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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
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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Dear Friends,
E-malt.com team wishes you and your family a Merry Christmas and a happy New Year! Many thanks for placing your trust in us!

With best festive regards,
The E-malt.com staff



Average market prices
Change trend

21 Dec - 24 Dec, 2006
Crop 2006
2rs Barley €210.0-212.0
6rw Barley €188.0-190.0
2rs Malt €401.0-403.0
6rw Malt €373.5-375.5
Crop 2007
2rs Barley €162.0-164.0
6rw Barley €147.0-149.0
2rs Malt €329.0-331.0
6rw Malt €309.5-311.5

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. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting barley prices. 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 51a, 2006

See this Newsletter!
Newsletter 50b, 2006

See this Newsletter!
Newsletter 50a, 2006

See this Newsletter!
Newsletter 49b, 2006

See this Newsletter!
Newsletter 49a, 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!
World Leading Beer Markets 2005

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UK Malt Exports by country of destination, 2005-2006

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Canada Beer Sales (1992-2005)

Open this Table!
World Hop Crop

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Belgium Beer Production and Export (1986-2005)



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.


Last five tables
search in statistics



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E-malt.com Newsletter 51b
December 21 - December 24, 2006

Quote of the week

"One drink is just right, two are too many, three too few"
Spanish saying


Currency Rates
Base Currency: Euro, EUR
on 22-December-2006

1 EUR = 1.3182 USD
1 EUR = 0.6711 GBP
1 EUR = 1.5163 CAD
1 EUR = 1.6789 AUD
1 EUR = 155.98 JPY
1 EUR = 2.8513 BRL
1 EUR = 34.6903 RUB
1 EUR = 10.3163 CNY
Base Currency: US Dollar
on 22-December-2006

1 USD = 0.7587 EUR
1 USD = 0.5091 GBP
1 USD = 1.1503 CAD
1 USD = 1.2737 AUD
1 USD = 118.362 JPY
1 USD = 2.1631 BRL
1 USD = 26.3174 RUB
1 USD = 7.8264 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Belarus: BBH to enter growth market in Belarus... Click here

Thailand: Singha to join race by launching cheap beer... Click here

Netherlands & UK: Heineken seeks agency for £25m launch... Click here

Japan & China: Kirin Brewery in Hangzhou Qiandaohu Brewery Deal... Click here

Angola: Production growth for Ngola Brewery in 2007... Click here

USA: Anheuser-Busch Companies, Inc. announces more aggressive leverage target and 100 Million share repurchase program... Click here

Hong Kong: Tsingtao gets new direct parent in share reform, its shares soar to record high... Click here

Canada: 2006-07 CWB PRO higher for designated barley... Click here

USA: 2006 hop production increased... Click here

More News
India: SABMiller eyes Mt Shivalik stake to share UB heights ... More Info

USA: Craft and import consumers won't drive category growth at retail ... More Info

Canada: Breweries looking forward to selling beer in Quebec ... More Info

UK: Stella Artois ends iconic sponsorship of Channel 4 movies ... More Info

USA: Investor gets in line against brewery bailout ... More Info

Caribbean region: Regional Beer Companies given a Friday deadline for CWC ... More Info

Caribbean region: Diageo plc and GCC announce new sponsorship of ICC Cricket World Cup West Indies 2007 ... More Info

USA: Molson Coors Brewing Company (MCBC) and AT&T extend relationship ... More Info

USA: Anheuser-Busch Now Offering Sorghum Beer ... More Info

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



Brewery News
Belarus: BBH to enter growth market in Belarus

Baltic Beverages Holding AB (BBH) invests in the private-owned Olivaria Brewery situated in the centre of Minsk, Belarus, in line with its strategy of entering growth markets, BBH published in its press release, December 21.

Belarus has a population of circa 10 million and current beer consumption of circa 33 litres per capita. BBH believes, that with a growing economy and rising beer consumption, this market has strong future potential.

Olivaria Brewery was established in 1864; it has a market share of approximately 10%, brewing capacity of 400 thousand hectolitres and 600 employees. Olivaria is one of the most recognised brands in Belarus. The brewery plans to increase capacity to 600 thousand hectolitres in 2007.

The European Bank for Reconstruction and Development (EBRD) has been a major shareholder in Olivaria since 2005. As part of the continuing development of the business the current shareholders have been looking for an international partner. BBH has subscribed 30% new shares in the company. After the capital increase EBRD will have 21% of the shares.

BBH is already active in Belarus through exports from Baltika in Russia.

Baltic Beverages Holding AB (BBH) is a 50:50 owned joint venture between Carlsberg A/S and Scottish & Newcastle plc. BBH operates 19 ...
More Info


Thailand: Singha to join race by launching cheap beer

Singha Corporation, the country's second-largest beer brewer, is considering launching a low-cost brand next year to cope with the expected intensified competition as a result of the ban on alcoholic-beverage advertisements, according to Bangkok Post, December 19.

"We'll be able to make low-cost beer under a new brand to be sold as low as five bottles for 100 baht next year. But at the end of the day, consumers will drink more beer [because it's cheap] and this will not be good for their health," said president Santi Bhirombhakdi.

The ban on ads for beer and spirits has been strongly opposed by local producers and importers, who view it as doing little to help curb alcohol consumption.

On the contrary, Mr Santi said, the market was projected to grow by 10 percent next year compared to 5 percent to 6 percent this year as brewers launch a price war to boost sales.

The 2007 outlook for the 89-billion-baht market remains uncertain pending the final decision on the ban, which the Public Health Ministry expects to come into force next year.

Mr Santi said the new government should fix what he calls an unfair tax structure on alcoholic beverages that has discriminated in favour of white ...
More Info


Netherlands & UK: Heineken seeks agency for £25m launch

Heineken is holding a pitch for its £25m Fayrouz account ahead of launching its non-alcoholic beer brand into the UK and other new markets, MarketingWeek published December 19.

The company is believed to be gearing up a massive marketing push for the brand, aimed at Muslim markets because of the drink¹s halah compliant status.

The account is for five 'key' markets including the UK and the brewing giant is thought to have approached at least two UK agencies to pitch for the business.

Fayrouz, which is already massively popular in its home market of Egypt, is a fruit flavoured malt drink that has been certified halal by Al Azhar, a leading Sunni Islam religious institution.

Heineken took control of the brand after aquiring Egypt's only brewery, Al Harham Beverages Co (ABC) in 2002 for more than £180m ($220m).

At the time Heineken mooted launching the product elsewhere, claiming there were large communities looking out for a 'serious' product and citing the 1.3billion Muslims worldwide.

Fayrouz's production process avoids fermentation, so alcohol is never produced. With most other non-alcoholic beverages, the malt is fermented and the alcohol is removed. ABC also brews other non-alcoholic beers under licence as well as regular beers and produces wine and spirits.

Pitches ...
More Info


Japan & China: Kirin Brewery in Hangzhou Qiandaohu Brewery Deal

Kirin Brewery Co, Japan's second-biggest beer producer, just inked an agreement to acquire a 25 percent stake in China's Hangzhou Qiandaohu Brewery Co, according to SinoCast China Financial Watch, December 20.

Spending USD 38 million, or about CNY 300 million, for the deal, Kirin Brewery also has pre-emptive right for another 49 percent stake in the Chinese peer. Officials at Qiandaohu Brewery confirmed the reports, saying the two are preparing for the news conference. But Kirin Brewery declined to elaborate. They will apply for the Chinese regulatory approval for the deal within this week.

Qiandaohu Brewery, the producer of Cheerday-branded beer, is based in Hangzhou, capital of East China's Zhejiang Province. Its output for 2006 is about 140,000 tons. The beer is mainly sold in China's eastern and central regions, like Zhejiang, Jiangxi, Anhui, Fujian, Jiangsu, Shanghai and Henan. Presently, Kirin Brewery focuses on the Yangtze River Delta, Pearl River Delta, two major powerhouses of the nation's economy, and the Northeastern region.

It in 2004 acquired 25 percent of a Northeastern beer producer and in 1996 bought into another in the Pearl River Delta. The co-investor in the latter was Uni-President Enterprises Corp., Taiwan's largest food conglomerate.

Kirin Brewery this January ...
More Info


Angola: Production growth for Ngola Brewery in 2007

Ngola Brewery, located Lubango, Huila province, will largely invest in its production’s capacity in 2007, according to Angola Press, December 21.

The production could rise 600 thousand to 1 mil hl per day, said the company’s commercial manager.

The cost of the project is unknown, but from this increase, Ngola Brewery could become the biggest beer producer in Angola.

This year only $20 million have been invested in the company allowing a 70% production growth as well as a production chain’s installation with the capacity of 12 thousand racks per week.

The same source also mentioned the product’s quality amelioration before telling that Ngola was awarded a silver medal at the 45th edition of "World Selection 2006 Beers" in Brussels, Belgium.

Ngola Brewery, with more than 300 employees, handled its management to South African company S.A.B Miller, after a public tender.


USA: Anheuser-Busch Companies, Inc. announces more aggressive leverage target and 100 Million share repurchase program

August A. Busch IV, president and chief executive officer of Anheuser-Busch Cos. Inc., announced that the Board of Directors has approved a new, more aggressive leverage target to enhance shareholder value, according to company’s press room, December 20.

The company intends to modestly increase leverage and reduce its cash flow to total debt target from the previous 30 to 40 percent range to the 25 to 30 percent range.

“The more aggressive leverage target will enable Anheuser-Busch to use its balance sheet more efficiently to support existing operations, acquisitions, dividend growth and share repurchasing, while maintaining substantial financial flexibility,” said Busch. “Our first priority is to invest in our businesses to enhance profit growth. This includes capital expenditures in existing operations, and acquisitions and investments to enhance our long-term earnings growth. The second priority is to return cash to shareholders by consistently increasing dividends in line with expected growth in earnings per share, and share repurchasing, consistent with the new leverage target.”

“Investing for growth which enhances competitive advantage and increases economic value added is our primary focus,” added Busch. “We are sharply focused on increasing shareholder value through profit growth and capital efficiency. In 2006, capital spending was reduced by over ...
More Info


Hong Kong: Tsingtao gets new direct parent in share reform, its shares soar to record high

Chinese beer maker Tsingtao Brewery Co. Ltd. said its controlling shareholder planned to transfer its entire 30.56 percent stake in the brewer to another unit as part of a share reform proposal, Reuters announced December 21.

Tsingtao said in a statement its controlling shareholder, state-owned Assets Supervision and Administration Commission of the People's Government of Qingdao, planned to transfer all of its 399.82 million Tsingtao shares to its wholly owned Tsingtao Brewery Group Co. Ltd. at nil consideration.

The transfer would strengthen the management and rationalise the title of those shares, the Chinese brewer said. It gave no further details.

Tsingtao's Hong Kong-listed shares soared as much as 23.4 percent to an all time high of HK$13.60 on Wednesday, tracking a jump in its Shanghai listed A-shares following a share reform announcement.

Shares in Tsingtao Brewery Co. Ltd. , a major Chinese beer maker, soared as much 14.3 percent to an all time high of HK$12.60 after its Shanghai listed A-shares jumped 22.7 percent following a share reform announcement.

The company said each A share will get 0.24 yuan in cash, in addition to 0.178777 shares.



Barley News
Canada: 2006-07 CWB PRO higher for designated barley

The CWB released its December Pool Return Outlook (PRO) for the 2006-07 crop years. The PRO for feed barley Pool A (which runs from August 1 to January 31) is unchanged versus November, while the PRO for feed barley Pool B (February to July 31) is C$6 per tone higher than last month. Projected designated barley pool returns are C$2 per tone higher than last month's PRO.

Feed barley
Pool A - Sales in this pool are approaching completion.
Pool B - Global feed grain prices have remained strong over the past month in light of tight global supplies. Uncertainty surrounding the Ukraine’s feed barley export program has also been supportive to prices in the near term.

Designated barley
Global malting barley supplies remain tight, supporting higher prices. However, malting barley customers are working to minimize consumption at these price levels, leaving overall demand more uncertain going forward.

Hops News
USA: 2006 hop production increased

According to National Agricultural Statistic Service report of December 15, the hop production for Idaho, Oregon, and Washington in 2006 totaled 57.7 million pounds, up 9 percent from the 2005 crop of 52.9 million pounds, and 4 percent above the 2004 production of 55.2 million pounds. Idaho’s production decreased 16 percent in 2006. Production in Washington and Oregon increased 12 percent and 10 percent, respectively. Washington showed a 2 percent acreage increase.

Oregon and Idaho acreage were down 2 percent and 15 percent, respectively. Yields increased in Washington to 2,058 pounds per acre, and in Oregon to 1,760 pounds per acre. Idaho yields averaged 1,613 pounds per acre, 27 pounds less than a year ago.

Washington growers produced 77 percent of the U.S. hop crop for 2006. Zeus, Columbus/Tomahawk, Galena, and Willamette were the leading varieties in Washington, accounting for 71 percent of the State’s hop crop.

In Oregon, Willamette and Nugget were the major varieties, accounting for 77 percent of the State’s hop production.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3182 December 22, 2006 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  213  281  165  217.5 
2RS  Prestige  212  279.5  164  216.5 
2RS  Cellar  211  278.5  163  215 
2RS  Sebastien  210  277  162  213.5 
2RS  Astoria  210  277  162  213.5 
2RS  Cork   209  275.5  161  212.5 
6RW  Esterel   189  249.5  148  195.5 

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

Theoretical malt prices.
  EURO = USD 1.3182 December 22, 2006 
Crop year  2006 
Parity  FOB Antwerp 
Position  Dec 2006-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  405  533.5  419  552.5  419  552.5  433.5  571.5 
2RS  Prestige  403.5  532  418  550.5  418  551  432.5  570 
2RS  Cellar  402.5  530.5  416.5  549  416.5  549.5  431  568.5 
2RS  Sebastien  401  528.5  415.5  547.5  415.5  547.5  430  566.5 
2RS  Astoria  401  528.5  415.5  547.5  415.5  547.5  430  566.5 
2RS  Cork   400  527  414  546  414.5  546  428.5  565 
2RS   Average price  402  530  416.5  549  416.5  549  431  568 
6RW  Esterel   374.5  494.5  389.5  513.5  389.5  513.5  404  532.5 
Asia Malt 70/30  394  519.5  408.5  538.5  408.5  538.5  423  557.5 
**  Asia Malt 50/50  388.5  512.5  403  531  403  531.5  417.5  550.5 

* - 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
Canada Barley Price Evolution Dec 2006
Source: Statistics Canada; Update: December 13, 2006

Table of the week

Australian Barley Supply and Disposal 2001-2007f
in thousand tonnes 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 s 2006-2007 f
Production 8 280 3 865 10 382 7 740 9 869 3 673
   Domestic use 2 535 2 016 2 476 2 685 2 805 2 907
   as malt and other human use 161 165 168 172 176 166
   feed 2 200 1 650 2 100 2 300 2 450 2 560
   seed 174 201 208 213 180 181
 Exports  5 274 2 608 6 996 4 862 5 925 2 495
   as malting barley 1 705 1 099 2 135 1 464 2 074 1 054
   malt (grain equivalent) 600 624 624 601 595 565
   feed barley 2 971 885 4 241 2 798 3 191 874
s - ABARE estimated, f-ABARE forecast. Source - ABARE December, 2006

Australian Barley Crop Forecast
  Area (in 1000 ha) Production (in 1000 tons)
2005 - 2006s 2006 - 2007s 2005 - 2006f 2006 - 2007f
Queensland 156 90 259 95
New South Wales 1,015 900 2,245 550
Victoria 937 850 2,059 510
South Australia 1,317 1,070 2,685 850
Western Australia 1,303 1,070 2,598 1,650
Tasmania 11 10 23 18
Total Australia 4,739 3,990 9,869 3,673
s - ABARE estimated, f-ABARE forecast. Source - ABARE November, 2006
Newsletter SummaryTop
Graph of the week


These Days in Business History
December 21
1879 Theodore Limperg, business economist
1913 1st crossword puzzle (with 32 clues) printed in New York World
1937 1st feature-length color & sound cartoon premieres (Snow White)

December 22
1877 "American Bicycling Journal" begins publishing (Boston, Mass)
1882 1st string of Christmas tree lights created by Thomas Edison
1973 Meeting in Tehran, the oil ministers of OPEC’s six Persian Gulf member countries announce that they will unilaterally raise the price of crude oil to $7 per barrel. In two-and-a-half months, OPEC has raised the price of oil by 128%.
1910 US postal savings stamps 1st issued

December 23
1834 Thomas R Malthus, English vicar/economist is born
1919 Alice H Parker patents gas heating furnace
1922 BBC Radio began daily newscasts
1973 6 Persian Gulf nations double their oil prices

December 24
1851 US Library of Congress catches fire; 35,000 books burn
1893 Henry Ford completes his 1st useful gas motor
1922 BBC sends 1st British radio play "Truth about Father Christmas"
Agenda
December 2006:
12th OBER Kerstbierfestival , Belgium

January 2007:
2007 Barley Improvement Conference, USA.
IFBM (The French Institute for Brewing and Malting) Advanced Course In Malting Technology


February 2007:
Singapore international beer festival.
WBA International Diploma in Brewing Technology Program Chicago
Grainworld 2007, Canada.


March 2007:
Beer Day, Iceland.
WorldFoodUzbekistan - 2007.
World Barley Malt & Beer Conference.
The 2nd International Trading Summit: Grains & Oilseeds, Turkey.




More events are available on site e-malt.com
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