Malt Supply Under Threat

As a small independent maltster, Warminster Maltings is one of only two left in England. With most of the UK malt production capacity now under the ownership of international conglomerates, it is suggested our place in the market, be it ever so small, could be more critical to the Craft Brewery sector than it has ever been.

This is because the multi-nationals are operated around policy decisions that are made outside of the UK. These decisions are ruthlessly focused on the bigger, more global picture. International maltsters are almost certainly aligned with international brewers, and based on past experience, they have little enthusiasm for anything that punctuates large scale malt production. It is why their products have been dubbed “commercial malt”.

The current drop in the demand for malt from the Scotch whisky sector, and a slightly slower beer market, does mean that UK malt production presently exceeds demand. Malting companies are digesting this. Hugh Baird has announced the closure of it’s Pentcaitland maltings (60,000 tonnes p.a.) in Scotland. There is talk, but it is only talk, that more malt capacity might follow suit.

But the Scotch whisky market expects to be back on track by the end of 2027. If beer sales were to pick up as well, there is a very real chance of a complete reversal in the supply/demand ratio for malt.

Historically, the malting industry has been slow to adjust to change. Investment in new plant is hugely expensive, and so maltsters will understandably err on the side of caution. UK Craft Brewers’ overall demand for malt is probably not even 100,000 tonnes per annum. Removal of more than that capacity now from the UK malt market would not be a good omen.