UK cereals demand hit by bioethanol losses and maltster cuts
© Tim Scrivener Demand for UK cereals has plummeted as a result of the closure of the UK’s major bioethanol plants and decreased usage by brewers, maltsters and distillers.
The UK cereals supply and demand estimates, published by the AHDB, show that UK human and industrial demand is expected to hit a 20-year low for the 2025-26 crop year at 9.17m tonnes.
The AHDB says much of this was driven by a fall in demand from the bioethanol sector, with neither of the UK’s major bioethanol plants currently in operation.
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Maize alone has seen human and industrial consumption fall by 48% from 1.06m tonnes in 2024-25 to just 557,000 tonnes for 2025-26, as a result of the reduced demand from bioethanol plants.
The Vivergo Fuels bioethanol plant, near Hull, East Yorkshire, closed last August, following a trade deal with the US which removed tariffs on “cheap” US ethanol imports.
AHDB lead cereals and oilseeds analyst Millie Askew said: “Ensus, the UK’s other large bioethanol plant, hasn’t started back-up since its scheduled maintenance break in September.
“It is assumed they will remain offline too for the remainder of the season, unless ongoing talks with government around support for the sector come to fruition.”
Meanwhile, subdued demand from brewers, maltsters and distillers is expected to hit the barley sector in particular, with barley human and industrial usage pegged at 1.58m tonnes, putting it at the lowest level since records began in 1990.
Several maltsters confirmed plans to scale back operations in the autumn, as a result of a downturn in the distilling industry.
Animal feed
Total cereals demand for animal feed has been slightly more stable, holding at 13.3m tonnes.
Ms Askew added: “Cattle feed demand has remained strong, but with the current situation for the dairy herd, it is expected the growth in demand will turn into somewhat of a decline as we hit turn out time.
“On a more positive note, integrated poultry units are expected to have a larger than previously anticipated growth this season, with improved prospects for the broiler sector.”