Czech breweries raised beer output by 5 percent year-on-year in the first seven months of the year owing to a hot July, said Jan Vesely, director of the Czech Beer and Malt Association, CTK unveiled August 30.

In the first half, beer output grew by 4.4 percent. In July alone, production rose by 9 percent year-on-year, Vesely said, adding successful exports were another factor.

In the first half, Czech breweries raised exports by 17 percent year-on-year to 1.7 million hectolitres, while sales to the domestic market added 2 percent to 7.85 million hectolitres. Vesely added output in August would be lower owing to colder weather.

Czech beer output for the full year is estimated at 19.5 million hectolitres, mainly owing to a growth in exports to 3.5 million hectolitres. In 2005, Czech breweries produced 19.07 million hectolitres of beer, with exports at 3.1 million hectolitres.

The Danish brewery group Royal Unibrew A/S reported 29 August an operating profit of DKK60.6 million on net revenue of DKK1.62 billion for the financial period January-June 2006, Nordic Business Report Via Thomson Dialog NewsEdge released August 29.

Operating profit for the six-month period decreased from DKK65.5 million while net revenue increased from DKK1.51 million, as compared to the corresponding period in 2005.

Royal Unibrew A/S is a listed, international business that produces, distributes, markets and sells beer, malt and soft drinks in 65 markets - primarily in Europe, America and Africa.

It comprise four breweries in Denmark, two in Lithuania, one brewery and one soft drinks business in Latvia as well as two breweries in Poland. In addition, it has sales companies and associates in a number of countries. Royal Unibrew A/S employs a total of some 2,200 people.

One Danish krone (DKK) is worth approximately 0.09 British pounds (GBP).

Foster's Group Ltd., Australia's biggest beer and wine maker, said August 29 it was not aware of any takeover proposals, sending its shares down as much as 3 percent, Reuters accordingly reported.

Shares in Foster's surged to a record high August 29 on an unsourced media report that said InBev, the world's largest brewer by volume, and second-ranked SABMiller were thought to be looking at the Australian company, which is valued at around AU$12 billion (US$9 billion).

Analysts did not rule out a takeover but said the chances of an offer from SAB Miller or InBev were low.

Macquarie Equities said both had the capacity to buy Foster's, but neither had shown an attraction to wine.

"The Australian beer market is relatively small and mature on a global comparison, while Foster's global reach is limited by its recent divestments and complicated incumbent distribution agreements," Macquarie said in a research report.

Foster's shares were down 1.5 percent at AU$5.86 in late morning trade, in a wider market up 0.1 percent. Its shares gained 9.2 percent August 29.

"The company is not aware of any proposals which may lead to a takeover, and no approaches to that end have been made," Foster's said in a statement.

According to the Czech Beer and Malt Association statement , Czech malt houses raised output in the first half of 2006 by 2 percent year-on-year to 266,000 tonnes. More than half of the amount was sold abroad, above all to Poland, Romania, Germany, Cuba, Slovenia and Austria.

The Belarusian Ministry of Agriculture and Food (MAF) controls the sales of malting barley on account of government buying. By August 29 the enterprises have sold 38,500 tonnes of malting barley; that is 25.7% of the plan, AgriMarket released August 29.

Also they prepared about 17.000 tonnes more. In total government buying is for 150,000 tonnes. Low sales of malting barley on account of government buying are caused by selecting grain on raw areas of barley production as well as in different enterprises. Because of small size of grains the enterprises should sort it on grain-receiving points; brewing plants receive grain themselves. According to Deputy Director of central administration of crop science of MAF, Vladimir Kuratnik, the processors have the opportunity to select qualitative grain for brewing - in total they collected 258,000 t.

Old and new-crop barley prices are surging as fears of a poor harvest grow. Dry weather is expected to cut the national crop from an average of 7.5-8.5 million tonnes to as little as 5.5 million tonnes, World-Grain released August 30. Prices for old-crop malt barley are also being driven by China which is buying to ensure it is not left high and dry by a small harvest. It imports up to three million tonnes of malt barley and is buying in Australia for the container trade at up to AU$246 a tonne, delivered to terminals. Growers can achieve up to AU$210 delivered to Melbourne.

Malt barley production is down in the northern hemisphere. Europe has a limited surplus for export with late rain hitting quality. Canada has a smaller crop with only about 500,000 tonnes available for export.

New crop Feed I barley traded at a track price of $214 a tonne into Melbourne August 25. Old crop Feed I values followed, to be AU$188-AU$190 in Melbourne. Up-country delivered values also average AU$190.

Old-crop Feed I grade barley is expected to top AU$200 delivered to regional and Melbourne processors. Southern NSW feedlots are paying to AU$192 delivered for Feed I barley.