Ethiopia links research and industry to strengthen local malt barley production
The new agreement aims to cut imports by improving seed development, grain quality and support for farmers as demand from breweries continues to rise.
ETHIOPIA – Ethiopia has taken another step to strengthen its malt barley sector after the Ethiopian Agricultural Research Institute (EIAR) signed a memorandum of understanding with four leading malt producers to support barley seed production and research.
The agreement, signed on June 29, brings together Asella Malt Factory, Gondar Malt Factory, the Ethiopian subsidiary of Soufflet and Boortmalt. The partners will work with EIAR to develop improved malt barley varieties, strengthen the seed system, improve grain quality and share better farming practices with producers.
The government wants to increase local production and reduce the country’s dependence on imported malt barley as demand from breweries continues to grow.
“The agreement aims to support the government’s initiative to reduce and then eliminate imports of malting barley, achieving self sufficiency in national production,” EIAR said.
The partnership comes as Ethiopia’s brewing industry increases its need for quality malt barley. According to the latest market assessment by the United States Department of Agriculture, breweries and malt producers already use about 265,000 tonnes of malt barley every year. However, local production still cannot fully meet industrial demand.
The USDA expects Ethiopia to import 90,000 tonnes of malt barley during the 2026/27 season, well above the five year average of 28,000 tonnes. At the same time, analysts expect the country’s beer and soft drinks market to grow by about 15% over the next decade.
That growth could push annual demand for malt barley beyond 300,000 tonnes within the next five to seven years.
Recent tax changes also give malt producers a stronger reason to buy barley from local farmers. Beer made entirely from barley grown and malted in Ethiopia attracts a 35% tax, while beer made with imported malt faces a 40% tax. Beverages made with at least 75% local ingredients, excluding water, qualify for a 30% tax rate.
“These differentiated rates are intended to make locally sourced barley more attractive to brewers and support farmers providing malt grade grain,” the USDA said.
Officials expect the partnership between EIAR and the malt industry to improve seed availability, raise grain quality and help Ethiopia meet more of its malt barley needs through local production in the coming years.
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