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Alcohol ban: Crisis looming for barley farmers reliant on beer production

27 January 2021 6:41 PM
Tags:
Alcohol ban
The Money Show
Bruce Whitfield
Beer
Paul Makube
barley
grain crops
Lockdown
COVID-19
barley farmers
malt

A new harvest lies ahead and farmers are already paying to store unsold barley, 80% is traditionally destined for the beer market.

The ban on booze sales is impacting not only the alcohol industry, but players all the way down the value chain.

South Africa's barley farmers are among those looking at a bleak future - malted barley is used to make beer.

80% of their crop is traditionally destined for the beer market says Paul Makube, senior agricultural economist at FNB.

Image: uirá uirá on Pixabay

Bruce Whitfield finds out what other options these farmers have for selling their crops, if any.

RELATED: Wine industry runs out of storage due to ban - R1.5b's worth could be lost

Makube explains why exports are not an option.

We are not geared for the export market and even if that would have happened we would still be competing with other countries that are already traditional suppliers on the international market.

Paul Makube, Senior agricultural economist - FNB

It's a question of developing those markets... During the Covid period it will be difficult to easily do this and get the product out.

Paul Makube, Senior agricultural economist - FNB

At the moment the only avenue is the [animal] feed market.

Paul Makube, Senior agricultural economist - FNB

There will also be a huge crop of barley to harvest soon, which would have to compete with other grains Makube says.

Storage capacity and cost is going to be an enormous problem.

There's also the question of what happens to the back-stock. It comes at a cost for the farmers - there are storage costs involved.

Paul Makube, Senior agricultural economist - FNB

Listen to the audio below for more detail:




27 January 2021 6:41 PM
Tags:
Alcohol ban
The Money Show
Bruce Whitfield
Beer
Paul Makube
barley
grain crops
Lockdown
COVID-19
barley farmers
malt

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