Kompania Piwowarska, Poland’s no. one as far as beer production is concerned (PLN 693 mil or EUR 182.2 mil of net income in 2006) has been attacked, according to Pulsbiznesu, June 6. Unknown people have conveyed to the media news that dangerous substances had been found in one of KP products. The news was sent from an e-mail address very similar to the one used by KP spokesman.

“The news concerning any problems with our product is not true, and the news is spread by people who want to adversely affect the company. The case has already been reported to the police”, Pawel Kwiatkowski, KP spokesman said.

He believes that the responsible person will be found within several days.

“It’s very unpleasant. Unfortunately, similar cases happen in food industry. Companies are threatened with photos showing what was allegedly found in a bin. These attempts are absurd because numerous security systems used in production make it impossible”, Leszek Siwecki from Carlsberg Polska said.

“It’s either a bad joke or a revenge. A disappointed client or employee may stay behind it”, Andrzej Gentner, the director of the Polish Federation of Food Producers said.

(PLN 1 = EUR 0.263)

The combined effect of a smaller acreage and lower yields will be reduced supplies to the malting industry. Trade and industry are working with very tight S/D balances. Market prices show that the better weather in May has not turned around crop expectations. (in Euro per ton)

April 18; April 27; June 1
French 2row spring barley, July, FOB Creil 175-177; 210; 217
French 2row spring barley, July, FOB Moselle 186–188; 225; 228
French 6row winter barley, July, FOB Moselle 162; 190; 199
Danish 2row spring barley, Oct, FOB seaport 183; 210; 214

Maltsters continue to cover malt sales back to back in barley markets. They have purchased also good quantities of crop 2008 barley, prices are: French 2row spring barley, July 2008, FOB Creil EUR 188 – 190 and Danish 2row spring barley, Oct 2008, FOB seaport EUR 196.

It is rumoured that Inbev, Heineken and Carlsberg negotiate contracts for delivery in 2008, but there are no confirmations of concluded contracts.

Price levels in the EU are EUR 420/430 CPT breweries resp. FOB seaports. Occasionally a cheaper sale is reported, when a maltster has not understood the new condition of barley and malt markets, but those cases are exceptions.

Canadian and Australian markets are at similar levels.

The crop year of 2006/07 is approaching its end. There is little domestic activity in old crop malting barley, but open demand is still seen for export to Russia.

Feed barley markets are very tight; the EU Commission has reduced intervention stocks to a quarter million tons. Markets are firm, old and new crop prices are at the same level, CPT Rouen EUR 152,- and CPT Rotterdam/Dutch/NW German consumption regions close to EUR 160,- for June/August. Export business has been done to Morocco at US$ 250,-/255,- CFR. As international barley traders are apprehensive about a possible barley export embargo of the Ukraine, much of the Middle East demand is shifted to the EU, until Canadian and Australian new crop barley become available.

The Western Barley Growers Association, the Alberta Barley Commission, and the Western Canadian Wheat Growers Association want the federal government to move up the date for the introduction of a free market on barley to June 15th, Radioowensound announced June 1.

Currently the federal government is proposing an August 1st implementation date.

Barley growers’ president Jeff Nielsen says moving the date makes it easier for the malting industry to source their needs directly from farmers.

Nielsen says they'll need to contract directly with producers for the rest of this crop year, as well as next years needs.

The early introduction of free marketing also would give farmers and grain companies greater ability to take advantage of export sales opportunities, in both feed and malt barley.