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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
Scientific Digest
Theoretical malt prices
Malting barley prices
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

18 Sept - 20 Sept 2006
Crop 2006
2rs Barley €X  X
6rw Barley €X  X
2rs Malt €X  X
6rw Malt €X  X
Crop 2007
2rs Barley €135.0-137.0  1.49%
6rw Barley €114.0-116.0  1.77%
2rs Malt €281.5-283.5  0.89%
6rw Malt €254.5-256.5  0.79%

Note: X - Due to an extremely unstable market we can't give any realistic quotation.

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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Newsletter 37b, 2006

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Newsletter 37a, 2006

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Newsletter 36b, 2006

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Newsletter 36a, 2006

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Newsletter 35b, 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


E-malt.com graphs

All graphs issued with e-malt.com newsletters are published in "Graph" section of e-malt.com site.
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Open this Table!
Canada Barley Exports by Coutry of Destination (2003-2004, 2004-2005)

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Per Capita Beer Consumption in 2 largest beer markets in North America (1999, 2005)

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Vietnam Beer Production

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EU Malt Export Licence Fixations

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World Beer Production (1991 - 2005)



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 38a
September 18 - September 20, 2006

Quote of the week

"While we are postponing, life speeds by."
Seneca (3BC - 65AD).


Currency Rates
Base Currency: Euro, EUR
on 20-September-2006

1 EUR = 1.2694 USD
1 EUR = 0.6747 GBP
1 EUR = 1.4223 CAD
1 EUR = 1.6827 AUD
1 EUR = 149.448 JPY
1 EUR = 2.7336 BRL
1 EUR = 34.01 RUB
1 EUR = 10.0868 CNY
Base Currency: US Dollar
on 20-September-2006

1 USD = 0.7879 EUR
1 USD = 0.5315 GBP
1 USD = 1.1204 CAD
1 USD = 1.3255 AUD
1 USD = 117.738 JPY
1 USD = 2.1535 BRL
1 USD = 26.7924 RUB
1 USD = 7.9462 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Hong Kong: Kingway beer for the first half of the year increased by 36.6% year-on-year... Click here

Czech Republic: Czechs turn to non-alcoholic beer, the consumption of which could triple within three years... Click here

Russia & Ukraine: SUN Interbrew net sales increased by 33.4% to €528.2 million in 1H 2006... Click here

Latvia: Aldaris’ beer sales increased by 10% to 42.4 million litres over the last eight months... Click here

India: United Breweries will invest US$87 million to expand capacity by half... Click here

EU: Maltsters will produce less malt than needed... Click here

Ukraine & Russia: Malting barley quality is rather satisfactory... Click here

World: In 2006/07 larger shipments to Europe and USA are expected by IGC... Click here

Australia: Barley production in 2006-07 is forecast by ABARE to fall by 41%... Click here

More News
USA: Barley production is estimated by USDA to decline by 14% to 3.98 million t ... More Info

World: Barley consumption in 2006/07 is estimated to reach 147.7 million tonnes ... More Info

Ukraine: In 2006/07 Ukraine is forecast to export about 5 million tonnes of barley ... More Info

UK: One of the best-known figures in British brewing dies aged 85. Bid talk increases. ... More Info

Nigeria: Sona Breweries was certified by the Standard Organisation of the country ... More Info

Cayman Islands: Stingray Brewery getting overhaul will reopen by the end of the year under the new name ... More Info

Germany: Munich Beer Festival started ... More Info

Netherlands: Heineken rating downgraded from ‘neutral’ to ‘reduce’ ... More Info

Hong Kong: Kingway Brewery announced change of company secretary and cessation of alternate director ... More Info

UK: Cobra Beer in £10m campaign that includes the brand’s biggest ever TV push ... More Info

Canada: Brick Brewing wins Ontario Outstanding Business Achievement Award ... More Info

Germany: A new honorary professor appointed at the Institute for Biotechnology and Brewing Technology at Berlin University of Technology ... More Info

UK: InBev rolls out the first UK advertising drive for Beck’s Vier ... More Info

Namibia: Namibia Breweries anticipates growth in headline earnings by more than 200% ... More Info

USA: The first woman elected to head The National Beer Wholesalers Association ... More Info

USA: Heineken strives to persuade American drinkers to switch to Heineken Premium Lite in a battle with market leader Anheuser-Busch ... More Info



Brewery News
Hong Kong: Kingway beer for the first half of the year increased by 36.6% year-on-year

The Board of Directors of Kingway Brewery Holdings Limited reported on September 14th the unaudited consolidated results of the Company and its subsidiaries for the six months ended 30 June 2006 together with comparative figures are as follows. These interim financial statements have not been audited, but have been reviewed by the Company’s audit committee and the Company’s auditors, Ernst & Young.

The Board of Directors reported that the sales volume of Kingway beer for the first half of the year was 295,000 tonnes (2005: 216,000 tonnes), representing an increase of 36.6% over the same period of 2005. The consolidated revenue was HK$660 million (2005: HK$516 million), representing an increase of 27.9% as compared to the same period of 2005. The gross profit for the first half of the year was HK$277 million (2005: HK$237 million), representing an increase of 16.9% as compared to the same period last year. The unaudited consolidated profit for the period was HK$70.76 million (2005: HK$81.37 million), representing a decrease of 13.0% over the same period of 2005. Basic earnings per share was 5.1 HK cents (2005: 5.8 HK cents), representing a decrease of 12.1% over the same period of 2005. EBITDA was HK$140 million ...
More Info


Czech Republic: Czechs turn to non-alcoholic beer, the consumption of which could triple within three years

Non-alcoholic beer in Czech Republic has surged as stricter rules for drivers were introduced at the start of July, AFP cited Czech daily Lidove Noviny reported on Tuesday, September 19. Martin Novak, manager of the Staropramen brewery, commented: "Just in July and August we saw sales of non-alcoholic beer in grocery stores rise by 81%."

The new law, penalising drivers with points for every drink-driving infringement and a driving ban if they exceed the limit, is the main factor behind the rise, Novak said. Sales of market leader, Radegast Birrell, have risen by a quarter this year, the paper added.

In any case, "Czechs are trying to live healthier lives", the manager of the Czech breweries association, Jan Vesely, added. Average annual per capita beer of over 160 litres puts Czech among the biggest beer drinkers in the world.

But Vesely predicted that expected consumption on non-alcoholic beer this year of around 240,000 hectolitres could triple within three years.

Staropramen is owned by Belgian-based multinational INBev; Radegast is part of SABMiller's international beer empire.


Russia & Ukraine: SUN Interbrew net sales increased by 33.4% to €528.2 million in 1H 2006

SUN Interbrew Limited, a leading brewer in Russia and Ukraine, announced September 13 its financial results for six months of 2006 ended 30 June 2006.

Net turnover in the first half 2006 was up by +33.4% vs. the first half 2005. Net profit in the first half 2006 was up by +181.6% vs. previous year. In Russia, the market growth was +6.0%, while SUN Interbrew's domestic beer volumes grew by +15.3% vs. the same period last year.

In Ukraine, the market grew +11.6%, with SUN Interbrew domestic beer volume growing +12.6%.

SUN Interbrew ended the first part of the year in both countries with record market shares: 18.6% in Russia and 36.8% in Ukraine.

Sun Interbrew’s net sales in 1H 2006 reached €528.2 million versus €396.0 million in 1H 2005 (+€132.2 million or +33.4%).

Good sales results achieved in the first half of 2006, despite the increased competition in Russia and slower market growth, confirm the strategy chosen by SUN Interbrew, the company said in its statement. SUN Interbrew believes that with the continued strong innovations introduced on the markets, such as launch Stella Artois® and Beck's® in aluminum bottle in spring, it will be able to outperform the competitors and expand ...
More Info


Latvia: Aldaris’ beer sales increased by 10% to 42.4 million litres over the last eight months

Latvian brewery Aldaris’ beer sales for the last eight months recorded 42.4 million l, 10% more year-on-year, The Russian Brewers Union learned September 18 from Ilmar Iargans, Aldaris’ head of public relations division.

Aldaris’ exports in Baltic countries increased by 22% while overall shipments hiked by 32%.

The legendary history of the traditional Latvian beer brewery Aldaris, a joint venture between Carlsberg, Scottish & Newcastle’s and Baltic Beverages Holding, started centuries ago, in 1865. Nowadays Aldaris is the biggest brewery in Latvia and one of the biggest in the Baltic.


India: United Breweries will invest US$87 million to expand capacity by half

United Breweries Ltd., India's top beer maker, is to invest about 4 billion rupees (US$88 million) to expand capacity by half, Reuters cited the Chairman Vijay Mallya saying at the annual shareholders' meeting on September 19.

The expansion will increase output from the current 68 million cases a year "in a phased manner", he said. "The (expansion) plan envisages both setting up of green-field breweries as well as augmentation of capacity and technology at existing sites," said Vijay Mallya.

"The company plans to invest four billion rupees (88 million dollars) in the manufacturing network over the next three years. This will be funded by a combination of internal accruals and debt," Mallya told shareholders. He said the company will open an office in Shanghai to market the firm's products.

"China is a vast country. All we know is that there is a market for our products. Initially we are only looking at marketing. United Breweries will open the office immediately," Mallya commented.

United Breweries leading beer brand is Kingfisher. The company is the world's third-largest spirits producer and controls 60 percent of the Indian market.

United Breweries is also firming a distribution agreement with joint venture partner Scottish & Newcastle Plc for UB's flagship ...
More Info

Malt News
EU: Maltsters will produce less malt than needed

The failure of the EU malting barley crop changed markets and the state of the malting industry once more. Lack of barley supplies and sky-high barley prices require a great skill to be covered against the risks on the raw material side, experts worried September 01. It is therefore not surprising to see that a number of maltsters have withdrawn from selling malt in general or in special cases.

The cost of malting barley will be the highest in South and East Germany, Czech, Poland, possibly other Central European countries, where the crops were the worst and the cost of acquisition of French or Danish barley is much higher than for malting factories along the coast or along large waterways.

It is there, where one expects a lower malt production in the season 2006/07. As per experts’ calculation it means that the industry may produce again 850.000 tons less than capacity. Adding this to the former factory closures, the EU malting industry will produce less malt than needed.

Barley News
Ukraine & Russia: Malting barley quality is rather satisfactory

Malting barley qualities are quite satisfactory in the Center and East of the Ukraine and in the Southern half of the Russian Black Soil belt. In the Western Ukraine and in the north of the Russian malting barley belt rains halted harvesting and led and will lead to the downgrading of 15 - 20 % of their spring barley crops, analyst estimated September 01.

Otherwise barley specifications and first micro-malting results indicate correct qualities. Russia must be able to find its large malting barley needs in local markets. Export availabilities from both countries will be negligible, if any.


World: In 2006/07 larger shipments to Europe and USA are expected by IGC

World barley trade in 2006/07 (July/June) is forecast by International Grain Council IGC at 17.6 million tones, almost unchanged from last year (17.8 million). The increase is partly due to a higher import figure for the EU. Larger shipments are expected to Europe and USA. While some drops in imports by North Africa are projected.

IGC forecast EU barley imports for 2006/07 at 0.5m. tonnes, 0.1 million tonnes higher than before, amid firm feed demand and expected competitive supplies from Ukraine.

A favourable production outlook in North Africa is forecast to reduce the region’s imports to 1.1 million tonnes (1.6 million tonnes), unchanged from July, with shipments to Morocco, Algeria and Tunisia each expected at lower levels than last year.


Australia: Barley production in 2006-07 is forecast by ABARE to fall by 41%

Australian barley production is forecast by ABARE (Australian Bureau of Agricultural and Resource Economics) to decline to around 5.8 million tonnes, a 41 per cent drop from the previous season. The forecast was reported in ABARE’s September Report.

New South Wales

The area planted to barley in New South Wales is estimated to have fallen by 11 per cent to 900 000 hectares in 2006-07, reflecting the poor start to the season. Barley production is forecast to fall by 40 per cent in 2006-07 to 1.35 million tonnes, reflecting the reduced area and below average yields, particularly in southern and central regions of the state.

Victoria

The area planted to barley in Victoria in 2006-07 is estimated to have declined by 9 per cent to 850 000 hectares. Production is forecast to fall to 1.1 million tonnes, 45 per cent below the previous season’s level, reflecting the reduced area sown and below average yields.

Queensland

The area planted to barley is estimated to have fallen by 42 per cent, to 90 000 hectares in 2006-07, primarily reflecting a significant reduction in sowings on the Darling Downs, one of the state’s major barley growing regions.

Western Australia

The area planted to barley in Western Australia is ...
More Info

Hops News
USA: Prices for Aroma hops worldwide to remain stable at high levels

Weekly American Crop Report
By: Douglas MacKinnon

The Aroma harvest has ended in the
United States and only bitter hops remain. Harvest typically continues through the end of September in Washington State but many growers in Oregon have already finished. It is impossible at the moment to predict the outcome of the American alpha crop. At this time, it appears that it will be average or better, but that can change. Aroma hop yields are down by 15 percent in some varieties. We can therefore expect prices for Aroma hops worldwide to remain stable at high levels. The American microbrewery industry demand is increasing. Therefore, additional acreage of aroma hops will likely be necessary in America in 2007 to maintain balance between supply and demand. Aroma hops in America are typically not grown on speculation. Growers will likely plant additional acreage only if it is contracted.

A serious concern of growers in Washington State is the labor shortage. Some farms are running with only 85% of their normal work force and that is making harvest difficult. The minimum hourly wage, which increases in Washington and Oregon States with the rate of inflation, is ... More Info

Scientific Digest
Determination of Gushing Tendency of Malt
Submitted by A. Haikara, T. Sarlin and S. Home on behalf of the Analysis Committee of the European Brewery Convention

Summary
A Subgroup of the EBC Brewing Science Group evaluated and tested an empirical method for the determination of gushing tendency of malt. Although all the details of the procedure were carefully standardised and the same beer brand sent to all the participants the precision of the method was not acceptable for the inclusion in Analytica-EBC.
... Load full article, 2 pages, 130 Kb, *.pdf file


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2694 September 20, 2006 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  138.00  175.50 
2RS  Prestige  137.00  174.00 
2RS  Cellar  136.00  173.00 
2RS  Sebastien  135.00  171.50 
2RS  Astoria  135.00  171.50 
2RS  Cork   134.00  170.50 
6RW  Esterel   115.00  146.00 

X - Due to an extremely unstable market we can't give any realistic quotation.

Prices for Danish malting barley are available on site www.e-malt.com/MarketPrices

Theoretical malt prices.
  EURO = USD 1.2694 September 20, 2006 
Crop year  2006 
Parity  FOB Antwerp 
Position  Sept 2006-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett 
2RS  Prestige 
2RS  Cellar 
2RS  Sebastien 
2RS  Astoria 
2RS  Cork  
2RS   Average price 
6RW  Esterel  
Asia Malt 70/30 
**  Asia Malt 50/50 

X - Due to an extremely unstable market we can't give any realistic quotation.
* - 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

EU Malting Barley Supply and Demand Estimate 2006/2007

(in 1000 tonnes) Capacity 01/07/2006 Production Demand Spring malting barley Winter malting barley Total
Supply Demand Supply Demand
Northwest:                  
 Belgium 736   700   875  25  550    325  -850 
 France 1285  1250  1560  1650  1050  1300  510  1390 
 Germany   2117  1700  2125  1100  1975  100  150  -925 
 Ireland   128  120   150  200  150      50 
 Netherlands   330  320  400  200  300    100  -200 
 United Kingdom   1473   1400  1750  1150  1000  900  750  300 
Total Northwest   6069  5490  6860  4325  5025  2300  1835  -235 
Baltic:                  
 Denmark   277   260   325  750  325      425 
 Finland   172   150   185  185  185     
 Lithuania   82   80   100  50  100      -50 
 Poland   305   250  310  150  310      -160 
 Sweden   170   160  200  150  200      -50 
Total Baltic   1006   900  1120  1285  1120      165 
Southeast:                  
 Austria   150   150   190  150  190      -40 
 Czech Republic   515   400  500  350  500      -150 
 Hungary   133   100  125  125  125     
 Slovakia   271  260  325  325  325     
Total Southeast   1069  910  1140  950  1140      -190 
Mediterranean:                  
 Greece   45   45   55    45    10  -55 
 Italy   70   60  75  30  55    20  -45 
 Portugal   86  75   95    75    20  -95 
 Spain   442  430  540  450  520    20  -90 
Total Mediterranean   643  610  765  480  695    70  -285 
NET TOTAL   8767   7910  9885  7040  7980  2300  1905  -545 
Newsletter SummaryTop
Graph of the week


These Days in Business History
18 September
1810 Chile declared its independence from Spain.
1842 1st edition of Pittsburgh Post-Gazette, published
1851 The first edition of The New York Daily Times, which later became The New York Times, was published.
1955: The Ford Motor Company produced its 2,000,000th V-8 engine on this day, 23 years after the first Ford V-8 was manufactured.
1961 USSR performs nuclear test at Novaya Zemlya USSR

19 September
1849 1st commercial laundry established, in Oaklan, California
1854 Henry Meyer patents sleeping rail car
1876 1st carpet sweeper patented (Melville Bissell of Grand Rapids, Mich)
1887 : Dr. Graham Edgar, developer of the octane rating system, was born in Fayetteville, Arkansas, on this day.
1888 World's 1st beauty contest (Spa Belgium)
1893 : With the signing of the Electoral Bill by Governor Lord Glasgow, New Zealand becomes the first country in the world to grant national voting rights to women.

20 September
1519 : Portuguese navigator Ferdinand Magellan sets sail from Spain in an effort to find a western sea route to the rich Spice Islands of Indonesia.
1839 1st railroad in Netherland opens (Amsterdam-Haarlem)
1877 Chase National Bank opens in NYC (later merges into Chase Manhattan)
1945 German rocket engineers begin work in US
Agenda


September 2006:
8th BELGIAN BEER WEEKEND The Belgian Brewers’ association
World of Food China - 2006
Beverages - 2006,Belgorod, Russia.Specialized exhibition.
CHINA BREW & BEVERAGE International Brew and Beverage Processing Technology and Equipment
International Brewery and Soft Drinks Industry Exhibition
Riga Food 2006.
The Great Canadian Beer Festival
2nd Bruxellensis Festival
Jean De Clerck Chair XII: Flavours in Beer , a post academic training
Fine Food Australia. Australia's largest exhibition for the food and beverage industry...
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry
EXPO Food & Drinks - 2006, Armenia. The 4th Interhational specialized exhibition.
AtyrauFood - 2006, Kazakhstan.5-th North-Caspian Regional Exhibition
Munich Oktoberfest.The world's biggest beer festival.
World Grains Summit: Foods and Beverages San Francisco, California U.S.A.
International Beer Competition 2006 Japan.
FoodWeek Uzbekistan - 2006.11th Annual International Exhibition of Food and Drinks.
Northern Crops Institute Course 2006 Grain Procurement Management for Importers
World Food Moscow - 2006.The 15th International exhibition "All world of food".
The 15 AllUkrainiane forum of food-processing industry - 2006.
Great American Beer Festival® September 28 - 30, 2006.
Farmer of Kazakhstan - 2006.The 4th Kazakhstan international exhibition.


October 2006:
International Beer Summit 2006, Japan.
World Beer Festival, USA
Food And Beverages, Novi Sad Fair, Serbia & Montenegro.
MBAA Brewing and Malting Science Course
Lighthouse International Beer Festival, USA.
Belgian Beer Festival. website:www.beerfestival.be
Belgian Beer Fest - Sunday Brunch, USA.
World Food Ukraine / Ingredients Ukraine International Food and Drinks Exhibition


November 2006:
Balkan Food & Drinks 2006, Bulgaria.
World Food Kazakhstan - 2006
Food & Drinks 2006, Georgia.
EBC SYMPOSIUM ON DRINKABILITY, UK.
InterDrink - 2006, Moscow
PeterFOOD - 2006, Saint-Petersburg
Americas Food & Beverage Show
IHGC meetings Germany
Interfood & Drink, Bulgaria
BRAU Beviale European Trade Fair for the Beverage Industry
Interfood Georgia - 2006
Foodapest - 2006, Budapest
International Forum 'Drinks Industry'
InterFood Tajikistan - 2006




More events are available on site e-malt.com
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