Czech antitrust office UOHS said it has approved the takeover of Czech Krusovice Brewery by Heineken NV (HINKY), paving the way for the Dutch brewer to boost its Czech market share and add a local premium brand, Dow Jones & Company, Inc. reported August 7.

Heineken currently operates in the Czech market through its Austrian subsidiary Brau-Union AG. After the Krusovice takeover, Heineken's market share will be 8% from 5% currently.

It is buying Krusovice, locally known as the Royal Brewery of Krusovice founded in 1517, from German Radeberger Gruppe KG brewer.

Krusovice currently accounts for about 3% of domestic beer sales and brews some of the oldest Czech beer brands.

No financial details of the transaction were disclosed.

The Czech domestic beer market is dominated by Plzensky Prazdroj, a local unit of SABMiller PLC (SAB.JO), and Pivovary Staropramen AS, a unit of InBev (INB.BT).

With its latest acquisition Heineken is set to become the Czech market's fourth-largest brewer, after state-owned Budejovicky Budvar NP. Heineken already holds a significant Slovak domestic market share.

Malt markets in July were active in different ways, market analysts commented. Domestic EU business for crop 2007 malt was limited, as most brewers must have covered their demand by now.

The U.K. reported some business, new crop malt is traded traditionally later in Great Britain than on the Continent. Export inquiries from traditional customers in Brazil, Venezuela and Thailand were partly serviced, another part is still being negotiated, or the malt must still be found.

Non-traditional customers from Eastern Europe, Asia and Latin America fared even worse, their request for malt offers, partly for delivery in 2007, could not be positively answered. No doubt, there is a lack of malt in the world for 2007 and 2008. International brewing concerns, which work part of their malt procurement on basis of LTA’s with open barley price basis, are watching barley markets and crops nervously.

Prices have risen constantly and have reached in some cases EUR 500,- per ton ex factory in the EU and even US$ 700,- ex works in North America. Prices, which looked unduly high on one day, became fully reasonable the next day in line with the rising barley markets.

Barley production for 2007-08 is forecast by Agriculture and Agri-Food Canada (AAFC) to increase by 25% to 12.0 Mt, close to the 10-year average, due to a larger seeded area, according to Grains and Oilseeds Outlook, August 7. Supply is expected to increase by 5% due to significantly lower carry-in stocks.

Exports are forecast to rise sharply, while domestic use is expected to be marginally higher. Carry-out stocks are projected to decrease by 13%. The average off-Board feed barley price (No. 1 CW I/S Lethbridge) is forecast to remain at a historically high level, but average marginally lower than in 2006-07, as the increased supply and strength of the Canadian dollar is expected to more than offset the support of slightly higher US corn prices.

Weather improved somewhat and only temporarily, but farmers are using every dry minute to cut their fields, analysts’ report published on August 1st . Wet fields make it impossible for the heavy combines to enter fields in many places.

Winter barley harvests are finished in France and Germany, about 80 % done in England, well advanced also in Denmark. Results are similar everywhere: Yields down by 10 – 20 %, proteins higher than usual, but exceeding 12 % only in parts of France and Germany.

Spring barley harvest approaches the 60 – 70 % mark in France, somewhat less in Germany. The results are variable, on average disappointing as to yields, plumpness, and most of all protein contents. Prospects in the U.K. and Denmark, where harvesting of spring barley has just commenced, are definitely better.

The positive aspect of the whole barley crop in the EU is a good sanitary condition, in spite of all the precipitation in July.

Markets are: French 2rs barley, basis July FOB Creil EUR 275, FOB Moselle 285, 6rw barley EUR 30 - 35 lower. Danish and U.K. 2rs barley, October, FOB seaports are EUR 270, U.K. 2rw barley 235 – 240, German 2rs barley, October, delivered industries EUR 280 – 290.

For comparison feed barley markets are: basis July, delivered Rouen EUR 195, Sept –Dec, delivered Holland/Northwest Germany 213 – 118.