Barley's Place in Global Market Promising

Issue 1
March 1996
Barley's Place in Global Market Promising

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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
Of U.S. feed grains production, barley declined the least last year, with estimated production of 361 million bushels down 14 million from 1994, according to the USDA. Still, 1995 yielded the smallest barley crop since 1988, and total barley supplies are expected to fall to the lowest level since the mid 1970s, because of low carry-in stocks and reduced imports from Canada.
So said Mike Seeger, Minnesota Barley Council chairman and secretary of the U.S. Feed Grains Council (USFGC), at Red River Valley Barley Day held earlier this winter in Grand Forks.

Seeger said malting barley prices are the highest since 1988, with the feed price highest since at least June of 1981. That's partly because acres planted to barley in 1995 were the lowest since plantings were first estimated in 1926, and the acres harvested for grain the lowest since 1903. Barley acres should rebound in 1996, and Seeger said he remains optimistic for a continuation of the strong barley price. "Because barley comes off before corn, there are opportunities for good prices, and that includes the new crop."

Seeger said Saudi Arabia accounts for 50 percent of barley imports in the Middle East. The country has attempted to become more self-sufficient in the production of small grains, by irrigating and subsidizing at a rate of about $10 per bushel for wheat and $6 to $7 per bushel for barley. The United States has an export opportunity in Saudi Arabia, because the desert country may fast be realizing that its experiment in independent small grains production isn't making economic sense.

"Obviously, there are some advantages, such as cheap fuel costs. But they have their own set of problems," said Seeger, who visited Saudi Arabia on a USFGC trade mission in 1994. "For example, I saw a $1 million water well, dug about one-half mile deep, with cooling towers to cool water so the irrigation spray doesn't burn the crop. And they have salt problems to contend with too."

Copyright Prairie
Grains Magazine
March 1996

Issue 1 March 1996	Barley's Place in Global Market Promising

Library Home E-Mail Back Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.	Of U.S. feed grains production, barley declined the least last year, with estimated production of 361 million bushels down 14 million from 1994, according to the USDA. Still, 1995 yielded the smallest barley crop since 1988, and total barley supplies are expected to fall to the lowest level since the mid 1970s, because of low carry-in stocks and reduced imports from Canada. So said Mike Seeger, Minnesota Barley Council chairman and secretary of the U.S. Feed Grains Council (USFGC), at Red River Valley Barley Day held earlier this winter in Grand Forks. Seeger said malting barley prices are the highest since 1988, with the feed price highest since at least June of 1981. That's partly because acres planted to barley in 1995 were the lowest since plantings were first estimated in 1926, and the acres harvested for grain the lowest since 1903. Barley acres should rebound in 1996, and Seeger said he remains optimistic for a continuation of the strong barley price. "Because barley comes off before corn, there are opportunities for good prices, and that includes the new crop." Seeger said Saudi Arabia accounts for 50 percent of barley imports in the Middle East. The country has attempted to become more self-sufficient in the production of small grains, by irrigating and subsidizing at a rate of about $10 per bushel for wheat and $6 to $7 per bushel for barley. The United States has an export opportunity in Saudi Arabia, because the desert country may fast be realizing that its experiment in independent small grains production isn't making economic sense. "Obviously, there are some advantages, such as cheap fuel costs. But they have their own set of problems," said Seeger, who visited Saudi Arabia on a USFGC trade mission in 1994. "For example, I saw a $1 million water well, dug about one-half mile deep, with cooling towers to cool water so the irrigation spray doesn't burn the crop. And they have salt problems to contend with too."
Copyright Prairie Grains Magazine March 1996

Barley's Place in Global Market Promising

Copyright Prairie Grains Magazine March 1996

Copyright Prairie
Grains Magazine
March 1996