Mergers & Collaborations to Stimulate the Production Sales of Barley

Barley Market

Rapid growth in the use of barley within the food & beverage industry will significantly fuel the market growth. There is increasing merger and collaborations between key players in order to expand their product offerings. New production facilities have been emerging to meet the increasing consumer demands for barley products. Apart from this, there is considerable rise in the consumption of barley across the world, which in turn is influencing the manufacturers to increase the production of barley on a larger basis. However, lack of usage of barley in other applications can pose challenges for the barley market in the forthcoming years.

A recent report anticipates that the barley market will expand at a sluggish 3.3% CAGR during the forecast period, 2016-2026, to reach an evaluation of more than US$ 28Bn by 2026-end. Companies namely Cargill, Incorporated, Briess Malt & Ingredients Co., Grain Millers, Inc., IREKS GmbH, The Soufflet Group, Malt Products Corporation, Maltexco S.A. (Malterias Unidas S.A.), GlobalMalt GmbH & Co. KG and Malteurop Groupe S.A. amongst others will witness a notable growth globally. Prominent companies are planning to focus on marketing strategies such as product innovations and increasing their product portfolio.

Cargill, Incorporated Closes Its North Dakota Factory

Cargill, Incorporated recently announced that it has closed its North Dakota factory that processed barley into malt. Key players and manufacturers must note that there has been considerable shift of beer drinkers from American lagers towards craft brews. This in turn has led to downfall in the production of barley in the Midwest. This trend influenced Cargill, Incorporated to shut down its North Dakota Factory. The main focal point is that Minnetonka-based agribusiness had been witnessing considerable decrease in the demand for their beer products, consisting of the six-row barley. These barleys were the ones typically grown by the farmers in Minnesota and North Dakota.

Manufacturers must work towards increasing the production sales of two-row barley as there is considerable consumer demand for the same. U.S. states in the West are witnessing increasing demand for two-row barley since the recent past. Therefore, key players and manufacturers can focus on investing in the region as well as enter into collaborations with Cargill, Incorporated in the forthcoming years. Moreover, the company is focusing on developing the effectiveness of its supply chain as well as plants.

Apart from this, the closing of North Dakota plant has affected Great River Energy, which is Maple Grove-based. The power plant – Spiritwood Station delivers waste steam to the malt plant of Cargill, Incorporated along with the nearby ethanol plant. Moreover, large domestic breweries are also decreasing the usage of barley and related products.

Key players and manufacturers are expected to develop products in a way that they cater to the profile of craft brewers, thereby being less susceptible to any kind of diseases. Cargill, Incorporated had informed that it has been taking immense efforts in operating in 16 malting facilities across the globe, which is inclusive of Biggar, Saskatchewan and Sheboygan, Wisconsin, owing to the fact that two-row barley has been observing considerable demand in that region.

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