W10 Malt Update: Ethiopia's New Malt Plants Boost Local Barley Production, Challenges Faced by US Beer Industry, Global Beer Market Shifts to Emerging Economies

Ethiopia Enhances Barley Production with New Malt Plants

Ethiopia is set to enhance its barley production as several large breweries have initiated projects there. For instance, Soufflet Malt Ethiopia built a new malting plant in the Bole-Lemi Industrial Park on the outskirts of Addis Ababa, in collaboration with Actemium Morocco. The project aims to initially produce 60 thousand metric tons (mt) of malt to meet the local beer market and eventually scale it up to 110 thousand mt. Being the largest barley producer in East Africa, this development is expected to boost the country's economy and create local employment opportunities.

Beer Industry Seeking New Barley Varieties As Production of US Barley Faces Challenges

As climate change continues to impact the malting barley production in the United States (US), the beer industry is looking for new varieties to sustain its supply. Drought conditions in the American Northwest have led to a 30% year-on-year (YoY) decrease in malting barley yields in 2021. To address this issue, land-grant universities have been shifting their malting barley sights to regions that historically haven’t been able to grow the critical crop successfully. Researchers have been developing new winter barley varieties and testing them from North Carolina to Oregon.

Brewers and Maltsters Face Dilemma as Global Beer Production Shifts to Emerging Markets

Global beer production increases significantly in emerging markets where demand is growing rapidly. This shift creates a dilemma for brewers and maltsters as the bulk of barley production remains in Europe and North America, while the center of the global beer market has moved to emerging markets. According to Rabobank, malt production is expected to shift to emerging regions, with India being a potential regional hub.