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E-Malt.com newsletter
February 02 - February 04, 2004

     Summary
Brewery News
Malt News
Barley News
More News
Theoretical malt prices
Malting barley prices
Malting Barley Price Evolution
Graph of the week
Agenda
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Access news database! Go to our news database with 2009 articles Currency rate
for 04-Feb-2004 / EUR
1 EUR = 1.2535 USD
1 EUR = 0.6825 GBP
1 EUR = 1.6771 CAD
1 EUR = 1.6395 AUD
1 EUR = 132.26 JPY
1 EUR = 3.6577 BRL
1 EUR = 35.8351 RUB
Currency rate
for 04-Feb-2004 / USD
1 USD = 0.7981 EUR
1 USD = 0.5443 GBP
1 USD = 1.3379 CAD
1 USD = 1.3079 AUD
1 USD = 105.53 JPY
1 USD = 2.918 BRL
1 USD = 28.588 RUB

 Top Industry News 


  • China: Dutch brewing force, Heineken N.V. said on February 2 it expects to produce China-made, Heineken-branded beer in the coming six months Click here

  • New Zealand, Wellington: Heineken-controlled DB Group said on February 3 its first-quarter sales had performed strongly Click here

  • Germany: Beer consumption in Germany fell by 3.4 % in 2003 in spite of an exceptionally hot summer. Some 9.32 billion liters of beer were sold in Germany in 2003 ... Click here

  • MEXICO: Grupo Modelo, Mexico's top brewer and maker of the popular Corona beer, is expected to report a 20 % leap in fourth-quarter net profit ... Click here

  • Canada: Domestic malting capacity (the process of converting malting barley to malt for use in brewing) has also grown in the west ... Click here

  • South America: Mercosur harvested a very good crop of malting barley: Brazil 300 thousand tonnes, Uruguay 300 thousand tonnes ... Click here

  • Barley in Canada ... Click here


More news is available on site www.e-malt.com  

Brewery News

Dutch brewing force, Heineken N.V. said on February 2 it expects to produce China-made, Heineken-branded beer in the coming six months, but its Chinese partner Guangdong Brewery Holdings isn't guaranteed a role in this initial plan. Still, with the forthcoming consolidation of operations between the two and expected production cost advantages over domestic rivals, the Guangdong Brewery management believes the cooperation will help boost the market share of its domestic-branded beer products in the next five years. The Dutch company, the world's third-largest brewer, said last week its China associated company, Heineken Asia Pacific Breweries China Pte, will take a 21% stake in the Guangdong province-based beermaker for EUR57 million. Before that, the world's largest brewer, Anheuser-Busch Cos., bought a stake in China market leader Tsingtao Brewery Co. Other major players like SABMiller PLC and Interbrew SA have also linked up with other leading local firms. "It doesn't matter if we come in one or two years later," Heineken N.V. Chairman Thony Ruys said in a media briefing. "We're entering a market that is the largest in the world...China is a country of countries." Currently, Heineken beer is imported into China. When local production starts, it will be marketed as a premier beer in China, posing no direct threat to Guangdong Brewery's domestic Kingway beer. Rick Linck, managing director of Heineken's Shanghai operations, said the company is finalizing its production plan for Heineken beer in China. It will likely see its first output at the Shanghai plant, now running at a utilization rate of 50%-60%, within six months. Heineken APB China owns breweries in Shanghai and Hainan, which together can produce about 3.5 million hectoliters at full capacity...more info

New Zealand, Wellington: Heineken-controlled DB Group said on February 3 its first-quarter sales had performed strongly while sales margins were in line with budget and ahead of last year. "The targets we have set for 2004 are contingent upon achieving growth in both volume and margin," managing director Brian Blake told shareholders at the annual meeting. "Looking ahead, we will continue to grow the company, with a constant focus on our 10% ebit [earnings before interest and tax] growth target. "We recognise this is ambitious in a mature market but we are well placed to achieve this figure through our strong brand equity, the pursuit of new distribution opportunities, an ongoing focus on effectiveness and efficiency and the constant upskilling of our people." DB's performance in 2003 was assisted by beer market growth of 2.4% that has signalled a significant turnaround for the New Zealand market. DB's ebit was up 13% on the previous year at $34 million, with a 10.7% lift in sales, which included the additional retail sales achieved from the purchased NZ Liquorland stores. Beer revenue was up 6.3%, underlining DB's shift towards premium products.

Germany: Beer consumption in Germany fell by 3.4 % in 2003 in spite of an exceptionally hot summer. Some 9.32 billion liters of beer were sold in Germany in 2003, down from 9.65 billion liters in 2002, the Federal Statistics Office said. The introduction of a complicated system of deposits on cans and bottles in the first half of last year exacerbated the downward trend of German beer consumption over recent years. Deposits are only paid back to customers at the point of initial purchase. An increase in health awareness and a slow economy are also blamed for the decline. An 11 % rise in exports to other European Union countries helped offset some of the downturn, the Federal Statistics Office said. Germans remain among the heaviest beer-drinkers in Europe - with only the Czechs and Irish downing more. In 2002 the average German was getting through 125 litres a year - more than 220 pints - well ahead of the average Briton on 100 litres a year (177 pints). "What has happened across Europe is that in big beer-drinking countries consumption has come down, while wine consumption has increased," a spokesman for the British Beer and Pub Association told BBC News Online. "In more traditional wine-drinking countries it's been the other way round, and wine consumption has fallen while beer consumption has increased. "It's as if... drinking habits are becoming more similar across Europe." Germany still has 1,280 breweries, but the home market has been steadily shrinking since the mid-1990s. The statistics exclude malt drinks, alcohol-free beer and beer imported from countries outside the European Union.

MEXICO: Grupo Modelo, Mexico's top brewer and maker of the popular Corona beer, is expected to report a 20 % leap in fourth-quarter net profit, driven by strong U.S. sales, analysts said on February 3. Five analysts surveyed by Reuters forecast, on average, sales for the October-December period would rise 6 percent from a year earlier because beer distributors of Modelo brands in the United States bought heavily ahead of a price hike. Modelo, half owned by Anheuser Busch, the world's No. 1 brewer, said in November it planned to increase prices for brands such as Corona and Corona Light in the United States from the start of 2004. "Volumes (of exports) should be very good, up 16 percent year on year, supported by an inventory build-up" ahead of the January price rise, Credit Suisse First Boston said in a recent research report. About 90 percent of Modelo's exports go to the United States. Sales abroad represent about 30 percent of company revenue. Domestic sales in the fourth quarter are expected to be up 2 percent to 3 percent. A local price freeze helped support volume sales as Mexico's economy remained sluggish and Mexicans were careful about their spending. Earnings before interest, taxes, depreciation and amortization (EBITDA) -- a key indicator of profitability for Mexican companies -- are seen growing 8.4 percent in the quarter, according to the Reuters survey of analysts.

Malt News

Canada: Domestic malting capacity (the process of converting malting barley to malt for use in brewing) has also grown in the west. As one of the world's major malt barley exporting countries, Canada has experienced the world's greatest increase in malt capacity over the last 15 years, adding over 350 000 tonnes of capacity for an annual total of 1.2 million tonnes. In contrast, U.S. malting capacity has actually declined over the same period, CWB has recently posted. Canada malts four times more barley per capita than the United States. The malting industry in Western Canada has shown tremendous growth in the face of free trade. In 1980 only 55 % of total Canadian malting capacity was located in the west. Now in 2003, 75 % of domestic malting capacity is located on the Prairies, a result of increased demand from international markets that have nearly doubled to 700 000 tonnes (in barley equivalent) annually; a demand that western Canadian maltsters are helping to meet through increased exports. Increased exports of malting barley and market diversification by the CWB and its Accredited Exporters have been an ongoing trend. CWB exports of malting barley have gone from 335 000 tonnes in 1991-92 to an expected 1.3 million tonnes in 2003-2004. The CWB Long-Term Plan calls for malting selections to increase to 3.4 million tonnes, a million tonnes more than current selections, according to The Canadian Wheat Board presentation to The Standing Senate Committee on Agriculture and Forestry...more info

Belarus’ brewers are to import about 50 thousand tonnes of malt and malting barley till the beginning of new 2004 (August) harvest, the local authorities has recently posted. To this purpose the government decided to organize tenders. According to analysts, Belarus processed only 19 thousand tones of malting barley instead of 2003 planned 70 thousand tonnes. The fail was attributed to the fact that Belarus barley does not suit the quality standards regarding colour and protein content.


Barley News

South America: Mercosur harvested a very good crop of malting barley: Brazil 300 thousand tonnes, Uruguay 300 thousand tonnes, Argentina 7-800 thousand tonnes. Quality is the best since years, except some very low protein in Argentina. Barley needs for malting are 360 thousand tonnes in Brazil, 270 thousand tonnes in Uruguay and 470 thousand tonnes in Argentina, which leaves a surplus of 2-300 thousand tonnes for the region. Exports abroad are unlikely due to high freight cost and the handicap of too low protein for customers abroad.

Barley in Canada

  2002-2003  2003-2004 f  2004-2005 f 
  Harvested area (thousand ha)  3,348  4,446  4,366 
  Yield (tonne/ha)  2.24  2.77  3.03 
  Production (thousand tonnes)  7,489  12,328  13,247 
  Imports (thousand tonnes)  259  50  50 
  Total Supply (thousand tonnes)  9,795  13,819  14,897 
  Exports (thousand tonnes)  939  2,800  2,750 
  Food & Industry Use (thousand tonnes)  181  320  375 
  Feed, Waste, Dock. (thousand tonnes)  6,796  8,664  9,517 
  Total Domestic Use (thousand tonnes)  7,415  9,419  10,347 
  Ending Stocks (thousand tonnes)  1,441  1,600  1,800 
  Average Price (CA$/tonne)  171.88  115-135  110-140 


Theoretical malt prices.


  EURO = USD 1.2535 February 04, 2004 
Crop year  2003 
Parity  FOB Antwerp 
Position  Feb 2004-Sept 2004 
Conditioning  Bulk   In bags  Bulk containers  In bags in containers 
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  272.00  341.00  287.50  360.00  283.50  355.50  293.50  367.50 
2RS  Prestige/Cellar  271.50  340.50  286.50  359.50  283.00  355.00  292.50  366.50 
2RS  Aspen  269.00  337.50  284.50  356.50  280.50  351.50  290.00  363.50 
2RS  Optic  269.00  337.50  284.50  356.50  280.50  351.50  290.00  363.50 
2RS  Astoria  269.00  337.50  284.50  356.50  280.50  351.50  290.00  363.50 
2RS  Cork   268.00  335.50  283.00  354.50  279.50  350.50  289.00  362.00 
2RS   Average price  270.50  338.50  285.50  357.50  281.50  353.00  291.50  365.00 
2RS  FAQ  266.50  334.50  282.00  353.50  278.50  348.50  287.50  360.50 
6RW  Esterel   nq  nq  nq  nq  nq  nq  nq  nq 
Asia Malt 70/30  nq  nq  nq  nq  nq  nq  nq  nq 
**  Asia Malt 50/50  nq  nq  nq  nq  nq  nq  nq  nq 

* - 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 on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices. Nominal prices.

EURO = USD 1.2535 February 04, 2004 
 Crop year   2003   2004 
 Parity   FOB Creil   FOB Creil 
 Position   July 2003   July 2004 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  139.50  175.00  134.00  168.00 
2RS  Prestige/Cellar  139.00  174.50  133.00  167.00 
2RS  Aspen  137.00  172.00  132.00  165.50 
2RS  Optic  137.00  172.00  132.00  165.50 
2RS  Astoria  137.00  172.00  131.00  164.50 
2RS  Cork   136.00  170.50  131.00  164.50 
6RW  Esterel   nq  nq  121.00  152.00 

nq - Not quoted

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

French Malting Barley Price Evolution


Maximum average price for 2RS Malting Barley, Crop 2003: 148.50 EUR/tonne - in November 2002
Minimum average price for 2RS Malting Barley, Crop 2003: 124.00 EUR/tonne - in June 2003
up Maximum average price for 6RW Malting Barley, Crop 2003: 129.00 EUR/tonne - in November 2003
Minimum average price for 6RW Malting Barley, Crop 2003: 115.00 EUR/tonne - in June 2003

Graph of the week


Agenda

February 2004: Pianeta Birra - Beverage & Co. International Show of Beers, Beverages; Orges brassicoles 2004: Des perspectives nouvelles de marchés; HOFEX 2004 Food & Drink; Canadian Food & Beverage Show; BIEREXPO; GrainWorld 2004;
March 2004: International course - Malting and Brewing Science; FOODEX Japan 2004; ANTAD 2004; 2004 BIENNIAL CONVENTION; Beer Auction 2004, the international exhibition of beer, technology and equipment; China Drinktec 2004. China International Exhibition on Beverage and Brewing Processing Technology
April 2004: World Beer Cup; 2004 National Craft Brewers Conference and trade show BrewExpo America;

More events are available on site e-malt.com

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