Ethiopia expands malting barley production to reduce imports

Ethiopia has taken another step toward strengthening its domestic malting barley sector. The Ethiopian Institute of Agricultural Research (EIAR) has signed a memorandum of understanding with four leading malt producers to improve barley breeding, seed production, grain quality, and the adoption of modern farming practices.

The partnership includes Asella Malt Factory, Gondar Malt Factory, the Ethiopian subsidiary of Soufflet, and Boortmalt. Together, they will work on developing improved malting barley varieties, strengthening the seed system, and enhancing grain quality for the country’s malt industry.

The government aims to reduce its dependence on imported malting barley as demand from the brewing industry continues to grow. According to the USDA, Ethiopian breweries and malt producers consume around 265 thsd tons of malting barley annually, but domestic production still falls short of meeting industry demand. The country is expected to import about 90 thsd tons of malting barley in the 2026/27 season, well above the five-year average.

Recent tax changes have also created additional incentives to source barley locally. Beer produced entirely from barley grown and malted in Ethiopia is subject to a lower tax rate than beer made with imported malt, encouraging brewers to purchase more domestically produced grain and supporting local farmers.

Analysts expect Ethiopia’s beer and soft drinks market to expand by about 15% over the next decade, pushing annual demand for malting barley above 300 thsd tons within the next five to seven years. Officials believe the new partnership will help increase domestic production, improve grain quality, and gradually reduce the country’s reliance on imports.