The European Commission proposed September 08 to raise the European Union's minimum tax on alcohol, which was last fixed in 1992, Easy Bourse released September 08.

Under the commission's proposal, beer and alcohol taxes in some E.U. countries could rise by as much as 31% starting in 2008. For the 10 states that joined the E.U. in 2004, tax hikes might be deferred until 2010, according to the Commission's tax spokeswoman Maria Assimakopoulou.

Under the proposal, in some countries the price of a half liter of beer at 5% alcohol by volume could rise by an average EUR0.01, the Commission said.

Ukrainian beer production increased 2.2 times over the last 6 years. In 2006 the national beer output is expected to outperform 26 million hl of beer, 15% more year-on-year. Beer exports are forecasted to range between 2.8 and 3 million hl, The Russian Brewers Union said September 07 referring to “Ukrpivo” president, Galina Korenkova’s statement made during the press-conference dedicated to the XIII annual celebration of “Beer fest - 2006” advertising campaign.

Ukrpivo officials added that the domestic brewing industry is fairly competitive on the international market and has big potential to expand, particularly on the back of the domestic beer lovers, as Ukrainians drink on average 45-48 l of peer per year, a level which is clearly under the levels posted by Germany (120 l/year), Czech Republic (160 l/year) and the EU average of 85 l/year.

Malt business has been reported at price levels from the €280's early in the month to €320.00, FOB seaport, in bulk, at the end of August, experts commented September 01.

Present calculations of 2row spring barley malt are based on an average cost of barley for the season of €175.00/180.00 delivered malthouse. The malting margin approaches €90.00 per t, which includes the additional risks of raw material, energy and transport prices. That translates into a malt price of €310.00/315.00 per t EXW. Esterel malt costs €25.00 less.

Harvest has finished in the southern half of the EU, but barley crop figures from most countries are still speculative, analysts reported September 01.

In Spain there is a sharp contrast between the Ministry's figure of 8.2 million t and trade figures of 7.0 – 7.5 million t. French figures stabilized at 7.5 million t of winter and 2.9 million t of spring barley vs. 7.1 and 3.2 million t last year. The IGC estimates the EU barley crop at 55.2 million t vs. 53.1 million t in 2005, but it seems quite possible that the final figure will not be higher than last year's crop.

Wheat and maize crops will be smaller than last year, high prices of feed wheat and maize have made feed barley an attractive feeder, usage is expected up by 3 - 4 million t. Prices are firm, feed barley, July, FOB Creil, costs €111.00, delivered Rouen €116.00, October/December, delivered Northwest Germany €126.00, and delivered Holland 130.00. For comparison, in surplus years prices stay close the intervention price of €101.31.