E-Malt.com News article: Australia: Falling beer consumption also hurst barley farmers

CommBank agriculture and sustainability economist Dennis Voznesenski said globally falling beer consumption did not just impact beer companies, Newsreel reported on January 27.

It also impacted farmers who produced barley, which plays a vital role in beer production.

A report, released by CommBank this week, said September quarter 2025 data showed global beer sales volumes declined over the past year, with the largest falls recorded in the United States and Europe.

“Asia has held up better, but overall demand has weakened,” the report said.

“Shifts in alcohol preferences are part of the story, but economic conditions are also playing a role.”

CommBank economists are forecasting global economic growth of 2.7 percent in 2026, down from the historical average of about 3.7 percent.

“That’s a full percentage point lower than what we’re used to,” Mr Voznesenski said. “So if we’re not drinking because economic times are tough, this year might not be much different.”

“When beer demand falls, that barley needs to find another home,” he said. “If you’re not making beer out of it, you feed it to animals.”

Domestic feed demand for barley is expected to be reduced this year due to new Chinese quotas on Australian beef exports. Less beef demand from China could reduce the amount of cattle required to go through feedlots. China is a large buyer of high-quality grain-fed beef.

That combination - weaker beer demand and uncertain feed demand - highlights how global consumption trends and trade politics can quickly flow back to farmgate outcomes.

“It shows how connected everything is,” Voznesenski said, adding, “what’s happening with both drinking habits and Chinese beef demand really does matter for Australian farmers.”


28 January, 2026