Barley market in South America

Earlier Report Observations

The barley market in South America saw its volume decline from 4.6 million tons in 2018 to 4.1 million in 2019, partly due to climate-related challenges affecting harvest quality in Brazil. Market volume stabilized around 4.2 million tons in 2020, supported by a focus on crop rotation in Argentina and continued, albeit challenged, production.

A sharp rebound to 4.6 million tons occurred in 2021, driven by a historic production peak in Argentina of 5.3 million tons, fueled by favorable climate and technology. The market then adjusted to 4.5 million tons in 2022 as record regional production of over 7 million tons was heavily directed to exports, influenced by geopolitical trade disputes and robust global demand for feed barley from China and Saudi Arabia.

Market volume grew again to nearly 4.8 million tons in 2023. This expansion took place during a period of global market recalibration but was supported by good growing conditions in Argentina. Factors shaping the 2024 context include record world production and sustained strong international demand for feed barley.

Production barley in South America

In kind, 2017-2020, K t

Top producers of barley, 2017-2020

World map of production of barley, 2017-2020

South America's barley production has declined for the second year in a row. In 2020, the region produced 5 071 K t of barley, representing a 4.7% year-over-year decrease. The largest decline occurred in 2019, at 14.6%, while the peak production was recorded in 2018 with 6 226 K t, which marked the largest increase of 22.4%.

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

In value, 2017-2020, M $ US

South America's barley production has fallen for the second consecutive year. In 2020, the output was valued at 1 038 M $ US, showing a significant decline of 17.3% compared to the previous year. Over the period from 2017 to 2020, production increased by 13.1%, with a compound annual growth rate of 4.2%. The highest value was recorded in 2018 at 1 332 M $ US, which also saw the largest increase of 45.1%.

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

Exports barley from South America

Exports in kind, K t

In 2020, South America exported 2 278 K t of barley, which is 11.2% lower than the previous year. Over the period from 2017 to 2020, exports decreased by 14.8%, with a compound annual growth rate of 5.2%. The largest increase was recorded in 2019 at 1.8%.

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

From 2017 to 2020, the export partner portfolio for barley from South America was quite diverse. Saudi Arabia accounted for 30.8% of exports in kind, Kuwait for 7.6%, and the United Arab Emirates for 6.2%, with these three countries together representing only 44.6% of total flows.

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

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

Exports in value, M $ US

After two years of growth, foreign barley supplies from South America declined. In 2020, exports totaled 466.4 M $ US, marking a substantial reduction of 22.9% compared to the previous year. Between 2017 and 2020, exports decreased by 3.4%, equating to an annualized rate of 1.1%. The highest value was recorded in 2019 at 605.1 M $ US, which also saw the largest increase of 12.2%.

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

Over the period from 2017 to 2020, exports of barley from South America in value terms were characterized by a broad spread across markets. Saudi Arabia accounted for 26.9% of exports in value terms, Kuwait for 6.6%, and the United Arab Emirates for 5.6%, with these three countries together accounting for only 39.1% of total flows.

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

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

Imports barley to South America

Imports in kind, K t

Cross-border shipments of barley to South America have increased for the second consecutive year. In 2020, South America imported 1 393 K t of barley, showing little change compared to the previous year. Between 2017 and 2020, imports increased by 49.6%, equating to an annualized rate of 14.4%. The lowest value was recorded in 2018 at 876 K t, which also saw the largest decline of 5.9%. The largest increase occurred in 2019 at 58.4%.

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

From 2017 to 2020, the main sources for barley imports to South America in kind were France with 1.7%, Canada with 0.6%, and Denmark with 0.6%, together forming a combined share of 2.9% of total flows.

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

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

Imports in value, M $ US

After a two-year uptick, foreign barley supplies to South America declined. In 2020, imports amounted to 325.8 M $ US, corresponding to a strong reduction of 15.2% from the previous year. Between 2017 and 2020, imports increased by 17.9%, equating to an annualized rate of 5.6%. The highest value was recorded in 2019 at 384.0 M $ US, which also saw the largest increase of 23.4%.

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

From 2017 to 2020, the main markets for barley imports to South America in value terms were France with 1.8%, Canada with 0.7%, and Denmark with 0.6%, together accounting for 3.2% of total flows.

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

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