Russia has stopped one of the largest malt factories

American producer and trader of agricultural products, Cargill has suspended production at the malt house in the town of Efremov of the Tula region, learned to “Vedomosti”. This brewery is one of the largest in Russia.

About the production stop the newspaper said the head of a large agricultural holding and fellow trade associations. The Cargill representative confirmed this information. According to him, the work was suspended early this year due to falling demand.

Most employees malthouse was left to work in Efremov, Cargill said. The company still produces there are starch and sweeteners. Some people moved to other production. The company noted that if the situation with low demand will change, Cargill is ready to resume operation.

The company has built a malt house, stoiomst $50 million and with a capacity of 100 000 tons per year in 2003 on the basis of already owned glyukozuricheskogo Cargill plant. According to the newspaper, the beer market, one component of which is malt, expanded steadily from 1996 to 2008. However, after raising the excise tax he began to shrink.

According to the Director of the analytical center “SovEcon” Andrei Sizov, the malt production fell because of the contraction of the beer market. Thus, the largest plants in the country “Russian malt” release 200 000-250 000 tonnes per year with a capacity of 500,000 tons, said the owner of the company Cyril Minovalov. He also tied underutilization with falling beer sales.

The largest Russian brewer “Baltic” (subsidiary of Carlsberg) in 2015, has purchased 265 800 tonnes of malt, her representative said. This is less than last year. Presumably, the production of beer “Baltika” in this year will fall by 5-10%. The same can be reduced and consumption of malt.