Russian breweries will increase beer production by 10% in 2007 from year-earlier levels, news agency Interfax reported, citing the chairman of the Russian Brewers committee Vyacheslav Mamontov, Dow Jones Newswires announced June 8.

He said the unusually warm winter and early spring were behind an almost 30% jump in beer production between January and April, although those growth rates will likely dip towards the end of the year.

Russia ranks fifth in global beer output, with 9.98 billion liters of beer produced in 2006, up 9.8% on 2005.

Workers at the Kronenbourg brewery at Obernai in north east France have voted to continue a strike against compulsory overtime and in support of a wage rise, Euro News reported June 7. The unions said they have completely shut down production at the brewery which is owned by the British company Scottish & Newcastle.

One striker explained: "I prefer to work 35 hours a week and live my life not spending Saturdays at work, but instead being with my family at the weekend."

Management want to increase production following the closure of the only other Kronenbourg brewery in France last year. Spokesman Jean Hansmaennel said: "The fact is that when you have the possibility of full order books, and for your factory to be operating at full capacity, it's better if you don't let that opportunity go by."

The trade unions have rejected an offer of an annual maximum of 48 hours of compulsory overtime together with an end of year bonus if production targets are met.

EU maltsters booked 1.6 mil tons of export licences by end May, analysts reported June 5. The number may reach 1.7 to 1.8 mil tons by end June, the end of the crop year. Therefore EU malt exports will drop by 400 to 500,000 tons from last year and even by 700,000 tons from the record year of 2003/04.

At the same time there is no malt available for sale any more for 2007, advanced call-offs by brewers cannot always be fulfilled by the malting industry. Sales have progressed very far for 2008.

After a long drought period from end March till early May, West and Central European weather returned to normal again, the May was cool and rainy, albeit with great regional variations, analysts announced June 5.

Barley crops are looking much better than four weeks ago except in the Balkan countries. In the Iberian Peninsula rainfall has been abundant all winter and spring long, crop prospects are excellent. The Madrid Ministry estimates a crop of 10.4 Mill. Tons vs. 8.2 Mill. last year.

In France, England, Germany, Czech, Slovakia and South Poland effects of the draught are obvious, the number of ears per square meter is less than average, lower yields are forecast. One hope is that barley kernels will be plump, thereby reducing yield losses. Barley fields in Scotland, Denmark and Sweden are in fine shape; also Northern Poland reports good prospects. Very poor crops are forecast for Hungary, Romania and Bulgaria, although Hungary and Romania may harvest some reasonably good winter barley.

Barley crop prospects in the Mediterranean are variable, analysts said June 5. Morocco is harvesting an exceptionally poor crop, estimated at 800,000 tons vs. 2.5 mil tons last year.

The government will subsidize imports, 157,000 tons were bought in a tender during May, further 150,000 tons are tendered for July arrival. Prices ranged from US$ 240 to 255 CFR, for barley from France and the Black Sea. Jordan purchased 100,000 tons at US$ 253 and 259.50 CFR. The IGC expects an increased feed barley demand of Saudi-Arabia in the new grain year.