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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
More news
Scientific Digest
Theoretical malt prices
Malting barley prices
Price evolution
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

October 12, 2007
Crop 2007
2rs Barley €322.0-324.0 0.31%
6rw Barley €296.0-298.0 0.34%
2rs Malt €559.5-561.5 0.27%
6rw Malt €526.5-528.5 0.28%
Crop 2008
2rs Barley €285.0-287.0
6rw Barley €253.0-255.0
2rs Malt €511.0-513.0
6rw Malt €470.5-472.5

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 . The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Newsletter 41a, 2007

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Newsletter 40b, 2007

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Newsletter 40a, 2007

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Newsletter 39b, 2007

See this Newsletter!
Newsletter 39a, 2007



Market price evolutions

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South America Beer Production per Year by Country (1997 - 2006)

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Chinese Barley Consumption, Production and Imports 1997/98-2007/08f

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Philippine Beer production (1991 - 2006)



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E-malt.com Newsletter 41b
October 11 - October 14, 2007

Quote of the week

"To open a shop is easy, to keep it open is an art"

Chinese proverb


Currency Rates
Base Currency: Euro, EUR
on 12-October-2007

1 EUR = 1.4179 USD
1 EUR = 0.6958 GBP
1 EUR = 1.3879 CAD
1 EUR = 1.5736 AUD
1 EUR = 166.413 JPY
1 EUR = 2.5474 BRL
1 EUR = 35.3189 RUB
1 EUR = 10.6559 CNY
Base Currency: US Dollar
on 12-October-2007

1 USD = 0.7053 EUR
1 USD = 0.4907 GBP
1 USD = 0.9788 CAD
1 USD = 1.1097 AUD
1 USD = 117.368 JPY
1 USD = 1.7966 BRL
1 USD = 24.9086 RUB
1 USD = 7.5151 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
USA: MillerCoors venture may raise pressure for Anheuser-Busch to join with InBev... Click here

South Africa: SABMiller replaces half of lost Amstel sales in South Africa... Click here

Japan: Beer and beer-like shipments hit record low in Jan-Sep 2007... Click here

Congo & Cote d’Ivoire: Baltika began delivering beer to Congo and Cote d’Ivoire... Click here

Australia: Second Queensland Foster's strike in a week... Click here

India: Beer consumption surges 90% since 2002... Click here

EU: EU malt exports for July 01 - 25 September were 436,000 tons... Click here

Romania: Soufflet takes 20 million Euro loan from EBRD to build a malt plant... Click here

EU: The Ministers Council approved abolishment of the 10 % set-aside regulation... Click here

EU: The IGC expects the EU to become the largest barley exporter during this crop year... Click here

UK: Barley crop estimates down 2% on 2006... Click here

More News
UK: New figures show fall in alcohol consumption ... More Info

China: Snow Beer takes China by storm ... More Info

Singapore: Asia Pacific Breweries pleased of the withdrawal of claims by Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation ... More Info

USA: Former Olympia brewery could be worth $58 million ... More Info

UK: SAB Miller "outperform," target price raised ... More Info

Mexico: Viva World Trade to go ahead with plans to build a brewery ... More Info

India: Government raises support price for barley ... More Info

Russia: Baltika-Pikra brewery offers Krasnoyarsk residents a new beer variety, Kupecheskoye Zhivoye ... More Info

UK: SABMiller downgraded to "hold" ... More Info

India: United Breweries and Punjab Agricultural University sign cooperation agreement to develop malting barley varieties ... More Info

UK: Brewer Greene King launches graduate placement scheme for pub trade ... More Info

USA: Organic brew not quite one with the Earth ... More Info

Uganda: Nile Breweries receives best beer exporter award ... More Info

Russia: Baltika Breweries announces changes in management structure ... More Info

Guam: Heineken International canoe races set for November 3-4, 2007 ... More Info

UK: S&N's marketing director Gary Guthrie sold 15,558 shares ... More Info

Australia: Barley expert in award race ... More Info



Brewery News
USA: MillerCoors venture may raise pressure for Anheuser-Busch to join with InBev

Anheuser-Busch may come under pressure to combine with InBev, its larger rival, after the formation of MillerCoors, the U.S. venture between SABMiller and Molson Coors Brewing, Bloomberg reported October 11.

A tie-up between Anheuser-Busch and InBev, the world's two largest brewers, would give them control of one-fourth of the global beer market and would be the biggest deal ever between brewers.

It would also give each company more geographic diversity, analysts said. InBev, based in Belgium, dominates in Brazil and has large market shares in Europe and China, while Anheuser-Busch, of St. Louis, Missouri, controls almost half of the beer sales in the United States, the world's most profitable beer market.

SABMiller and Molson Coors, the second- and third-largest U.S. brewers, said Tuesday that they would combine their U.S. operations to catch up with Anheuser-Busch.

"Psychologically, this will put pressure on Anheuser-Busch," said Trevor Stirling, an analyst at Sanford C. Bernstein in London. "Shareholders will increasingly question Anheuser's future strategy."
Today in Marketplace by Bloomberg

Randy Baker, the chief financial officer of Anheuser-Busch, declined to comment on the brewer's plans. A spokeswoman for InBev, Marianne Amssoms, also declined to comment.

InBev dethroned Anheuser-Busch in 2006 as the world's largest brewer by sales. The companies already have ties; ...
More Info


South Africa: SABMiller replaces half of lost Amstel sales in South Africa

SABMiller Plc, the world's third- largest brewer, has replaced almost half of the sales lost with the ending of a 40-year-old contract to make Amstel lager in South Africa, its most profitable market, for Heineken NV, Bloomberg reported October 12.

Hansa Marzen Gold, a premium beer introduced in April, now accounts for 4 percent of local revenue, Tony van Kralingen, managing director at SABMiller's South African Breweries unit, said today at an analyst meeting in London. Amstel generated 9 percent of sales before Heineken terminated the contract in March.

South Africa, where SABMiller was founded in 1895, accounts for almost a third of profit at the company, which controls more than 90 percent of the local beer market with brands including Castle lager. The London-based brewer also has introduced its Peroni Nastro Azurro beer on draft in the country to make up for lost revenue from Amstel.

The company aims to expand local profit margins by between 0.1 percent and 0.4 percent in the ``medium term'' and to boost beer revenue by as much as 3 percent, according to the executive.

SABMiller has forecast an impact of $40 million to $50 million on this year's earnings before interest, taxes and ...
More Info


Japan: Beer and beer-like shipments hit record low in Jan-Sep 2007

Shipments of beer and beer-like beverages in Japan plunged to a record low in the January-September 2007 period, reflecting a long-term trend of declining demand, Jiji Press reported October 11.

In the reporting nine months, shipments of beer, "happoshu" law-malt quasi-beer and third-segment beer-like alcoholic beverages totaled 363,473,000 cases, down 1.3 pct from the same period a year earlier, according to reports by four major Japanese breweries. One case contains the equivalent of 20 633-milliliter bottles.

The nine-month figure was the lowest since 1992, when beer shipment statistics began.

Shipments of beer and quasi-beer beverages regained strength to some extent from July, thanks to releases of new products and higher temperatures.

But shipments continued to be hit by persistent falls in demand from younger generations and lower consumption at restaurants, analysts said.

In January-September, shipments of beer fell by 1.8 pct to 199,217,000 cases and happoshu by 2.6 pct to 91,072,000 cases, while third-segment quasi-beer shipments rose 1.8 pct to 73,184,000 cases.

Of the four leading breweries, Asahi Breweries Ltd. alone enjoyed a shipment rise, by 0.1 pct to 137.44 million cases, retaining top position in the industry with a market share of 37.8 pct.

Kirin Brewery Co. saw its shipments drop 2.2 pct to 136.77 million ...
More Info


Congo & Cote d’Ivoire: Baltika began delivering beer to Congo and Cote d’Ivoire

At the beginning of October 2007, Baltika Breweries began delivering beer to the former French colonial possessions: the Republic of the Congo and the Republic of Cote d’Ivoire, according to company’s press release, October 11.

The first containers of the Company’s products were sent out by sea this week from the Baltika Breweries in St. Petersburg. The overall volume of the first shipment was more than 28,000 litres (15,000 litres to the Congo and 13,200 litres to the Cote d’Ivoire). As a result, already in November Baltika beer with English-language labels will begin to appear in the large retail chains, as well as in bars and restaurants of these African countries. The products will be positioned in the super-premium segment.

Baltika №3, Baltika №6, and Baltika №9 will be sold in the largest cities of the Congo, the economic capital of Pointe-Noire and the political capital of Brazzaville. The retail price per bottle of Baltika will range from $1.60 in the off-trade segment and $2.50 in the Horeca segment.

In Cote d’Ivoire, sales will begin in the capital of Yamoussoukro and in the largest city of the country, Abidjan. Baltika beer will be represented by the assortment Baltika №3, Baltika №5 and Baltika ...
More Info


Australia: Second Queensland Foster's strike in a week

Workers at a Foster's Queensland brewery have staged their second strike in a week over a new collective agreement dispute, AAP reported October 10.

Employees at the company's Yatala brewery, on the Gold Coast, last month voted to stage a series of four-hour work stoppages in response to the company's move to introduce a non-union collective agreement.

Their first strike last Friday included a rally in Brisbane's Fortitude Valley attended by about 500 people, though most were not Foster's employees.

Their second strike has been held from 2pm (AEST) on Wednesday.

The three unions involved in the strike - the Electrical Trades Union, the Australian Manufacturing Workers' Union and the Liquor, Hospitality and Miscellaneous Union - have vowed to continue stoppages in the coming weeks if no agreement with the company is reached.

Foster's has said the stoppages will not affect production but it has offered a new agreement to its 295 staff in a bid to end the dispute.


India: Beer consumption surges 90% since 2002

Driven by reduced taxes and improved distribution system in North Indian states, beer consumption in the country has gone up more than 90 per cent since 2002, outpacing growth in other BRIC countries, Asia Pulse reported October 9.

According to a report published by global research firm Canadean, during 2002-07 beer consumption growth at 90 per cent in India far exceeds that of Brazil (20 per cent), Russia (50 per cent) and China (almost 60 per cent).

The report pointed out that the country's beer consumption growth has come mainly from Punjab, Haryana and Rajasthan, which took full advantage of reduced taxes and a more liberalised distribution policy.

Interestingly, Indians preferred strong beer, unlike their counterparts elsewhere, and it accounted for more than 70 per cent of the total volume in the country, the report said.

Tax reforms in some states, changing lifestyles fuelled by booming economy and industry de-regulation in favour of mild alcohol are driving growth in India, which has traditionally been a hard spirits market, the report added.

Higher growth in beer consumption is also attracting global brewers and all the top five global players - Anheuser-Busch, InBev, SABMiller, Carlsberg and Heineken - have already started tapping the market. Other prominent ...
More Info

Malt News
EU: EU malt exports for July 01 - 25 September were 436,000 tons

EU malt exports for the period July 01 - 25 September were 436,000 tons. At the same pace of shipments throughout the season the final number would be 1.75 million tonnes, exactly as much as in 2006/07, and a long way from former export figures up to 2.5 Mill. tons. Comparing single countries, Germany and the U.K. are ahead of last year’s malt shipments, Czech, France and Sweden well behind.


Romania: Soufflet takes 20 million Euro loan from EBRD to build a malt plant

European Bank for Reconstruction and Development (EBRD) will issue a 20 million Euro loan for Soufflet to build a malt plant in Buzau district, according to sources from the financial institution, Ziarul Financiar published October 10. The loan will be granted on Friday, October 12.

Soufflet Romania, subsidiary of French malt producer Soufflet, announced as of March 2007 a 46 mil Euro investment to build a malt plant in Buzau – its third unity on local market. The plant will start the production in fall, 2008.

Soufflet has malt plants in Pitesti and Buzau, and warehouses in Timisoara.

The company’s turnover in 2006 constituted 15.5 mil Euro.

Barley News
EU: The Ministers Council approved abolishment of the 10 % set-aside regulation

The EU Ministers Council approved abolishment of the 10 % set-aside regulation, albeit only for one year. Nevertheless it is assumed that the dwindling food and feed supplies in the world will force the EU to scrap that restriction permanently.

The EU Commission also proposes to abolish all import quotas and import taxes on grains. At present there is still a 306.000 tons barley import quota at an import tax of EUR 16,- per ton, and a prohibitive import tax of EUR 93,- per ton on any quantity above that quota.

In 2008 the EU will perform a “health check” i.e. it will examine the effectiveness of present market rules. The Commission will suggest lower direct payments to farmers, especially large farms, the permanent abolition of set-side, of premium payments for energy plants AND of BARLEY INTERVENTION.


EU: The IGC expects the EU to become the largest barley exporter during this crop year

Industrial use of barley, for malt, ethanol etc. may still rise, but high price levels have already led to a strong reduction of barley use in the feed sector. Feed wheat is just as expensive, but replacement of barley by corn, corn gluten feed, soybean meal and manioc is reported from the EU and many countries of the world.

The IGC expects the EU to become the largest barley exporter during this crop year, with a tonnage of 4,7 Mill. tons. EU traders do not believe that such a volume will be available, there was a small carry-over, and there are no more intervention stocks. However, 1,4 Mill. tons of export licences were already booked in July/September, and there is not much competition from other barley exporters. As a matter of fact, one must wonder whether the usual 15 to 16 Mill. tons of barley can be found to satisfy world demand.


UK: Barley crop estimates down 2% on 2006

Provisional results from the DEFRA production survey put winter barley estimates at 6.2t / Ha (-8%) giving a production figure of 2.343M tonnes (-10%), HGCA has recently reported.

Spring barley yields are estimated at 5.5t / Ha (+4%) with production at 2.806M tonnes (+7%).

The total barley crop is estimated at 5.149M tonnes, down 2% on 2006.

Scientific Digest
The use of molecular markers for characterisation of spring barley for breeding to Fusarium head blight resistance

Authors
M. Špunarová (1), J. Ovesná (2), L. Tvaružek (1), L. Kucera (2), J. Špunar1, I. Hollerová (3); (1) Agrotest, Agricultural Testing, Advisory Services and Research, Ltd., Kromeríž,Czech Republic; (2) Research Institute of Crop Production, Prague-Ruzyne, Czech Republic; (3) Breewing and Malting, Ltd. Co., Prague, Czech Republic.

Abstract
Fusarium head blight (FHB) is a barley disease, which occurs every year in various areas of barley cultivation all over the world and the increasing incidence has been confirmed in the Czech Republic also during the last years. We aimed to emply AFLP (Amplified fragment length polymorphism) and SSR (Single sequence repeats) markers to describe diversity among breeding lines with a sufficient level of resistance towards FHB and to find marker(s) associated with the analysed traits. The number of eight accessions including five expected resistance donors and three sensitive lines were tested in the field and laboratory. The field values and the amount of deoxynivalenol were positively correlated (r = 0.92). The laboratory test and content DON manifested also a high correlation (r = 0.73). Several DH lines developed from androgenetic barley progenies of the F1 hybrids between the susceptible line PI 383933 and resistant line PEC 210 or the susceptible line PI 383933 and resistant cultivar Chevron were found resistant towards Fusarium infection in both the field and laboratory tests. Low infestation was found at line DH 37 from combination Chevron × PI 383933 and lines DH48, DH49, DH50 and DH55 from the combination PEC 210 × PI 383933. Cluster analyses based on 68 AFLP and 18 SSR markers demonstrate a genetic relationship among parental genotypes and DH lines. Some DH lines combined a sufficient degree of resistance against FHB and extract content (basic parameters malting quality). Statistically significant differences in malt-extract values were observed between groups of the DH lines possessing and not possessing the AFLP marker CAA/AGC 341bp. The markers will be further evaluated and optionally used for MAS. Keywords: barley; Hordeum vulgare L.; Fusarium head blight; AFLP; SSR; dihaploid lines; malting quality
... Load full article, 8 pages, 92 Kb, PDF file



Advertisement: TAU Competence

Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.4179 October 12, 2007 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  325.00  461.00  288.00  408.50 
2RS  Prestige  324.00  459.50  287.00  407.00 
2RS  Cellar  323.00  458.00  286.00  405.50 
2RS  Sebastien  322.00  456.50  285.00  404.50 
2RS  Astoria  322.00  456.50  285.00  404.50 
2RS  Cork   322.00  456.50  285.00  404.50 
6RW  Esterel   297.00  421.50  254.00  360.50 

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

Theoretical malt prices.
  EURO = USD 1.4179 October 12, 2007 
Crop year  2007 
Parity  FOB Antwerp 
Position  Oct 2007-Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  563.00  798.50  586.00  830.50  579.50  822.00  590.50  837.00 
2RS  Prestige  562.00  796.50  584.50  829.00  578.50  820.00  589.00  835.00 
2RS  Cellar  560.50  795.00  583.50  827.00  577.50  818.50  587.50  833.50 
2RS  Sebastien  559.50  793.00  582.50  825.50  576.00  816.50  586.50  831.50 
2RS  Astoria  559.50  793.00  582.50  825.50  576.00  816.50  586.50  831.50 
2RS  Cork   559.50  793.00  582.50  825.50  576.00  816.50  586.50  831.50 
2RS   Average price  560.50  795.00  583.50  827.00  577.50  818.50  587.50  833.50 
6RW  Esterel   527.50  749.50  551.50  782.00  545.50  773.00  556.00  788.00 
Asia Malt 70/30  551.00  781.50  574.00  813.50  567.50  804.50  578.00  819.50 
**  Asia Malt 50/50  544.50  772.50  567.50  804.50  561.50  795.50  571.50  810.50 


  EURO = USD 1.4179 October 12, 2007 
Crop year  2008 
Parity  FOB Antwerp 
Position  Oct 2008-Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  514.50  729.50  537.50  762.00  531.00  753.00  541.50  768.00 
2RS  Prestige  513.50  728.00  536.00  760.00  530.00  751.50  540.50  766.50 
2RS  Cellar  512.00  726.00  535.00  758.50  528.50  749.50  539.50  764.50 
2RS  Sebastien  511.00  724.50  533.50  756.50  527.50  748.00  538.00  763.00 
2RS  Astoria  511.00  724.50  533.50  756.50  527.50  748.00  538.00  763.00 
2RS  Cork   511.00  724.50  533.50  756.50  527.50  748.00  538.00  763.00 
2RS   Average price  512.00  726.00  535.00  758.50  528.50  749.50  539.50  764.50 
6RW  Esterel   471.50  670.50  495.50  702.50  489.50  693.50  500.00  708.50 
Asia Malt 70/30  500.50  709.50  523.00  741.50  517.00  733.00  527.50  748.00 
**  Asia Malt 50/50  492.50  698.00  515.50  730.50  509.00  721.50  519.50  736.50 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Prices Evolution
Prices evolution
Source: E-malt.com (Based on French Malting Barley Prices)

Table of the week
Annual UK Barley Supply And Demand Estimates


`000 tonnes  2001/02
2005/06
average
2004/05
Estimate
2005/06
Estimate
2006/07
Sep 2007
% change
on 05/06
 Opening Stocks  1,032  873  932  887  -5% 
 Production  6,088  5,799  5,495  5,239  -5% 
 Imports  78  80  76  110  45% 
 Total Availability  7,198  6,752  6,503  6,236  -4% 
 Human and Industrial Consumption  1,863  1,784  1,714  1,715  -0% 
 (of which home grown)  1,923  n/a  n/a  n/a 
 Usage as Animal Feed  3,374  3,127  3,094  3,051  -1% 
 (of which home grown)  3,794  n/a  n/a  n/a 
 Seed  150  132  143  135  -6% 
 Other  30  29  27  26  -4% 
 Total Domestic Consumption  5,418  5,072  4,978  4,927  -1% 
 Balance 1,780  1,680  1,525  1,309  -14% 
 Exports  795  748  638  529  -17 
 Intervention Stocks  64  16  30 
 Exports/Intervention Stocks  859  764  668  529  -21% 
 Commercial End-Season Stocks  921  916  857  780  -9% 
Source: DEFRA, September 2007 (July - June Years)
Newsletter SummaryTop

Graph of the week


These Days in Business History
October 11
1617 Franchois Vranck, economist/writer (Deduction), dies at about 62
1844 Henry John Heinz is born. He founded prepared-foods company, 57 varieties
1868 Thomas Edison patents his 1st invention: electric voice machine
1887 A. Miles patents elevator

October 12
1492 Columbus arrives in Bahamas [real Columbus Day]
1918 1st use of iron lung (at Boston's Children Hospital). The iron lung is called a negative pressure ventilator. It enables a person to breathe when normal muscle control has been lost.
1935 Luciano Pavarotti, born in Modena, Italy, operatic tenor, Oh Giorgio, 3 Tenors

October 13
1884 Greenwich established as universal time meridian of longitude
1971 Intel Corp. goes public on NASDAQ.
1987 Walter H Brattain, U.S. physicist (transistors, Nobel 1956), dies at 85
Agenda
October 2007:
Newport International Oktoberfest, USA.
World Beer Festival Durham , USA
Diksmuide Beer Festival Belgium
Grain Market Outlook Conference & Cereals Industry Forum Conference 2007 , UK
Great American Beer Festival
Tasting Australia
Belgian beer and chocolat festival
Diksmuide Beer Festival Belgium
Distillers Grains Quality & Utilization Short Course
U.S. Drinks Conference 2007 UK
Ullapool Beer Festival Scotland
"Oktoberfest 2007" , 3 EDITION MONTE-CARLO
San Diego Wet Hop Festival
International Craft Beer Festival Mexico
PINT Bokbierfestival The Netherlands
2007 Master Brewers Association of the Americas Convention
Festival of Very Special Beers Belgium


November 2007:
14th Great International Beer Festival USA
The International Hop Growers' Convention (IHGC) Meetings, Germany
International convention for the drink technology and PET industry, India


December 2007:
International Grains Council - 26th Session - Tokyo
Christmas Beer Festival Belgium


April 2008:
Craft Brewers Conference World Beer Cup Awards

More events are available on site e-malt.com

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