Russia's breweries increase barley harvest 24% in 2023 as part of their agricultural programs - manufacturer's association

MOSCOW. Feb 6 (Interfax) - Brewing companies belonging to the Association of Beer, Malt and Beverage Producers (An association of companies representing about 70% of the beer produced in Russia), grew 960,300 tonnes of malting barley in 2023 as part of their agricultural programs, which is 24% more than the year before, a press release from the Association said.

The area under malting barley increased 10% to 207,100 hectares. It is grown in more than 20 Russian regions.

"Now the Association's member companies are fully meeting their needs for malting barley, and also have the opportunity to provide high quality raw materials. This allows us to support local farms and create additional jobs," the press release says.

Meanwhile, the Association said that Russian breweries continue to significantly depend on imported hops. In this regard, proposals for the development of hops growing were developed in 2023 with the participation of the Financial Research Institute of the Russian Finance Ministry. They include a significant expansion of Russia's hops cultivation geography, an increase in the area of hops fields, the provision of seedlings to farms, as well as an increase in the amount of financial support for agricultural producers.

The press release said that Rosstat data show Russian beer production increased 1.8% in 2023 to 834 million dal.

"Brewers managed to stay stable and end the year with indicators that give hope for further development in the market," the Association's executive director Vyacheslav Mamontov said. "In order for the industry to maintain what has been achieved, and start demonstrating significant positive growth under current conditions, it is important to return to considering opportunities which could stimulate the industry. In particular, this concerns the opening of new legal sales channels, fiscal support measures and continuing the fight against the illegal segment."

"It is important to prevent additional administrative pressure on conscientious representatives of the industry, excise tax increases and other regulatory risks," Mamontov said.