EU Barley malt production in 2005 was still 8,4 Mill. Tons, but factory closures in France, Germany, Slovakia, Sweden and the U.K. plus temporary shutdowns of some German industries will reduce EU malt production substantially.

According to analysts’ data, the estimated EU 2006/07 malt production amounts for about 8,035 Mill. Tons, compared to 8,768 Mill Tons total EU malt capacity, thus indicating a severe malt surplus. An uncertain figure is the average malt use in beer, which is very different from country to country.

The figures officially provided do not take into account the temporary closure of the Weissheimer in Hungary and the risk of a temporary shutdown in Germany as well. Any longer production pause could bring EU production down to dangerously low levels.

Industry analysts reported new crop barley prices:

French barley:
basis July 2row spring Prestige FOB Creil € 118, FOB Moselle € 128
basis July 6row winter Esterel FOB Creil € 107, FOB Moselle € 112

Danish barley:
FOB Baltic ports October shipment 2row spring, Prestige € 128

U.K. barley:
FOB ECUK October shipment 2row spring Optic/Cocktail € 125, 2row winter Pearl € 119.

German barley:
Delivered maltings southwest Germany ex harvest 2row spring € 132/133

The two big barley boards are reported to have already shipped two thirds of their feed barley export program by end of April. Prices to Saudi-Arabia remain above US $ 160,-CIF, which is about US $ 15,- higher than EU/Black Sea prices. Prices for malting barley to China have dropped below US $ 180,- CIF. Australia is confident to ship close to two Mill. tons to China during the crop year.

A New Zealand hop researcher says Nelson hop farmers are attracting world-wide attention because of their ability to produce unique tasting and organically-grown hops, according to Radio New Zeeland reports on May 03.

Ron Beatson, a hop breeder for HortResearch, says because New Zealand's environment is relatively free of pests, hops are able to be grown without pesticides.

Dr. Beatson says there has also been a worldwide increase in demand for boutique or craft beers, which the local industry has responded to by investing in research for new hop varieties.

He says the unique attributes of New Zealand hops have attracted the attention of big overseas beer companies such as Anheuser Busch, which owns the Budweiser brand.

He says the company is looking at buying New Zealand hops which could be used in specialised craft beers.