Barley manufacturing has fluctuated as a consequence of hurdles starting from unpredictable climate to rising prices. This has prompted farmers to plant lower-risk crops like wheat, oats, or canola, disrupting manufacturing and market stability and rising uncertainty within the business.
Picture: Magda du Toit
Completely different manufacturing elements comparable to cultivar alternative, planting date, planting density, nitrogen fertilisation, and irrigation all have an effect on a barley crop’s yield and malt high quality. Amid these difficulties, the entry of a brand new purchaser affords the potential to reposition barley as a resilient, aggressive, and worthwhile crop in South Africa.
Opening a panel dialogue at Nampo Cape on Friday, 12 September, José de Kock, chairperson of Grain SA’s Barley Trade Committee, stated barley manufacturing in South Africa was at a low, and the business urgently wanted a brand new impetus to make the crop enticing to farmers once more.
“At current, the danger is there and the incentives aren’t sufficient to make the crop enticing in order that farmers are keen to take that threat,” he defined.
He identified that the barley yield was not maintaining with that of different crops and cited that as the rationale for farmers shifting to different crops, particularly within the Overberg space. “The dangers related to barley manufacturing may be seen as the primary motive for the decline in [area planted to barley].”
Stressing the difficulty additional, Johan Lusse, common supervisor of grain and grain companies at Overberg Agri, said that points with high quality had been one of many predominant contributors to barley’s threat profile.
“Some 15% to twenty% of the barley crop usually doesn’t meet the standard requirements and is then downgraded to feed barley. This not solely presents a problem on the manufacturing and profitability aspect for the farmer but additionally creates extra challenges inside the silo business,” Lusse defined.
He added that germination of saved seed throughout storage contributed to subsequent season’s grain high quality challenges.
Soufflet Malt, one of many world’s largest malt producers, has entered right into a business partnership with Heineken Drinks in South Africa. The previous is investing R2 billion in constructing a brand new malting plant in South Africa and can provide malt to Heineken South Africa.
This facility will produce 100 000t of malt yearly utilizing superior photo voltaic and trigeneration expertise to cut back emissions and can rely fully on native barley, sourced by partnerships and coaching with South African farmers.
This follows Heineken’s acquisition of Distell and Namibia Breweries, which enabled the consolidation of operations beneath Heineken Drinks. The funding underscores confidence in South Africa’s agribusiness potential amid a world surge in demand for beer and malt-based merchandise.
Through the panel dialogue, each Jérémy Antier, common supervisor Soufflet Malt South Africa, and Deon de Moist, senior programme supervisor for agricultural worth chain improvement at Heineken Drinks South Africa, reiterated the businesses’ dedication to purchasing native barley.
Soufflet Malt has been working within the numerous barley-producing areas for the previous seven years, constructing long-term partnerships with business and rising farmers. By way of coaching, mentoring, and business help, Soufflet Malt was serving to these producers undertake agronomic greatest practices to develop high-quality, premium barley to fulfill business requirements, Antier stated.
He agreed that there was no have to reinvent the wheel when it got here to setting requirements for the standard evaluation of barley: “The requirements are already there, and they’re workable. We are going to base our procurement on these requirements.”
South Africa’s agriculture sector, a key financial driver, stands to learn as international maltsters like Soufflet deepen their footprint.
Heineken Drinks has made important investments in South Africa not too long ago, reflecting the corporate’s concentrate on increasing native operations.
“The brand new malting plant dovetails with its technique to localise inputs and scale back reliance on imports, a important pivot as foreign money volatility and logistics prices problem African markets,” De Moist stated.
The plan was to acquire 70 000 and 90 000t of barley in 2026 and 2027, respectively, and 125 000t in 2028.
“We’ve three years to place issues in place. We wish to procure barley from all of the manufacturing areas: Overberg, Swartland, Northern Cape, Koedoeskop, and Brits,” Antier defined.
When requested about the necessity to separate the totally different cultivars throughout supply and storage, De Moist defined that as a result of the malting traits of cultivars differed, mixing of cultivars should be prohibited in any respect prices.
“It’ll stay crucial that the totally different cultivars are transported, dealt with, and saved individually. That is essential not solely with a view to the standard and normal of the top product, but additionally to make sure traceability particularly within the case of manufacturing verification,” he added.
Farmers expressed their pleasure in regards to the partnership and the brand new alternatives awaiting them but additionally warned that the businesses wanted their help.
In the identical breath, farmers conveyed their appreciation to the South African Breweries for its dedication and help over a few years.
