Base Currency: Euro, EUR on 16-June-2004 1 EUR = 1.2165 USD 1 EUR = 0.6644 GBP 1 EUR = 1.6656 CAD 1 EUR = 1.7416 AUD 1 EUR = 133.17 JPY 1 EUR = 3.8016 BRL 1 EUR = 35.315 RUB	Base Currency: US Dollar on 16-June-2004 1 USD = 0.8222 EUR 1 USD = 0.5461 GBP 1 USD = 1.3692 CAD 1 USD = 1.4317 AUD 1 USD = 109.50 JPY 1 USD = 3.125 BRL 1 USD = 29.03 RUB
EUR/USD Chart

UK: Scottish & Newcastle's business in the UK has now received full acceptance of its offer to purchase the assets of the Northern Club Federation Brewery (NCFB) by the 303 members of NCFB, Scottish & Newcastle announced on June 14. This follows S&N's successful acquisition of the NCFB brewery in Dunston in April 2004. The assets to be acquired in a deal worth £16.2 million, include the brands, wholesaling business, tied estate and distribution assets. S&N plans to move its Tyne brewing operations to the NCFB site to form a combined business in the North East of England by March 2005. The acquisition is expected to complete in early July and is dependent on the necessary OFT clearance and FSA registration.

US, New York: Miller Brewing Co., a unit of SABMiller Plc', said on June 14 it dropped part of a legal complaint against rival Anheuser-Bush Cos Inc. Miller Brewing filed a lawsuit against Anheuser-Busch on May 26, claiming the top U.S. brewer was making "false and misleading statements" about Miller Lite in its advertising. In one element of the case, Miller Brewing took issue with a new Anheuser-Busch print advertisement touting Bud Light as "The King of Beers" and calling Miller Lite "The Queen of Carbs," a dig at Miller Lite commercials that specify the amount of carbohydrates the product contains. "We are removing from the complaint the queen of carbs issue, which was scheduled for a preliminary injunction hearing on June 29," Miller Brewing spokesman Scott Bussen said on Monday. The other issues coming out of the May 26 lawsuit will continue on the schedule the court determines, Bussen said. Miller Brewing's lawsuit also claims that Anheuser-Busch's distributors have been placing Anheuser-Busch stickers on Miller Lite cases, cans, bottles and advertising displays, Miller Brewing said in a court filing. The tactics are part of the struggle between the companies, which are competing for weight-conscious consumers with their Bud Light and Miller Lite brands, Miller Brewing has said. An Anheuser Bush spokesman has said that placing stickers on a competitor's packaging is against company policy. Wall Street analysts have noted that Anheuser-Busch has stepped up its marketing against Miller Lite, which has made some share gains in recent months.

Czech beer production is to increase by 1% in the first half of this year, compared to the first six months of 2003, Jan Vesely, the chairman of the Czech Association of Beer and Malt Producers revealed. The country's beer output for the whole of 2004 is expected to rise by 2% year-on-year. According to Vesely beer production between January and April 2004 rose by 4% year-on-year, but slowed down in May due to the cool weather. In the first quarter of 2004 the Czech Republic's beer production increased by 3.6% year-on-year and reached about 3.8 million hl. Exports of Czech breweries are expected to be boosted by the country’s accession to the European Union on 1 May. Local brewing companies predict that exports to other new EU member countries will attract the greatest increase.

China: Interbrew, the third biggest beer maker in the world, recently held its senior directorate in Wenzhou City of Zhejiang Province and said it would speed up acquisition in China's beer market, SinoCast posted on June 10. Fourteen directors of Interbrew arrived in Wenzhou City from the headquarters in Belgium and talked about acquirement of China'sbeer factories. John F. Brock, CEO of Interbrew, revealed that they have come to Wenzhou City mainly because it is an important market in China. Insiders disclosed, "The great increase in Chinese beer market will probably draw the directors' attention." He said Interbrew had acquired over 30 beer enterprises in 18 countries, including more than 200 brands. China is the next key market. In 2002, Interbrew acquired 70 percent shareholding in Zhengjiang Kaikai Group and purchased a 24 percent stake in Zhujiang Beer. In 2004, Interbrew bought 50 percent shareholding Malaysia Lion Group's business in China for CNY 131.5 million. Insiders expect fiercer competition in China's beer market after Interbrew enters.

Russia: In 2003, Russians drank 53.4 litres a person, up from 36.6 in 2000, and consumption is expected to keep growing about 4 % to 6 % a year. There is room to catch up: last year, the British drank 99 litres a person and Czechs, 160 litres, New York Times posted on June 15, 2004. New York Times published an article about Oleg Tinkov, who sees himself as something more than Russia's "beer oligarch," as he has been called. The 36-year-old founder of Tinkoff Private Brewery sells no ordinary proletarian suds, but premium-priced brews, as well as a sense of home-grown hip, to Russia's growing class of young professionals. (Using the two-F French spelling of his name for the beer is meant to accentuate that.) Vodka may forever be identified as Russia's national drink, but Mr. Tinkov has been capitalizing on beer's increasing popularity in Russia. Mr. Tinkov has also been capitalizing on his sometimes shocking irreverence. His provocative opinions show up even in the company's stated mission: "Propagate liberal values and respect freedom of choice." While other wealthy Russian businessmen have toed the Kremlin line since the arrest and jailing of one of their own, the oil billionaire Mikhail B. Khodorkovsky, Mr. Tinkov is having fun with the fortune he made, mixing free speech and free enterprise...more info

Malt News

EU malt export licence bookings are almost 2.2 million tonnes in the former EU plus 24,000 tonnes in the new countries. Licence bookings now equal the total fixations of the crop year 2001/02 and are 160,000 tonnes ahead of the bookings of last year. Official statistics for the years 2001 and 2002 show physical exports of malt to third countries of 2.328 resp. 2.372 million tonnes, therefore one must wonder, if the statistics are fully correct. It must be taken into account, of course, that export licences have a usage margin of plus and minus 5 %. Official export data for 2003 are still not available. In any case it is obvious by now that the loudly announced reduction of exports has not taken place yet and will not take place during this calendar year.

EU malt export licence fixations:

(in tonnes)	2000 - 2001	2001 - 2002	2002 - 2003	July 1, 2003 - May 25, 2004
France	523,190	701,134	661,772	679,830
Germany	305,980	468,314	408,063	394,695
Belgium	277,584	296,368	287,850	293,124
U.K.	254,793	350,621	294,995	406,418
Finland	65,550	91,890	100,758	98,110
Denmark	52,326	96,812	94,791	79,227
Sweden	50,847	101,000	76,916	73,869
Netherlands	54,835	51,310	66,219	77,421
Ireland	26,003	35,145	31,140	32,900
Austria	4,850	8,840	8,620	49,326
Spain	3,000	2,400	5,640	10,000
Greece	1,800	1,744	1,306	979
Portugal	340	221	85	610
Italy	-	-	2	-
Total former EU	1,621,098	2,205,799	2,038,157	2,196,509
New EU members                                                                   since May 01/2004
Czech Republic				21,925
Poland				1,997
Other new members				-
Total EU	1,621,098	2,205,799	2,038,157	2,220,431

	Total Wheat malt, tonnes
Total 2000/2001	4,686
Total 2001/2002	12,805
Total 2002/2003	30,908
July 01/2003 – May 25/2004	12,818
	Total Roasted malt, tonnes
Total 2000/2001	23,967
Total 2001/2002	23,480
Total 2002/2003	23,603
July 01/2003 – May 25/2004	21,617
New members since May 01/2004	315

Serbia-Montenegro: The Soufflet group, the world's leading maltster, announced on June 15 it has just acquired the majority of the stocks and shares of “Maltinex” maltings, situated in Bajka Palanka, 100 km north-west of Belgrade, in the Republic of Serbia-Montenegro. Maltinex is a maltings in Serbia-Montenegro, with a yearly production capacity of 50,000 tonnes. Maltinex is situated in the heart of the large cereal plain of the Vojvodine where the production potential of quality malting barley is very promising. The Soufflet group, the world's leading maltster, continues with this investment, developing in Central Europe, which began at the end of 1998. Malteries Soufflet will now produce in nine countries, France, Poland, the Czech Republic, Hungary, Romania, Russia, Kazakhstan, Ukraine and Serbia-Montenegro. Following this acquisition, the Soufflet group's maltings will now have a capacity of 1,432,000 tonnes.

Barley News

EU: The Commission has repeatedly stated that definitely no restitutions are foreseen for malt and for barley to typical malting barley destinations. Without such refunds, EU new crop malting barley costs: Danish/French two-row spring barley EUR 205-210, French six-row winter barley Esterel EUR 185-190 CIF South American Atlantic coast, some EUR 5 more for South China. Ocean freight has declined sharply, any further reduction or a better US-Dollar would improve the EU export position.

Australia quotes US $ 140 FOB for (Northern Hemisphere) old crop positions, but will have to adjust prices for the second half of the year, according to analysts. Canadian feed barley at the Winnipeg exchange closed the month of May at CAN $ 156.50 for October equal to US $ 115.

Theoretical malt prices.

* - 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 2004 are available online www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Graph of the week
Agenda

June 2004:
BrewNZ 2004;
ALIMENTARIA MEXICO International Food and Beverages Exhibition;
Hotelympia;
BEVEX 2004 - Korea Int'l Beverage & Brewery Processing Technology Expo;
10th international symposium on pre-harvest sprouting in cereals;
BevTek / BrewTek;
IGC GRAINS CONFERENCE 2004;
26th Annual National Homebrewers Conference;
Scottish Traditional Beer Festival;
Coceral Congress 2004;
American Homebrewers Association 26th Annual National Homebrewers Conference;
Food Taipei;
The 9th International Barley Genetics Symposium;
Little Oktoberfest;

July 2004:
VI Moscow Beer Festival;
Lucky Baldwin's IPA Festival;
BevTek / BrewTek China;
Vermont Brewers Festival;
World Brewing Congress 2004;
Hop, malt and beer of Russia Exhibition;

August 2004:
Great British Beer Festival;
Worcester Beer and Cider Festival;
BeerTek China Beer and Brewing Technology Exhibition;
Peterborough Beer Festival 2004;
FOODWORLD Food and Beverage Exhibition;
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry;

More events are available on site e-malt.com