Australia Explores Colombia for Barley Export


Apr 17, 2023 | Agricultural Markets News

Reading time: 2 minutes

The Latin American Barley market is projected to reach US$ 2.2 billion in revenue by the end of 2027, growing at a CAGR of 3.5% during the forecast period (2019 to 2027). Rising demand for clean-label products due to the shifting preferences of consumers towards natural and organic food is projected to foster the market growth of Barley. Manufacture in the region is focusing on introducing clean label products by using all the natural ingredients owing to strict government rules and regulations on the usage of food additives are further projected to foster the market growth of barely in Latin America.

Easy availability of Barley in the region, as it is commonly grown food in Latin America, is expected to propel the market growth of Barley. Due to its various health benefits, its production is not restricted to a particular type or grade. Argentina dominated the Latin America Barley market in 2018, accounting for 41.3% of market share in terms of revenue, followed by Mexico and Brazil, respectively. According to AgFlow data, Argentina and Brazil exported 4.5 million tons of Barley in 2022. In Jan-Feb 2023, Argentina shipped 0.8 million tons of Barley while Brazil’s was only 74,421 tons.

Substitute availability of Barley with the same characteristic as a shortage of these grains can be fulfilled by other types of grains, such as rice is expected to restrict the market growth of Barley. However, the substitute for Barley does not possess the same nutritional value as compared to Barley, but it can be used during a shortage of Barley. This factor is expected to hinder market growth over the forecast period. The rising lack of malt due to the increasing usage of Barley in breweries, as malt is an important raw material in the production of gluten-free beer, is expected to restrict the market growth of Barley in Latin America.

For instance, around 75%–78% of the total Barley malt produced globally is used by brewing industries. Hence, a moderate volume remains for other pharmaceuticals, bakery, food, and distillery applications. This factor is expected to hamper the market growth of Barley. Increasing Barley usage in producing alcoholic and non-alcoholic drinks due to its health benefits are expected to open new doors of opportunity. Moreover, Barley is also used in the food industry as a source of vitamins, proteins, and carbohydrates for the preparation of salad dressing, soups, bakery products, and other cuisines.

Based on product type, in 2018, Barley malt accounted for the largest market share of 36.8% in terms of revenue, followed by whole grain Barley and Barley flour, respectively. Barley malt dominated this segment due to the demand for healthy malt-based alcoholic beverages among consumers.

Australian Barley Shipment to Latin America

Australia exported its first shipment of Barley to Mexico in January 2021. Subsequent shipments led to more than $48 million from Barley exports in 2021. In May 2021, Australia exported Barley to Ecuador and Peru for the first time. Opportunities in Colombia continue to be explored. Increased export opportunities are the result of several factors, including:
• Ongoing work by the Government and industry to build relationships in Mexico
• Reduced tariffs. Under the CPTPP, Australia’s Barley tariff rate dropped from 46% to 23% in 2021. Tariffs are scheduled to fall to 0% on 1 January 2022
• Demand for Barley from Mexican brewers. Mexico is the fourth largest beer producer in the world. Australia is well placed to supplement a lack of domestic supply.
• More efficient and cost-effective biosecurity treatment options.

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