereals are
offered to the market – due diligence analysis programmes are
run by malting companies
• Maltsters are also participating in UK data collection of levels of
T-2 and HT-2 mycotoxins
Importance of Grain Size
• Small grains will be lost during grading of barley
• Small grains high in nitrogen, low in extract
• Small grains absorb water rapidly
Importance of Nitrogen Content
• Correct nitrogen content of resultant malt important for
brewing/distilling performance
• Customer sets acceptable malt nitrogen range based on product
type and process
Importance of Other Specification
Items
• Admixture
• Important to keep foreign material out of the malting and brewing process
• Varietal purity
• Individual varieties will require specific processing conditions to optimise
malt quality
• Pregerminated/split/skinned grains
• Damage of this nature renders the grain problematic to handle and malt
leading to poorer malt quality
Varieties
IBD Approved List Harvest 2014
WINTER
SPRING
SPRING
SPRING
VARIETIES
VARIETIES
VARIETIES FOR VARIETIES FOR
MALT
GRAIN
FOR BREWING FOR BREWING
USE
USE
DISTILLING USE DISTILLING USE
Full Approval
Pearl Flagon C
NFC Tipple
assata Venture Concerto Propino
Optic Belgravia
Concerto
Moonshine
Odyssey
Provisional
Approval 2
Archer
Odyssey
Overture
Overture
Provisional
Approval 1
Talisman
Sanette
Glassel
Belgravia
HGCA Recommended List 2014
Spring malting varieties
Variety
Breeder
Parentage
HGCA
Recommendation
IBD
Approval
Sanette
Syngenta
Summit x Yard
Full UK
Prov 1 brewing
KWS Aurelia
KWS UK
(Conchita x Quench) xQuench
Full UK
Under evaluation
Odyssey
Limagrain
Concerto x Quench
Full UK
Full brewing & Prov 1 malt distilling
Syngenta
Quench x NFC Tipple
Full UK
Full Brewing
Secobra
Quench x Belgravia
Full UK
Under evaluation
Overture
Limagrain
Concerto x Quench
Full UK
Prov 1 brewing & malt distilling
Glassel
Syngenta
Summit x Belgravia
Full UK
Prov 1 malt distilling
Quench
Syngenta
Sebastian x Drum
Full UK
No longer approved
KWS UK
Conchita x Quench
Full UK
Under evaluation
Limagrain
Minstrel x Westminster
Full UK
Full brewing & malt distilling
Syngenta
SY Taberna x Marionette
Full UK
Under evaluation
RAGT
Toucan x Class
Full N East
Full malt distilling
Propino
Hacker
New
KWS Irina
New
Concerto
Shaloo
New
Moonshine
NFC Tipple
Syngenta
(NFC 497 x Cork) x Vortex
Full UK
Full brewing
Belgravia
Limagrain
Minstrel x Westminster
Full N East
Full malt & grain distilling use
Optic
Syngenta
Chad x (Corniche x Force)
Full UK
Full malt distilling / No longer approved
for brewing
HGCA Recommended List 2014/15
Winter malting varieties
Variety
Breeder
Parentage
HGCA
Recommendation
IBD
Approval
Talisman
Senova
Flagon x Retriever
Full UK
Prov 1 Brewing
SY Venture
Syngenta
DH9525 x Retriever
Full UK
Full Brewing
Archer
Limagrain
NSL01- 8026 x Jonathan
Full UK
Prov 2 Brewing
Winsome
Syngenta
Flagon x NFC 7169-01
Full UK
No longer approved
Cassata
Limagrain
Opal x NSL 96/7517
Specific (BaYMV)
Full brewing
Flagon
Syngenta
(NFC296-7 x Rifle) x Pearl
Full UK
Full brewing
Pearl
Limagrain
Puffin x Angora
Full UK
Full brewing
Malting Barley Prospects 2014
Malting Barley Prospects
Crop 2014
• Crop 2013 marketing not finished yet
• Bearish feel to market - surplus of crop 2013 UK malting barley,
low premiums
• Crop 2014 winter malting barley area slightly down, but still
sufficient
• Reduction in crop 2014 spring plantings in England
• Return of more ‘normal’ malting premiums
East Anglia Crop 2014
• East Anglia will continue to have a deficit of malting barley
• East Anglia maltings will continue to move production into the
expanding distilling market as brewing continues to decline
• Variety and nitrogen will depend on market
• Distilling requires low nitrogen, zero GN varieties – Concerto,
Odyssey
• Domestic brewing can use both winter and spring with range of
nitrogens
• Exports mainly mid-range springs
• Each maltings will have their own specific requirements – check
with your merchant
Thank you