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E-Malt.com newsletter
December 15 - December 17, 2003

     Summary
1. Trading offer & request
2. Brewery News
3. Malt News
4. Barley News
5. More News
6. Theoretical malt prices
7. Malting barley prices
8. Graph of the week
9. Do you know e-malt.com?
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Access news database! Go to our news database with 1815 articles Currency rate
for 17-Dec-2003 / EUR
1 EUR = 1.2326 USD
1 EUR = 0.7028 GBP
1 EUR = 1.6373 CAD
1 EUR = 1.6590 AUD
1 EUR = 132.53 JPY
1 EUR = 3.6238 BRL
1 EUR = 36.0659 RUB
Currency rate
for 17-Dec-2003 / USD
1 USD = 0.8117 EUR
1 USD = 0.5702 GBP
1 USD = 1.3283 CAD
1 USD = 1.3459 AUD
1 USD = 107.53 JPY
1 USD = 2.940 BRL
1 USD = 29.26 RUB

1. Trading offer & request

At this moment there is one OFFER for 5000 tons of malt on the trading portal www.e-malt.com

  • Offer for 1-5000 mtons of malt, 2RS Prestige, crop 2003, Bulk, delivery 1/2/2004 - 31/7/2004, at EUR 276.50/mton, FOB Antwerp. (to see and make a bid to the malt offer, please click here to view code MF1612P1552)

 Top Industry News 


  • India: Beer has a huge potential for growth in India, according to SABMiller plc corporate affairs director Sue Clark Click here

  • The Danish brewing force, Carlsberg Breweries A/S, again increases its shareholding in the Polish Carlsberg Okocim S.A. through the acquisition of a further 6% ... Click here

  • South Korea: Korean National Assembly has passed a law calling for downward adjustments on the beer tax ... Click here

  • Russia: Russian brewery, Ochakovo, announced that Heineken would not acquire Ochakovo. Ochakovo’s commercial director and major shareholder, Vyacheslav Merkulov, has denied ... Click here

  • Australian grain logistics and malting concern AusBulk Ltd. reported on December 16 an 80% slump in net profit last fiscal year to A$11.1 million ... Click here

  • European Barley Crops (in thousand tonnes) ... Click here

  • According December's report of USDA, export of barley from Ukraine over the 2003/04 MY (July to June) is forecasted at the level of 800,000 tonnes ... Click here


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

    • Russia: Tinkoff has completed construction of a brewery restaurant in Ufa. The project value is $2 mln. The restaurant will be opened on Dec. 19, 2003 ...more info


    • Japanese beer maker, Kirin Brewery Co., intends to launch a new happoshu brand, Japanese News Digest has recently posted ...more info


    • Japanese beverage company, Sapporo Beer’s Beverage Co., plans to restructure its operations with the purpose to reduce costs, local press reported ...more info


    • ABN AMRO has cut its 2004 earnings per share (EPS) forecasts across the European beverages industry. The cuts, announced on December 15, have been introduced due to the weakness of the US dollar ...more info


    • China: Scottish & Newcastle has not yet sealed a deal to buy into a Chinese brewery, contrary to a statement from the Chinese brewery itself ...more info


    • San Miguel Corp. expects sales this year to rise 20%. Dow Jones reported on December 14 that the food and beverage conglomerate expects its 2003 net profit to outstrip this year by 10% ...more info


    • Latvian beer sales are to increase by 7% in 2003 versus 2002. Between January and November 2003 Latvian brewers sold about 135.03 million litres of beer versus 125.88 million litres ...more info


    • The Danish brewing force, Carlsberg A/S announced on December 12 that Peter Spøer, 46, has been appointed Managing Director of Danbrew as of March 1, 2004 ...more info


    • Belgian brewing force, Interbrew, the world's fourth largest brewer, announced on December 15 that during the first 11 months of 2003, Interbrew, The World’s Local Brewerã, has realised organic volume ...more info


    2. Brewery News

    India: Beer has a huge potential for growth in India, according to SABMiller plc corporate affairs director Sue Clark. Clark, who was in the country recently, said 15 years ago China was in a similar situation that India is in now, The Telegraph Calcutta, India reported. India has a low per capita annual consumption of beer at 0.6 litre, while the per capita consumption in China has grown to 18 litres. SABMiller's foray into China has started yielding impressive results, Clark told The Telegraph. The per capita consumption in most developed economies is over 100 litres. The existing regulatory framework in India hinders the growth of the beer segment, said Clark. SABMiller introduced Castle Lager in India, but Clark said the focus would be on the growing Indian brands. “Whenever we enter a market, we try to build local brands,” she said. SABMiller has a joint venture with Shaw Wallace, which led to the formation of a beer entity with an infrastructure of 22 breweries in its ambit that includes 11 contracted units. The SABMiller-Shaw Wallace joint venture has been the market leader in the strong beer segment with a little less than 50 % of the market share. The portfolio is driven by Haywards 5000 accounting for 28 % of the strong beer segment. However, in the mild beer segment, it is behind the United Breweries group. The ratio of mild to strong beer in the country has shifted from 66:34 in the year 1993-94 to 37:63 in 2002-03. According to Clark, the beer habits in the country are not developed. Beer makers have to face the challenges of a regulated environment and the restrictive licensing policies. SABMiller has always worked with state governments, preferably through industry associations, in de-regulating the industry.

    The Danish brewing force, Carlsberg Breweries A/S, again increases its shareholding in the Polish Carlsberg Okocim S.A. through the acquisition of a further 6% of it's share capital, Carlsberg announced on December 15. The shares were acquired at a price of DKK 60 million from the German brewery Bitburger who have thus sold their remaining shares in Carlsberg Okocim. Carlsberg Breweries now owns 85% of the shares in Carlsberg Okocim. The acquisition is part of Carlsberg Breweries' strategy to increase its shareholding in important breweries. The Polish state and the Danish IØ-foundation own close to 11% of Carlsberg Okocim and the rest of the shares (approx. 4 per cent) are held by private investors. Poland is the 10th largest beer market in the world. In 2002, the total consumption was 27 million hl beer which is equivalent to a yearly per capita consumption of 69 litres. Over the past five years, the annual consumption has increased by approx. 7 %. Carlsberg Okocim has a market share of 14 % and Carlsberg is the fastest growing premium brand in Poland.

    South Korea: Korean National Assembly has passed a law calling for downward adjustments on the beer tax, Government sources were cited in Korean newspapers on December 11. Currently at 100%, the tax would drop to 90% in 2005, then to 80% in 2006 and down to 72% in 2007. The factory price for a 500ml bottle of beer would consequently drop from the current 1,015.60 won (US$0.867) to 958.19 won in 2005, 900.80 won in 2006 and 854.86 won in 2007. However, actual consumer prices are expected to differ in accordance with the type of vendor due to varied distribution margins. Lawmakers said that the measure to cut the tax on beer is aimed at narrowing the gap of alcohol tax rates between beer and distilled liquors like whiskey. Local beer lovers have been complaining about the higher tax on beer, which stems from trade pressure, according to Korea Times. Korean beer maker, Hite Brewery Co. jumped on the back of optimism prompted by the recent government announcement that it will lower beer taxes, The Korea Herald posted on December 16. The gain in share price came despite reserved opinions expressed by foreign securities companies that the effect of the tax reduction will be marginal. The share jumped nearly 8 % in early trading yesterday before stabilizing about 6 % higher and the price standing at 83,200 won per share as of 2:48 p.m.

    Russia: Russian brewery, Ochakovo, announced that Heineken would not acquire Ochakovo. Ochakovo’s commercial director and major shareholder, Vyacheslav Merkulov, has denied the rumors according to which Heineken has offered between US$500 million and $600 million for the company. Merkulov, told the Vedomosti business daily last week, said: “Heineken is not buying Ochakovo and there were no such negotiations. There are few companies left in Russia, which have purely Russian roots. I think Russia should have a major brewer that should develop Russian traditions in the business. As far as I see, our shareholders and the board of directors share this idea.” In the meantime, the Russian beer and soft drink manufacturer is to carry out an additional issue of 39,400 preferred shares in order to prevent potential problems if any of the company’s shares are bought by rivals. Ochakovo intends to begin production of a foreign licensed beer brand in mid-2004. There is no agreement on this yet and the company is still in talks with several companies from Germany, Denmark, Czech Republic and the US, he told the paper. The reports from a press conference held by Ochakovo also said the company expects volumes to increase at least 5% in 2004. In 2003 volumes are estimated to reach 718.4 million litres, a 3.61% increase on 2002.

    3. Malt News

    Australian grain logistics and malting concern AusBulk Ltd. reported on December 16 an 80% slump in net profit last fiscal year to A$11.1 million, a result it described as "sound" in a difficult environment. The result was built on a 5.1% decline in revenue to A$517.9 million last fiscal year from A$545.7 million in the previous fiscal year ended Sept. 30, 2002, it said. Chairman Kevin O'Driscoll said the company's core grain storage and handling business received just 3.0 million metric tons of grain last fiscal year, down from a record 8.6 million tons previously. Drought slashed national grain production last fiscal year. O'Driscoll said the impact of the drought would also impact negatively on this fiscal year's result. "However, the company expected profit to rebound strongly as a result of an above average season in 2003," he said in a statement. AusBulk expects to receive just under 7.0 million tons of grain into its system this fiscal year, well above the five-year annual average of 5.7 million tons, he said. AusBulk is headquartered in Adelaide, the capital of South Australia state, in which it chiefly operates its logistics business. AusBulk also markets grain and operates a large malting business, known as AusMalt, which incorporates the businesses of Joe White Maltings and Adelaide Malting Co. Revenues from malting activities helped offset decreased revenues from grain logistics and marketing, John Murray, AusBulk's managing director said...more info

    4. Barley News

    European Barley Crops (in thousand tonnes)

      in '000 tonnes  WINTER  SPRING  TOTAL 
    Acreage  Crop  Acreage  Crop Crop 
    2002  2003  2002 

    2003 

    2002  2003  2002  2003  2002  2003 
    EU Members
     Austria  92  73  369  320  125  138  493  580  862  900 
     Belgium  38  28  296  189  12  26  62  322  251 
     Denmark   115  131  637  798  715  583  3,441  2,915  4,078  3,713 
     Deutschland   1,361  1,337  8,265  7,057  609  750  2,663  3,613  10,928  10,670 
     España  753  742  1,944  2,059  2,348  2,341  6,389  6,713  8,333  8,772 
     France   1,169  1,050  8,102  5,878  474  699  2,886  3,990  10,988  9,868 
     Greece  105  100  201  176  201  176 
     Ireland  20  17  136  131  154  169  847  1,031  983  1,162 
     Italy   343  309  1,190  1,025  1,190  1,025 
     Luxembourg 29  28  22  27  51  54 
     Netherlands 16  20  54  53  299  351  315  371 
     Portugal  20  10  22  12  22  12 
     Suomi Finland   522  530  1,739  1,649  1,739  1,649 
     Sweden   32  40  411  360  1,747  1,470  1,779  1,510 
     United Kingdom  546  466  3,431  2,984  555  628  2,697  3,627  6,128  6,611 
     TOTAL  4,576   4,278   24,677 

     20,717 

     5,977   6,268   23,250   26,028   47,927   46,744 
     New EU Members 
     Estonia                  270  255 
     Latvia                  217  221 
     Lithuania                  775  756 
     Poland  209  150  546  50  891  950  2,798  2,755  3,344  2,805 
     Czech Rep.  143  99  509  322  345  440  1,359  1,628  1,868  1,950 
     Slovakia  45  20  279  150  180  220  576  682  855  832 
     Slovenia                  42  28 
     Hungary  214  180  589  480  170  200  456  382  1,045  813 
     TOTAL                  8,416  7,660 
     2007 Candidates 
     Croatia                  171  85 
     Bulgaria                  949  580 
     Romania  112  181  321  200  184  179  368  340  689  540 
     TOTAL                  1,809  1,205 


    According December's report of USDA, export of barley from Ukraine over the 2003/04 MY (July to June) is forecasted at the level of 800,000 tonnes - up from 500,000 tonnes, forecast by USDA in November. According to Ukrainian customs statistics, Ukraine exported as much as 714,000 tonnes of barley already in the period since July to October. According to APK-Inform forecast, the export of this crop over the whole marketing year may reach 1 million tonnes.


    6. Theoretical malt prices.

      EURO = USD 1.2326 December 17, 2003 
    Crop year  2003 
    Parity  FOB Antwerp 
    Position  Dec 2003-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  276.00  340.00  291.00  358.50  287.50  354.50  297.00  366.00 
    2RS  Prestige/Cellar  275.50  339.50  290.50  358.00  287.00  353.50  296.50  365.50 
    2RS  Aspen  274.00  337.50  289.00  356.50  285.50  352.00  295.00  363.50 
    2RS  Optic  274.00  337.50  289.00  356.50  285.50  352.00  295.00  363.50 
    2RS  Astoria  273.00  336.50  288.00  355.00  284.50  350.50  294.00  362.00 
    2RS  Cork   273.00  336.50  288.00  355.00  284.50  350.50  294.00  362.00 
    2RS   Average price  274.50  338.00  289.50  357.00  286.00  352.50  295.50  364.00 
    2RS  FAQ  271.50  334.50  286.50  353.50  283.00  349.00  292.50  360.50 
    6RW  Esterel   269.50  332.50  285.00  351.00  281.50  346.50  291.00  358.50 
    Asia Malt 70/30  273.00  336.50  288.00  355.00  284.50  350.50  294.00  362.50 
    **  Asia Malt 50/50  272.00  335.50  287.50  354.00  283.50  349.50  293.00  361.50 

    * - 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
    7. Malting barley prices. French barley prices. Nominal prices.
    EURO = USD 1.2326 December 17, 2003 
     Crop year   2003   2004 
     Parity   FOB Creil   FOB Creil 
     Position   July 2003   July 2004 
    Type   Variety  EURO  USD  EURO  USD 
    2RS  Scarlett  144.50  178.50  142.00  175.50 
    2RS  Prestige/Cellar  144.00  177.50  141.00  174.00 
    2RS  Aspen  143.00  176.50  140.00  172.50 
    2RS  Optic  143.00  176.50  140.00  172.50 
    2RS  Astoria  142.00  175.50  139.00  171.50 
    2RS  Cork   142.00  175.50  139.00  171.50 
    6RW  Esterel   139.50  172.00  125.00  154.50 

    nq - Not quoted

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

    8. Graph of the week


    9. Do you know e-malt.com?

    Dear E-malt Reader!

    E-malt.com Agenda gives the possibility to keep you informed about the Events planned to be held in the whole world related to the brewing and malting industries. To this purpose you just have to login e-malt.com and click on Agenda link in the menu. Reading our Event Agenda you will find out about the future symposia, conferences and festivals in malting and beer world. You may also submit your own events to the address info@e-malt.com

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