Consider spring malting barley as alternative to wheat

Growers confident of achieving a full malting specification may be better off switching from late drilled winter wheat to a leading spring malting barley, given grain prices quoted for harvest 2008.

That's the view of Graham Redman, research economist at Andersons, who points out that gross margin figures based on prices for harvest 2008 movement put spring malting barley ahead of winter wheat by over £180/ha.

"Bear in mind that these figures do not take account of any value for baled straw, which in the case of spring barley can be worth anything up to £150/ha, depending on location and quality," he says.

That said, where the straw is sold, higher P and K inputs would be required to replace nutrient removal, costing in the region of £15-20/ha, he notes.

Mr Redman's gross margin calculations are based on a grower achieving just 80% of HGCA Recommended List yields, and use grain prices quoted by national merchants during October 2007 for 2008 harvest, and input costs based on merchant recommendations. For feed winter wheat, these equate to a yield of 8.16 t/ha at a grain price of £115/t, and with a total variable cost of £325/ha, to give a gross margin of £613/ha. For spring malting barley, the yield figure is 5.96 t/ha – which is based on 80% output from NFC Tipple as an example of a leading malting variety – and assume a malting price of £175/t, with a total variable cost of £249/ha, to give a gross margin of £794/ha.

"Obviously where yields are better than this, the gross margin figures rise accordingly." In addition, he says that wheat yields fall the later the crop is drilled. "For a grower looking to put in a crop after roots, for example, he may not be able to get on the land until the end of November or beyond."

Simon Phillips, product development manager for barley breeder Syngenta Seeds, agrees that spring malting barley can be an attractive option at current grain prices. To make the most of these, growers should consider high yielding varieties, he suggests, with Quench, Publican and NFC Tipple all showing high yields on the HGCA Recommended List.

Mr Redman admits that the gross margin figures are based on an optimum sowing date for spring barley.

Also, achieving £175/t for harvest 2008 may require meeting malting specifications, for example grain with a maximum of 1.85% nitrogen, as well as screenings criteria of a maximum of 4% on a 2.25mm sieve with 90% retained on a 2.5mm sieve.

However, other considerations include the potential for lower fixed costs with spring barley, as well as its rotational benefits, he adds.

"There are fewer tractor movements with spring barley and, as it is lower yielding, there's less haulage and reduced drying costs," he explains.

Also, second wheat yields are usually 10% lower than those of first wheat, he notes, so the rotational benefits of spring barley can be even greater. "This will vary according to soil type and crop management, but it's another reason for taking a very close look at spring barley.

"Where growers get the target yield, but only half of the harvest meets malting specification, then the gross margin figures for late drilled winter wheat and spring malting barley are very similar," ends Mr Redman. "But there are spring barley contracts available which take some of the risk out."