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Growing Malting Barley in and Around the Willamette Valley
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The primary value-added barley opportunities will remain in the production of malting barley. However, there is increasing interest in the use of certain barley varieties for human nutrition purposes. The combination of hull-less barley and this waxy starch characteristic produces barley that is high in soluble dietary fiber and, especially, beta-glucan. Beta-glucan is also present in oats and has been shown to lower serum cholesterol.
Top barley producing U.S. states from 2015 to 2018 (in 1,000 bushels)*
Arabinoxylan or pentosans are also found in barley and constitute about one-half of its soluble fiber. Barley also contains tocotrienol which is an oil that can lower cholesterol levels.
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These high-fiber barley varieties may have important health benefits. Barley production in the EU is expected to increase as a consequence of high world prices. Thus, the EU could become an even more important barley exporter. The primary competitive pressure on U. Barley is a feed substitute for corn. Hence, higher corn prices have increased the price of feed barley. In addition, the supply of barley continues to decline as crop producers move acreage away from barley production and into corn production.
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Much of this movement is the result of increased corn production profitability, as a result of ethanol policies and the advent of high-yielding, short-season corn varieties. Many traditional barley producing areas are able to profitably produce corn. In addition, spring wheat and barley are production substitutes because agronomic practices and land requirements are similar for both crops.
Thus, higher spring wheat prices increased competitive pressures on the production of barley. The malting barley industry will continue to be affected by these developments. That is, upward pressure on feed barley, corn and spring wheat prices will limit malting barley production. Open-market malting barley premiums over feed barley are much smaller today than just a few years ago.
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Given that the brewing industry has faced downward consumption trends in recent years, profit margins are being squeezed. Nonetheless, malting barley is currently necessary for beer production. Hence, it is reasonable to assume that malting barley processors will need to increase malting barley premiums in the near future. The U.