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E-Malt.com Newsletter 50a
December 10 - December 12, 2007
Open!
Click here to get full size Newsletter


Quote of the week
"When I die I want to decompose in a barrel of porter and have it served in all the pubs in Dublin."
J P Donleavy, The Ginger Man
Currency Rates
Base Currency: Euro, EUR
on 12-December-2007

1 EUR = 1.4708 USD
1 EUR = 0.719 GBP
1 EUR = 1.4831 CAD
1 EUR = 1.6599 AUD
1 EUR = 164.414 JPY
1 EUR = 2.5941 BRL
1 EUR = 35.9497 RUB
1 EUR = 10.8707 CNY
Base Currency: US Dollar
on 12-December-2007

1 USD = 0.6799 EUR
1 USD = 0.4888 GBP
1 USD = 1.0084 CAD
1 USD = 1.1285 AUD
1 USD = 111.784 JPY
1 USD = 1.7638 BRL
1 USD = 24.4423 RUB
1 USD = 7.391 CNY
Currency Rates, EUR/USD Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend
December 12, 2007
Crop 2007 Crop 2008
2rs Barley €291.0-293.0 1.74% 2rs Barley €268.0-270.0 2.28%
6rw Barley €258.0-260.0 1.17% 6rw Barley €234.0-236.0 1.29%
2rs Malt €538.5-540.5 1.51% 2rs Malt €499.5-501.5 1.52%
6rw Malt €497.0-499.0 1.12% 6rw Malt €456.5-458.5 0.77%

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.


Top Industry News

Bulgaria: Brewers expect 11% to 14% beer sales increase ...Click here
Denmark & Netherlands: Carlsberg, Heineken clarify they may raise S&N bid ...Click here
Vietnam: Sabeco builds brewery plant in Nghe An ...Click here
Canada: Brick Brewing slips to loss in Q3, revenues decline ...Click here
Russia & Germany: Baltika Breweries to export beer to Germany in PET bottles ...Click here
Nepal: Pepsi bottler signs agreement with InBev to produce Lowenbrau beer ...Click here
China: Barley supply a problem on increasing beer market ...Click here
France: Winter barley area sees 3.5% rise in 2008/09 ...Click here
Brazil & Argentina & Uruguay: Barley crop results disappointing ...Click here
Czech Republic: Czech hops harvest up 3% in 2007 ...Click here




UK: Scottish & Newcastle agrees sale of LCL Pils brand to Daniel Thwaites Brewery ...More Info
Kenya: Diageo solves Kenya's drink problem with cheap beer ...More Info
UK: Scottish & Newcastle unveils new management team ...More Info
USA: Heineken chooses DataAlchemy software for data analysis and presentation ...More Info
Japan: Government buys 61 thousand tonnes of barley via SBS tender ...More Info
Canada: Appeal of ruling upholding wheat board's barley monopoly to be heard February 26, 2008 ...More Info
Ukraine: Barley trade insignificant due to high prices ...More Info
Go to our news database with more than 11875 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

Bulgaria: Brewers expect 11% to 14% beer sales increase

The broad entering of foreign beer brands from the European community didn’t reflect Bulgarian beer brands sales in the first year of the Bulgarian membership in the EU, according to FOCUS News Agency, December 9. On the contrary, 11 – 14% increase in beer sales would be registered this year, President of the Council of the Union of Brewers in Bulgaria Vladimir Ivanov said.

On the whole, the first year of European membership had good influence on the brewing industry in Bulgaria. The brewers had been prepared concerning the technological equipment, diversity of brands and quality of Bulgarian beer, he added.


Denmark & Netherlands: Carlsberg, Heineken clarify they may raise S&N bid

Carlsberg and Heineken (the “Consortium”) notes recent media reports and confirms that, whilst it has no plans to raise its proposal above 750 pence, it wishes to re-confirm that it reserves the right to increase its proposal should it so decide, according to companies’ press releases, December 11. The Consortium reiterates that its proposal to acquire Scottish & Newcastle plc (“S&N”) for 750 pence per share in cash delivers full and fair value and is at a level substantially in excess of the standalone independent value of S&N.

The Consortium continues to seek engagement with the board of S&N to convert the proposal into a firm offer. Whilst the Consortium retains the right to improve its proposal, there can be no certainty that it will do so, or that any offer will be made.


Vietnam: Sabeco builds brewery plant in Nghe An

The Saigon Brewery Corporation (Sabeco) started the construction of the Saigon-Song Lam Brewery Plant, located on the two communes of Nam Giang and Hung Dao in the two districts of Nam Dan and Hung Nguyen in central Nghe An province, Nhan Dan reported December 11.

Total investment for the plant is put at VND 1,450 billion. The plant is equipped with advanced technology from Germany’s Krones Group. It has a design capacity of 100 million litres of beer annually. Upon its completion, it will create jobs for hundreds of local workers.

At the ground breaking ceremony, Sabeco presented VND 50 million and Krones Group donated US $ 10,000 to help poor people in the province.


Canada: Brick Brewing slips to loss in Q3, revenues decline

Brick Brewing Co. Ltd. announced its third quarter financial results, reporting a net loss of C$858 thousand or C$0.04 per share, compared to net earnings of C$40 thousand or breakeven per share in the same quarter last year, RTTNews reported December 11.

Net revenues for the quarter declined to C$7.54 million, from C$8.7 million in the prior year quarter. Gross revenues for the quarter decreased 7.2% to C$16.91 million, from C$18.22 million in the same quarter previous year.

For the nine-month period, the company posted a net loss of C$1.47 million or C$0.06 per share, compared to net earnings of C$1.13 million or C$0.03 per share in the same period last year. Net revenues for the period were C$24.04 million, down from C$27.3 million in the same period prior year. Gross revenues for the period decreased to C$54.55 million, from C$57.55 million in the same period previous year.


Russia & Germany: Baltika Breweries to export beer to Germany in PET bottles

Baltika Breweries announced it had started to export beer in PET bottles to Germany, according to company’s press release, December 10. Baltika had previously been registered as an operator on the one-time packaging German market, being the first Russian company which passed the registration process in Deutsche Pfandsystem GmbH (DPG) – organization which administrates one-time packaging turnover on the German market.

Baltika Breweries is the leader on the Russian beer market. In 2006 Baltika merged with the companies Vena, Pikra and Yarpivo.

The Baltika brand occupies second place in Europe in terms of sales. The Company owns 11 breweries across all of Russia and has an extensive portfolio of brands. Baltika has around 12,000 employees.


Nepal: Pepsi bottler signs agreement with InBev to produce Lowenbrau beer

Varun Beverages Pvt. Ltd., the Nepali bottler of Pepsi range of soft drinks has signed an agreement with Inbev, the Belgium based world’s largest beer company to produce and sell in Nepal Lowenbrau brand of beer, according to Businessage, December 11. The brewing is to be done in the brewery of SunGold Beverage of Chaudhary Group. The plan is to launch the Lowenbrau before the Dashain festival.

Varun Beverage is fully owned by Pepsi India.

Nepali market consumes almost 420 million bottles of beer every year. Out of that market, brands from Gorkha Brewery occupy about 85 per cent while the rest is shared among Mt. Everest Brewery, SunGold Beverage and United Brewery.


Barley News

China: Barley supply a problem on increasing beer market

The world beer output in 2006 rose by 6 % to 1,699 Mill. hl (as per Barth), composed of 15 % in China and 4 % in the rest of the world. China may well repeat its performance and increase beer sales to 400 Mill. hl this year, according to analysts, December 3.

At the end of 2006 China’s malting capacity was reported to be 4,070 Mill. tons. New malthouses are being constructed everywhere in the country, by the end of 2008 the total malt capacity may reach 5.0 to 5.5 Mill. tons. If China‘s beer output rises to 450 Mill. HL in 2008 and brewers are using only 9 kilos of malt per hl, the country will need about 4 Mill. tons of malt. In theory China could become a very large exporter of malt. However, geography and logistics make it unlikely that China can export more than a few hundred thousand tons per year. In 2007 exports are estimated to reach 200,000, next year 300,000 tons, from modern factories near the seaboard.

The biggest problem, however, will be barley supplies. Where can China procure 6 or 7 Mill. tons of malting barley? This year China’s barley was good in ...More Info


France: Winter barley area sees 3.5% rise in 2008/09

The French farm ministry estimated that the country's area sown with winter barley is expected to expand, at 1.23 million hectares, up 3.5 percent from 2007 and 11 percent above the five-year average, Reuters reported December 10.


Brazil & Argentina & Uruguay: Barley crop results disappointing

Crop results of Brazil and Uruguay are confirmed to be disappointing, in Parana, Rio Grande do Sul and in Uruguay yields are about 30 % lower than a year ago, high protein and small grain size are problems in parts of the region, analysts reported December 3.

EU trade and industry had counted on a large and good barley crop in Argentina, min. 1,7 Mill. tons had been forecast. In November untimely frosts, accompanied by heavy rainfalls, spoiled all hopes. At this moment it is impossible to give an exact account of the damages, but estimates are between 30 and 50 %.


Hops News

Czech Republic: Czech hops harvest up 3% in 2007

Czech hops growers this year harvested 5,630 tonnes of hops, 3 percent more than last year, and per hectare yield was 1.04 tonnes, 0.03 tonne more year-on-year, Zdenek Rosa, secretary of the Hops Growers' Association told CTK, December 11.

Last year's hops harvest was below average.

In 2005, 7,831 tonnes of hops were harvested, at per hectare yield of 1.38 tonnes.

This year's harvest was 28 percent lower than in 2005.

"The economic situation of hops growers was not very good last year, and will not improve this year. The current purchasing price of Kc150,000 per tonne does not enable farmers to invest. We would like the price to be Kc10,000 to Kc15,000 higher," the association's chairman said earlier.

Hops fields this year covered 5,389 hectares, 25 hectares less year-on-year. This is the smallest area in 136 years. In 1871, hops fields in the country covered 5,300 hectares, and the area was then growing steadily. In 1993, the country had a record 10,547 hectares of hops fields.

By area of hops fields, the Czech Republic ranks third in the world behind Germany and the USA. Some 80-to- 85 percent of Czech hops is exported, and Japan is the biggest buyer.

Scientific Digest

Malting barley: storage, dormancy and processing quality

R. Reuss, J.A. Cassells and J.R. Green CSIRO Entomology, GPO Box 1700, Canberra, ACT 2601R. Nischwitz Barett Burston Malting Co., Central Laboratory Gough Street, GPO Box 153B, Melbourne, Victoria 3001

Abstract
Preharvest sprouting of malting barley causes substantial commercial losses to the grain industry. The use of dormant barley varieties could reduce the risk of weather damage, but dormancy and water sensitivity are undesirable during malting. Storage conditions largely determine the rate of postharvest breakdown of dormancy and water sensitivity. This process may take months, to the disadvantage of handlers and maltsters. Our research has identified several options for managing barley dormancy to provide opportunities to malt and export barley earlier. This would open the door to the use of more dormant barley varieties to reduce preharvest sprouting. The use of agricultural chemicals to break dormancy before or after storage is one possible option. Alternatively, the use of dry heat is an attractive option avoiding market sensitivities to chemical use. Finally, by manipulating the storage process, postharvest dormancy breakdown can be accelerated without compromising barley quality. Here we present preliminary results of a threeyear project that aims to understand the interaction between storage conditions, barley quality and dormancy.
... Load full article, 5 pages, 73 Kb, PDF file

Malting barley prices.
French barley prices. Nominal prices
EURO = USD 1.4708 December 12, 2007 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  294.00  432.50  271.00  398.50 
2RS  Prestige  293.00  431.00  270.00  397.50 
2RS  Cellar  292.00  429.50  269.00  396.00 
2RS  Sebastien  291.00  428.50  268.00  394.50 
2RS  Astoria  291.00  428.50  268.00  394.50 
2RS  Cork   291.00  428.50  268.00  394.50 
6RW  Esterel   259.00  381.00  235.00  346.00 

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

Theoretical malt prices

EURO = USD 1.4708 December 12, 2007
Crop year  2007 
Parity  FOB Antwerp 
Position  Dec 2007 - Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  542.00  797.00  565.50  832.00  557.50  820.00  571.50  840.50 
2RS  Prestige  540.50  795.50  564.50  830.00  556.50  818.00  570.50  839.00 
2RS  Cellar  539.50  793.50  563.00  828.50  555.00  816.50  569.50  837.00 
2RS  Sebastien  538.50  791.50  562.00  826.50  554.00  814.50  568.00  835.50 
2RS  Astoria  538.50  791.50  562.00  826.50  554.00  814.50  568.00  835.50 
2RS  Cork   538.50  791.50  562.00  826.50  554.00  814.50  568.00  835.50 
2RS   Average price  539.50  793.50  563.00  828.50  555.00  816.50  569.50  837.00 
6RW  Esterel   498.00  733.50  522.50  768.50  514.50  756.50  528.50  777.50 
Asia Malt 70/30  527.50  775.50  551.00  810.50  543.00  798.50  557.00  819.50 
**  Asia Malt 50/50  519.50  763.50  543.00  798.50  534.50  786.50  549.00  807.50 


EURO = USD 1.4708 December 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  503.00  739.50  526.50  774.50  518.50  762.50  532.50  783.50 
2RS  Prestige  501.50  738.00  525.50  772.50  517.50  760.50  531.50  781.50 
2RS  Cellar  500.50  736.00  524.00  771.00  516.00  759.00  530.00  779.50 
2RS  Sebastien  499.50  734.00  523.00  769.00  514.50  757.00  529.00  778.00 
2RS  Astoria  499.50  734.00  523.00  769.00  514.50  757.00  529.00  778.00 
2RS  Cork   499.50  734.00  523.00  769.00  514.50  757.00  529.00  778.00 
2RS   Average price  500.50  736.00  524.00  771.00  516.00  759.00  530.00  779.50 
6RW  Esterel   457.50  674.50  482.50  709.50  474.50  697.50  488.50  718.00 
Asia Malt 70/30  488.00  717.50  511.50  752.50  503.50  740.50  517.50  761.50 
**  Asia Malt 50/50  479.50  705.50  503.50  740.00  495.00  728.00  509.50  749.00 

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

Table of the week

EU Barley Production, 2007

  WINTER SPRING TOTAL
  Acr.
1000ha
Yield
t/ha
Prod.
1000t
Acr.
1000ha
Yield
t/ha
Prod.
1000t
Acr.
1000ha
Yield
t/ha
Prod.
1000t
Belgium 43 7.9 338 6 4.7 28 49 7.4 365
France 1,184 5.7 6,762 519 5.2 2,694 1,703 5.6 9,456
Germany 1,438 5.8 8,360 496 4.3 2,119 1,934 5.4 10,480
Ireland 18 8.0 144 149 6.6 986 168 6.7 1,130
Luxemburg 6 5.0 30 3 4.7 14 9 5.0 45
Netherlands 4 7.0 28 41 5.7 232 45 5.8 260
U.K. 378 6.2 2,343 507 5.5 2,806 885 5.8 5,149
Total NW Europe 3,071 5.9 18,005 1,721 5.2 8,879 4,793 5.6 26,885
Denmark 169 5.0 850 464 5.0 2,306 633 5.0 3,156
Estonia 2 1.5 3 139 2.7 371 141 2.7 374
Finland - - - 550 3.7 2,039 550 3.7 2,039
Latvia 5 3.4 17 140 2.7 378 145 2.7 395
Lithuania 12 3.6 43 365 2.8 1,023 378 2.8 1,066
Poland 174 3.8 664 1,061 3.2 3,402 1,234 3.3 4,066
Sweden 8 5.3 42 312 4.5 1,395 321 4.5 1,437
Total Baltic Region 370 4.4 1,619 3,031 3.6 10,914 3,402 3.7 12,533
Austria 74 5.7 421 119 3.3 390 193 4.2 811
Bulgaria 174 2.4 422 20 2.0 39 194 2.4 461
Czech Rep. 130 4.8 627 369 3.5 1,293 499 3.8 1,920
Hungary 185 3.7 684 139 2.6 358 324 3.2 1,041
Romania 195 1.6 311 170 1.1 193 365 1.4 504
Slovakia 19 3.8 73 192 3.2 622 211 3.3 695
Slovenia 16 4.2 67 2 3.5 7 19 3.9 74
Total SE Europe 793 3.3 2,605 1,011 2.9 2,902 1,805 3.1 5,506
Cyprus 55 1.6 90 - - - 55 1.6 90
Greece 115 2.3 265 - - - 115 2.3 265
Italy 338 3.6 1,206 - - - 338 3.6 1,206
Portugal 40 1.9 74 - - - 40 1.9 74
Spain 683 3.1 2,146 2,537 3.7 9,452 3,220 3.6 11,598
Total Mediterranean 1,231 3.1 3,781 2,537 3.7 9,452 3,768 3.5 13,233
TOTAL EU (excl. Malta) 5,465 4.8 26,010 8,300 3.9 32,147 13,768 4.2 58,157
Graph Of The Week



These Days in Business History
December 10
1799 Metric system established in France
1901 1st Nobel Peace Prizes (to Jean Henri Dunant, Frederic Passy)
1915 10,000,000th model T Ford assembled
1948 UN General Assembly adopts Universal Declaration of Human Rights

December 11
1901 Marconi sends 1st transatlantic radio signal, Cornwall to Newfoundland
1930 Bank of the United States opens in New York NY
1967 SST prototype "Concorde" 1st shown (France)
1985 General Electric acquires RCA Corp & its subsidiary

December 12
1800 Washington DC established as capital of US
1858 1st Canadian coins circulated (1¢, 5¢, 10¢ & 20¢)
1901 Marconi receives 1st transatlantic radio signal, England to US
1991 Maastricht Treaty signed to create a European Community
Agenda