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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
Theoretical malt prices
Malting barley prices
Price evolution
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

May 07 - May 09, 2007
Crop 2006
2rs Barley €204.0-206.0
6rw Barley €174.0-176.0
2rs Malt €425.0-427.0
6rw Malt €387.0-389.0
Crop 2007
2rs Barley €196.0-198.0
6rw Barley €172.0-174.0
2rs Malt €394.0-396.0
6rw Malt €363.5-365.5

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 . The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Newsletter 18b, 2007

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Newsletter 18a, 2007

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Newsletter 17b, 2007

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Newsletter 17a, 2006

See this Newsletter!
Newsletter 16b, 2007



Market price evolutions

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Thailand Beer Sales (1991 - 2006)

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Australia Barley Production and Malting Barley Exports (1997 - 2007f)

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Per capita Beer Consumption in Eastern Europe 2006e

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Ukraine Barley Production and Export



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E-malt.com Newsletter 19a
May 07 - May 09, 2007

Quote of the week

"Small opportunities are often the beginning of great enterprises. "
Demosthenes


Currency Rates
Base Currency: Euro, EUR
on 08-May-2007

1 EUR = 1.3609 USD
1 EUR = 0.6822 GBP
1 EUR = 1.5039 CAD
1 EUR = 1.6515 AUD
1 EUR = 163.276 JPY
1 EUR = 2.7682 BRL
1 EUR = 35.0189 RUB
1 EUR = 10.5001 CNY
Base Currency: US Dollar
on 08-May-2007

1 USD = 0.735 EUR
1 USD = 0.5013 GBP
1 USD = 1.105 CAD
1 USD = 1.2134 AUD
1 USD = 119.992 JPY
1 USD = 2.0341 BRL
1 USD = 25.732 RUB
1 USD = 7.7155 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Czech Republic: Government to hire consultants in selling Budvar... Click here

South Africa: South Africa suffering beer shortages... Click here

Russia: Heineken Brewery union ends strike at talks with officials... Click here

Philippines: San Miguel doubles net income in first quarter of 2007... Click here

Brazil: Ambev must pay alcoholic beer taster... Click here

Germany: The hottest and sunniest spring this year is increasing beer consumption and killing barley growing... Click here

Malaysia: Carlsberg stands steady on the market... Click here

EU: At the end of April barley markets exploded, and most maltsters retired from selling... Click here

EU: Nevertheless, malt seems to be sold out for 2007, there is no pressure on malt markets... Click here

EU: Barley price levels are too high to compete in world markets with the Black Sea... Click here

Australia: Australian barley markets are calm... Click here

More News
Australia: ABB’s barley pool estimates unchanged ... More Info

Canada: Labatt keeping Lakeport open ... More Info

Tanzania: Tanzania Breweries Limited launches beer brewed from sorghum ... More Info

Mongolia & Russia: Baltika Breweries recommenced export to Mongolia ... More Info

Canada: Big Rock Brewery launches a new beer – XO Lager ... More Info

India: Alcoholism on the rise ... More Info

USA: Three Brewery Blocks for sale, if price is right ... More Info

Europe: Heineken price target raised to 41 euro from 39 euro at UBS ... More Info

USA & Japan: Japan purchased 500MT of U.S. barley ... More Info

Belgium: InBev shares close higher ... More Info

Europe: Swedish alcohol taxes to be examined in EU Court ... More Info

Canada: Russell Breweries Inc announced partnership agreement with BC Lions Football Club ... More Info

Ireland: Dublin summit to confirm five-year Heineken Cup deal ... More Info

Ukraine: Feed barley retained high activity ... More Info

Malawi: Carlsberg Draught launched in Lilongwe ... More Info



Brewery News
Czech Republic: Government to hire consultants in selling Budvar

The Czech cabinet plans to hire top lawyers to advise the state on a tricky first step towards privatizing Budvar, the last major Czech brewery in state hands, EUX reported May 7.

The legal advisers will counsel the state on how to convert the brewery to a joint-stock company, Euro business weekly reported.

"The process of transformation has to be guaranteed by the best law firm, preferably with a global reputation, which is capable of providing relevant guarantees," Euro cited Czech Agriculture Minister Petr Gandalovic as saying.

Although the communist regime fell 17 years ago, Budvar has formally remained a national enterprise.

The conversion of Budvar's ownership form has not yet taken place because of the brewery's century-long, worldwide trademark legal battle with the American giant brewer Anheuser-Busch.

If badly conducted, the cabinet fears, the tricky exercise could lower Budvar's value now estimated between 20 to 30 billion koruny (932 million to 1.4 billion dollars). Budvar's trademarks make up a sizeable portion of company's worth.

As of April, Budvar put the number of trademark disputes to be decided in courts at 17, the report said.

In January the two rivals struck a deal in which Anheuser-Busch, which is seen as ...
More Info


South Africa: South Africa suffering beer shortages

Beer drinkers in South Africa are becoming increasingly frustrated as both Amstel and Heineken products have been in short supply, UPI reported May 6.

The beer shortages began in March when Dutch brewer Heineken stopped allowing a regional distributor to brew and sell Amstel Lager after nearly 40 years of producing the alcoholic beverage, The Cape Argus reported Sunday.

Many beer drinkers turned to the Heineken as a temporary replacement and Heineken became scarce throughout the nation.

"Amstel used to be our number-one seller, but when we could no longer obtain that we found many drinkers turned to Heineken and that became the number one," said Annie Barendse, a bar manager in Cape Town.

Heineken has plans to build a local brewery in South Africa in the future, but said in March that it would take nearly five months for Amstel bottles to become available, the Cape Argus said.


Russia: Heineken Brewery union ends strike at talks with officials

The worker's union at Heineken Brewery in St. Petersburg ended an Italian strike during talks with brewery officials on Friday, Alexei Veleulov, chairman of the union, said in a statement, according to Interfax News Agency, May 4.

The brewery's workers said on April 13 that they were planning to hold an Italian strike, a method in which factory workers meticulously adhere to all instructions and regulations and do not work overtime. The workers are demanding a 30% increase in their salaries and an 8%-10% raise for occupational hazards.

Heineken's press service told Interfax that the union's demands would be considered within a month in accordance with Russian legislation.

Heineken owns ten breweries in various parts of Russia. Heineken began working in Russia in 2002, when it acquired St. Petersburg brewer Bravo International. In 2004 and 2005, the Dutch company acquired the Sobol brewery in Novosibirsk, the Shikhan brewery in Sterlitamak, the Volga brewery in Nizhny Novgorod, Patra in Yekaterinburg, St. Petersburg's Stepan Razin, the Baikal brewery in Irkutsk, Amur-Pivo in Khabarovsk, and PIT with its breweries in Kaliningrad and the Orenburg region.


Philippines: San Miguel doubles net income in first quarter of 2007

San Miguel Corp. sustained its 2006 pace of growth in the first quarter of 2007, according to company’s press release, May 8. With the sale of stake in Coca Cola Bottlers Philippines, Inc. (CCBPI) to The Coca Cola Company, San Miguel Corporation’s consolidated net income in the first quarter of 2007 amounted to P4.33 billion, double that of the same period last year.

The Company‘s gain is largely attributable to recognition of the balance of profit on CCBPI’s containers following the deconsolidation of CCBPI.

Excluding the revenue contribution from CCBPI, sales revenue reached P55.4 billion, 7% higher than 2006. Consolidated operating income of P3.8 billion was 24% lower than last year as external factors continued to affect the performance of Ginebra San Miguel Inc. which was weighed down by the absorption of an 8% increase in excise taxes effected in January 2007. SMC’s packaging company suffered from the cyclical downtrend for glass bottle requirements, while National Foods, Limited, SMC’s dairy and juice subsidiary in Australia absorbed cost increases as a consequence of the continent’s prolonged drought.

Domestic Beer Operations’ operating income reached P2.70 billion, 13% higher than last year as the business benefited from lower raw material and fuel prices. ...
More Info


Brazil: Ambev must pay alcoholic beer taster

A Brazilian court has ordered local brewer Ambev to pay 100,000 reals (US$49,400; euro36,400) to an alcoholic beer taster who drank about a liter and a half (3.2 pints) of beer each day, Associated Press reported May 6.

The unidentified employee alleged that the company did not provide the health measures needed to keep him from developing alcoholism, a labor court in the Rio Grande do Sul state said in a statement Friday.

The employee said in his lawsuit that for more than a decade, he drank between 16 and 25 small glasses of beer during his eight-hour shifts at the company

The employee said he also received a bottle of beer after each shift.

An initial ruling had favored Ambev, or Companhia de Bebidas das Americas, which can still appeal the decision. The company alleged the employee already was an alcoholic before becoming a beer taster.

Judge Jose Felipe Ledur said the company still was negligent because an alcoholic should never have been made a beer taster.

Ledur also said the employee's alcohol dependency had worsened in recent years and that even on vacation, the employee felt like drinking the same amount of beer he drank at work.


Germany: The hottest and sunniest spring this year is increasing beer consumption and killing barley growing

The beer garden season started early in Germany this year because this year happens to have one of the hottest and the sunniest springs on record, CNN reported May 8. However, those enjoying their cold blond brew in Munich don't realise the sun they worship is killing barley grower, Wolfgang Lichti's crop.

Lichti grows barley one of the main ingredients for beer, but the earth around the fledgling plants is dry and dusty. Too much sun and too little rain, Lichti says, may mean that this year there will be no harvest.

"If it rains within the next couple of days, we may only loose 20 per cent. But if it doesn't rain soon the entire crop could fail,” Lichti says adding the barley would be unusable.

Meanwhile, Peter Hahan of the German brewers union says a barley shortage in Germany could drive beer prices through the roof by fall.

“We fear that through this really early, warm and dry weather barley will not be available in the quantities we need. And as you know, scarce commodities are expensive and so we fear a heavy increase in prices," Hanan says.

But there is another reason for the barley shortage, the brewers' union claims. And it ...
More Info


Malaysia: Carlsberg stands steady on the market

Carlsberg Brewery Malaysia Bhd has reaffirmed its commitment to doing business in Malaysia and will boost its export sales amid a sobering domestic alcoholic beverage market, The Edge Daily reported May 7.

From 2004 to 2006, the beer and stout market in Malaysia saw heavy increases in duties, resulting in the country having the second highest beer prices in the world after Norway.

At the same time, beer and stout faced stiff competition from other alcoholic products such as wine and liquor as well as low-priced imported beer and stout.

Carlsberg, which has been operating in the country for over 35 years, felt the brunt of the duty increases. Its net profit fell from RM95.4 million in 2002 to RM85.9 million last year.

What is more alarming is that many beer and stout customers began to switch to wine and liquor due to the low price difference between the two types of products.

The situation could get worse. But for Carlsberg, it is staying put in Malaysia. This country is its crown jewel, despite the fact that the local beer and stout market has reached saturation point.

Carlsberg’s newly appointed managing director Soren Holm Jensen (pic) reiterated his company’s commitment ...
More Info

Malt News
EU: At the end of April barley markets exploded, and most maltsters retired from selling

During the month of April domestic prices inched up to EUR 385,- for delivery 2008, CPT breweries. Export prices of the EU, Canada and Australia were close in the range of EUR 375,- to 385,- FOB in bulk in container, at the end of the month business was done at EUR 420,-.

Japan, Thailand, Vietnam and African groups purchased large quantities during the month, Brazil bought additional needs for this calendar year. Carlsberg commenced negotiations. Most large brewery groups purchased parts of their demand. There was a mixture of contracts, fixed malt prices for a one year contract, LTA’s with fixed malting margins, but open barley and energy prices, to name a few.

Warning: These prices are not in force at present, at the end of April barley markets exploded, and most maltsters retired from selling, until weather, barley crop prospects and barley price levels become clearer and safer again. It is doubted that malt prices will return to former levels.


EU: Nevertheless, malt seems to be sold out for 2007, there is no pressure on malt markets

Maltsters booked precisely 1.5 million tonnes of export licences from July 1, 2006 until April 26, 2007, versus 1.81 million tonnes a year ago, a minus of 310,000 tonnes.

At the pace of exports up-to-date total export shipments of the crop year would reach 1.8 million tonnes, almost 400,000 tonnes less than in 2006/07. Nevertheless, malt seems to be sold out for 2007, there is no pressure on malt markets.

Barley News
EU: Barley price levels are too high to compete in world markets with the Black Sea

EU feed barley supplies are very tight, price levels are too high to compete in world markets with the Black Sea. Only during the winter, when the Ukrainian government had strangled the export business, the EU was a large exporter, the total has reached almost 3.1 million tonnes by now. Lately exports include malting barley, guesses are upto 200,000 tonnes to Russia.

Barley intervention stocks have dwindled from 2.2 million tonnes at the beginning of the grain year to 400,000 tonnes now. Only 1,500 tonnes of barley were tendered to intervention during this grain year. The intervention price (EUR 101.31 per ton), once the secure bottom of barley markets, has no importance at present and most likely for a long time to come. In the major deficit region of Holland and Northwest Germany markets are between EUR 150,- and 155,- delivered compound factories for old and new crop positions. The new crop market rendu Rouen is EUR 136,-, basis July.


Australia: Australian barley markets are calm

In April Australia recorded rainfalls between 5 and 25 mm in the grain areas, virtually all of it in the past 7 days. The rains were very welcome as a break of the draught period and enabled first plantings of barley. Follow-up rain is needed, the more so as the long dryness had left seedbeds in a very poor shape.

Long-term weather forecasts should always be taken with great caution, but the Australian May-July forecast does not look good. The ABARE crop estimate of 9 million tonnes of barley must be hoped for, but is far from certain at this time. Markets are calm, Australian malting barley quotes of US$ 320,- CIF China stir no reaction.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3609 May 08, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  207.00  282.00  199.00  271.00 
2RS  Prestige  206.00  280.50  198.00  269.50 
2RS  Cellar  205.00  279.00  197.00  268.50 
2RS  Sebastien  204.00  278.00  196.00  267.00 
2RS  Astoria  204.00  278.00  196.00  267.00 
2RS  Cork   204.00  278.00  196.00  267.00 
6RW  Esterel   175.00  238.50  173.00  235.50 

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

Theoretical malt prices.
  EURO = USD 1.3609 May 08, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  May 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  428.50  582.50  451.00  613.50  445.00  605.50  455.50  619.50 
2RS  Prestige  427.00  581.00  450.00  612.00  443.50  603.50  454.00  618.00 
2RS  Cellar  426.00  579.50  448.50  610.50  442.50  602.00  453.00  616.50 
2RS  Sebastien  424.50  577.50  447.50  608.50  441.00  600.50  451.50  614.50 
2RS  Astoria  424.50  577.50  447.50  608.50  441.00  600.50  451.50  614.50 
2RS  Cork   424.50  577.50  447.50  608.50  441.00  600.50  451.50  614.50 
2RS   Average price  426.00  579.50  448.50  610.50  442.50  602.00  453.00  616.50 
6RW  Esterel   388.00  529.50  411.50  560.50  405.50  551.50  416.00  566.00 
Asia Malt 70/30  414.50  564.50  437.50  595.50  431.50  587.00  442.00  601.50 
**  Asia Malt 50/50  407.50  554.50  430.00  585.50  424.00  577.00  434.50  591.50 


  EURO = USD 1.3609 May 08, 2007 
Crop year  2007 
Parity  FOB Antwerp 
Position  Oct 2007-Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  397.50  541.00  420.50  572.00  414.00  563.50  424.50  577.50 
2RS  Prestige  396.50  539.00  419.00  570.00  412.50  561.50  423.50  576.00 
2RS  Cellar  395.00  537.50  417.50  568.50  411.50  560.00  422.00  574.50 
2RS  Sebastien  393.50  536.00  416.50  566.50  410.50  558.50  421.00  572.50 
2RS  Astoria  393.50  536.00  416.50  566.50  410.50  558.50  421.00  572.50 
2RS  Cork   393.50  536.00  416.50  566.50  410.50  558.50  421.00  572.50 
2RS   Average price  395.00  537.50  417.50  568.50  411.50  560.00  422.00  574.50 
6RW  Esterel   364.50  497.50  388.50  528.50  382.00  520.00  392.50  534.50 
Asia Malt 70/30  386.00  525.50  196.50  556.50  190.50  548.00  201.00  562.50 
**  Asia Malt 50/50  380.50  517.50  196.50  548.50  190.50  540.00  201.00  554.50 

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

Malt Price Evolution
Prices evolution

Table of the week

China Barley Production
Year Area 1000 ha Yeld t/ha Production 1000 t
1998-1999 904 2.9 2,656
1999-2000 833 3.4 2,866
2000-2001 791 3.3 2,646
2001-2002 770 3.8 2,893
2002-2003 914 3.6 3,324
2003-2004 775 3.5 2,717
2004-2005 850 3.8 3,200
2005-2006 850 3.6 3,100
Source: China National Grain & Oils Information Center
Newsletter SummaryTop
Graph of the week


These Days in Business History
May 7
1955 West Europe Union established
1979 5th UNCTAD-conference opens in Manila
1982 IBM releases PC-DOS version 1.1

May 8
1888 George Eastman patents "Kodak box camera"
1899 Friedrich August von Hayek is born in Vienna (Nobel Prize in economics in 1974)
1929 John Clifton Bogle, future founder of the Vanguard Group of Investment Cos., is born in Montclair, N.J.

May 9
1785 British inventor Joseph Bramah patents beer-pump handle
1886 At the soda fountain of Jacob’s Pharmacy in Atlanta, Dr. John S. Pemberton sells the first glass of Coca-Cola, his new "tonic" beverage.
Agenda
May 2007:
European Grain & Oilseed Convention 2007, Brussels
31-st International Congress of the European Brewery Convention , Italy
Hofex - 2007, China
InterFood Azerbaijan 13th Azerbaijan International Food Industry and Agriculture Exhibition
InterFood Astana , Kazakhstan, 9th Astana International Exhibition for Food, Beverages, Technologies


June 2007:
Japan-Asia Beer Cup 2007, Tokyo
InterFood Mongolia
IGC Grains Conference 2007 London, England
Great Japan Beer Festival 2007 in Tokyo
Brasil Brau 2007
The International Hop Growers’ Convention(IHGC)
Practical Course on Malt and Malting Barley Canada
The 5th Canadian Barley Symposium & District Western Canada MBAA
Seattle International Beer Festival


July 2007:
Olesummer Festival 2007
Portland International Beer Festival
51 Congress of The International Hop Growers Convention


August 2007:
Qingdao International Beer Festival, China
International Berlin Beer Festival
Great British Beer Festival
1st International Brewers Symposium Hop Flavor and Aroma
Great Japan Beer Festival 2007 in Osaka
Brew Drinks China 2007
The 13th Australian Barley Technical Symposium, Australia


September 2007:
Belgian Beer Weekend
Great Canadian Beer Festival
Great British Beer Festival
WBA Associate in Brewing Technology Program in Chicago
WBA International Diploma in Brewing Technology Program Chicago & Munich Campuses
WorldFood Moscow


October 2007:
The International Brewing Convention 2007 , UK
Newport International Oktoberfest, USA
World Beer Festival Durham , USA
Tasting Australia
2007 Master Brewers Association of the Americas Convention




More events are available on site e-malt.com
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