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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Malt news
Barley news
Hops news
More news
Theoretical malt prices
Malting barley prices
Table of the week
Graph of the week
Agenda
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Average market prices
Change trend

01 Feb - 03 Feb 2006
Crop 2005
2rs Barley €115.00-117.00
6rw Barley €103.00-105.00
2rs Malt €243.50-245.50 0.41%
6rw Malt €228.00-230.00 0.22%
Crop 2006
2rs Barley €118.50-120.50
6rw Barley €106.00-108.00
2rs Malt €245.00-247.00
6rw Malt €229.00-230.00

Note: Just click on the price link and you will be led to our Market Price History. Average barley market prices are French and are estimated on FOB Creil basis.
The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Other e-malt.com newsletters

Last five newsletters
See this Newsletter!
Newsletter 05a, 2006

See this Newsletter!
Newsletter 04b, 2006

See this Newsletter!
Newsletter 04a, 2006

See this Newsletter!
Newsletter 03b, 2006

See this Newsletter!
Newsletter 03a, 2006



Market price evolutions

The evolution of market prices for barley and malt, which are periodically issued with e-malt.com newsletters are published on e-malt.com site in Market Prices section. Just click here!


Available market price evolutions


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The graphs are updated from time to time. Just see the updates online on e-malt.com site !


All e-malt.com tables are published in e-malt.com Statistics section. The Statistics section includes Barley statistics, Malt statistics and Beer statistics. The tables related to barley are published in Barley Statistics section, the tables related to malt in Malt Statistics section and the tables related to beer in Beer Statistics section.


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E-malt.com Newsletter 05b
February 01 - February 03, 2006

Quote of the week

"They who drink beer will think beer."
Washington Irving

Currency Rates
Base Currency: Euro, EUR
on 03-February-2006

1 EUR = 1.207 USD
1 EUR = 0.6798 GBP
1 EUR = 1.3797 CAD
1 EUR = 1.6035 AUD
1 EUR = 142.829 JPY
1 EUR = 2.6841 BRL
1 EUR = 34.0075 RUB
1 EUR = 9.732 CNY
Base Currency: US Dollar
on 03-February-2006

1 USD = 0.8286 EUR
1 USD = 0.5633 GBP
1 USD = 1.1431 CAD
1 USD = 1.3285 AUD
1 USD = 118.342 JPY
1 USD = 2.2238 BRL
1 USD = 28.175 RUB
1 USD = 8.0629 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
USA: Anheuser-Busch reports financial results for the fourth quarter and full year 2005... Click here

Poland: Kompania Piwowarska, increasing its lead in the beer industry in Poland... Click here

Russia: Baltika to achieve healthy annual sales despite deep cold this winter... Click here

Thailand: Thai Beverage Plc is unlikely to be able to list on the Stock Exchange... Click here

Africa: East African Breweries posted Sh.307m profit... Click here

EU: Estimations and forecast for malt capacities closings... Click here

Australia: ABB Grain has reduced its grower indicator interest rate for lending by 0.15%... Click here

Canada: CWB helps fund research to fight fusarium in barley... Click here

USA: Hop growers marked 50-year partnership... Click here

More News
EU: Barley intervention will be stopped rather early ... More Info

Japan: Kirin starts using natural gas-burning boiler ... More Info

USA: Beer lovers to pay more for a Budweiser in 2006 ... More Info

Russia & USA: Ochakovo brewery increased its beer exports in USA last year ... More Info

Canada: Canadian Wheat Board announced initial payment for the second feed barley pool ... More Info

Poland: Polish breweries to have increased beer sales by 5% in 2005 ... More Info

India: Cobra beer to build new brewery ... More Info

USA: Issuance of malting barley contracts on the barley market ... More Info

Australia: Beer taxes to increase prices ... More Info

Ghana: Guinness Ghana Breweries sustain bourse gain ... More Info

USA: Miller names Miami-based group as its primary advertising agency ... More Info

Italy: Heineken Italia claims over one third of the beer drinking market in Italy ... More Info

USA: A&W Root Beer becomes official soft drink of FLW Outdoors ... More Info

South Korea: Hite brewery targets a market share of 65% ... More Info

Australia: CBH Grain is expanding into South Australia ... More Info

Australia: Grampians fire-affected farmers to benefit from Lake Bolac ‘tornado’ damage ... More Info

USA: Heineken USA expands distribution of Its 5L DraughtKeg Draught Beer System ... More Info

USA: USDA has announced the 2006 crop county loan rates for barley ... More Info

USA: Granite City Food & Brewery Opens in Kansas City ... More Info

Australia: Online beer company Brewtopia plans market listing on NSX ... More Info

Kenya: Kenya Breweries Limited to sponsor the Tusker Cup tournament ... More Info

Nigeria: Guinness Nigeria emerged as number one in gainers chart ... More Info

India: Kronenbourg beer to enter Indian market for women ... More Info

Germany: Brewery Schmucker taken over ... More Info

Australia: Malting barley sales to slow because of Chinese New Year ... More Info

UK: Brewer's investment secures future of deal pub ... More Info



Brewery News
USA: Anheuser-Busch reports financial results for the fourth quarter and full year 2005

Anheuser-Busch Cos. Inc. reported on February 2 that consolidated net sales increased 0.7 percentfor the full year 2005, while diluted earnings per share (excluding one-timegains in both 2005 and 2004 plus a legal settlement in 2005) declined 11percent (1).

Fourth quarter 2005 net sales were essentially level and earnings per share decreased 33 percent (1). "We've had a challenging year in the domestic beer business and our 2005 sales and earnings per share were disappointing," said Patrick Stokes, president and chief executive officer of the company. "However, as we move into 2006 we are encouraged with the progress of the company's initiatives to enhance beer volume and market share growth.

Wholesaler sales-to-retailers were up (selling day adjusted) 0.8 percent in the second half of 2005 and were up 1.8 percent from Labor Day through the end of 2005. Additionally, IRI data shows Anheuser-Busch increased its market share in supermarkets in the second half of the year.

We are pleased with this progress and anticipate sales and earnings growth in 2006 (2). "The domestic beer business is currently implementing previously announced revenue enhancement initiatives. Moderate price increases and ...
More Info


Poland: Kompania Piwowarska, increasing its lead in the beer industry in Poland

1. SALES RESULTS IN 4TH QUARTER OF 2005 AND IN 12 MONTHS OF 2005

The last quarter of 2005 (1 October – 31 December 2005) was exceptionally successful for Kompania Piwowarska, with beer sales and market share amounting to 2.48 million hectolitres (Hl) and 38.3% respectively. These results represent sales growth of 9.5% against the same period last year, the company announce on February 1.

During the twelve months of 2005 (1 January – 31 December) Kompania Piwowarska beer sales exceeded 11.2 million Hl. This is another record result – no Polish beer producer has ever before reported sales of over 11 million Hl within a calendar year. KP managed to achieve 12.6% growth in sales for the full year (KP sales in 2004 were 9.96 million Hl), which is two and a half times industry growth of 5.1%.


2. MARKET SHARE IN 12 MONTHS OF 2005

KP’s market share for the 2005 calendar year amounted to 37.1%, an increase of 2.5% over 2004 (2004 market share was 34.6%). This was the second consecutive year that KP’s market share increased by 2.5% (the same increase in market share [2.5%] was reported in 2004).

PERIOD / ITEM DATA
Industry sales growth in 2005 5.1%
Fourth ...
More Info


Russia: Baltika to achieve healthy annual sales despite deep cold this winter

Baltika, Russia's leading brewery, announced on February 3 its special warmed railway carriages and warehouses would help it to achieve healthy annual sales despite a spell of deep cold this winter, according to Reuters.

Baltika, jointly owned by Scottish & Newcastle and Carlsberg, said in a statement that a fall in temperatures by 1 degree below an average monthly norm typically results in a fall in beer sales by 1 percent. This is because cold weather leads to lower consumption, a cut in the time that outlets work or their closure due to power cuts, as well as disruptions to transport.

Russia has been suffering from a strong cold spell for weeks with temperatures in some regions reaching record lows. But Baltika said that its fleet of railway carriages and warehouses maintained warmth regardless of the weather.

"On top of that, a positive sales trend which the company showed last year ... allows us to hope that a fall in sales in the period of strong frosts will be compensated by active promotion of goods during the rest of the year," the statement said.


Thailand: Thai Beverage Plc is unlikely to be able to list on the Stock Exchange

Thai Beverage Plc, the brewer of Chang beer, is unlikely to be able to list on the Stock Exchange of Thailand if it goes forward with a Singapore listing, said Democrat MP Korn Chatikavanij, Bangkok Post communicated on February 1. Mr Korn, a former chairman of JP Morgan and a respected investment banker, said technical conflicts over dual listings would hinder ThaiBev's entry to the SET.

''I think if ThaiBev does list on the Singapore Stock Exchange, it will have the money needed to raise funds for business expansion,'' he said. ''There are a number of obstacles to dual listings. DTAC, for instance, has been working for a dual listing for a while, to little success even with SET assistance.''

ThaiBev, the holding company controlled by billionaire Charoen Sirivadhanabhakdi, is the producer of market leader Chang Beer, Mekhong rum and a number of other whiskey and spirit brands. The company had been expected to raise up to 40 billion baht last year in what would have been the largest private initial public offering in Thai history.

Its efforts to enter the SET have been delayed by public protests. ThaiBev expects to submit an application to list on the Singapore exchange later this month, ...
More Info


Africa: East African Breweries posted Sh.307m profit

East African Breweries Ltd. (EABL) has registered a 307 million shillings pre tax profit for the six months ending December 2005, Kenya Broadcasting Corporation communicated on February 3. This reflects a marginal increase of 7 per-cent compared to a 23 percent increase in a similar period in 2004.

The group registered a 4.6 billion shillings in growth compared to 4.3 billion growth in a similar period in the previous year. The group’s Managing Director Gerald Mahinda and its Commercial Director Chris released the groups results at an investors briefing, Friday, 03 February 2006.
Mahinda said stringent cost controls and partnership with the Tanzanian and Ugandan breweries boosted profits.

Free cash flow however reduced from 7.5 to 6.5 billion shillings, an element attributed to high operation costs. He said their highest sales were recorded in December last year, adding that the alcobrew measure instituted by traffic police did not impact on their profits. The group has declared a 1.75 shillings interim dividend.

Malt News
EU: Estimations and forecast for malt capacities closings

Since last year older malt capacities of 340,000 tonnes have been or will be closed within short, 190,000 tonnes in the U.K., 90,000 tonnes in France and 62,000 tonnes in Germany.

Market analysts commented: “It is expected that more capacities will be shut this year. While there is still a total capacity of 8,5 Million tonnes, we assume that hardly more than 7,7 million tonnes of malt will be produced, max. 5,6 million tonnes for domestic needs and 2,1 million tonnes for export. There are some unsold stocks pressing on the market, and there will be overproduction in some factories, but altogether the industry can only produce as much malt as it can sell.

There will be two consequences, one is a smaller barley demand, the other is that malt supply will be in line with brewers’ demand. Maltsters have very bad losses on their books for 2006, increased by the rising cost of energy and transport. Therefore they must try to bring sales prices in line with the cost of malt.

Recent nominal quotes of ? 250,- Ex Works or ? 270,-, delivered breweries for the year 2007, would point in that direction. Some buyers show interest in new ...
More Info

Barley News
Australia: ABB Grain has reduced its grower indicator interest rate for lending by 0.15%

Everyone knows that lending rates are a significant factor in operating a business – especially those who make their living from agriculture. For grain growers, too, changes in borrowing rates can impact on the operations of the farm and, in the case of significant interest rate rises, even affect its long term viability. That’s why it’s pleasing to deliver some good news ABB reported on February 2.

From yesterday ABB Grain has reduced its grower indicator interest rate for lending by 0.15% as a result of the increased capacity of our company to borrow at a lower rate than before our merger with AusBulk Ltd.

The reduced interest rate of 7.55% will apply to SA barley pools and the Victorian No.1 pool for malt and feed, effective from February 1, 2006.

Because of its bigger size, ABB can borrow at more advantageous rates than it did previous to its merger with AusBulk in September 2004. That merger resulted in a stronger company that has a combination of more substantial assets (net assets of $808 million at the end of September 2005, compared to around $540 million pre-merger) and stronger cash flow.

A year on from that merger, ABB successfully renegotiated its funding lines through ...
More Info


Canada: CWB helps fund research to fight fusarium in barley

The CWB has committed $300,000 to assist scientists in the fight against fusarium head blight in barley, CWB announced on February 2.

"Fusarium is one of farmers' worst disease problems, costing them tens of millions of dollars a year in crop damage," said Ken Ritter, chair of the CWB's farmer-controlled board of directors, which approved the three-year funding. "The more resistant we can make our barley, the better for farmers' bottom line."

The CWB has supported research in barley at Agriculture and Agri-Food Canada (AAFC) cereal research centre in Brandon, Manitoba since 2004. The new funding for the Brandon Research Centre is contingent on matching support from other sources. So far, funding has also been committed by AAFC's Matching Investment Initiative and the Crop Development Centre at the University of Saskatchewan, supported by Saskatchewan's Agriculture Development Fund.

Lead project scientist, Dr. Bill Legge, said program funding to date, including CWB contributions, has resulted in increased capacity for barley nurseries and more testing for deoxynivalenol (DON), which is the mycotoxin produced by this disease.

"Increased capacity improves the accuracy of our tests and, therefore, improves the accuracy in selecting and advancing fusarium-resistant lines of barley," said Dr. Legge.

Ritter said financial support from farmers through ...
More Info

Hops News
USA: Hop growers marked 50-year partnership

Northwest hop growers celebrated 50 years of collaboration beginning on January 25 with the theme "Golden Hop Celebration" and a look forward, discussing technology that will make the industry more efficient in the face of rising costs, Yakima Herald-Republic communicated on January 25.

About 150 growers attended the three-day golden anniversary affair at the Yakima Convention Center, said Steve George, administrator of the Hop Growers of Washington.

This year's convention is larger, he said, because hop growers from Washington, Oregon and Idaho met jointly, something they do every few years. Yakima is a logical meeting site because the Yakima Valley produces 75 % of the nation's hops, and is second only to Germany in worldwide production. Yakima is also the headquarters for the Hop Growers of Washington, the Hop Growers of America and the Washington Hop Commission.

On January 25 general session got under way at 9 a.m. in the south ballroom with a review of new technology, including a mechanical harvester called the "Perrault Harvester," an automated twining system, a growing system that utilizes lower trellises, and a hop vine-composting project. Thursday's meeting featured a report by the Washington State Department of Agriculture on a surface water monitoring project.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2070 February 03, 2006 
 Crop year   2005   2006 
 Parity   FOB Creil   FOB Creil 
 Position   July 2005   July 2006 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  117.00  141.50  121.00  146.50 
2RS  Prestige  116.50  141.00  120.00  145.00 
2RS  Cellar  116.00  140.50  120.00  145.00 
2RS  Sebastien  115.00  139.00  119.00  144.00 
2RS  Astoria  114.50  138.50  118.00  142.50 
2RS  Cork   115.50  139.50  118.00  142.50 
6RW  Esterel   104.00  125.50  107.00  129.50 
Theoretical malt prices.

  EURO = USD 1.2070 February 03, 2006 
Crop year  2005 
Parity  FOB Antwerp 
Position  Feb 2006-Sept 2006 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  246.00  296.50  260.00  314.00  260.50  314.00  262.50  317.00 
2RS  Prestige  245.50  296.00  259.50  313.50  259.50  313.50  262.00  316.50 
2RS  Cellar  244.50  295.50  259.00  312.50  259.00  312.50  261.50  315.50 
2RS  Sebastien  243.50  293.50  257.50  311.00  257.50  311.00  260.50  314.00 
2RS  Astoria  242.50  293.00  257.00  310.50  257.00  310.50  259.50  313.50 
2RS  Cork   244.00  294.50  258.50  311.50  258.50  312.00  261.00  314.50 
2RS   Average price  244.50  295.00  258.50  312.00  258.50  312.50  261.00  315.00 
6RW  Esterel   229.00  277.50  244.00  294.50  244.50  294.50  246.50  297.50 
Asia Malt 70/30  240.00  289.50  254.50  307.00  254.50  307.00  256.50  310.00 
**  Asia Malt 50/50  237.00  286.00  251.50  303.50  251.50  303.50  254.00  306.50 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2006 are available on site www.e-malt.com/MarketPrices

Table of the week

Shares of the Main Participants on the Russian Beer market as of January 2006

Company/Group Percent
Efes Beverage Group (including Krasny Vostok)  9.9% 
SABMiler  8.2% 
Ochakovo  4.1% 
Heineken Russia  14.8% 
Sun Inter Brew  18.0% 
Baltic Beverages Holding  36.3% 
Others  8.7% 
Source: Business Analitica, January 2006
Newsletter SummaryTop
Graph of the week


Agenda

February 2006:
Pianeta Birra - Beverage & Co.
Sarasota Rhythm & Brews
Florida's best beer festival offering more...
World Brewing Academy International Diploma Conducted at the facilities of Siebel Institute...
August Schell Brewings' Annual Bock Fest...

March 2006:
China Drinktec - China International Exhibition on Beverage, Brewery and Wine Technology
Florida Brewers Guild Beer Festival. Beerfest 2006
Nightclub & Bar/Beverage Retailer Beverage & Food Convention and Trade Show
The 10th China International Exhibition on Beverage, Brewery and Wine Technology
Ale Street News' Ultimate Belgian Tasting

April 2006:
2006 Australian International Beer Awards
Helsinki Beer Festival 2006
Craft Brewers Conference & BrewExpo America 2006
Spring Beer & Wine Festival


More events are available on site e-malt.com
Copyright © E-Malt s.a. 2006