Maltings
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
1.1 This section applies to purpose built sites which produce malted food products for the food and drinks industries. It embraces traditional and non-traditional maltings.
1.2 Traditional maltings
The traditional way to make malt was in a floor malting. After the grain had been soaked in water sufficiently to start germination, the growing grain was spread out on large floor areas. The depth of grain on the floor was thickened or thinned to control the temperature of the growing grain. Germinating grain produces heat, so this had to be dissipated by turning or raking the grain. When the malt was sufficiently modified it was kilned in tall cone shaped structures to produce a natural air draught through the drying malt. Traditional malt kilns were very energy intensive. The properties whilst often distinctive are effectively large open floors and a conventional rental based valuation can be adopted.
The stages in this process:
(i) Intake and storage
When the barley is delivered to the malting it may require drying and cleaning. Old maltings may use batch-drying systems, newer maltings use continuous drying. Drying capacity is referred to as so many tonnes per hour and moisture reduction from 22% to 12%. After drying the barley is put into storage in silos, which mostly fall into two categories.
a. Concrete silos (built up to the 1960s) b. Steel maxi bins and flat stores
More recently the storage of barley and malt has moved away from rectangular steel bins and concrete silos towards large circular steel bins. Barley is generally stored in large flat bottomed silos with a capacity of 2,500 to 3,000 tonnes and/or flat stores which are a light industrial type building with distribution and reclamation systems. Malt tends to be in hopper bottomed silos.
Barley storage facilities can vary significantly from site to site so a direct comparison between Rateable Value and output can be misleading. Storage facilities may form a significant element of the total cost.
(ii) Steeping
The dried barley is conveyed from storage to the steeping vessels as required. In traditional maltings the steeping vessels were rectangular tanks on each floor where the barley was soaked for 60 to 84 hours. Modern steeping vessels are flat-bottomed circular steel tanks, which may be epoxy lined and equipped with aeration and ventilation fans together with facilities for heating the steep water.
(iii) Germination (flooring)
Water is drained from the steeps and in the old type of malting the grain was merely shovelled out of the steeping vessel on to the floor and allowed to germinate.
As germination takes place each grain produces rootlets. Heat is also produced by the respiration of the growing seed and therefore the temperature has to be controlled either by hand turning of the grains or by mechanical turning which is more common today.
Germination in a traditional malting used to take 8 to 20 days but by using modern methods that time may be reduced to about 4 days.
In more modern systems germination takes place in either boxes or drums. Most modern and high volume production occurs in large single or double decked vessels using fan assisted aeration of the grain. These are known as GKV (Germinating & Kilning Vessels).
(iv) Kilning
In traditional maltings after germination the grain is loaded on to the kiln floor where it is exposed to gradually increasing temperatures and is at the same time turned occasionally. In the initial stages the grain is dried but as the temperature increases curing takes place and this gives the malt its flavour.
The older kilns consist of a lower storey containing the furnace which may be solid fuel, natural gas or oil fired, a kiln floor of perforated tiles or suspended wires and a roof which may be pyramidal or conical to give easy passage to heated air. A chimney or ventilator may further facilitate the flow of air.
The grain used to be about 8 in (0.2 metres) deep on the floor of a traditional kiln but nowadays depths of up to 45 in (1.14 metres) are frequently encountered in modern kilns with automatic turning and stripping facilities. In the earlier kilns the combustion gases pass through the grain but some have indirect heating systems whereby forced draught is induced by extractor fans or alternatively blowers to the combustion chamber. Even greater kiln efficiency is achieved by the use of tube heat exchangers, which use the heat from the air recirculated during the drying stage to preheat the air intake to the kiln.
(v) Dressing and storing
Kilned malt is finally passed over screens where the rootlets are removed and the grain is polished. Malt must be stored dry in bins. Historically the malt was stored in brick, concrete or lined timber silos but nowadays hopper bottomed steel bins are in common use.
1.3 Non-traditional maltings
In the 1960s the process became more industrialised and automated and maltings became more specialist in design. Saladin maltings and Wanderhaufen Street feature large concrete germinating and kilning vessels and produce malt in larger batches traditionally with honeycomb concrete storage silos.
By the 1980s the nature of sites had evolved further. Germinating and kilning now predominantly occurs in large stainless steel vessels (GKV) with galvanized steel bins for storage. Due to the nature of non-traditional maltings these are valued on a full contractor’s basis of valuation and are the responsibility of the NVU Industrial team.
In non-traditional maltings the typical types of production process are as follows:
(i) The saladin box method
This was first introduced toward the end of the nineteenth century and was originally intended for the germination stage only. It is basically a large rectangular box or bin usually constructed of concrete with a slotted metal plate floor through which air is passed up through the grain. Capacity may vary from 24 tonnes for older installations up to 100 tonnes or more in modern units. There may be several in use at a particular malting. The boxes are air conditioned and fully mechanized for turning and stripping the grain. The most recent development in this field enables the entire process from steeping to kilning to be carried out in the same box. Examples still in use tend to date from the late 1950’s early 1960’s.
(ii) The wanderhaufen system
This is a further development whereby the germination room is divided into “streets” (each of which may be broadly likened to a Saladin Box) where the steeped barley is ventilated with humid air at controlled temperatures. The barley grains may be turned by the wanderhaufen turners several times a day and at the same time the grains are carried forward along the street to the kiln at the end. Progress is very carefully monitored so that the grain reaches the kiln in just the right condition. This system is therefore a significant advance towards continuous malting. Examples still in use tend to date from the late 1950s early 1960s.
(iii) Drum maltings
Germination of the barley takes place in revolving drums, which are fitted internally with helical blades, which facilitate discharge from the drum. Ideal germinating conditions are promoted by controlling the temperature of the air blown through the drums.
(iv) Tower maltings
Whilst common elsewhere in Europe this type has largely disappeared from the UK. The malting processes are carried out within a circular concrete tower, which has steeping and germinating vessels on separate floors. Its advantages are that the barley is moved by gravity during processing, the distances it travels are relatively short and also the land used is reduced to a minimum.
The kiln may be housed in a separate building.
(v) Germinating and kilning vessel systems
The most common and preferred method of producing high volume, large batch sized malt. This occurs in circular tank-like structures lined in stainless steel within a steel framed building. The GKV can either have dedicated heating and ventilation facilities or be built in nests and share a common heater house. GKV production is much more energy efficient than the above alternatives.
2.1 Traditional maltings
List description: malting and premises
Primary description code: IX
Scat code: 163
Scat suffix: S
**2.2 Non-traditional maltings **
List Description: Malting and Premises
Primary description code: IX
SCAT code: 162
Scat Suffix: V
Responsibility for the valuation and referencing of this class of property lies entirely with the Industrial, Commercial and Crown Team (IC&C) within the National Valuation Unit (NVU).
Responsibility for ensuring effective co-ordination lies with the NVU.
There are no separate legal considerations for this class.
6.1 Basis of measurement for maltings and survey requirements.
All maltings should be measured to GIA in accordance with the VOA code of measuring practice. The survey should be undertaken on the assumption a full contractors test valuation will be carried out. Comprehensive details of Plant and Machinery will be required.
The survey should contain detailed notes as to the construction, age, height and services of any structures on site together with any refurbishment details.
All site works should be individually surveyed and detailed separately
The diameter is a factor in the cost of silos/storage bins, so it is important to obtain full size details. Information regarding the capacity of bins is often given in barley tons. The capacity of flat stores in barley tons should also be recorded in addition to the GIA of such buildings. As a rough guide for bins, conversion to m3 (all costs in the Rating Cost Guide for silos are in m3) is as follows
- Barley 1 tonne of barley takes up 1.45m3
Steel silos sometimes comprise a number (nest) of bins enclosed by a roof and cladding to the elevations giving the appearance of a building. The section, volume and number of bins need detailing as well as supporting features including cladding, cat walks and ladders etc.
Even if silos of a smaller size than referred to in the Plant and Machinery Regulations are found these should be fully referenced, having regard to full details of installation to enable an accurate view to be formed as to whether they could be removed without substantial demolition of the silo or the surrounding structure.
6.2 Safety on site
- caseworkers visiting this type of property for an inspection or other reason should wear the appropriate PPE, and ensure they are aware of all the VOA guidelines on health and safety. Minimum requirement: - safety boots and glasses, high vis clothing and hard hat.
- sites will have a formal health and safety induction process, this must be undertaken and allowed for when fixing appointments. Individuals should comply with all safety rules and precautions prescribed by the site operator without exception.
- in particular, it is important to maintain very high levels of awareness - be alert for the risk of trips and falls; never touch exposed pipes or other elements of production equipment particularly those with moving parts such as conveyors.
6.3 Plant and Machinery
Maltings may contain a considerable number of items of plant and machinery named in the relevant Valuation for Rating (Plant and Machinery) Regulations. Rateability should be tested in accordance with the principles set out in Rating Manual: section 6 part 5 - Plant and Machinery.
Small traditional maltings are unlikely to feature significant elements of plant and machinery. Larger sites may have pits, elevators, structural steelwork, and silos. Kilns in the nature of buildings will be rateable regardless of size. For class 4 table 4 items the exceptions should be considered.
7.1 Survey details for traditional maltings should be recorded electronically and stored in EDRM in the property file for the appropriate hereditament.
7.2 Survey data for non-traditional maltings should be recorded manually in binders held by the NVU Industrial, Commercial and Crown team.
8.1 Traditional maltings
Traditional maltings which comprise conventional factory/warehouse style buildings with ancillary offices, stores, and limited plant and machinery are valued on the Rental/Comparison method. Direct rental evidence may not exist and if so comparisons with industrial hereditaments in the locality will be necessary. All buildings should be measured to GIA and the subsequent survey data entered into the Rating Support Application using a bulk class of F and the appropriate sub location code and address-based matrices in each location.
8.2 Non-traditional maltings
The primary method of valuation for non-traditional maltings is the Contractor’s Basis (See Rating Manual: section 4 part 3 - the contractors basis of valuation).
This approach reflects the fact that this class of property is seldom let and the highly specialist nature of the occupation and will incorporate a significant proportion of Rateable plant and machinery. This is likely to include specialist process plant including Germinating and Kilning Vessels.
9.1 Valuations for non-traditional maltings are held on the Non-Bulk Server (NBS). VOA - Non bulk server manual.
9.2 Valuations for traditional maltings are held on RSA any additional Plant and Machinery should be valued using the Non Bulk Server and the resultant figure entered into the RSA valuation.
1. Market appraisal
The production of malt in the UK, for both the domestic market and for export, had remained steady between 2015 and 2019 and, despite the global pandemic, only showed a small decline in 2020. Approximately 50% of output is supplied to UK distillers and, following a significant increase in that market from 2000 onwards, it remains the largest sector. Spirit production is still expected to rise, driven by exports and demand for heritage whisky domestically, as post pandemic markets recover. After years of falling real ale sales, with resultant industry overcapacity and closures and disposals, the industry was profitable once again by 2008 and malt supplied to UK brewers has remained steady at around 30% of output. Although the pandemic saw a shift in consumption away from licensed premises, this was largely offset by off-trade sales. This output has been sustained by an increase in micro- breweries and growing demand for craft beer and real ales. The remainder of output is for export (around 12% in 2020) or supplies to UK food industry (around 9% in 2020). Whilst small traditional maltings suitable for conversion may still close, the industry is in good shape. The trend towards larger sites with specialist germinating and kilning vessels at non-traditional maltings will continue.
2. Changes from the last practice note
With the exception of the market appraisal, there are no changes from the 2017 practice note.
3. Ratepayer discussions
There have been no discussions with the malting industry for 2023.
4. Valuation scheme
The rental comparison method remains the appropriate method of valuation for traditional maltings. Direct rental evidence does not exist so comparisons with industrial hereditaments in the locality will be necessary.
The primary method of valuation for non traditional maltings is the contractor’s basis – this reflects the highly specialist nature of the occupation. It will incorporate a significant proportion of rateable plant and machinery and this is likely to include specialist process plant including germinating and kilning vessels.
1. Market Appraisal
After years of falling real ale sales and industry overcapacity which led to closures and disposals the industry was profitable once again by 2008 and remains so. Whilst small traditional Maltings suitable for conversion may still close the industry is in good shape. The trend towards larger sites with specialist germinating and kilning vessels at non-traditional Maltings will continue.
2. Changes from the last practice note
Nominal.
3. Ratepayer Discussions
There have been no discussions with the Malting industry for 2017.
4. Valuation Scheme
The rental comparison method remains the appropriate method of valuation for traditional Maltings. Direct rental evidence does not exist so comparisons with industrial hereditaments in the locality will be necessary.
The primary method of valuation for Non Traditional Maltings is the contractor’s basis – this reflects the highly specialist nature of the occupation. It will incorporate a significant proportion of rateable plant and machinery and this is likely to include specialist process plant including Germinating & Kilning Vessels.
1. Co-ordination Arrangements
1.1 This was a National Class where historic responsibilities for ensuring effective co-ordination lay with National Specialists. This is no longer the case.
1.2 Co-ordination is the responsibility of Specialists within Business Units that deal with the limited number of properties that remain.
1.3 The R 2000 Special Category Code 163 should be used. As a Specialist Class the appropriate suffix letter should be S.
2. Central Discussions
2.1 There have not been any central discussions with agents for the industry.
You are advised, in the absence of any agreement, to adopt the basis as outlined below.
3. State of the Industry
3.1 Over the years falling real ale sales, the suitability of traditional Maltings for conversion and the switch to germinating and kilning vessels at non-traditional Maltings has led to the closure of many sites.
4. Basis of Valuation
4.1 The rental comparison method remains the appropriate method of valuation for traditional maltings. Rental evidence may be scarce and any that is found should be very carefully analysed. Comparisons with industrial hereditaments in the locality can be made with care taking into account the age and methods of construction employed.
5. Plant and Machinery
5.1 No recent changes affecting the class.
6. Decapitalisation Rate
6.1 To be advised