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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Malt news
Barley news
More news
Scientific Digest
Theoretical malt prices
Malting barley prices
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

21 August - 23 August 2006
Crop 2005
2rs Barley €116.0-118.0   
6rw Barley €104.0-106.0   
2rs Malt €256.0-258.0   
6rw Malt €241.0-242.0   
Crop 2006
2rs Barley €128.0-130.0   
6rw Barley €110.0-112.0   
2rs Malt €264.5-266.5   
6rw Malt €241.5-243.5   

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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Newsletter 33b, 2006

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Newsletter 33a, 2006

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Newsletter 32b, 2006

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Newsletter 32a, 2006

See this Newsletter!
Newsletter 31b, 2006



Market price evolutions

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Per Capita Beer Consumption in 5 largest beer markets in Central & Eastern Europe



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E-malt.com Newsletter 34a
August 21 - August 23, 2006

Quote of the week

"Beware of little expenses. A small leak will sink a great ship."
Benjamin Franklin


Currency Rates
Base Currency: Euro, EUR
on 23-August-2006

1 EUR = 1.2847 USD
1 EUR = 0.6795 GBP
1 EUR = 1.4362 CAD
1 EUR = 1.6858 AUD
1 EUR = 149.356 JPY
1 EUR = 2.7431 BRL
1 EUR = 34.3533 RUB
1 EUR = 10.2493 CNY
Base Currency: US Dollar
on 23-August-2006

1 USD = 0.7785 EUR
1 USD = 0.5289 GBP
1 USD = 1.1179 CAD
1 USD = 1.312 AUD
1 USD = 116.26 JPY
1 USD = 2.1352 BRL
1 USD = 26.7404 RUB
1 USD = 7.978 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
USA: Craft beer sales jump into double digits, 1H 2006 sales up 11%... Click here

Finland: Beer sales stagnated at 2,105 million hl, sales of non-alcoholic beverages increased by 32,000 hl... Click here

Czech Republic: Pivovar Ostravar to start shipping beer to Italy... Click here

Mexico: Grupo Modelo SA to distribute China's Tsingtao beer in Mexico... Click here

UK: Diageo sold Guinness Brewery site to property developer... Click here

EU: Barley export licences stand at 47,000 t against 713,000 t year-on-year... Click here

Australia: ABB Grain Ltd reviewed gross barley pool estimates for 2005/06 and increased by AU$5/tonne its malting barley pool estimates... Click here

USA: 2006 barley balance sheet cut by 7 million bushels to 183 million bushels... Click here

USA & EU: European hop growers are uncertain about hops' alpha content, draught affects less American hops because of drip irrigation... Click here

More News
USA: Procermex Inc., the U.S. arm of Grupo Modelo, shuts corporate headquarters in San Antonio and merges with Chicago-based Constellation Brands, Gambrinus Co. out of picture ... More Info

Sierra Leone: Heineken-owned Sierra Leone Brewery Limited recorded a net loss of SLL 3.7 billion in 2005 against a net loss of SLL6.8 billion year-on-year ... More Info

World: Barley intervention stocks to 13/08/06 give a theoretical net position of 1.49 million t ... More Info

Kenya: East African Breweries Limited (EABL) used cross listing to improve the acceptability of its products across the region ... More Info

Mexico: Grupo Modelo SA to appeal antitrust ruling against exclusivity contracts ... More Info

Canada: Big Rock Brewery Income Trust announces monthly distribution ... More Info

Ukraine: 987,000 tons of new crop barley were contracted for export ... More Info

India: SABMiller ready to compete with UB Breweries to be the most respected brewer in India ... More Info

UK: Scottish & Newcastle launches Foster’s Twist with £6 million campaign ... More Info

China & Australia: Barley purchases continued with 150,000 t in 14 days, prices expected to upgrade ... More Info

Ukraine: Export barley prices range within UAH/t 560-610 CPT, barley market populated by more export operators ... More Info

Mexico: Fomento Economico Mexicano SA (Femsa) enters ready-to-drink spirit market ... More Info

UK: Barley yields range from 5 to 7.5 t per hectare fom more than 50% of the cut harvest ... More Info

Nigeria: Sona Breweries Plc to earn US$3 million from export of Maltonic brand ... More Info

USA: Governor of Ithaca, New York, allows brewers to give drinks free samples to those 21 and under ... More Info

Denmark: Carlsberg to strike £32 million 4-year sponsorship deal with England team ... More Info

Japan: Suntory beer sales dropped 8% in 2005, brewer turns to low-alcohol fruit cocktails ... More Info

USA: Miller Brewing to reposition Icehouse beer trough online ads ... More Info

Slovak Republic: Pivovar Popper Brewery output increased by 1.5% to SKK 103.9 million ... More Info

China & Germany: Filling and packaging group KHS to enter Chinese market ... More Info

UK: Wolverhampton & Dudley Breweries reached £1 million sponsorship agreement with England cricket team ... More Info

Thailand: Boonrawd Brewery Co. expects economy to pick up after general elections ... More Info

UK: Shepherd Neame acquired Plough and Horses pub in Hampshire ... More Info



Brewery News
USA: Craft beer sales jump into double digits, 1H 2006 sales up 11%

The Brewers Association reported August 22 that the volume of craft beer sold in the first half of 2006 rose 11 percent compared to the same period in 2005, Business Wire released August 22.

"The rate of growth in the craft beer segment appears to be accelerating," said Paul Gatza, Director of the Brewers Association professional division. "This is the third straight year we've seen an increase in the craft beer growth rate."

The current surge in growth comes on top of strong performance by the nation's small, independent and traditional brewers over the last two years. In 2004, the volume of craft beer sold increased by 7 percent and in 2005 it rose by 9 percent.

"This growth represents strong performance by established craft brewers over several years," said Ray Daniels, Director of Craft Beer Marketing for the Brewers Association. "Unlike the early days of our industry, newly founded breweries do not add significantly to industry-wide production."

The craft beer industry last saw double digit growth in 1996, a year in which the number of craft breweries in operation increased by more than 35 percent and volume increased by 26 percent. By contrast, the number of operating craft breweries has ...
More Info


Finland: Beer sales stagnated at 2,105 million hl, sales of non-alcoholic beverages increased by 32,000 hl

Beer sales in Finland during the first half of the year remained at the same level as in the previous year - a total of 2.105 million hl. Total beverage sales of members of the Federation of the Brewing and Soft Drinks Industry rose by 1.5 per cent during the beginning of the year, Oy Sinebrychoff Ab released August 18.

By the end of June, sales of beverages produced by members of the Federation of the Brewing and Soft Drinks Industry totalled 4.141 million hl, representing a total rise in sales of 1.5 per cent. The brewing industry’s beer sales for the first half of the year remained at the same level as in the previous year – about 2.105 million hl.

Total sales of non-alcoholic beverages increased by 32,000 hl. 32.5 per cent of soft drinks sold were light drinks.

The surprise among alcoholic drinks was the long drink, a summer favourite whose sales increased by 22,000 hl. At the end of June, sales of long drinks totalled 135,000 hl. Although long drinks only account for 3.2 per cent of total sales, sales growth in this small group was still 19.2 per cent. Sales of cider also rose slightly. A total of ...
More Info


Czech Republic: Pivovar Ostravar to start shipping beer to Italy

Pivovary Staropramen-owned Pivovar Ostravar is to emerge Italy as the second EU export market, after the brewery started exporting beer in UK in late 2004, selling its beers in more than 1,000 outlets.

Pivovar Ostravar has an annual capacity of 500,000 hl of beer and is located in northern Moravia

The brewery is based in Ostravar, northern Moravia, and produces around 500,000 hectolitres of beer a year. InBev-owned Pivovar Staropramen controls nearly 14% of the Czech beer market and competes on the domestic market with Plzensky Prazdroj which has the largest beer sales in the Czech Republic and exports beer to almost 50 countries all over the world.


Mexico: Grupo Modelo SA to distribute China's Tsingtao beer in Mexico

Mexican brewer Grupo Modelo SA said August 18 that it plans to start distributing China's Tsingtao beer in Mexico by the end of the year, MarketWatch released August 18.

Modelo, the maker of top U.S. import beer Corona, said in a press release that it signed the agreement with the Tsingtao Brewery Co. at the 16th International Beer Festival in China's Quingdao province.

Modelo said Tsingtao beer is sold in more than 50 countries, and that Modelo will be the exclusive distributor in Mexico. Modelo exports its brands to 150 countries.

Founded in 1925, Grupo Modelo® is the leader in the production, distribution, and sale of beer in Mexico. It has seven breweries in Mexico, with an installed capacity of 46 million hectoliters of beer per year.

At present it has ten brands, among them Corona Extra®, "the best selling Mexican beer in the world®", Modelo Especial®, Victoria®, Pacífico®, and Negra Modelo® as well as other regional brews.

It exports five brands to more than 150 countries and is the exclusive importer in Mexico of the beers produced by the US brewer Anheuser-Busch, including Budweiser and Bud Light.

Grupo Modelo® has been listed on the Mexican Stock Exchange since 1994.

The Tsingtao Brewery ...
More Info


UK: Diageo sold Guinness Brewery site to property developer

The former Guinness Brewery in London has been bought by property developer Brixton Plc for 47 million pounds and will be converted into industrial units and warehousing, The Scotsman learned August 21 from Brixton Plc.

Brixton is buying the Park Royal site in northwest London from Diageo and plans to develop more than 500,000 sq ft of commercial space from 2007.

"This is just the type of scheme that Brixton has been looking to re-invest into post the 500 million pounds of sales earlier this year," said Brixton Chief Executive Tim Wheeler.

Brixton sold 84 properties to Dunedin Property Ltd for 460 million pounds in May.

Diageo is the world's leading premium drinks business with an outstanding collection of alcohol beverage brands across spirits, wine and beer categories. These brands include: Smirnoff, Johnnie Walker, Guinness, Baileys, J&B, Captain Morgan, Cuervo, Tanqueray, Crown Royal and Beaulieu Vineyard and Sterling Vineyards wines.

Barley News
EU: Barley export licences stand at 47,000 t against 713,000 t year-on-year

Total barley free market refunds granted for 2006/07 campaign are zero, the AgriNews Feedgrain Report of August 17 stressed. Total intervention sales equate zero. 5,000 t export licences were granted between August 9 and August 15. All licences granted for the 2006/2007 campaign totaled 47,000 t (an increase of 5,000 t from last week) against 713,000 t same time last year.

Total exports for malt equate 318,000 t (increase 10t for the last week) against 349,000 t same time last year. Total barley imports to August 15th stood at 176,000 t (increased by 13,000 t on a weekly basis) against 63,000 t same time last year.

Brussels granted 11,000 t import barley under the special import tariff. Daily import tariff is at €93. Feed barley import tariff quota for January/December 2006 for 143,000 t at €16 still available. Import tariffs (based on US barley prices) are presently in force.


Australia: ABB Grain Ltd reviewed gross barley pool estimates for 2005/06 and increased by AU$5/tonne its malting barley pool estimates

ABB Grain Ltd has reviewed its gross barley pool indicators for 2005/2006 and has increased by AU$5/tonne its malting barley estimates, and has also increased its estimates for new season (2006/2007) malting and feed barley, the company announced August 22.

ABB Grain’s General Manager Marketing, Nigel Officer, said extremely hot and dry conditions in Europe and North America, besides a continuing “major uncertainty” about the forthcoming Australian barley crop, had led to the increase in estimated pool returns.

“It’s been an extremely hot and dry summer in Europe, and the consequent increase in barley prices and malt prices has pushed competitor values in China, our major destination for malting barley, higher,” Mr Officer said. “Freight rates also remain high and this has added to our competitive position as the spread in freight rates between EU and Australia has widened.

“Meanwhile, the Canadian harvest has only recently begun, but their crop has been reduced to an estimate of less than 10 million tonnes – down from an earlier forecast of 11.3 million tonnes. It’s expected that significant volumes of Canadian barley will now go over the border to the U.S, which has had its smallest barley crop since 1936. This in turn means less ...
More Info


USA: 2006 barley balance sheet cut by 7 million bushels to 183 million bushels

Local barley prices ranged from unchanged to ten cents lower the week ended August 20, Idaho Barley Commission released August 17.

USDA reported barley exports of 0.5 thousand metric tons for Mexico. No sales were reported for the week.

USDA made a few adjustments to the U.S. barley balance sheet this month: they cut 2006 production by 7 million bushels (152.407 t) to 183 million bushels (3.9 million t), lowered domestic feed usage by 5 million bushels (108,862 t) to 40 million bushels (870,900 t) and cut U.S. ending stocks by 2 million bushels (45,540 t) to 96 million bushels (2.09 million t). World barley production was cut by 0.7 million metric tons this month due to smaller crops in the U.S., Canada and E.U., partially offset by a larger crop in the Ukraine.

World barley production is projected to increase by 4% to 142.9 million t, with consumption outpacing production for the second consecutive year. US production is pegged to decline 14% to 3.98 million t.

World barley supplies are estimated to decline slightly to 171.2 million t, while US supplies are now pegged to decline 14% to 6.3 million t.

World barley trade is expected to fall 4% to 17.4. ...
More Info

Hops News
USA & EU: European hop growers are uncertain about hops' alpha content, draught affects less American hops because of drip irrigation

The latter half of July brought with it above average temperatures on both sides of the Atlantic. In the United States, this slowed the growth of aroma hops, which are not fond of such weather. Due to the presence of drip irrigation in all alpha hop fields, alpha hop yield was not seriously affected, the International Hop Growers Convention released August 21 in its 2006 Crop Report.

In Europe, where irrigation is the exception rather than the norm, both aroma and alpha hop varieties were stressed. During July, the year 2006 was shaping up to be the worst since the draught of 2003. In both cases, the end of July and the beginning of August brought relief.

In the United States, cooler temperatures have prevailed during the month of August, easing the stress on all hop varieties. In Germany and the rest of Europe, August has brought with it above average rainfall. Hop farmers try not to be too optimistic, and indeed you can never know the crop until it is in the bale, but it appears that each passing day has brought with it a greater sense of relief as to what the crop will ...
More Info

Scientific Digest
Towards understanding the genetic basis of adaptation to low rainfall environments

Jason K. Eglinton1,
Michael Baum2,
Stefania Grando2,
Salvatore Ceccarelli2,
Andrew R. Barr1.
1 Department of Plant Science, Waite Campus, The University of Adelaide, Glen Osmond, South Australia, 5064.
2 International Center for Agricultural Research in the Dry Areas (ICARDA), PO Box 5446, Aleppo, Syria.

ABSTRACT
Water deficit is one of the most important constraints to cereal production in the Mediterranean-type dryland cropping environments of the world. The present project aims to identify and develop barley with improved adaptation to low rainfall environments, and to develop molecular markers for key traits associated with drought stress tolerance. While markers for these traits will find application within current breeding germplasm, this work also targets the identification of novel alleles from wild and landrace barley.

A population was developed from a cross between a Syrian landrace barley and an improved ICARDA line. The two parental lines are well adapted to low rainfall conditions, exhibit similar maturity, and also represent significant genetic diversity. In 1999/2000, this population was evaluated at two low rainfall sites in Syria and four sites in Jordan. The sites experienced significant drought stress and a number of lines out-yielded the parental lines and well adapted local varieties, and the differences in yield were not associated with maturity effects. A range of traits associated with performance under drought stress were measured including growth habit, early vigor, tiller number, leaf chlorophyll content, plant height, days to heading, biomass, kernel weight, grain yield and harvest index. A molecular map has been constructed with 247 molecular markers (73 SSR, 174 AFLP) used to genotype 94 RIL’s from this population.

Tolerance to drought stress has been a difficult trait to characterise and quantify, and our current understanding is largely based upon comparative physiology. The application of molecular genetics strategies in conjunction with physiology and field evaluation promises to deliver significant advances in both our understanding of stress tolerance, and our ability to positively select for stress tolerance in crop improvement.
... Load full article, 7 pages, 112 Kb, MS Word *.doc file


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2847 August 23, 2006 
 Crop year   2005   2006 
 Parity   FOB Creil   FOB Creil 
 Position   July 2005   July 2006 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  122.00  157.00  131.00  168.50 
2RS  Prestige  118.00  151.50  130.00  167.50 
2RS  Cellar  116.50  150.00  129.00  166.00 
2RS  Sebastien  116.00  149.50  128.00  164.50 
2RS  Astoria  115.00  148.00  128.00  164.50 
2RS  Cork   114.00  146.50  127.00  163.50 
6RW  Esterel   105.00  135.00  111.00  143.00 
nq - Not quoted
Prices for Danish malting barley are available on site www.e-malt.com/MarketPrices

Theoretical malt prices.
  EURO = USD 1.2847 August 23, 2006 
Crop year  2005 
Parity  FOB Antwerp 
Position  July 2006-Sept 2006 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  263.50  338.50  277.50  356.50  278.00  357.00  292.50  375.50 
2RS  Prestige  258.50  332.00  273.00  350.50  273.00  350.50  287.50  369.00 
2RS  Cellar  256.50  329.50  271.00  348.00  271.00  348.00  285.50  366.50 
2RS  Sebastien  256.00  329.00  270.50  347.50  270.50  347.50  285.00  366.00 
2RS  Astoria  255.00  327.50  269.00  345.50  269.50  345.50  283.50  364.50 
2RS  Cork   253.50  325.50  268.00  344.00  268.00  344.50  282.50  362.50 
2RS   Average price  257.00  330.50  271.50  348.50  271.50  349.00  286.00  367.50 
6RW  Esterel   241.50  311.50  257.00  330.00  257.00  330.00  271.50  348.50 
Asia Malt 70/30  252.50  324.50  267.00  343.00  267.00  343.00  281.50  361.50 
**  Asia Malt 50/50  250.00  321.00  264.00  339.50  264.50  339.50  278.50  358.00 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

* - 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 2006 are available on site www.e-malt.com/MarketPrices

Table of the week

The Top 40 brewery groups in the world as of 31 December 2005

Rank Brewery Country Production volume 2005 in million hl Percentage of world beer production
1InBevBelgium202.112.6%
2SABMillerUnited Kingdom176.011.0%
3Anheuser-BuschUSA173.510.9%
4HeinekenNetherlands118.67.4%
5CarlsbergDenmark48.33.0%
5Molson-CoorsUSA/Canada48.33.0%
7ModeloMexico45.52.9%
8Baltik Beverage Holding (BBH)Russia41.52.6%
9TsingtaoChina40.92.6%
10Yan JingChina31.22.0%
11Scottish & NewcastleUnited Kingdom29.11.8%
12Femsa (Cuauhtemoc)Mexico27.01.7%
13AsahiJapan24.61.5%
14KirinJapan22.61.4%
15EfesTurkey18.01.1%
16San MiguelPhilippines17.01.1%
17PolarVenezuela16.51.0%
18Gold StarChina15.81.0%
19SchincariolBrazil15.51.0%
20RadebergerGermany15.00.9%
21Chong QingChina14.40.9%
22BGI/CastelFrance13.90.9%
23Diageo (Guinness)Ireland13.00.8%
24Mahou – San MiguelSpain11.20.7%
25HiteSouth Korea9.70.6%
26Foster´sAustralia9.20.6%
27Beer Thai (Chang)Thailand9.10.6%
28SapporoJapan9.00.6%
29Xue JinChina8.40.5%
30BitburgerGermany8.20.5%
31Lion NathanNew Zealand8.00.5%
32KaiserBrazil7.40.5%
33OettingerGermany7.00.4%
34SinghaThailand6.80.4%
35SuntoryJapan6.60.4%
36DammSpain6.50.4%
37CCU Cerv.Unidas Chile6.40.4%
38San de LiChina5.60.4%
39KrombacherGermany5.30.3%
40Shenzhen JinweiChina5.20.3%
Total1,297.981.2%
World beer production 20051,598.1100.0%
Source: The Barth Report, Hops, 2005/2006
Newsletter SummaryTop
Graph of the week


These Days in Business History
August 21
1897 Oldsmobile begins operation as a General Motors Corp division
1975 U.S. lightens trade embargo against Cuba
1991 Communist coup is crushed in U.S.S.R. in 2 days

August 22
1864 International Red Cross forms
1901 Cadillac Co forms
1962 Failed assassination on president De Gaulle

August 23
1904 Automobile tire chain patented
1939 Molotov-Ribbentrop pact: East Europe divided between Hitler and Stalin
1962 1st Europe-U.S. live TV program (via Telstar)
Agenda
August 2006:
GBBF Great British Beer Festival
IHGC Hop tour
10th International Berlin Beer Festival 2006
Toronto’s Festival of Beer is Canada’s premier beer festival
Agrokomplex 2006 , Slovakia. International Fair of Agriculture and Food Industry
Midwest Specialty Grains Conference, Minneapolis.
Bank Holiday Weekend and International Beer Festival , UK.
Northern Crops Institute Course 2006 Barley Malt Quality Evaluation


September 2006:
8th BELGIAN BEER WEEKEND The Belgian Brewers’ association
World of Food China - 2006. International Exhibition and Conference for the Food
Beverages - 2006,Belgorod, Russia.Specialized exhibition.
CHINA BREW & BEVERAGE International Brew and Beverage Processing Technology and Equipment
International Brewery and Soft Drinks Industry Exhibition
Riga Food 2006.
The Great Canadian Beer Festival
2nd Bruxellensis Festival
Jean De Clerck Chair XII: Flavours in Beer , a post academic training
Fine Food Australia. Australia's largest exhibition for the food and beverage industry...
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry
EXPO Food & Drinks - 2006, Armenia. The 4th Interhational specialized exhibition.
AtyrauFood - 2006, Kazakhstan.5-th North-Caspian Regional Exhibition
Munich Oktoberfest.The world's biggest beer festival.
World Grains Summit: Foods and Beverages San Francisco, California U.S.A.
International Beer Competition 2006 Japan.
FoodWeek Uzbekistan - 2006.11th Annual International Exhibition of Food and Drinks.
Northern Crops Institute Course 2006 Grain Procurement Management for Importers
World Food Moscow - 2006.The 15th International exhibition "All world of food".
The 15 AllUkrainiane forum of food-processing industry - 2006.
Great American Beer Festival® September 28 - 30, 2006.
Farmer of Kazakhstan - 2006.The 4th Kazakhstan international exhibition.


October 2006:
International Beer Summit 2006, Japan.
World Beer Festival, USA
Food And Beverages, Novi Sad Fair, Serbia & Montenegro.
MBAA Brewing and Malting Science Course
Lighthouse International Beer Festival, USA.
Belgian Beer Festival. website:www.beerfestival.be
Belgian Beer Fest - Sunday Brunch, USA.
World Food Ukraine / Ingredients Ukraine International Food and Drinks Exhibition




More events are available on site e-malt.com
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