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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
Barley price evolution
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

25 Sept - 27 Sept 2006
Crop 2006
2rs Barley €X  X
6rw Barley €X  X
2rs Malt €X  X
6rw Malt €X  X
Crop 2007
2rs Barley €137.0-139.0    
6rw Barley €116.0-118.0    
2rs Malt €285.5-287.5  0.70%
6rw Malt €259.0-261.0  0.78%

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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Other e-malt.com newsletters

Last five newsletters
See this Newsletter!
Newsletter 38b, 2006

See this Newsletter!
Newsletter 38a, 2006

See this Newsletter!
Newsletter 37b, 2006

See this Newsletter!
Newsletter 37a, 2006

See this Newsletter!
Newsletter 36b, 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.
Last five graphs

Open this Table!
The World Malt Export (2004-2005,2005-2006e)

Open this Table!
Canada Barley Exports by Coutry of Destination (2003-2004, 2004-2005)

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

Open this Table!
Vietnam Beer Production

Open this Table!
EU Malt Export Licence Fixations



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 39a
September 25 - September 27, 2006

Quote of the week

"This is grain, which any fool can eat, but for which the Lord intended a more divine means of consumption... Beer!"
Robin Hood, Prince of Thieves, Friar Tuck


Currency Rates
Base Currency: Euro, EUR
on 27-September-2006

1 EUR = 1.2723 USD
1 EUR = 0.6704 GBP
1 EUR = 1.4197 CAD
1 EUR = 1.6896 AUD
1 EUR = 148.386 JPY
1 EUR = 2.8176 BRL
1 EUR = 34.0636 RUB
1 EUR = 10.0803 CNY
Base Currency: US Dollar
on 27-September-2006

1 USD = 0.786 EUR
1 USD = 0.5269 GBP
1 USD = 1.1158 CAD
1 USD = 1.3278 AUD
1 USD = 116.631 JPY
1 USD = 2.2145 BRL
1 USD = 26.7724 RUB
1 USD = 7.9226 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Russia: Russian beer market is to grow by 4%-6% in 2006... Click here

South Korea: The launch of Oriental Brewery’s low-alcohol beer, "Cass Ice Light”, renewed the beer war... Click here

Colombia: SABMiller makes offer to buy the remaining Colombia Bavaria shares... Click here

China: Beijing Yanjing Brewery Co may invite Heineken to become a strategic investor... Click here

Mexico: An anti-trust resolution issued against Femsa. In August, the watchdog warned rival brewer Modelo... Click here

The Netherlands: Commission rejects Dutch investment aid for Holland Malt B.V.... Click here

USA: International Malting Co. not purchased, but changes may be in the works... Click here

France: Groupe Soufflet announced the closure of its 17,000 tonnes malting plant... Click here

EU: The outlook for malting barley supplies in 2007 can hardly be described as optimistic... Click here

Scandinavia: Malting barley production has been hit 5-fold... Click here

USA: Hop stocks as of September 1 were down 18% year-on-year... Click here

More News
Russia: BBH reported beer volume growth of 16% in July and August, compared to market growth of 14% ... More Info

Australia: Foster's to appeal disallowed tax objection ... More Info

Russia: Russian barley exports decreased by 44.4% during July-August ... More Info

India: UK's leading Cobra beer brand is to open three more breweries in India in the coming months ... More Info

Belarus & Russia: Belarusian cabinet is to abolish restrictions on Russian beer imports ... More Info

Australia: Dr Franckowiak will help to produce more barley for both feed and malting and increase cropping diversity ... More Info

UK: London's oldest brewery, Young's, will end a more than 400-year-old brewing tradition this week ... More Info

Ukraine: In January-August 2006 Ukrainian beer exports rose by 24% year-on-year ... More Info

USA: Anheuser-Busch prices are up, but other worries could be on the way ... More Info

USA: Idaho barley prices last week ranged from steady to 25 cents higher ... More Info

Australia: The new malting varieties have major improvements in their quality characteristics ... More Info

Russia: BBH is looking for expansion in Usbekistan, Kazakhstan and Ukraine ... More Info

USA: Anheuser-Busch stock downgraded over slowing beer sales ... More Info

India: UB, owner of the Kingfisher beer brand, is not yet looking at acquisitions ... More Info

USA: Miller beer sales and SABMiller stock dive as boycott enters phase II ... More Info

India: SABMiller is to bring some more of its international beer brands in the premium segment of the country ... More Info

USA: Beer industry provides 26,435 jobs and $732 million annually in wages in Oregon ... More Info

USA: Klamath barley breeding program to shut down ... More Info

USA: Coors makes deal with New Orleans Saints ... More Info

USA: Beer Institute supports new Sober Truth on Preventing Underage Drinking Act Legislation ... More Info



Brewery News
Russia: Russian beer market is to grow by 4%-6% in 2006

The Russian Beer Union has forecast the growth of the Russian beer market at 4%-6% in 2006 despite positive trends seen over the first eight months of the year, Interfax cited on September 25 the union saying in a release. However, BBH estimated that instead of annual growth rates of 5-6 per cent, the market will only rise by 3-5 per cent in the future.

Beer output grew 7.1% in Russia in January-August and amounted to 68.5 hectoliters, the Federal State Statistics Service (Rosstat) said. Regional markets accounted for the lion's share of growth, the union said.

The Russian Brewers' Union was set up in September 1999. It unites companies that have a combined 90% share of the Russian beer market. Russia produced 89.2 hectoliters of beer in 2005, up 6% from 2004.


South Korea: The launch of Oriental Brewery’s low-alcohol beer, "Cass Ice Light”, renewed the beer war

South Korea's second-largest brewery, Oriental Brewery Co., unveiled on September 25 a low-alcohol beer that is expected to heat up the competition in the local market, Asia Pulse posted on September 25. Oriental Brewery released a beer with an alcohol content of 4.2 per cent, named "Cass Ice Light," which falls below the 4.5 per cent level in the general beer market, the company said.

The war map in the beer market has two big players Hite Brewery and Oriental Brewery which hold about 60 and 40 percent market shares, respectively. The share of imported beers stays at below the 1 percent mark.

While their market shares have shown little fluctuation over the past few years, Oriental Brewery expects its share to increase with the launch of Cass Ice Light, the first new Cass beer in 12 years since the brand was introduced in 1994.

But industry leader Hite Co. downplayed the possibility of such competition, saying a lower alcohol content does not have a significant effect on taste, unlike the "soju" liquor.

Nine years after Belgium-based InBev Co., the world's largest beer maker, bought a stake in Oriental, the South Korean company is releasing a new product with an ambitious ...
More Info


Colombia: SABMiller makes offer to buy the remaining Colombia Bavaria shares

Brewer SABMiller PLC, he world's second largest brewer, said it has launched a tender offer on the Colombian Stock Exchange for the remaining 2.22 pct of Bavaria SA that it does not already own at around USD 19.10 per share, AFX posted on September 27.

SABMiller plc is offering to buy the remaining shares of its Colombian affiliate, Bavaria, the government announced on Friday, September 22, according to Reuters. The offer to purchase the shares is open through October 12, the financial sector superintendent's office said in a statement.

At this price, SABMiller said it will pay some 105 mln usd if the offer is accepted in full.

SABMiller, the maker of Miller Lite, holds 97.64 % of Bavaria after completing a deal for around $9 billion last year.

SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 ...
More Info


China: Beijing Yanjing Brewery Co may invite Heineken to become a strategic investor

Beijing Yanjing Brewery Co Ltd might invite the brewing giant, Heineken, to become a strategic investor, the official Xinhua news agency reported on September 25, citing a company official. Yanjing is one of China's largest beer producers.

According to the source, Yanjing board secretary Liu Xiangyu said: “There is no specific timetable for the discussions (on a potential strategic investor). He added though that Heineken was one of the firm's being considered as a strategic partner.

Heineken currently owns 21% of Shenzhen-based brewer Kingway. The Dutch company is keen on buying stakes in Chinese brewers after local media reported earlier this month that Yanjing planned to issue new shares to Belgian brewer InBev via a private placement and to invite it to become a strategic investor.


Mexico: An anti-trust resolution issued against Femsa. In August, the watchdog warned rival brewer Modelo

In coming days Mexico will issue a resolution against Femsa, likely ordering the bottler and brewer to stop monopolistic sales practices, the head of the anti-trust watchdog said on September 25, according to Reuters.

Eduardo Perez Motta told Reuters in an interview the decision on Femsa, which produces Sol and Tecate beer and Coke products, will be posted in the next two or three weeks and was unlikely to include a fine.

In August, the watchdog warned rival brewer Modelo, maker of Corona beer, for monopolistic sales practices. Modelo was not fined but was ordered to end exclusivity contracts with stores, in which the brewer usually asks store owners not to sell rival brands.

"It is very probable that it will be very similar to the resolution for Modelo," Perez Motta said of the upcoming decision on Femsa.

Femsa, was not immediately available for comment.

Malt News
The Netherlands: Commission rejects Dutch investment aid for Holland Malt B.V.

On September 26, the Commission has decided under EC Treaty state aid rules to reject an investment aid of € 7,425,000 that the Dutch authorities committed to Holland Malt B.V. for the establishment of a production plant for malt in Eemshaven, province of Groningen.

The Netherlands gave this commitment at the end of 2003 under the suspending condition that the aid would have to be approved by the Commission. The plant itself was built in 2004. It started its operations in April 2005.

When assessing state aid for the processing and marketing of agricultural products, the Commission has to see whether sufficient market outlets exist. The Commission found that in the period in which the plant was built and in which it became operational, supply of malt in the EU clearly exceeded demand.

Malt prices were low and malting companies generally suffered from low profitability. In the last 12 months these bad market conditions led to a number of permanent closures of malt plants.

By mid 2006 the supply of malt in the EU dropped because of bad malting barley harvests and because maltsters, as a response to the bad market conditions, decided to lower production and both temporarily and ...
More Info


USA: International Malting Co. not purchased, but changes may be in the works

Reports that The International Malting Co. has a new owner aren't exactly true. But changes may be in the works, according to an attorney for Lesaffre and IMC.

The International Malting Co., the Milwaukee-based company that owns the malt plant and similar operations in other states, has two owners: The Lesaffre International Corp. and Archer Daniels Midland, the U.S. agri-giant based in Decatur, Ill. The two are each half owners, although Lesaffre is the managing partner.

"That's been the case throughout this project," said Chris Kaltenbach, an attorney for Lesaffre and IMC. "There are discussions on-going among the shareholders about changing that structure. But nothing has been agreed upon or finalized."

Earlier this month E-Malt.com said that ADM is buying out Lesaffre, leaving the France-based company to focus on its yeast business.

Recent local talk has ADM undertaking an expansion of some sort at the Great Falls plant. Expansion would be good economic news and likely more meaningful than a change of ownership alone.


France: Groupe Soufflet announced the closure of its 17,000 tonnes malting plant

According to a press report, Groupe Soufflet, the world’s leading malster, is planning to close its malting plant in Ebersmunster on September 30 2006. This a malting plant of 17,000 tonnes per annum of production capacity.

Groupe Soufflet attributed the closure to the excessive competition that is due to the global overcapacity and a dramatic increase of energy prices.

Barley News
EU: The outlook for malting barley supplies in 2007 can hardly be described as optimistic

Market experts hope that the malting barley trade will resume, when harvesting is finished and the malting barley Supply & Demand becomes clear to all market partners, according to a report published on September 1.

Experts commented: “It must be feared that price levels will remain very high for a long time. In view of farmers' long-standing unhappiness with malting barley revenues and price expectations for grains for ethanol production, the outlook for malting barley supplies in 2007 can hardly be described as optimistic.


Scandinavia: Malting barley production has been hit 5-fold

Denmark finished a week before the barley and Sweden just running in the last of the crop. Finland has all in, H. ABILDSTROEM & Co. ApS commented in its report published on September 21.

The last lots all had some pre-germination, but still too early to make a full picture of the damages. In any case malting barley production has been hit 5-fold:
1) smaller area,
2) smaller yield,
3) lower calibration,
4) rejection on high protein and
5) pre-germination and abandoning of grain on the fields.

Slowly official production figures become available but in Denmark as well as in Sweden the prognoses for crop 2006 still seem overestimated. Swedish crop: latest assessment total grain 4.3 mil against last year 5.05 ts.

Principally H. ABILDSTROEM & Co. ApS’ estimate after having consulted the trade is that we could see the following export surplus based on max. 12% protein and otherwise usual specifications: Denmark: 350,000 ts Sweden: 5,000 ts ? Finland (max 12.5 pro) 15,000 ts ?

The Astoria in the mid of Sweden came in reasonably well with 11.5 protein, nice screening and mainly without sprouting. This will have to make up for the losses in South Sweden, and despite heavy haulage ...
More Info

Hops News
USA: Hop stocks as of September 1 were down 18% year-on-year

The inventory of hops held by growers, dealers, and brewers of the USA on September 1, 2006, totalled 49.0 million pounds, 18 percent less than the September 1, 2005 stocks of 60.0 million pounds and 25 percent below September 1, 2004, the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture released on September 19.

This is the lowest September 1 inventory since 2000 when stocks were 48.0 million pounds.

Stocks held by brewers, at 35.0 million pounds, were up 2.0 million pounds from September 1, 2005 and 1.0 million pounds above September 1, 2004. Stocks held by growers and dealers on September 1, 2006, were 14.0 million pounds, 48 percent less than the stocks on hand last year and 55 percent under two years ago.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2723 September 27, 2006 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  140.00  178.50 
2RS  Prestige  139.00  177.00 
2RS  Cellar  138.00  175.50 
2RS  Sebastien  137.00  174.50 
2RS  Astoria  137.00  174.50 
2RS  Cork   136.00  173.50 
6RW  Esterel   117.00  149.00 

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 1.2723 September 27, 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 2007 are available on site www.e-malt.com/MarketPrices

Barley price evolution



Source: ABARE, September 2006

Table of the week
Canada: Barley Supply and Disposition
as of September 20, 2006


  2004-2005   2005-2006   2006-2007 f 
  Seaded area, '000 ha 4,678  4,440  3,868 
  Harvested area, '000 ha 4,050  3,889  3,435 
  Yield, tonne/ha  3.26  3.21  2.99 
  Production, '000  metric tonnes 13,186  12,481  10,287 
  Imports, '000 metric tonnes 83  46  40 
  Total Supply, '000 metric tonnes 15,371  15,962  13,616 
  Exports, '000 metric tonnes  1,863  2,978  2,150 
  Food & Industry Use, '000 metric tonnes 268  155  260 
  Feed, Waste, Dockage, '000 metric tonnes 9,417  9,181  8,991 
  Total Domestic Use, '000 metric tonnes 10,073  9,695  9,666 
  Carry-out Stocks, '000 metric tonnes 3,435  3,289  1,800 
  Average Price, CA$/tonne 112  110  110-130 
f: forecast, Agriculture and Agri-Food Canada, September 20, 2006
Newsletter SummaryTop
Graph of the week


These Days in Business History
25 September
1639 1st printing press in America
1654 England & Denmark sign trade agreement
1897 1st British bus service opens
1926 Henry Ford announces 8 hour, 5-day work week
1926 International slavery convention signed by 20 states
1956 1st transatlantic telephone cable goes into operation (Scot-Canada)
1960 1st Atomic powered aircraft carrier (Enterprise) launched (US)

26 September
1404 Brussels Brabants/Limburgse audit-office established
1680 Tax revolt in Gorinchem due to tax on cereal
1786 England & France sign trade agreement
1955 NY Stock Exchange worst price decline since 1929
1972 Norway rejects membership in European Common Market

27 September
1825 Railroad transportation is born with 1st track (Stockton-Darlington)
1937 1st Santa Claus Training School opens (Albion NY)
1938 Jewish lawyers forbidden to practice in Germany
1968 France refuses UK entry into common market
1988 Senate votes for major federal tax code changes
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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