Condition of the China's winter wheat crop could be the worst in history, the Agriculture Minister said on Saturday, voicing concerns about the grain stocks of the world's largest wheat consumer.
Reuters reports:
"While wheat prices in China soared to record highs as a result of the Ukrainian crisis, the Chinese government voiced concern over domestic grain supply.
China's winter wheat harvest could be "the worst ever"', the country's agriculture minister said, raising concerns among beverage producers over global grain stocks.
Speaking to reporters at the annual meeting of China's parliament, Tang Renjian, the minister of Agriculture and Rural Affairs, said rare heavy rains last year delayed the planting of about a third of the usual area of wheat.
A crop survey conducted before the onset of winter showed that wheat price went down by over 20 percentage points.
"Many agricultural experts and technical specialists told us that planting conditions this year could be the worst ever," Tang said. "Indeed, grain production is facing big challenges this year."
This is due to the fact that wheat prices jumped to a 14-year high after the conflict between Russia and Ukraine, which together account for approximately 29% of global wheat exports.
Tang is still confident that China will be able to secure a good spring wheat crop thanks to political and technical support. According to the latest report from the National Development and Reforms Commission of the country, China has pledged to ensure that its annual grain area remains over 117.33 million hectares with a view to improve the country's "food security". To get back on track, China has declared it would stop any attempts to use crop lands for anything other than agriculture and grain production.
What does this mean for the beverage trade?
A global wheat shortage is sure to have a significant impact on the beverage industry, which is already suffering from supply issues with aluminum used for canning and glass for bottling. Since wheat is one of the main ingredients used in beer and alcohol beverages such as whiskey, gin and vodka, producers may have to rely on existing stocks, look elsewhere for wheat, or start growing it themselves.
Beer: Wheat is used to create a full figure and mouth feel, as well as a head of foam. It also gives beer a slightly tart or sour taste. In Germany, where there is a great demand for weissbier, almost one in ten drinks consumed is wheat beer. Brewers, unless they made arrangements with farmers, usually have to make do with whatever wheat the maltster can get from markets that are not necessarily focused on brewing.
Vodka: Most vodkas are distilled from grain, with wheat, barley and rye being common choices due to their general wide availability and low cost when purchased in commercial volumes. Several leading vodka brands such as Absolut, Stolichnaya and Ketel One distill their vodka from wheat.
Gin: Premium gins are usually distilled of a mix of wheat, rye and barley, but with wheat and rye prevailing, which gives a slightly dry aftertaste.
Whiskey: Wheat is usually included in the "mash grist" - a blend of grains the spirit consists of - commercial basic whiskey to counter the heavier flavors of corn and barley.
Blends: Wheat is widely distilled and used as a neutral alcohol for blending. This means that a percentage of wheat can be found in almost any alcohol, including blended whiskey, schnapps and sweet liquors.
Baijiu: Just like whiskey, baijiu is a distilled fermented grain, often wheat, barley, rice, and sorghum. Jiuqu, often referred to as qu, plays a key role in the production of baijiu being the ingredient that gives the drink its unique flavor and aroma. Daqiu, the largest form of qu, is made of wheat or other grains."
Source: aizen-tt.livejournal.com