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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Barley news
Hops news
More news
Malt Price Evolution
Malting barley prices
Table of the week
Graph of the week
Agenda
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Average market prices Change trend

14 Jul-15 Jul 2005
Crop 2005
2rs Barley €116.0-117.0     
6rw Barley €106.0-108.0     

Note: Just click on the price link and you will be led to our Market Price History.
Average barley market prices are French and are estimated on FOB Creil basis.
The changes are compared to last Newsletter's prices.
Arrows indicate the direction of the change.


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E-malt.com Newsletter 28b
July 14 - July 17, 2005

Currency Rates
Base Currency: Euro, EUR
on 15-July-2005

1 EUR = 1.2086 USD
1 EUR = 0.6883 GBP
1 EUR = 1.4655 CAD
1 EUR = 1.6085 AUD
1 EUR = 135.77 JPY
1 EUR = 2.8263 BRL
1 EUR = 34.6481 RUB
1 EUR = 10.0151 CNY
Base Currency: US Dollar
on 15-July-2005

1 USD = 0.8277 EUR
1 USD = 0.5695 GBP
1 USD = 1.2126 CAD
1 USD = 1.3309 AUD
1 USD = 112.34 JPY
1 USD = 2.3385 BRL
1 USD = 28.668 RUB
1 USD = 8.2865 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
    Belgium: InBev realized 104.2 million hl in the first half of 2005 ... Click here

    Czech Republic: Czech beer output increased by 3% in H1 2005 ... Click here

    Russia: Baltika Brewery’s share in Russia's total beer exports amounts to 80 % ... Click here

    Latin America: Beer volumes of Quinsa increased by 8% in H1 2005 ... Click here

    China: The country defends its beer against charges it contains cancer-causing agent ... Click here

    EU: EU to cut 2005-06 barley export due to Ukrainian competition ... Click here

    New Zealand: 2005 HOP CROP ... Click here


More News
    Australia: Demand for export malt and barley grain is to increase by 60% by 2020 ...more info

    Russia: Ostankinsky Brewer to make second attempt to double charter capital ...more info

    Hungary: Beer industry closes difficult year in 2004 ...more info

    USA: Miller Brewing has launched "Beer is Volume with Profit" report ...more info

    South Korea: Hite Brewery sees growing opposition to Jinro takeover ...more info

    UK: Diageo confirms Burger King refinancing ...more info

    Czech Republic: Pilsner Urquell brewery named Berka a senior business brewer ...more info

    UK: Beer drinkers rally to save Ridley's Brewery, CAMRA said ...more info

    Australia: 2004/2005 barley pool indicators lifted by ABB Grain Ltd ...more info

    Ukraine: 2005/06 barley export expected to total 3 million tonnes ...more info

    Hungary: Budejovicky Budvar loses rights to Bud name in Hungary ...more info

    Morocco: The Moroccan government eliminates VAT on Barley ...more info



Brewery News
Belgium: InBev realized 104.2 million hl in the first half of 2005

World's beer giant, InBev, announced on July 14 that it realized a total volume of 104.2 million hectoliters in the first six months of 2005, leading to organic volume growth of 5.5% for beer and 4.6% for soft-drinks, totaling 5.4% growth against the same period of last year.

Second quarter beer organic volume growth of 6.3% was markedly stronger than first quarter growth of 4.4%.

In North America, Canadian volumes declined by 1.2%, impacted by Ontario where the discount segment continues to grow, partly offset by good progress in Québec. The US market slowdown led to a 4.3% volume decline, due to the softness of our domestic low-carb brand, Rock Green Light®, and our Canadian brands down by nearly 8%. Our European brands however grew by nearly 12% during the first half.

In Central and South America, beer volumes were up strongly in nearly all countries. In Brazil, beer market share improved 2.0 percentage points over the first half of 2004, reaching 68.3% on the back of 13.3% volume growth.

In Western Europe volumes declined by 4.6% - Benefralux was lower by 3.1%, UK/Ireland declined by 9.7%, while Germany/Italy/Spain/Austria/Switzerland increased by 1.2% on the back of better second quarter volumes. ...more info



Czech Republic: Czech beer output increased by 3% in H1 2005

Czech beer production increased by a preliminary 3% in the first-half of 2005, chairman of the Czech Association of Breweries and Malt Houses Jan Vesely told CTK on July 13. Exports are estimated to have grown markedly, contributing significantly to the growth in output, Prague Daily Monitor cited Jan Vesely.

Production was higher year-on-year in all months in the January-June period, except for February, which was affected negatively by the long lasting effect of the chilly spell. Full-year beer output is projected to grow to at least 19 million hectolitres, said Vesely.

Last year brewers produced 18.75 million hectolitres of beer, a year-on-year rise of 1.1 %. Domestic output was slightly down, while exports were higher by a quarter at 2.64 million hectolitres.

In January-March of this year, the country exported 560,000 hectolitres of beer, up 15.5 % against the same period last year. Domestic sales dropped almost five percent on the year to 3.26 million hectolitres. CTK news edited by the staff of the Prague Daily Monitor, a Monitor CE service.



Russia: Baltika Brewery’s share in Russia's total beer exports amounts to 80 %

Russian beer giant, Baltika Brewery, is intending to boost its exports by 20 % in 2005 compared to 2004, the company's press service has recently announced. In 2004, the company increased its exports by 14% to 1.13 million hl against 2003, and is planning to increase its exports to 1,35 million hl in 2005.

Baltika's export revenue grew by 23 % to USD 50 million in 2004 compared with 2003. The share of exports in Baltika's total sales stood at around 6 %. Baltika exports its products to 38 countries. In 2004, the company hit new markets - China, Australia, Tajikistan, New Zealand, Belgium, Poland, Cyprus, Cuba, and Taiwan, as well as Georgia, Armenia, Norway and Ireland in 2005. In October 2005 Baltika plans to start exports to South Africa and Finland. The company's share in Russia's total beer exports amounted to 80 %.



Latin America: Beer volumes of Quinsa increased by 8% in H1 2005

Quilmes Industrial (Quinsa) S.A. announced on July 14 its overall beer volumes for the second quarter 2005 increased by 9.4% to 3.02 million hl year-on-year. During the first half of the year to June 2005 Quinsa sold 7.78 million hl of beer: in Argentina 5.30 million hl (+5.9% versus H1 2004); in Bolivia 1.01 million hl (+8.7%); in Chile 219,000 hl (+25%); Paraguay 988,000 hl (+13.9%) and 295,000 hl in Uruguay (+17.7%).

Quinsa is a Luxembourg-based holding company that controls 87.6 percent of Quilmes International (Bermuda) ("QIB"). The remaining 12.4 percent stake is held by Beverage Associates (BAC) Corp. ("BAC") and by Companhia de Bebidas das Americas - AmBev ("AmBev").

Quinsa, through QIB, controls beverage and malting businesses in five Latin American countries. Its beer brands are strong market leaders in Argentina, Bolivia, Paraguay and Uruguay, and have a presence in Chile. Further, pursuant to the Company's strategic alliance with AmBev, it has entered into license and distribution agreements to produce and sell the AmBev brands in Argentina, Bolivia, Paraguay and Uruguay. Similarly, under the agreements, AmBev may produce and distribute Quinsa's brands in Brazil.

The Company also has bottling and franchise agreements with PepsiCo, and thus accounts for 100% of PepsiCo beverage sales in Uruguay and more than 80% of PepsiCo beverage sales in Argentina.

Quinsa's Class A and Class B shares are listed on the Luxembourg Stock Exchange. Quinsa's American Depository Shares, representing the Company's Class B shares, are listed on the New York Stock Exchange.



China: The country defends its beer against charges it contains cancer-causing agent

The formaldehyde content in one liter of Chinese beer is lower than that in one kilogram of poultry, thus Chinese beer is safe to drink, said a report released by the China Brewing Industry Association on July 14, according to Xinhua News Agency. They said domestic beer contained about the same amount of the chemical as imports.

Quoting a recent report from the State Administration of Quality Supervision, Inspection and Quarantine Xinhua News Agency said administration tests on scores of different beer brands showed domestic brews contained up to 0.56 parts per million of formaldehyde, compared to up to 0.61 parts per million for imports.

"Chinese beer is safe to drink as its one-litre formaldehyde content is much lower than the standard set by the World Heath Organization," Xinhua cited the report as saying. The report didn't say which imports had been tested but said the domestic brands tested included best-selling Tsingtao and Yanjing.

Xinhua reported Thursday that one litre of Chinese beer contained, on average, less formaldehyde than one kilogram of chicken, fish or fruit, citing a report from the same government body.

The inspection was prompted by a recent newspaper report claiming 95 per cent of Chinese beers contained formaldehyde, despite the practice being banned by Chinese law. ...more info

Barley News

EU: EU to cut 2005-06 barley export due to Ukrainian competition

The EU is likely to cut its barley exports for the 2005-06 marketing year (October-September) by 300,000 tonnes to 3.3 million tonnes due to an expected hike in Ukraine's barley exports, the US Department of Agriculture said in its July grain trade report.

The USDA said the cut was due to 'greater expected Ukrainian competition at prices necessitating larger E.U. export subsidies.'

Ukraine's 2005-06 barley exports are now seen at 4 million tonnes, up 500,000 tonnes from the earlier forecast due to improved production prospects.

The USDA now sees Ukraine's barley output at 8.5 million tonnes this year, up from an earlier estimate of 8.0 million tonnes. But this year's harvest is expected to drop from the 2004 production of 11.1 million tonnes.

Russia is no longer considered to be a big player on the barley export market, as its exports are seen at around 800,000 tonnes, the lowest level in five years and down from around 1 million tonnes in 2004-05.

Hops News

New Zealand: 2005 HOP CROP

The 2005 New Zealand hop harvest was completed in March. The 2004/05 growing season was characterised by a mild Spring followed by a cold and wet early Summer period. From mid January onwards the weather improved and plenty of sunshine ensured a good looking crop. There was an abundance of cones on the vine, with less than the usual number of leaves.

The 2005 yield is an improvement on the previous crop year, and the quality is excellent. Alpha levels were expected to be above average, but on harvest analysis showed closer to average level for the various varieties, which we attribute to the cold and wet early Summer weather.

The crop is currently being processed into pellets and a large portion will be further processed into CO2 hop extract by our JV super-critical extraction company Extract Solutions Ltd.

The majority of the crop is presold, with some surplus hops still available in New Zealand Hallertau Aroma variety and various high alpha hops.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2086 July 15, 2005 
 Crop year   2004   2005 
 Parity   FOB Creil   FOB Creil 
 Position   July 2004   July 2005 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  nq  nq  117.00  141.50 
2RS  Prestige  nq  nq  117.00  141.50 
2RS  Cellar  nq  nq  117.00  141.50 
2RS  Aspen  nq  nq  nq  nq 
2RS  Optic  nq  nq  nq  nq 
2RS  Sebastien  nq  nq  116.00  140.50 
2RS  Astoria  nq  nq  116.00  140.50 
2RS  Cork   nq  nq  115.00  139.00 
6RW  Esterel   nq  nq  107.00  129.50 
nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week
EU Malt Export Licence Fixations:

(in tonnes)   2000-2001  2001-2002   2002-2003   2003-2004  July 01, 2004 - June 28, 2005  
 France   523,190  701,134  661,772  774,761  674,140 
 Germany   305,980  468,314  408,063  422,047  295,876 
 Belgium   277,584  296,368  287,850  317,292  418,344 
 U.K. 254,793  350,621  294,995  443,501  201,892 
 Finland   65,550  91,890  100,758  114,165  64,986 
 Denmark    52,326  96,812  94,791  90,452  74,743 
 Sweden   50,847  101,000  76,916  78,369  88,840 
 Netherlands   54,835  51,310  66,219  80,703  49,128 
 Ireland   26,003  35,145  31,140  38,900  56,924 
 Austria   4,850  8,840  8,620  60,211  16,954 
 Spain   3,000  2,400  5,640  10,000 
 Greece   1,800  1,744  1,306  979  130 
 Portugal   340  221  85  695  850 
 Italy  
 Total EU 15  1,621,098  2,205,799  2,038,157  2,432,075  1,942,807 
 New EU members  May-June, 04   
 Czech Republic         34,340  82,062 
 Poland         7,604  32,084 
 Hungary         2,830  85,792 
 Slovakia         1,000  76,916 
 Total EU 25   1,621,098  2,205,799  2,038,157  2,477,849  2,219,661 

  Total Wheat malt, tonnes  
Total 2000-2001    4,686 
Total 2001-2002    12,805 
Total 2002-2003    30,908 
Total 2003-2004    15,768 
July 01/2004 – June 28/2005    8,162 
   
  Total Roasted malt, tonnes  
Total 2000-2001    23,967 
Total 2001-2002    23,480 
Total 2002-2003    23,603 
Total 2003-2004    24,438 
July 01/2004 – June 28/2005    27,212 
Graph of the week

Agenda
July 2005:
Interwine China. International Wine, Brewery and Beverage Processing Technology and Equipment Trade Fair;
2005 North American Barley Researchers Workshop;
U.S. Grains Council Summer Board Meeting;
District Eastern Canada MBAA annual convention;
Open Door to "Mortal's Beers";


More events are available on site e-malt.com
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