Russian beer industry reached 116 million hectolitres in 2007, a 16% increase over 2006, which placed Russia on the third place in the world according to beer production volumes, the media reported April 11.

"2007 was the best year for our beer industry in the last decade", Anton Artemiev, President of Baltika Brewery and President of Russian Beer Union, said.

"The main factors of this grow are the increase of Russian's level of life, the economic growth in the country and the 2007 hot summer", he added.

Artemiev also said that he doesn't exclude the possibility of a slowdown in industry growth for the following years till 3-5% per year, taking into consideration the increase in prices for beer ingredients, transport and energy and excise duty growth.

SABMiller plc issued the update on trading for the 12 months to 31 March 2008, in a press release, April 16. The calculation of organic growth rates excludes volumes for acquired businesses for the first 12 months after an acquisition.

The group’s lager volume growth was 11% for the year with organic growth of 7%. Revenue grew by some 16%, benefiting from price increases and mix improvements, which have offset the impact of higher input costs. The underlying performance of the group has been good and was at the upper end of management’s expectations. The results have benefited from successful revenue management and enhanced productivity as well as favourable exchange rates in some of our major countries.

In Latin America, lager volumes were up 5% for the year, with a subdued growth rate in the final quarter following mid-teen growth in the comparative period. In Colombia, full year volumes have grown 4%, reflecting slower trading conditions in the second half and tough comparatives, but good price and mix increases have been achieved and our market facing initiatives continue to deliver benefits. In Peru, volumes ended up 8% in a market that remains highly competitive.

Europe recorded ...More Info

To enhance its brand offerings in India, Asia Pacific Breweries Aurangabad Limited (APBAL), a subsidiary of Asia Pacific Breweries Limited (APB), unveiled the launch of its locally-brewed Tiger beer (Tiger) in Mumbai, the company reported in a press release, April 15. Joining the ranks of Singapore, Malaysia, China and Thailand amongst others, India is the 10th country in the Asia Pacific region to brew the award-winning Tiger.

Launched in 1932, Tiger is APB's flagship brand which is enjoyed by millions of beer drinkers in more than 60 countries. Tiger is not new to the Indian beer market. All the while, the brand has been imported into India but was only made available at exclusive premium outlets. With the introduction of locally-produced Tiger by APBAL located in Aurangabad, Maharashtra, the brewery is set to quench the thirst for a quality premium lager by extending the availability of the brand. Tiger will be made more widely available at the various on and off trade outlets including wine shops, pubs and restaurants amongst others, enabling the local consumers to experience the distinctive taste of the 5% alcohol European-styled lager.

On this milestone, Mr Vivek Chhabra, Regional Director, South Asia & Director, Group Business Development, APB, ...More Info

Belarus is interested in the participation of brewing company Heineken N.V. in the production of all components of brewing products in the country, President of Belarus Alexander Lukashenko said during a meeting with representatives of the company, the media reported April 15.

“We are ready to extend comprehensive support to you as a Belarusian company. It is important for you to give us cutting-edge technological tasks,” said the head of state.

“I am very glad we have a good practice of the President’s cooperation with representatives of large foreign business. I am satisfied very large companies come onto the market of Belarus,” said Alexander Lukashenko. “You are most of all interested in producing the best beer sorts in Belarus. Long ago we determined what we want the companies that come onto our beer market to do,” noted the President. “I am very interested how effectively you will work”.

In 2007 the Belarusian government approved the deal to sell Syabar brewing enterprises to Heineken N.V. Syabar used to produce around 13 million decalitres of beer annually. Heineken N.V. plans to increase the figure up to 20 million decalitres within two years. Thus, the company will account for about one third of the country’s beer ...More Info

Tsingtao Brewery Co., the Chinese beer company partly owned by Anheuser-Busch Cos., fell the most in a month in Hong Kong trading after saying 2007 profit will be reduced by a higher tax rate to be applied to its earnings, according to Bloomberg, April 16.

Tsingtao Brewery fell 8.4 percent to HK$18.92 in Hong Kong, the biggest decline since March 17. Its Shanghai- listed shares fell 1 percent to 23.87 yuan.

The company will pay income taxes at a 33 percent rate for 2007, it said in a statement to Shanghai's stock exchange today. Tsingtao Brewery, based in the eastern Chinese city of Qingdao, said in August its first-half income tax rate was 15 percent.

Profit for the first nine months of 2007 was 560 million yuan ($80 million) with the new tax rate and 695 million yuan without, Tsingtao Brewery said. The company will report full- year earnings on April 22.

Tsingtao Brewery will pay income taxes at a 25 percent rate in 2008, it said.

Heineken, the largest Dutch brewer, said that growth in its Russian beer sales would weaken this year as the market's expansion slows, The Moscow Times published April 14.

"There won't be double-digit growth this year," Viktor Pyatko, vice president of Heineken's local unit, told reporters after a news conference in Moscow. The company will aim to increase the amount of beer it sells in Russia "at least at the pace of the market or slightly better," he said.

Growth in the country's beer market will decelerate to 3 to 5 percent in coming years from 2007's 16 percent, Baltika Breweries, the largest local beer maker, has said. Foreign competitors, including InBev, the world's biggest brewer by sales, have flocked to the country as it expands for a 10th straight year, fueling incomes and spending.

Heineken's Russian sales advanced 15 percent to 15 million hectoliters last year. Drinkers bought more beer as the warmest Moscow winter since records began in 1879 pulled demand away from vodka.

The company will invest 112 million euros ($177 million) to 117 million euros in Russia this year, unchanged from 2007, Pyatko said. Around 60 million euros will go to quadruple capacity at a brewery in Nizhny Novgorod, and the ...More Info

The CWB announced that 2007-08 initial payments for Pool B feed barley will increase effective April 17, 2008, according to CWB’s press release, April 14. Pool B feed barley will increase $65 per tonne.

The adjustment payments, in dollars per tonne, for representative grades in each pool account are listed below. The total initial payment to date is basis in-store Vancouver or St. Lawrence and must be adjusted for freight/elevation charges to arrive at farm gate prices.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs to farmers.

Barley growers across South Australia and Victoria will share in first distribution payments from ABB Grain’s 2007/2008 select pools, according to ABB’s press release, April 16.

Growers who delivered malting barley into ABB's 2007/2008 No.1 pools will receive $390/tonne for malting 1 barley and $380/tonne for feed 1 barley – both amounts representing 89% of the current estimated grower return (EGR).

Growers who delivered into ABB's No.2 select pools will receive $345/t for malting 1 barley and $320/t for feed 1; growers who put barley into the No.3 select pool will receive $340/t for malting 1 and $290/t for feed 1.

The following charges will be factored into the above distributions: research levies and VFF levies (where applicable), 100% anticipated bulk handling and 100% of anticipated freight.

ABB Grain's general manager marketing, Peter Jones, said that the pools were still a valuable option for growers in a deregulated barley market as they were able to take advantage of both export and domestic demand.

He said the high percentages of the EGR for the first distributions reflected another below-average crop in South Australia in the 2007 but also the very high prices that barley was attracting and has continued to attract.

"Also, because of the smaller crop, ...More Info

A rare and dramatic surge in the price of hops used in beer-brewing is drawing more farmland and investment into the crop in Washington, the top state in the nation for hops production, Puget Sound Business Journal published April 11.

The price of the pure resin extract of hop cones, the ingredient that gives beer a tinge of bitterness, has climbed nearly 5-fold, to about $200 a kilogram from $40 several years ago, said Steve Carpenter, CEO of Yakima Chief Inc., a Sunnyside hops processor.

Last year, Washington hops farmers planted 22,745 acres of hops, up from a low of 19,382 acres in 2004, according to National Agricultural Statistics Services numbers. This year, forecasts call for another 5,000 acres to be planted, at a cost of about $30 million.

The higher prices have rapidly boosted hops farmers' income in the state. Revenue from hops is up 46 percent, to $128 million in 2007, from 2006 and is expected to climb again this year.

M. Trnka1, P. Hlavinka1, D. Semerádová1, M. Dubrovský2, Z. Žalud1, M. Možný3

1Institute of Agrosystems and Bioclimatology, Mendel University of Agriculture and Forestry in Brno, Czech Republic; 2Institute of Atmospheric Physics, Academy of Sciences of the Czech Republic, Prague, Czech Republic; 3Agrometeorological Observatory in Doksany, Czech Hydrometeorological Institute, Prague, Czech Republic

ABSTRACT
The relationship between detrended district yields of spring barley (1961–2000) and meteorological drought was assessed by Palmer Z-index. We found that the seasonal water balance (April–June) significantly (P = 0.05) influences the spring barley production in 51 out of 62 evaluated districts. Coefficients of correlation varied in individual districts from 0.19 to 0.70, with the highest values being found in southern Moravia. Data analysis revealed the presence of six distinct groups of districts with a specific drought-yield relationship. The most drought-sensitive cluster included five districts in the South East of the country. On the other hand, the districts in Northern Moravia and Silesia belong among the least sensitive to agricultural drought. The study also defined threshold values of seasonal drought (sums of relative Palmer Z-index lower than –8 and –10, respectively), below which medium to severe spring barley yield reductions are very likely, regardless of the district of occurrence.
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