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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Brewery news
Barley 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

23 Oct - 25 Oct 2006
Crop 2006
2rs Barley €176.0-178.0   1.14%
6rw Barley €157.0-159.0   1.28%
2rs Malt €344.0-346.0   0.73%
6rw Malt €320.0-322.0   0.78%
Crop 2007
2rs Barley €156.0-158.0   0.64%
6rw Barley €134.0-136.0   0.75%
2rs Malt €311.5-313.5   0.32%
6rw Malt €283.5-285.5   0.35%

Note: 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 42b, 2006

See this Newsletter!
Newsletter 42a, 2006

See this Newsletter!
Newsletter 41b, 2006

See this Newsletter!
Newsletter 41a, 2006

See this Newsletter!
Newsletter 40b, 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!


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World Barley Production (2005-2006 2006-2007f)

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Top 10 European Beer Brands (2005)

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Asia Malt Imports

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Africa Beer Production

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The World Malt Export (2004-2005,2005-2006e)



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 43a
October 23 - October 25, 2006

Quote of the week

"Wherever beer is brewed, all is well - wherever beer is drunk, life is good."
Czech proverb


Currency Rates
Base Currency: Euro, EUR
on 25-October-2006

1 EUR = 1.2549 USD
1 EUR = 0.6703 GBP
1 EUR = 1.4169 CAD
1 EUR = 1.6573 AUD
1 EUR = 149.837 JPY
1 EUR = 2.6904 BRL
1 EUR = 33.7806 RUB
1 EUR = 9.9296 CNY
Base Currency: US Dollar
on 25-October-2006

1 USD = 0.797 EUR
1 USD = 0.5342 GBP
1 USD = 1.1291 CAD
1 USD = 1.3207 AUD
1 USD = 119.408 JPY
1 USD = 2.144 BRL
1 USD = 26.92 RUB
1 USD = 7.913 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Czech Republic: Drinks Union 3Q 2006 profit is up 42 per cents at CZK67 million... Click here

Russia: Beer production reached 77 million hl in January-September 2006... Click here

India: Heineken Singapore arm, Asia Pacific Breweries, could be interested in acquiring 76% stake in Lilasons Breweries... Click here

EU: European officials gave up on a plan to regulate drinking more strictly... Click here

China: Beijing Yanjing Brewery said 3Q 2006 profit rose 5%... Click here

Japan: Beer exports hit lowest record since 1992 between January-September 2006... Click here

USA: Barley exports to Japan and other destinations totalled 61,900 t between October 09-13... Click here

Turkey: A selling tender for 125,000 t of barley is going to be set on November 02... Click here

USA: Hops grower Roy Farms sees a chance to earn bigger returns in 2006... Click here

More News
Czech Republic: Breweries raise beer output by 3.4% in January-September 2006 ... More Info

USA: Granite City Food & Brewery 3Q 2006 comparable sales rise 3.4% ... More Info

Russia: EFES Breweries International N.V. to earn US$300 million from new GDP issue ... More Info

China: Breweries produced 164.2 million hl of beer in 1H 2006 ... More Info

Australia: Foster's remain confident about meeting FY earnings targets ... More Info

USA: Anheuser - Busch to report 3Q 2006 earnings on October 25 at 4:00 p.m. ... More Info

UK: Scottish & Newcastle acquired 38 pubs from Pubfolio for an undisclosed price ... More Info

USA: Anheuser-Busch was downgraded at UBS to ‘reduce’ from ‘neutral’ ... More Info

Canada: Big Rock Brewery Income Trust announces monthly distribution ... More Info

USA: Molson Coors Brewing is optimistic about further steady growth ... More Info

Balkans: Central Bottling Co. to market Carlsberg and Tuborg beer in Albania ... More Info

USA: Iron Hill, the East Coast's fastest growing group of brewpubs, announced plans for five new locations ... More Info

Japan: New invention permits to quickly measure the factor causing the early flocculation of yeast in brewing materials ... More Info

USA: Bankrupt Judge expressed doubts that Pittsburgh Brewing Co. will emerge from operating under bankruptcy code ... More Info

UK: A staff development program helped Green King to save £2 million in two years ... More Info

Ukraine: Barley exports increased by 70% within October 16-22 ... More Info

Jordan: State grains buyer issued a tender to purchase 100,000 t of barley ... More Info

Russia: Exporters show high interest in barley purchases ... More Info

Estonia: Ministries have contradictory opinions upon lifting the minimum alcohol content level of alcoholic drinks ... More Info

Mexico: FEMSA is awarded as an Inclusive and Familiarly Responsible Company 2006 by Mexico’s Secretary of Labor ... More Info

Thailand: The Office of the Consumer Protection Board backs alcoholic drink advertising ban imposed by local government ... More Info



Brewery News
Czech Republic: Drinks Union 3Q 2006 profit is up 42 per cents at CZK67 million

Czech beverages producer Drinks Union made earnings of more than Kc67 million in January-September, compared with CZK47 million a year ago, with sales up one percent at nearly Kc906 million, CFO Miroslav Bretsnajdr told CTK October 23, Czech News Agency reported the same day.

The improvement came thanks to cost cuts and higher sales of spirits, he added. Spirits sales rose by almost 17 percent to 40,000 hectolitres. On the other hand, revenues from beer sale were stagnant. Drinks Union produced over 682,000 hectolitres of beer in its four breweries - Zlatopramen, Velke Brezno, Louny, Kutna Hora - a decline of some two percent against the same period of 2005. The management attributes the decline in beer sale especially to long winter and lower demand in cold weather.

Drinks Union is the fourth largest Czech beer maker and the country's biggest beer exporter to Germany. Its unit KB Liker is the third largest liqueur producer in the Czech Republic. The group is in the hands of several individuals.


Russia: Beer production reached 77 million hl in January-September 2006

According to the Federal Service of National Statistics, in the first three quarters of 2006 beer production increased by 8.6% reaching 77 million hl. As per these figures, Russia ranks the fifth beer producer in the world, The Russian Brewers Union communicated October 19.

In 2005, the Russian beer output totaled 89.2 million hl, 6% more year-on-year.

The world’s largest beer producer is China, with a national beer output of 300 million hl, followed by USA (240 million hl, Germany (97 million hl) and Brazil (92 million hl). In 2005, brewers across the world brewed 1.576 billion hl of beer.


India: Heineken Singapore arm, Asia Pacific Breweries, could be interested in acquiring 76% stake in Lilasons Breweries

Asia Pacific Breweries (APB), the Singapore-based arm of Heineken, has initiated discussions for acquiring substantial interests in Lilasons Breweries, one of the last Indian surviving independent brewers, The Economic Times of India posted October 24.

Sources said APB, which acquired majority interests in Vijay Chougule's beer business for $18 million earlier this year, has valued the privately-held Lilasons at around Rs 240 crore in the early talks. Lilasons owns a popular regional strong beer brand, Khajuraho, which sells over 2 million cases and has two breweries in Madhya Pradesh and in Maharashtra.

When contacted, sources at Lilasons confirmed APB's stake offer. "We are assessing the situation and are not in a hurry," they added. APB's business development director, Vivek Chhabra, said he was not aware of any such move. It must be mentioned that leading domestic brewer United Breweries (UB) and SABMiller had made buyout proposals to the Lilasons' promoter family in the past. Khajuraho beer, which in many ways heralded the strong beer phenomenon in India, currently mops up volume mainly from Maharashtra and MP.

The brand, which once had a national presence, still carries latent equity, and the APB move could once again heighten interest in it. In context, it must ...
More Info


EU: European officials gave up on a plan to regulate drinking more strictly

The alcohol industry in Europe escaped stricter regulation on October 24 when the European Union’s health commissioner appeared to give in to opposition from the industry and averted a political battle, Reuters communicated October 25.

In a much fought-over strategy to tackle alcohol abuse, Commissioner Markos Kyprianou gave up on Europe-wide legislation similar to the Union’s strict antitobacco laws.

The European Union remains the heaviest drinking region in the world, with 55 million adults estimated to drink at harmful levels.

“Binge drinking is the big problem of the European Union,” Mr. Kyprianou said at a news conference at the European Parliament in Strasbourg. “Over all, there are fewer people who drink, but those who drink, drink more.”

He pointed to an increase in excessive drinking among young people. Over 25 percent of male deaths and 10 percent of female deaths in the 15-29 age group are related to hazardous alcohol consumption, the latest European Commission figures show.

Mr. Kyprianou complained of fierce lobbying by the alcohol industry but denied that had influenced him to drop measures like a ban on sponsorship and advertising, warning labels and an Union-wide minimum drinking age of 18.

“It has not been watered down,” Mr. Kyprianou said, adding that he never ...
More Info


China: Beijing Yanjing Brewery said 3Q 2006 profit rose 5%

Beijing Yanjing Brewery, China's second-biggest beer producer by market value, said third-quarter profit rose 5 percent, International Herald Tribune published October 23. Net income rose to CHY142 million or $18 million from CHY135.1 million a year earlier. Sales rose 9 percent to CHY2.06 billion from CHY1.9 billion.

Yanjing Brewery’ shares rose 1.94 percent to CHY7.90 after it said its third-quarter net profit rose 5 percent, The Standard commented October 25.


Japan: Beer exports hit lowest record since 1992 between January-September 2006

Reports cited October 23 the Brewery Association of Japan according to which beer exports between during the first 3 quarters of 2006 stood at 40.95 million cases of 20 beer bottles each, 4.7% less year-on-year, including the shipments of low-malt happoshu. Analysts say the decline is the most abrupt since 1992 and was driven by bad weather and anti-drink initiatives.

Among the domestic beer producers, Kirin Brewery Co was in control of 38% of the national beer market between January and September 2006. It was closely fallowed by its main competitor Asahi Breweries which earned a 37.3% stake in the domestic beer market during the first three quarters of 2006.

Barley News
USA: Barley exports to Japan and other destinations totalled 61,900 t between October 09-13

Idaho barley prices ranged from unchanged to $1.06 higher between October 16 and 19, the Idaho Barley Commission released October 19. USDA reported export sales at 61,900 t for Japan and unknown destinations between October 09 and 13. Barley exports were reported at 1,200 t for Mexico and Taiwan.

The EU Grains Management Committee did not receive any bids this week for either free market barley exports or release of intervention barley stocks for export. Japan purchased 5,000 t of Australian malting barley in this week’s grain import tender. USDA is now pegging the Australian barley crop at 4.5 million t, down 3 million t from last month’s projection and 54% below last year.


Turkey: A selling tender for 125,000 t of barley is going to be set on November 02

On October 20, the Soil Products Office of Turkey (TMO) informed that it would start exporting grains, AgriMarket.Info released October 20. On November, 2, they are going to set a selling tender for 125,000 tonnes of barley. Deadline is on November, 11.

According to the tender conditions grain will be shipped by three lots: 50,000 tonnes (port Mersin) and 45.000 tonnes (port Iskenderun) from November 20 till December, 05; 30,000 tonnes - from the 6th till 20th of December.

Hops News
USA: Hops grower Roy Farms sees a chance to earn bigger returns in 2006

In a frenzy of round-the-clock activity, 200 farm workers picked, dried and packaged hops at Leslie Roy's 2,300-acre central Washington farm. The furious five-week hop harvest differed little from years past at Roy Farms, the largest independent hop operation in the country and a supplier to some of the nation's biggest brewers, including Anheuser-Busch Inc. and Coors Brewing Co. The returns, though, could be very different in 2006, Forbes learned October 22 from Associated Press.

After more than a decade of slumping prices due to a worldwide surplus of hops, growers are seeing a chance to make a profit for the first time in years. Large brewers have used up their stockpiles, craft beermaking has increased demand and prices are turning up.

"When there's overproduction, it takes a long time to get it out of the system. We're finally seeing that happen with the oversupply from the 1990s," Roy said.

The United States produces about one-fourth of the world's hops, a component in brewing beer. More than 70 percent of that supply is grown in central Washington's agricultural-heavy Yakima Valley, which is dotted with apple and cherry orchards, vineyards and hop fields.

But buyers, namely brewers, have decided the price. ...
More Info


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2549 October 25, 2006 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  179.00  225.00  159.00  199.50 
2RS  Prestige  178.00  223.50  158.00  198.50 
2RS  Cellar  177.00  222.50  157.00  197.50 
2RS  Sebastien  176.00  221.00  156.00  196.00 
2RS  Astoria  176.00  221.00  156.00  196.00 
2RS  Cork   175.00  220.00  155.00  194.50 
6RW  Esterel   158.00  198.50  135.00  169.50 

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

Theoretical malt prices.
  EURO = USD 1.2549 October 25, 2006 
Crop year  2006 
Parity  FOB Antwerp 
Position  Oct 2006-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  348.00  436.50  362.00  454.50  362.50  454.50  376.50  472.50 
2RS  Prestige  346.50  435.00  361.00  453.00  361.00  453.00  375.50  471.00 
2RS  Cellar  345.50  433.50  359.50  451.50  359.50  451.50  374.00  469.50 
2RS  Sebastien  344.00  432.00  358.50  449.50  358.50  450.00  373.00  468.00 
2RS  Astoria  344.00  432.00  358.50  449.50  358.50  450.00  373.00  468.00 
2RS  Cork   343.00  430.50  357.50  448.50  357.50  448.50  371.50  466.50 
2RS   Average price  345.00  433.00  359.50  451.00  359.50  451.00  374.00  469.50 
6RW  Esterel   321.00  404.00  336.50  422.00  336.50  422.00  351.00  440.00 
Asia Malt 70/30  338.50  424.50  352.50  442.50  352.50  442.50  367.00  460.50 
**  Asia Malt 50/50  333.50  418.50  348.00  436.50  348.00  436.50  362.50  454.50 

* - 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: E-Malt.com, October 2006

Table of the week

EU Malting Barley Supply and Demand Estimate 2006/2007

in '000 tonnes     Suppliers  Correct specifications  Tolerated specifications 
  Estimated malt production Barley Demand Winter Spring correct specs Spring tolerated specs +/- +/-
Northwest:                 
 Belgium  700  875  25  -850  -850 
 France  1200  1500  1300  1650  200  +1450  +1650 
 Germany    1650  2060  100  1000  400  -960  -560 
 Ireland    120  150  150 
 Netherlands    320  400  100  50  -300  -250 
 United Kingdom    1350  1690  900  1050  200  +260  +460 
Total Northwest    5340  6675  2300  3975  850  -400  +450 
Baltic:                 
 Denmark    260  325  675  100  +350  +450 
 Finland    150  185  150  50  -35  +15 
 Lithuania    50  65  15  -50  -50 
 Poland    220  275  50  50  -225  -175 
 Sweden    150  190  150  40  -40 
Total Baltic    830  1040  1040  340  +340 
Southeast:                 
 Austria    150  185  150  20  -35  -15 
 Czech Republic    400  500  200  100  -300  -200 
 Hungary    80  100  60  40  -40 
 Slovakia    200  250  250  75  +75 
Total Southeast    830  1035  660  235  -375  -140 
Mediterranean:                 
 Greece    450  55  -50  -50 
 Italy    60  75  40  -35  -35 
 Portugal    75  95  -95  -95 
 Spain    430  540  470  -70  -70 
Total Mediterranean    610  765  515  -250  -250 
NET TOTAL    7610  9515  2300  6190  1425  -1025  +400 
Newsletter SummaryTop
Graph of the week


These Days in Business History
October 23
1814 1st plastic surgery is performed (England)
1824 1st steam locomotive is introduced

October 24
1836 A. Phillips patents the match
1857 World's 1st football club, Sheffield FC, founded in England

October 25
1952 Tappan sells 1st microwave oven
1960 1st electronic wrist watch placed on sale, New York City
Agenda
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


December 2006:
12th OBER Kerstbierfestival , Belgium



More events are available on site e-malt.com
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