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

19 Mar - 21 Mar, 2007
Crop 2006
2rs Barley €213.0-215.0 0.93%
6rw Barley €187.0-189.0
2rs Malt €423.5-425.5 0.70%
6rw Malt €390.5-392.5
Crop 2007
2rs Barley €171.0-173.0 0.58%
6rw Barley €152.0-154.0
2rs Malt €356.0-358.0 0.42%
6rw Malt €332.0-334.0

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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Last five newsletters
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Newsletter 11b, 2007

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Newsletter 11a, 2007

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Newsletter 10, 2007

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Newsletter 09b, 2007

See this Newsletter!
Newsletter 08b, 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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Brazil Beer Production (1995 - 2006e)

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USA Imports of Malt Beverages including Beer

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EU Malt Demand estimated 2006-2007

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Japan Beer Sales (1997-2006)

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Canada Barley Production



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 12a
March 19 - March 21, 2007

Quote of the week

"The years teach much which the days never knew."
Ralph Waldo Emerson


Currency Rates
Base Currency: Euro, EUR
on 21-March-2007

1 EUR = 1.3298 USD
1 EUR = 0.6816 GBP
1 EUR = 1.5594 CAD
1 EUR = 1.662 AUD
1 EUR = 156.381 JPY
1 EUR = 2.765 BRL
1 EUR = 34.639 RUB
1 EUR = 10.3035 CNY
Base Currency: US Dollar
on 21-March-2007

1 USD = 0.752 EUR
1 USD = 0.5126 GBP
1 USD = 1.1727 CAD
1 USD = 1.2497 AUD
1 USD = 117.596 JPY
1 USD = 2.0792 BRL
1 USD = 26.0479 RUB
1 USD = 7.7481 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Peru: SAB Miller Peru sees 10% sales growth... Click here

Thailand: Proposed alcohol consumption law may breach international trade rules... Click here

UK: Brewers call for tax freeze in budget to ease smoking ban... Click here

Sweden & Czech Republic: Budvar signs sales, marketing deal with Carlsberg Sverige AB... Click here

Bulgaria: Beer market up 17% m/m in February... Click here

Croatia: Karlovacka Brewery closed production after all... Click here

World: The latest figures for malt exports by countries... Click here

EU: A further reduction of malting barley plantings is likely... Click here

EU: Maltsters are nervous about the acreage devoted to spring barley... Click here

USA: Scientists released two new varieties of barley that resist Russian wheat aphid... Click here

Czech Republic: Hops exports fell 15% in 2006... Click here

More News
Mexico: Viva World Trade plans to brew and bottle its own premium beer ... More Info

Romania: Bere Mures invests 3 million euros in marketing ... More Info

USA: The lack of movement for both malting and feed barley is helping prop up the prices right now ... More Info

Africa: East African Breweries to expand on Zambia and Ethiopia markets ... More Info

Finland: Käki beer joins Sinebrychoff’s House of Beer selection ... More Info

Ireland: Polish beer highly appreciated ... More Info

UK: Mild weather may cause barley mosaic virus ... More Info

UK: Suffolk-based St Peter’s Brewery to invest £3m in a new brewery site ... More Info

Russia: The synergetic effect of BBH merger in Russia could reach $100 mln in 2007 ... More Info

USA: Coors Brewing Company unveils 2007 advertising campaigns ... More Info



Brewery News
Peru: SAB Miller Peru sees 10% sales growth

Brewing giant SABMiller Plc said it could invest more than $100 million in its Peruvian unit by March 2008 to raise production and consolidate its dominant market share in the country, Reuters reported March 20.

Speaking at the Latin American Investment Summit in Lima Peru on Tuesday, SABMiller Peru chief executive Robert Priday forecast 10 percent sales and volume growth this year for its Peruvian brewery Backus y Johnston, which posted 1.569 billion soles ($490 million) in sales last year.

His forecast would be double the 5.1 percent increase in sales revenue posted in 2006, but lower than the 12.3 percent growth in sales volume last year, as measured in hectoliters.
Reuters Pictures

The rapid expansion of the Peruvian economy was fueling 2007 sales growth, Priday said. Peru's gross domestic product grew 8 percent last year, its fastest rate in 11 years.

In tandem with the growth, will be an 8 percent increase in Peru's per capita beer consumption from last year's 33 liters (8.7 U.S. gallons) per capita consumption.

Peru has one of the lowest beer consumption rates in Latin America, making it an attractive market, he added.

Last year, SABMIller invested $102 million in Peru and Priday saw even more investments this year.

"Investment (in ...
More Info


Thailand: Proposed alcohol consumption law may breach international trade rules

Thailand's proposed alcohol consumption law may breach international trade rules because its total ad ban is a non-tariff barrier for imported drinks, according to executives of Boon Rawd Brewery Co, which makes Singha beer, Thai Press reported March 16.

Trade partners may challenge Thailand at the World Trade Organisation (WTO), they warned.

Santi Bhirombhakdi, the company's executive director, believes the National Legislative Assembly will finally approve the law. But, he said, ministries including Commerce, Foreign Affairs and Finance should think twice about whether the law meets international trade obligations.

''I would like to ask those ministers whether this would be acceptable in international standards,'' he said on March 15.

Mr Santi is not pleased by the alcohol control law, which he said put the excise tax on white spirits too low. The law would only favour white spirits, a major product of liquor tycoon Charoen Sirivadhanabhakdi, who owns Boon Rawd's chief rival Thai Beverage.

On Tuesday, the Public Health Ministry won cabinet endorsement of its draft law on liquor-consumption control. It would set the minimum age for new drinkers at 20 and impose an around-the-clock ban on ads. This would include trademarks on materials such as chairs and umbrellas, and only exempt commercials that come ...
More Info


UK: Brewers call for tax freeze in budget to ease smoking ban

Britain’s brewers are calling on the Chancellor to freeze beer duty in next week’s Budget to help ease the pressures created by the forthcoming smoking ban and rapidly escalating energy and supply costs, The British Beer and Pub Association announced March 16.

The British Beer and Pub Association is impressing on Government three critical issues currently facing the nation’s beer and pub sector:

- The sector faces an inevitable fall in beer sales when the smoking ban is introduced on 1st July - despite investing some £70 million to date to try and smooth the introduction of the ban. While recovery is anticipated in the medium term, the evidence from Ireland (beer sales down 7%) and Scotland (beer sales down 6%) clearly demonstrates an immediate downturn is inescapable.• Rapidly escalating energy costs are driving up the direct costs of beer production and distribution and are equally driving up costs to those who supply brewers, with inevitable inflationary consequences.

- Global barley crop failures caused by adverse weather conditions have led to a 50 per cent hike in prices.

- The amount of beer we drink in the UK has fallen by 11 per cent over the last decade. Last year alone, ...
More Info


Sweden & Czech Republic: Budvar signs sales, marketing deal with Carlsberg Sverige AB

Breweries Budějovický Budvar National Corporation and Carlsberg Sverige AB have signed an agreement concerning the sales and marketing of Budějovický Budvar beer in Sweden, which will be effective from April 1st, Budvar announced in its press release on March 19.

The enrichment of the Swedish beer culture is part of Carlsberg's strategy. Carlsberg's premium portfolio will contain special products from around the world – from China in the East to the USA in the West, from modern & trendy to traditional & classic trademarks, from light refreshing beer to dark and (heavy) strong types. Today the portfolio already contains several international premium and speciality beers, such as Leffe, Hoegaarden, Brooklyn, Spaten, Bass and Löwenbrau.

“We are very proud to provide the Swedish market with the tradition-rich Budvar. An important part of the Carlsberg strategy includes enriching Sweden's beer culture with high-quality local and foreign beers; and Budvar is a refreshing Czech element in our portfolio. So-called speciality beers and international premium beers are a growing trend both in Sweden and internationally”, says Stig Sunde, Carlsberg Sweden’s CEO.

“The Swedish market has a great potential for Budvar. Although starting from a fairly low level, we are looking forward to an increasing market share. ...
More Info


Bulgaria: Beer market up 17% m/m in February

Bulgarian domestic beer sales rose 17.4% month-on-month to 234,828 hectoliters in February, shows data released by the Union of Brewers in Bulgaria, Dnevnik reported March 20.

Although sales jumped 30% year-on-year to 451,456 hectoliters in January and February, the beer market is expected to slow down to a growth rate of 4-5% for the entire 2007 after gaining 14% last year.
The UBB figures do not reflect the sales of the locally-owned Lomsko Pivo and MM brands which are not members of the union.

Kamenitza AD, owned by the world's biggest brewer by volume InBev, was February's top performer in terms of month-on-month growth, adding 50% to record sales of 63,528 hectoliters.
Kamenitza AD, the nation's only beer exporter, said it shipped abroad 844 hectoliters in February.
The flagship brand of the company - Kamenitza, owned 16% of the local beer market in 2006.

Sales at Heineken-owned Zagorka AD increased by 15% month-on-month to a market-leading 85,024 hectoliters in February. The company has the YTD lead as well with 159,214 hectoliters for January and February combined.

Carlsberg Bulgaria was runner-up in February with a month-on-month growth of 6.8% to 67,767 hectoliters. The company has sold 46,767 hectoliters of beer in January-February.

Locally-owned Boliarka VT posted a month-on-month ...
More Info


Croatia: Karlovacka Brewery closed production after all

The Environment Protection Ministry refuted reports that Karlovacka Brewery had been allowed to continue production, Javno reported March 21.

Although it was reported that Karlovacka Brewery had been allowed to continue production, the Environment Protection and Urban Development Ministry said the brewery did not have permission to continue work.

In order for the brewery to get a working permit, the ministry allowed production for a trial period of seven days.

The construction inspection had ordered the brewery to take out a construction permit for its plant, a part of which is the recuperator of carbon dioxide. As the brewery obtained the construction permit, it requested of the ministry a test period of seven days, after which it could be liable to receive the working permit for the plant. Ministry spokeswoman Kata Gojevic said the permit was temporary, which does not mean that the brewery will be allowed to continue operating after the trial period.

The recuperator is a device that collects carbon dioxide and restores it to the production process. Carbon dioxide poisoning was most probably the cause of death of Zdravko Martinovic from Karlovac. Our prominent toxicologist Dr. Franjo Plavsic confirmed that carbon dioxide poisoning was most probably what killed Martinovic. He ...
More Info

Malt News
World: The latest figures for malt exports by countries

Canada’s malt exports have fluctuated between 500,000 and 550,000 tons since the year 2000, they may increase by 50,000 tons during this crop year, but are limited by available capacity.

The USA will export 150,000 tons to Mexico and the Dominican Republic, of which 100,000 tons will be produced in Modelo’s malthouse in Idaho.

In the Mercosur countries Argentina and Uruguay each ship about 220,000 tons of malt to Brazil. New capacities of Cargill and Quilmes will increase the Argentinian capacities by a total of 220,000 tons, so that the Brazilian import demand of about 700,000 tons can be filled completely by their neighbour countries.

Russia has become a malt exporter to the Ukraine and all the countries in the South, which were part of the Soviet Union. Annual exports may reach 100,000 tons. Also China entered the world market, selling malt to Russia, Taiwan and Southeast Asia, we registered sales of almost 100,000 tons.

Therefore the total of new international sales may be as much as 470,000 tons. However, we must also look at the larger beer output, probably 4 % in 2006 and again 3 % in 2007 = 1.710 Billion hl. If we deduct self-sufficient China from this figure, ...
More Info

Barley News
EU: A further reduction of malting barley plantings is likely

Sweden expects an increase of 10 % to 340,000 ha, Finland a reduction of 10 % of malting barley varieties, Poland does not expect much of change, which means about 1 Mill: HA of spring barley, however, only 70 – 80,000 ha of malting varieties.

Acreage changes in the other EU countries will be minor and of no great importance to the S/D balance of malting barley in 2007/08.

Altogether a further reduction of malting barley plantings is likely, no relief to markets is within sight. Maltsters would like to rebuild their inventory by buying supplies for 13 to 14 months, which is seen as another support to markets.


EU: Maltsters are nervous about the acreage devoted to spring barley

Traders, maltsters and even brewers are nervous about the acreage devoted to spring barley. Estimates are: France plus 10 % = 550,000 ha, U.K. total acreage almost unchanged at 480.000 HA, but malting barley varieties up 35.000 HA, i.e. 390,000 ha, Denmark sharply down, estimates range from minus 50 to 80.000 HA, Germany sounds pessimistic, minus 5 – 8 %, i.e. 500 – 520,000 tonnes, Czech Republic about unchanged.


USA: Scientists released two new varieties of barley that resist Russian wheat aphid

Agricultural Research Service scientists and their collaborators have released two new varieties and 50 germplasm lines of barley that resist all known types of Russian wheat aphid, the pest afflicting western Great Plains barley, Farm Futures published March 20.

The original RWA began damaging barley crops in the Plains in 1986, and five new races of the pest have been found since 2003. RWA has halted barley production in parts of eastern Colorado and Wyoming, and in parts of western Nebraska and Kansas.

The new varieties, named Sidney and Stoneham, are drought-hardy spring feed barleys. The scientists also released 36 spring germplasm lines of malting barley, and 14 germplasm lines of feed barley, seven each for spring and winter planting. They are the result of collaborative work between ARS, Colorado State University and the University of Nebraska.

The new varieties and germplasms come from a 12-year project led by ARS plant geneticist Dolores Mornhinweg and geneticists Phil Bregitzer and Donald Obert. Their objective is to introduce RWA-resistant genes to every commercial barley type grown in the United States.

Hops News
Czech Republic: Hops exports fell 15% in 2006

A total of 4,442 tonnes of Czech hops were exported to 44 countries last year, a fall of 15.4 percent from 5,249 tonnes in 2005, secretary of the Czech Hop Growers' Association Zdenek Rosa told Czech News Agency, March 15.

He said a record crop in 2005 and lower harvest in 2006 are to blame for the fall in exports. Japan is the biggest buyer accounting for more than 44 percent of exports last year, Rosa said. Hops are supplied to Germany and Britain. Exports rose to China, Russia, Belgium and Slovakia last year. Breweries in Romania, Belarus, India, the USA, Ukraine, Cuba and Vietnam are also major customers.

Hops exports amounted to Kc812m and imports stood at Kc116.4m, said Rosa. Hop growers harvested 5,453 tonnes of the crop last year, down 30.4 percent year-on-year. A per hectare yield of 1.01 tonne was 0.37 tonne lower than in 2005. The harvest had been affected by the spring floods, long winter, cold late May and early June, and tropical heat in July.

By area of hop fields, the Czech Republic ranks third in the world after Germany and the USA.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3298 March 21, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  216.00  287.50  174.00  231.50 
2RS  Prestige  215.00  286.00  173.00  230.50 
2RS  Cellar  214.00  284.50  172.00  229.00 
2RS  Sebastien  213.00  283.50  171.00  227.50 
2RS  Astoria  213.00  283.50  171.00  227.50 
2RS  Cork   213.00  283.50  170.00  226.50 
6RW  Esterel   188.00  250.50  153.00  203.50 

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

Theoretical malt prices.
  EURO = USD 1.3298 March 21, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  Mar 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  427.50  568.00  450.00  598.50  443.50  590.00  454.50  604.00 
2RS  Prestige  426.00  566.50  448.50  596.50  442.50  588.50  453.00  602.50 
2RS  Cellar  424.50  564.50  447.50  595.00  441.50  586.50  452.00  601.00 
2RS  Sebastien  423.50  563.00  446.50  593.50  440.00  585.00  450.50  599.50 
2RS  Astoria  423.50  563.00  446.50  593.50  440.00  585.00  450.50  599.50 
2RS  Cork   423.50  563.00  446.50  593.50  440.00  585.00  450.50  599.50 
2RS   Average price  424.50  564.50  447.50  595.00  441.50  586.50  452.00  601.00 
6RW  Esterel   391.50  522.50  415.50  552.50  409.50  544.50  420.00  558.50 
Asia Malt 70/30  415.00  552.00  438.00  582.50  431.50  574.00  442.50  588.00 
**  Asia Malt 50/50  408.50  543.50  431.50  573.50  425.50  565.50  436.00  579.50 

* - 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

Table of the week

Canada: Barley Supply and Disposition

  2004-2005   2005-2006   2006-2007 f  2007-2008 f 
  Seaded area, '000 ha 4,678  4,440  3,861  4,780 
  Harvested area, '000 ha 4,050  3,889  3,362  4,270 
  Yield, tonne/ha  3.26  3.21  2.98  3.07 
  Production, '000  metric tonnes 13,186  12,481  10,005  13,100 
  Imports, '000 metric tonnes 83  46  40  35 
  Total Supply, '000 metric tonnes 15,371  15,962  13,333  14,635 
  Exports, '000 metric tonnes  1,975  2,975  2,300  2,400 
  Food & Industry Use, '000 metric tonnes 268  167  260  300 
  Feed, Waste, Dockage, '000 metric tonnes 9,417  9,192  8,858  9,030 
  Total Domestic Use, '000 metric tonnes 10,073  9,698  9,533  9,735 
  Carry-out Stocks, '000 metric tonnes 3,435  3,289  1,500  2,500 
  Average Price, CA$/tonne 112  110  150-170  140-160 


f: forecast, Agriculture and Agri-Food Canada, March 12, 2007
Newsletter SummaryTop
Graph of the week


These Days in Business History
March 19
1775 Poland and Prussia sign trade agreement
1831 1st U.S. bank robbery (City Bank, New York/$245,000)
1965 Indonesia nationalizes all foreign oil companies

March 20
1886 1st AC power plant in U.S. begins commercial operation, Massachusetts
1991 U.S. forgives $2 billion in loans to Poland
2000 Shares in MicroStrategy Inc., a hot software consulting firm, fall from $246.75 to $86.75 in a single day as chairman Michael Saylor announces that the company will have to slash its reported revenues and earnings for the past two years.

Marsh 21
1868 In London, the prospectus for the earliest known mutual fund is published as the Foreign and Colonial Government Trust offers its shares to the public for 85 pounds sterling.1986 Pittsburgh Associates buy Pittsburgh Pirates for $218 million
1906 John D Rockefeller III is born, billionaire philanthropist (oil)
1986 199.22 million shares traded in New York Stock Exchange
Agenda
March 2007:
Beer Day, Iceland.
WorldFoodUzbekistan - 2007.
World Barley Malt & Beer Conference.
The 2nd International Trading Summit: Grains & Oilseeds, Turkey.


April 2007:
InterFood St. Petersburg
15th Annual International Beer Festival, USA.
The International Hop Growers’ Convention (IHGC) Meetings, France.
24th ANNUAL INTERNATIONAL BEER FESTIVAL SAN FRANCISCO


May 2007:
European Grain & Oilseed Convention 2007, Brussels
31-st International Congress of the European Brewery Convention , Italy
Hofex - 2007, China
InterFood Azerbaijan 13th Azerbaijan International Food Industry and Agriculture Exhibition
InterFood Astana , Kazakhstan, 9th Astana International Exhibition for Food, Beverages, Technologies




More events are available on site e-malt.com
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