Russian beer output was plus 8.7 % in 2002 (70.25 million hl), but it was plus 16 % in the first half and only plus 2 % in the second half of the year. In January – March of this year Russian beer sales are estimated to be minus 6 %. Nevertheless Russian brewers are optimistic that sales will recover in summer and the year will end with another, though modest plus. Malt production and imports showed almost equal figures of 550 thousand tons, usage was 1.05 million tons. There will be new malt facilities operational for 240 thousand tons this summer, another 120 thousand tons are confirmed to be ready next year. All these malthouses are being constructed in the black soil regions between Moscow, the Ukrainian border to the South and the Volga River to the East. More construction projects are reported. It is assumed that smaller and older factories, which are running at full capacity at present, will disappear in the years to come. One estimate is that Russian beer output will be 83 million hl by 2006 with malt needs of 1.3-1.4 million tons. Although Russian barley and malt have gained market share, there is still a good demand for foreign malt and malting barley.

30 April, 2003