16 May 2016

General:

• The malting barley on the fields inEurope is developing well - even if insome areas it is getting somewhat dryafter the last period of warm weather.

• Also Finland and Mid–Sweden are nowwith this sunny and warm weather infull swing with the drilling

• Wheat and other grain markets arenervous and funds are changing therepositions – but malting barley hasbeen calm for many weeks.

• It is along time ago that maltingbarley prices have been so constant

for along time.

• Weather will also this year be themain driver which steers the pricedevelopment until harvest.

• In our next report we will also givemore detailed information from ournew family members about maltingbarley development in Denmark andPoland

Actual barley prices FOB DK/SE

Crop 15 147 EUR/t 1 H May 2016

Crop 16 167 EUR/t 1 H Oct 2016

Crop 17 182 EUR/t 1 H Oct 2017

SwedenWeather:

• After an early start of drilling in March in the South weather turnedto colder and more wet conditions.

• Last 10 days very warm and sunny – but now forecast givingcolder temperatures and rain

Malting barley:

South:

Seeding started as early as last year and was 80% done until firstweek of April. Good amounts of rain during April followed by warmerweather during May. Soils are now rather dry and most grains wouldbenefit with some rain after warm and sunny

Mid:

About 20% of the acreage was seeded on lighter soils in the southpart early April. Sowings on heavier soils further up north continuedslowly during April and then more intensively first days in May. Soilsare now rather dry and both winter and spring grains

Around Lake of Mälaren:

Full swing seeding this week. About 80% of the spring acreage hasbeen seeded (40% one week ago) and expect seeding to becompleted in one week time. Drilling much later than last year andmaybe also somewhat later than normal.

Malting barley varieties 2016:

Propino 38%, Irina 23%; Quench 14%, Sanette 6% Tipple 5 %,Planet 2%

New test varieties: Soulmate; Bente

Makof, Catriona and Brioni for Enzyme malt

Contribution Margin for farmers and different crops in Sweden:

-160

-140

-120

-100

-80

-60

-40

-20

0

20

40

[€/ha]

FinlandWeather

The warmth came to Finland at the 1st of May. For over10 days we have enjoyed summer weather with warmdays over 20 degrees. Nights are still cold.

The warm weather speed up the drying of the soil andgave a good start for the growing season which wasalready little bit behind because of the wet and coldApril.

Rains are forecasted for the mid of the month. In someareas they are already wished for because of thedryness of the soil.

Crops

The sowings started in the beginning of May, almost atthe same time in the whole country expect for the mostnorthern areas.

The sowings are at the normal schedule at the momentthanks to the perfect conditions. In the main graingrowing areas app. 50 % of the sowings is done andproceeding very quickly at the moment.

Most of the sowings in main malting barley growingarea will be ready this week before the rains forecastedtill the end of week are starting.

Rains will cut the sowings for the while but will give thedesired moisture for the sprouting.

Malting barley:

Maltsters are having a good coverage of crop 15.

Farmers have been more reluctant to fix the new crop

contracts because of the low price level.

Problems in economics of the farming business have

influenced the sowing areas of the grains and also for

farming input purchases.

Reduction to the malting growing area is expected,

we’ll see the results after the sowing season.

Weather for next 10 days, Lahti Malt House area

Lithuania

Weather:

• Spring came early and sowings has started on 5th of April,weather did not allow to sow smoothly, because of a coldand wet period in the middle of April and soils became to wetmostly in all regions and the ones who missed theopportunity to sow early finished their sowings in the end ofApril or first week in May.

Crops:

• Winter crops are looking in quite good shape, only some re-sowings in South of Lithuania were needed.

• Warm temperatures and rains are favorable for crops in May.

• Both winter and summer crops development is good.

• Bad economics in milk sector can increase cereals acreage.

Malting barley:

• Spring barley and malting barley acreage expected to be in 5years average.

• With lower grain prices farmers do not want to invest a lot inagrochemicals this year.

• Development wise malting barley is in a normal situation.

Malting barley varieties:

• Share of varieties for crop 2016: Propino 43%, Grace 17%,Tipple 12%, Quench 6%, Sanette 6 %, Kangoo 6 %, Avalon6 %, Others 4%.

• New varieties on tests: Planet, Soulmate, Irina.

Acreage in Lithuania (1000ha)

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