E-Malt.com Flash 51b. December 16

China: The Chinese surpassed the first time the US as the world’s top beer guzzler, a global survey by the Japanese beer maker Kirin Brewery said. Chinese drinkers consumed nearly 25 billion litres (6.6 billion gallons) in 2003...more info

Russia: Brewer Yarpivo is growing twice as fast as the rest of the Russian beer market, which itself has been expanding at an annual rate of 7%. Angela Drujinina uncovers the strategy behind the success, Beverage Daily reported in a statement on December 14. In 2003, Yarpivo reported annual sales growth of 14.2 per cent, an impressive increase even within a sector that has seen significant growth at the expense of more traditional spirits. A company representative told CEE-foodindustry.com that the company plans to continue rolling out its multi-faceted strategy, which has resulted in both sales and profit increases. A major factor, according to the Yarpivo, has been the firm’s policy of cooperation with distributors. A strategy of giving certain discounts and credits has enabled the firm to achieve significant efficiencies along the supply chain. Beer packaging has also been redesigned, with a glass bottle being introduced along with new labels for Yarpivo, Volga and Slavno brands. In addition, the Yarpivo brand is now available in one-litre plastic bottles and a new brand of Irish Red ale has been introduced to target the premium market segment. Applied together, these strategies enabled Yarpivo to increase its profit in the first nine months of 2004 by 2 per cent or RUR98 million (€2.6m) compared to the same period last year But the company has another clever strategy up its sleeve. It has begun bottling a seasonal beer brand called Novogodnee (New Year’s), which shows how the company is attempted to tap into consumer trends and achieve differentiation within an increasingly crowded market. And as with the Irish Red ale brand, it also shows how Yarpivo is targeting the premium beer sector. Novogodnee is a lager of high density, brewed to a special recipe that requires a longer time to mature. The beer is brewed only once a year, specifically for New Year celebrations...more info

Australia, Melbourne: Australia's second-largest brewer Lion Nathan Ltd. on Wednesday, December 15, confirmed its forecast for a 13 % to 16 % rise in this year's net profit. Lion Nathan Chief Executive Rob Murray said in a presentation prepared for the annual meeting that the company expected to post earnings before significant items of A$230 million to A$235 million ($175 million to $179 million) in the year ended September 30, 2005. The brewer of Tooheys, Steinlager, XXXX and Hahn beers, which competes in the Australian market against Foster's Group Ltd. , posted earnings before one-off items of A$202.7 million for fiscal 2004. Shares in Lion Nathan, 46 percent owned by Japan's Kirin Brewery Co. , were up 1.1 % at A$8.29 in afternoon trade in a wider market up 0.6 percent. ($1=A$1.32)

India, Mumbai: Vijay Mallya, the promoter of India's leading beer company, UB Ltd, is all set to make a major announcement on Sunday, December 19, revealing the name of the international major making an investment in UB...more info

Beer markets: In 2004 the following preliminary developments were registered: Germany beer sales January-October minus 0,5 %. EU figures not available...more info

Brazil: The Brazilian Government is pressed to change the country’s tax code on beer. The pressure is from the National Federation of Beverage Distributors (Fenadibe), which represents around 1,500 beverage distributors in Brazil...more info

Malt News

Mexico's largest brewing company, Grupo Modelo, a Mexico City based brewer, is completing construction on a new US$64 million barley malting plant, Idaho Malting Plant, based in Idaho Falls...more info

Barley News

EU: For barley the main producing areas are in the EU-15. Here, there are ample intervention storage facilities, especially since rye is no longer eligible for intervention, and farmers have less need for operating cash from these sales because of government payments. However, large supplies of feed-quality wheat are available from a record crop, displacing barley and depressing feed grain prices, which in turn makes intervention more attractive. In the past, the EU has often had 3-5 million tonnes of barley intervention stocks but these have been pulled down to virtually nothing this past year. Current offers are about 1.4 million tonnes, mostly from Germany, United States Department of Agriculture (USDA) said on December 13.

World barley trade 2004/2005: United States Department of Agriculture (USDA) published on December 13 its latest forecast of world trade changes of barley in 2004/2005...more info

Belarus: In 2004 Belarusian farmers delivered to local brewers about 158 thousand tonnes of malting barley, compared to only 19 thousand tonnes in 2003...more info

USA: USA barley production totaled 280.103 million bushels (6.098 million tonnes) in 2004 from 4.031 million acres of area harvested. The largest volume of barley production was registered in North Dakota: 92.38 million bushels from 1.49 million acres harvested. The second-largest barley volume was registered in Idaho where barley production totaled 59.80 million bushels from 650,000 harvested acres in 2004, an increase of 26% from the prior year. Quality was good overall and excellent in some locations, particularly in south central Idaho. Quality dropped slightly in areas of north and southeastern Idaho due to rain at harvest time. Approximately 76.7% of Idaho's barley sampled received a USDA/FGIS grade of #1. There were 286 barley samples collected from Idaho elevators, commodity brokers and farmers. The samples were separated by class, variety and region. They were graded at a licensed Federal rain Inspection Service (FGIS) facility. Average weight was higher this year at 50.25 pounds per bushel (lb./bu.). Seventy-four percent of the 6-row barley crop tested 48 lb/bu or better and 93% of the 2-row barley crop tested 48 lb/bu or better. Overall thins averaged 3.14% and plumps averaged 87.17%. Protein averaged 11.77% statewide and moisture averaged 10.12%. The average for skinned and broken kernels was 1.43%. Since nutritional analyses are relatively consistent, they are not included in this year’s report. The U.S. produces a wide range of malting barley varieties, including both 2-row and 6-row, that are favored not only by the North American industry, but by maltsters and brewers around the world. Each year we provide samples to potential customers to evaluate for use in their operations and we gladly host trade visitors to see our production and quality first-hand. More than 60% of U.S. barley crop is used each year in the domestic beer market. Japan is the largest importer of US barley, buying more than 258 TMT (11.8 million bushels) of US barley in 2003-04.

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 2005 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Nominal prices.

nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week

EU Malting Barley Supply and Demand Estimate 2004/2005

(in 1,000 tons)	Malt production (estim.)	Barley demand	Supply Spring malting barley	Supply Winter Malting barley	Net Plus / Minus
(in 1,000 tons)	Malt production (estim.)	Barley demand	Supply Spring malting barley	Supply Winter Malting barley	Total	Spring	Winter
Northwest:
Belgium	660	825	10	-	- 815	- 565	- 250
France	1,380	1,620	2,450	2/6 row 1,800	+ 2,630	+ 1,450	+ 1,180
Germany	2,050	2,560	2,100	2 row 50	- 410	- 310	- 100
Ireland	160	200	250	-	+ 50	+ 50	-
Netherlands	240	300	250	-	- 50	-	- 50
United Kingdom	1,550	1,950	1,400	2row 650	+ 150	+ 150	-
Total Northwest	6,040	7,455	6,460	2,500	+ 1,555	+ 775	+ 780

Baltic:
Denmark	255	320	900	-	+ 580	+ 580	-
Finland	175	220	180	-	- 40	- 40	-
Lithuania	60	75	75	-	-	-	-
Poland	280	350	250	-	- 100	- 100	-
Sweden	250	315	350	-	+ 35	+ 35	-
Total Baltic	1,020	1,280	1,755	-	+ 475	+ 475	-

Southeast:
Austria	155	200	250	-	+ 50	+ 50	-
Czech Republic	500	625	725	-	+ 100	+ 100	-
Hungary	140	175	200	-	+ 25	+ 25	-
Slovakia	280	350	400	-	+ 50	+ 50	-
Total Southeast	1,075	1,350	1,575	-	+ 225	+ 225	-

Mediterranean:
Greece	40	50	0		- 50	- 25	- 25
Italy	75	95	40		- 55	- 30	- 25
Portugal	75	95	0		- 95	- 60	- 35
Spain	400	500	550		+ 50	+ 50	-
Total Mediterranean	590	740	590	-	- 150	- 65	- 85

Net Total	8,725	10,825	10,380	2,500	+ 2,105	+ 1,410	+ 695

Graph of the week
Italy Beer Market

Agenda

November 2004:
World Brewing Academy Applied Brewing Techniques. Munich, Germany;
World Brewing Academy Concise Course in Brewing Technology. Chicago, Illinois, United States;
INTERNATIONAL EXH FOR FOOD & DRINK INDUSTRY / WORLD FOOD UKRAINE 2004;
INT'L EXH OF WINES, ALCOHOLIC & NON ALCOHOLIC DRINKS & PROTECTION EQUIPMENT / EXPO DRINK 2004. Romania;
TALLINN FOODFEST 2004;
Belgian Beer Fest, Boston MA;
Teach a Friend to Brew Day;
FOOD PROCESSING MACHINERY EXPO 2004;
FISPAL RECIFE 2004 / INTERNATIONAL FOOD FAIR. Brazil.;
BRAU Beviale 2004. Nürnberg, Germany.;
Brewers' Association of America Conference;
Fall Fest-Of-Ale. Janesville, Wisconsin, United States;
Accrington Beer Festival. UK;
FOODAPEST 2004. 7th International Food, Drink and Food Processing Trade Fair;
INTERNATIONAL EXH FOR FOOD INGREDIENTS, ADDITIVES & FLAVOURINGS / INGREDIENTS RUSSIA 2004;
BELPRODUKT International Exhibition for Food and Beverages. Minsk, Belarus ;

December 2004:
FOODEX Food, Beverages and Food Technologies Fair. Ankara, Turkey;
Eten & Genieten Food, Beverages and Kitchen Supplies Exhibition. Amsterdam, Netherlands;
Americas Food & beverage Show and Conference;
Holiday Ale Festival;
Sint Niklaas Visits Brewery Ommegang;
IWEX 2004;
WORLD OF FOOD INDIA 2004;
KerstBierFestival 10th edition! Belgium;
VIETFOOD & DRINK 2004 / 3RD INTERNATIONAL EXH ON FOOD AND DRINK;

January 2005:
Big Beers, Belgians & Barleywines Festival. Vail CO;
35th Barley Improvement Conference. The American Malting Barley Association;
VIETFOOD (HANOI) 2005;
Atlanta Cask Ale Tasting;

More events are available on site e-malt.com