Ministry of Environmental Protection inspection banned operation of Karlovacka brewery until it enables CO2 recovery appliance, Javno News reported March 12.

Temporary ban will be in effect until the irregularities are removed, i.e. until Karlovacka brewery does not enable its carbon dioxide recovery appliance.

Due to wrongly placed pipes, carbon dioxide leaked into the fermentation drive of Karlovacka brewery, but it is not familiar for how long.

Because of carbon dioxide poisoning of Zdravko Martinovic vented into the stream behind the brewery, the brewery`s technical director Gabor Ligeti was brought in last week to the County court inquest centre, along with Karlovacka brewery chief engineer Slaven Siladic, fermentation production manager Marinko Kovacevic and security at work and environmental protection manager Zrinka Odrcic, judge Alenka Laptalo and County court in Karlovac spokesperson notified.

But, they were released afterwards, and the State attorney’s office demanded their custody.

Documentation was omitted from the Karlovacka brewery, and an inquest was conducted, during which all evidence were ensured as well as facts determined linked with carbon dioxide leak.

Interbrew Romania, the local branch of InBev, the worldwide leader on the beer market, witnessed a 35% increase in the value of sales for Beck's beer, a rate twice as big as the one witnessed in Bulgaria, according to information supplied by the Belgian group, Ziarul Financiar published March 15.

"The factors that contributed to Beck's increase in 2006 were an image campaign, which managed to outline a clear territory for the brand in the consumer's mind, as well as direct promotion in hotels and restaurants," stated Liviu Irimia, marketing manager of Interbrew. Beck's is a brand present in over 120 countries, with global sales of over 7.2 million hectolitres in 2006, up 14% against 2005, according to information available on the InBev website.

The brand was launched on the local market in 2003, with Romania being the first country in Europe to have been authorised to produce Beck's beer domestically through Interbrew Romania, the local branch of InBev. It was granted the same authorisation for the Lowenbrau brand, which was launched last year in the sector of PET-bottled beer.

Carlsberg could close several of its breweries in Western Europe during 2007, chief executive Nils Smedegaard Andersen said, according to news agency Direkt, AFX News Limited reported March 7.

“Nordic countries and other smaller countries should typically have one brewery each,” Direkt quoted him as saying, adding that bigger countries should have two.

However, Smedegaard Andersen does not presently see any significant overcapacity at Carlsberg's breweries, Direkt said.

Smedegaard Andersen said there 'is no point closing breweries with a critical mass unless real estate is involved.'

This may indicate that Carlsberg's breweries in Leeds and Hamburg may be closed, since they are located in attractive areas in the centre of the cities, Direkt speculated.

After bad losses in the past years maltsters cannot afford any more to speculate on barley prices, but they cover their sales immediately, market analysts commented.

Malting margins are min. EUR 100,- per ton of malt, the trend goes to higher levels. It is due to the higher cost of energy, transport and other factors, but also due to the absolute necessity to show profits to shareholders and bankers after the bad years.

Supply and demand of malt in the EU are not in balance, since the accession of Romania and Bulgaria there is a deficit of a few hundred thousand tons. Malt exports, which will drop by 350,000 tonnes in 2006/07, will rise again, as the world balance shows a deficit as well. Resulting malt prices are EUR 350,-/370,- per ton ex works.

Just like maltsters are short-covered in barley, also many brewers purchased less malt and reduced their inventory in the expensive crop year of 2006/07, market analysts have recently commented.

It means there will be additional demand for barley and for malt of crop 2007. Recent purchases and purchase intentions of Asian, Latin American and African brewers point to rather large quantities needed to rebuild stocks.

In feed barley markets the Ukraine abandoned their quota system and freed exports from restrictions, which had disrupted Black Sea barley exports since October. In the meantime most international grain houses had shifted their barley export program to EU ports. Last week’s EU barley export licence fixations of 83,000 tons show that sales, purchases and logistics commitments keep EU shipments going, although there is a price difference of EUR 20,- per ton between the two origins.

Unsold stocks, especially those in port silos, reduced market values FOB Ukrainian ports, to US 175,- to 180,- per ton. On the other side, total EU exports of the grain year of 2.869 million tonnes have surpassed last year’s exports till the end of February by 330,000 tonnes.