Barley market in MERCOSUR

Earlier Report Observations

The barley market in MERCOSUR opened the period at 3 891 thousand tons in 2018. This level was underpinned by a regional production increase, as policies discouraging wheat cultivation shifted planting area to barley, and the forage barley market gained traction after supply disruptions in Russia and Ukraine.

Market volume then underwent fluctuations, declining to 3 040 thousand tons in 2019 before a recovery path led to 3 583 thousand tons by 2021. A minor contraction followed in 2022, with volume settling at 3 486 thousand tons.

In 2023, the market grew to 3 738 thousand tons. This expansion occurred alongside higher imports into the bloc, a dynamic reflecting the structural reliance of Brazil's brewing industry on malt supplies from partner countries like Uruguay and Argentina within the Mercosur trade zone.

Production barley in MERCOSUR

In kind, 2017-2020, K t

Top producers of barley, 2017-2020

World map of production of barley, 2017-2020

Barley production in MERCOSUR has declined for the second year in a row. In 2020, the region produced 4 607 thousand tonnes of barley, marking a 4.6% decrease compared to the previous year. Looking at the period from 2017 to 2020, overall production fell by 2.4%, which translates to an average annual decline of 0.8%. The highest production level was achieved in 2018, with 5 776 thousand tonnes, representing a significant 22.3% increase from the previous year. However, this was followed by the largest drop in 2019, when production fell by 16.4%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Barley production in MERCOSUR has declined for the second consecutive year. In 2020, the value of barley output was 947 million US dollars, showing a 16.4% decrease from 2019. Over the 2017-2020 period, production value actually increased by 12.5%, with a compound annual growth rate of 4.0%. The peak value was recorded in 2018 at 1 215 million US dollars, which was a substantial 44.3% rise from the previous year.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports barley from MERCOSUR

Exports in kind, K t

MERCOSUR exported 2 266 thousand tonnes of barley in 2020, representing a significant 12.1% contraction compared to the previous year. From 2017 to 2020, exports decreased by 16.3%, averaging an annual decline of 5.8%. The largest increase during this period occurred in 2019, with a modest 0.6% growth.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

Between 2017 and 2020, the main destinations for MERCOSUR's barley exports in volume terms were Saudi Arabia, accounting for 30.8% of exports, Colombia with 11.8%, and Kuwait at 7.6%. Together, these three countries represented 50.2% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

After two years of growth, barley exports from MERCOSUR declined in 2020. Exports totaled 466.0 million US dollars, which is 23.0% lower than in 2019. Over the 2017-2020 period, exports decreased by 3.4%, with an average annual decline of 1.2%. The highest export value was recorded in 2019 at 605.0 million US dollars, which also saw the largest increase of 12.2% during this timeframe.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, the geographical structure of barley exports in value terms was quite diversified. Saudi Arabia accounted for 26.9% of export value, Colombia for 13.4%, and Kuwait for 6.6%. Combined, these three countries represented 47.0% of total flows, while the remaining 53.0% was distributed among numerous smaller trading partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports barley to MERCOSUR

Imports in kind, K t

Barley imports into MERCOSUR increased for the second consecutive year. In 2020, imports reached 794 thousand tonnes, showing a slight 0.7% year-over-year gain. Over the 2017-2020 period, imports grew by 6.1%, with a compound annual growth rate of 2.0%. The lowest import volume was recorded in 2018 at 678 thousand tonnes, which represented a 9.5% decline from the previous year. This was followed by the largest increase in 2019, when imports rose by 16.4%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

Throughout the 2017-2020 period, the country structure of barley imports in volume terms was largely dominated by France and Canada, which together accounted for 2.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

After two years of increase, barley import volumes in MERCOSUR declined. In 2020, MERCOSUR imported barley valued at 218.8 million US dollars, down 15.1% from 2019. Over the 2017-2020 period, import value increased by 14.1%, with a compound annual growth rate of 4.5%. The peak import value was recorded in 2019 at 218.8 million US dollars, which also saw the largest increase of 28.8% during this period.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, the country structure of barley imports in value terms was primarily shaped by France and Canada, which together accounted for 3.3% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020