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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
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 Jan - 24 Jan, 2007
Crop 2006
2rs Barley €208.0-210.0
6rw Barley €184.0-186.0
2rs Malt €405.5-407.5
6rw Malt €375.0-377.0
Crop 2007
2rs Barley €156.0-158.0
6rw Barley €142.0-144.0
2rs Malt €329.5-331.5
6rw Malt €311.5-313.5

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. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting barley prices. The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Other e-malt.com newsletters

Last five newsletters
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Newsletter 04a, 2007

See this Newsletter!
Newsletter 03b, 2006

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Newsletter 03a, 2007

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Newsletter 02b, 2007

See this Newsletter!
Newsletter 02a, 2007



Market price evolutions

The evolution of market prices for barley and malt, which are periodically issued with e-malt.com newsletters are published on e-malt.com site in Market Prices section. Just click here!


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USA Beer Production (1993-2005)

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Africa Imports of Malt



The graphs are updated from time to time. Just see the updates online on e-malt.com site !


All e-malt.com tables are published in e-malt.com Statistics section. The Statistics section includes Barley statistics, Malt statistics and Beer statistics. The tables related to barley are published in Barley Statistics section, the tables related to malt in Malt Statistics section and the tables related to beer in Beer Statistics section.


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E-malt.com Newsletter 4b
January 25 - January 28, 2007

Quote of the week

"Fermentation and civilization are inseparable"
John Ciardi


Currency Rates
Base Currency: Euro, EUR
on 26-January-2007

1 EUR = 1.297 USD
1 EUR = 0.6589 GBP
1 EUR = 1.5285 CAD
1 EUR = 1.6647 AUD
1 EUR = 156.652 JPY
1 EUR = 2.7662 BRL
1 EUR = 34.3923 RUB
1 EUR = 10.0886 CNY
Base Currency: US Dollar
on 26-January-2007

1 USD = 0.7711 EUR
1 USD = 0.5081 GBP
1 USD = 1.1785 CAD
1 USD = 1.2834 AUD
1 USD = 120.79 JPY
1 USD = 2.1328 BRL
1 USD = 26.5168 RUB
1 USD = 7.7784 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Belgium: InBev launches official offer for Quinsa remaining stake... Click here

Belarus: Beer production up 22.2% in 2006... Click here

Slovakia: Beer sales down 4% in 2006... Click here

Thailand: Thai FDA will lift alcohol advertising ban next month... Click here

China & Belgium: Belgium's InBev builds new brewery in eastern China... Click here

Australia: Coopers Brewery won malt extract supply contract... Click here

Canada: Higher production and lower prices projected for barley for 2007-2008... Click here

Australia: ABB closes No.1 malting and No. 1 barley pools... Click here

UK: Barley prospects are better this year... Click here

More News
UK: Molson Coors wins U.K. lawsuit ... More Info

UK: SABMiller appoints international brands director ... More Info

Canada: CWB malting barley pool unchanged ... More Info

Romania: "Caru' cu bere" projects 2.5 mln Euro turnover ... More Info

Hong Kong: Kingway Brewery Holdings Limited announced changes in directorship ... More Info

UK: Red Guinness beer trial in British pubs ... More Info

USA: Boston Beer appoints new Vice President of operations ... More Info

UK: End of an era as Wolves & Dudley change its name to Marston's ... More Info

UK: SABMiller’s shares down 20pc in 2006 ... More Info

USA: Labatt USA to move headquarters to Buffalo ... More Info

Russia: Barley market to keep positive trend ... More Info

Russia: Football club to build a beer pipeline for stadium ... More Info

Belgium: Alken-Maes to close brewery in Jumet ... More Info

Australia: Beck's beer advertising criticized ... More Info

Bulgaria: Cargill opens grain and oilseed trading office in Bulgaria ... More Info

USA: Anheuser-Busch’s Ads will dominate Super Bowl ... More Info



Brewery News
Belgium: InBev launches official offer for Quinsa remaining stake

InBev announced in its press release of January 25, that the Commission de Surveillance du Secteur Financier in Luxembourg has approved the offer document in relation to the voluntary offer by AmBev to purchase up to 6,872,480 Class A shares and up to 8,661,207 Class B shares (including Class B shares held as American Depositary Shares ("ADSs")) of its subsidiary Quinsa, which represent the outstanding Class A shares and Class B shares (and Class B shares held as ADSs) that are not owned by AmBev or its subsidiaries.

The offer will be made by Beverage Associates Holding Ltd. ("BAH"), a Bahamian corporation and a wholly-owned subsidiary of AmBev.

The purchase price will be U.S. $3.35 per Class A share, U.S.$33.53 per Class B share (U.S.$67.07 per ADS), net to the seller in cash (less any amounts withheld under applicable tax laws), without interest, which corresponds to the same price per share paid by AmBev to Beverage Associates (BAC) Corp. ("BAC"), on August 8, 2006, in a negotiated transaction for the acquisition of BAC's controlling interest in Quinsa.

The offer is scheduled to expire at 5:00 p.m. New York City time (11:00 p.m. Luxembourg time), on Wednesday, February 28, 2007, unless extended or ...
More Info


Belarus: Beer production up 22.2% in 2006

According to Belarusian Ministry of Statistics and Analysis, beer production constituted 3.32 mln hl, 22.2% more than in 2005, Russian Beer Union announced January 25.

“Belgospicheprom” breweries produced 1.94 hl of beer, 13.1% more than in 2005, private companies – 0.75 hl (twice as much as in 2005), organizations subordinated to local Deputy Soviets – 0.63 mln hl (0.8% less).

In January – November 2006, beer exports slid to 55.57 thousands hl, 35.1% less than in the same period of 2005. Imports, on the contrary rose 43.4% to 0.54 mln hl due mostly to imports from Russia – 0.5 mln hl which grew 47.9% compared with the same period of 2005.

Beer sales increased 24.9% and accounted 3.76 mln hl in 2006. 38.46 litres of beer per capita were sold last year.


Slovakia: Beer sales down 4% in 2006

According to Slovakian Beer and Malt Producers’ Association, beer sales decreased almost by 4% in 2006, to 3.8 mln hectoliters.

Exports have also fallen till 36200 hectolitres compared with 118400 in 2005, caused mainly by the higher cost of licensing, according to Roman Sustak, the association’s managing director.

Heineken Slovensko accounted 45.6% of market share, while SABMiller’s Pivovary Topvar – 39.2%.

Heineken closed its third brewery in Slovakia blaming the beer market negative trend. Heineken, with only one brewery in the country, said the high tax on beer and the lower price in neighbouring countries was affecting negatively the beer consumption.


Thailand: Thai FDA will lift alcohol advertising ban next month

Thailand's Food and Drug Administration will revoke its order totally banning the advertising of alcoholic beverages next month, FDA secretary-general Siriwat Tiptaradol said, according to Thai Press Reports Via Thomson Dialog NewsEdge, January 25.

The FDA's move is to comply with the recent Cabinet instruction that the state agency must act according to the Council of State's resolution that the FDA had no authority to impose the ban.

In November last year, the Ministry of Public Health proposed a total 24-hour ban on all forms of advertising for beer, wine or hard liquor on TV, radio and print ads through a regulation issued by the FDA. But the proposed order, which was due to take effect on December 3, 2006, hit a major snag when the Council of State invalidated it, arguing that the FDA did not have authority to do so in the first instance.

The FDA-issued ban has prompted a fierce protest on the part of Thailand's giant breweries, as well as liquor importers and distributors, while the ban supporters have pressed the interim government to use its power to help it pass objections.

Even though it stood firm backing the ban at the beginning, the Cabinet in its recent meeting resolved ...
More Info


China & Belgium: Belgium's InBev builds new brewery in eastern China

Zhoushan InBev Beer Co., Ltd., a Chinese subsidiary of InBev, a Belgium beer giant listed among the World's Top 500 Enterprises, on January 18 started building a new brewery in Zhoushan of east China's Zhejiang Province, Antara News reported January 24.

With a total investment of nearly 300 million yuan (US$38.6 million), the new brewery is expected to become operational in early 2007 with an annual production capacity of 200,000 tons.

InBev owns 34 breweries in eight provinces with aggregate sales of 3.6 million tons of beer, making it one of the biggest beer groups in China.

Malt News
Australia: Coopers Brewery won malt extract supply contract

Coopers Brewery has won a contract to supply malt extract to a major international food company’s Australian operations, according to company’s press release of January 23.

Mr. Scott Harris, Coopers Marketing Manager, Brewing Products, said details of the contract were confidential, but confirmed it was worth more than $1 million a year and would lift total production of malt extract at the Regency Park brewery by about 20%.

Malt extract is a natural coloring and flavor additive used in foods ranging from biscuits, cakes and confectionery to breakfast cereals. It is also widely used by small craft breweries to ensure consistency of quality and to reduce space requirements.

The extract is produced when wort, the sweet liquid produced from malted barley, is evaporated and concentrated.

Mr. Harris said the contract would make Coopers one of the largest suppliers of malt extract in the Southern Hemisphere. “Coopers already supplies malt extract to a number of major food and confectionery producers and small craft breweries in Australia and the Asia Pacific region. This contract will be a significant boost to this side of our business,” he said. Mr. Harris said Coopers had been producing malt extract since 1985 when it introduced its first ...
More Info

Barley News
Canada: Higher production and lower prices projected for barley for 2007-2008

Area seeded to barley in 2007-2008 is forecast by Agriculture and Agri-Food Canada (AAFC) to increase by 21% from 2006-2007, with production rising by 28% to 12.8 million metric tonnes (Mt). Total supply, however, is expected to increase at a slower pace, as a result of lower carry-in stocks, AAFC reported on January 12. “Returns for feed and malting barley are expected to be relatively attractive which will support total barley area.”

“Domestic feed consumption is projected to increase by 7%, as a result of increased supplies. Assuming normal crop quality, barley exports are expected to increase to 2.4 Mt. Feed barley exports are forecast to increase from 2006-2007 but remains at low levels as deliveries to the CWB continue to be less attractive than to the off-Board market.

Carry-out stocks are expected to rise by 25% to 2.0 Mt. Domestic feed barley prices are forecast to decrease by C$15/t, to C$135/t for 1CW, in-store Lethbridge. The CWB pool returns for malting barley are projected to decrease.”


Australia: ABB closes No.1 malting and No. 1 barley pools

ABB Grain has closed the No.1 malting and No.1 feed barley pools in South Australia but will immediately open No.2 malting and feed pools, according to ABB’s press release of January 25.

The No. 1 pools have been closed to protect the equity of the growers that supported these pools and benefited from strong prices through the harvest period. The pools have been kept open until now to provide growers ample opportunity to deliver. Opening No. 2 pools will continue to give growers that have not already delivered into the pools the ability to do so.

ABB’s managing director, Michael Iwaniw, said despite the difficult season, the pools had been able to be competitive in a very tight market.

“ABB has been effective in a season with unusually strong domestic activity by staying focused on generating the best result for growers. We look forward to continuing to do this in the looming deregulated barley market,” Mr Iwaniw said.

He said that with less grain to export, ABB had used its marketing expertise to maximize returns for pool growers and will continue to do so.

“Flexibility within ABB’s marketing program has allowed ABB to respond to rapidly changing market conditions,” Mr. Iwaniw said. “This has enabled ...
More Info


UK: Barley prospects are better this year

The prospects for malting barley growers in Scotland appear better than for many years, but farmers will have to take care in selecting the correct variety, Business Scotsman published January 26.

Last year's harvest resulted in mixed quality and lower yields pointing to a possible shortfall of malting for the distilling industry, which utilises between 500,000 tonnes and 700,000 tonnes each year, depending on the level of stocks in store. World stocks of quality barley are reported to be at the lowest level in living memory.

However, the reality is that a sizeable number of farmers who previously grew malting barley have switched to winter wheat and other crops in the face of miserable returns, despite the fact that Scotland can grow some of the best malting barley in the world. Prices at the start of the 2006 harvest were little better than £80 per tonne, but contracts in excess of £100 per tonne are currently being offered for the 2007 crop.

Lee Robinson, the cereals product manager with the plant breeders Nickerson, speaking in Edinburgh, commented: "The prospects are much better, with a demand for three million tonnes from Australia to China. But the market will still be subject ...
More Info

Scientific Digest
Investigations into selected mycotoxins in barley, malt and wheat

By E.D. Baxter and R.E. Muller Brewing Research International Lyttel Hall, Nutfield, Redhill, Surrey RH1 4HY

DESCRIPTION: This is the final report of a 24 month project which started in July 2004. The work was carried out by Brewing Research International, and was funded by a contract of GBP 81,481 from HGCA (Project No. 3005), and industrial contributions from Brewing Research International (GBP 41,522), MAGB (GBP 5,000, in-kind) and nabim (GBP 3,000 in-kind), making a total of GBP 131,003.

The Home-Grown Cereals Authority (HGCA) has provided funding for this project but has not conducted the research or written this report. While the authors have worked on the best information available to them, neither HGCA nor the authors shall in any event be liable for any loss, damage or injury howsoever suffered directly or indirectly in relation to the report or the research on which it is based.

Reference herein to trade names and proprietary products without stating that they are protected does not imply that they may be regarded as unprotected and thus free for general use. No endorsement of named products is intended nor is it any criticism implied of other alternative, but unnamed, products.
... Load full article, 73 pages, 475 Kb, PDF file


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.297 January 26, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  211.00  274.00  159.00  206.50 
2RS  Prestige  210.00  272.50  158.00  205.00 
2RS  Cellar  209.00  271.50  157.00  204.00 
2RS  Sebastien  208.00  270.00  156.00  202.50 
2RS  Astoria  208.00  270.00  156.00  202.50 
2RS  Cork   207.00  268.50  155.00  201.50 
6RW  Esterel   185.00  240.00  143.00  185.50 

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

Theoretical malt prices.
  EURO = USD 1.297 January 26, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  Jan 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  409.00  530.50  431.50  560.00  425.50  551.50  436.00  565.50 
2RS  Prestige  407.50  528.50  430.50  558.50  424.50  550.00  435.00  564.00 
2RS  Cellar  406.50  527.00  429.50  556.50  423.00  548.50  433.50  562.50 
2RS  Sebastien  405.50  525.50  428.00  555.00  421.50  547.00  432.50  560.50 
2RS  Astoria  405.50  525.50  428.00  555.00  421.50  547.00  432.50  560.50 
2RS  Cork   404.00  524.00  426.50  553.50  420.50  545.50  431.00  559.00 
2RS   Average price  406.50  527.00  429.00  556.50  423.00  548.50  433.50  562.00 
6RW  Esterel   376.00  489.00  399.50  518.50  393.50  510.50  404.00  524.00 
Asia Malt 70/30  397.50  515.50  420.50  545.00  414.00  537.00  424.50  550.50 
**  Asia Malt 50/50  391.50  508.00  414.50  537.50  408.00  529.50  418.50  543.00 

* - 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 2007 are available on site www.e-malt.com/MarketPrices

Table of the week

Canada: Barley Supply and Disposition as of January 12, 2007

  2004-2005   2005-2006   2006-2007 f  2007-2008 f 
  Seaded area, '000 ha 4,678  4,440  3,861  4,660 
  Harvested area, '000 ha 4,050  3,889  3,362  4,170 
  Yield, tonne/ha  3.26  3.21  2.98  3.07 
  Production, '000  metric tonnes 13,186  12,481  10,005  12,800 
  Imports, '000 metric tonnes 83  46  40  35 
  Total Supply, '000 metric tonnes 15,371  15,962  13,333  14,435 
  Exports, '000 metric tonnes  1,863  2,978  2,300  2,400 
  Food & Industry Use, '000 metric tonnes 268  155  260  300 
  Feed, Waste, Dockage, '000 metric tonnes 9,417  9,181  8,758  9,330 
  Total Domestic Use, '000 metric tonnes 10,073  9,695  9,433  10,035 
  Carry-out Stocks, '000 metric tonnes 3,435  3,289  1,600  2,000 
  Average Price, CA$/tonne 112  110  140-160  125-145 

Source: Agriculture and Agri-Food Canada, f: forecast.
Newsletter SummaryTop
Graph of the week


These Days in Business History
January 25
1853 Basic financial disclosure becomes mandatory for all companies seeking to list their stock for trading on the New York Stock & Exchange Board.
1959 First transcontinental commercial jet flight (LA to NY for $301)
1919 Founding of League of Nations

January 26
1871 US income tax repealed
1886 Karl Benz patents 1st auto with burning motor
1921 Akio Morita, the co-founder of Sony Corp., is born in Nagoya, Japan.

January 27
1880 Thomas Edison patents electric incandescent lamp
1888 National Geographic Society organizes
1926 1st public demonstration of television by John L Baird, London

January 28
1878 1st telephone exchange (New Haven, CT)
1878 Yale Daily News published, 1st college daily newspaper
1998 Michelangelo's "Christ & the Woman of Samaria", sold for $7.4 million
Agenda
January 2007:
2007 Barley Improvement Conference, USA.
IFBM (The French Institute for Brewing and Malting) Advanced Course In Malting Technology


February 2007:
Singapore international beer festival.
WBA International Diploma in Brewing Technology Program Chicago
Grainworld 2007, Canada.


March 2007:
Beer Day, Iceland.
WorldFoodUzbekistan - 2007.
World Barley Malt & Beer Conference.
The 2nd International Trading Summit: Grains & Oilseeds, Turkey.




More events are available on site e-malt.com
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