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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Barley news
More news
Scientific Digest
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

September 28, 2007
Crop 2007
2rs Barley €327.0-329.0 0.92%
6rw Barley €297.0-299.0 1.02%
2rs Malt €566.0-568.0 0.71%
6rw Malt €528.0-530.0 0.67%
Crop 2008
2rs Barley €292.0-294.0 1.03%
6rw Barley €259.0-261.0 1.17%
2rs Malt €519.5-521.5 0.68%
6rw Malt €478.0-480.0 0.74%

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 39a, 2007

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Newsletter 38b, 2007

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Newsletter 38a, 2007

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Newsletter 37b, 2007

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Newsletter 37a, 2007



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Africa Beer Production

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Chinese Barley Consumption, Production and Imports 1997/98-2007/08f

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E-malt.com Newsletter 39b
September 27 - September 30, 2007

Quote of the week

"Great spirits have always encountered violent opposition from mediocre minds."

Albert Einstein


Currency Rates
Base Currency: Euro, EUR
on 28-September-2007

1 EUR = 1.4145 USD
1 EUR = 0.7001 GBP
1 EUR = 1.4186 CAD
1 EUR = 1.6103 AUD
1 EUR = 163.435 JPY
1 EUR = 2.6103 BRL
1 EUR = 35.3083 RUB
1 EUR = 10.6436 CNY
Base Currency: US Dollar
on 28-September-2007

1 USD = 0.707 EUR
1 USD = 0.4949 GBP
1 USD = 1.0029 CAD
1 USD = 1.1384 AUD
1 USD = 115.549 JPY
1 USD = 1.8454 BRL
1 USD = 24.961 RUB
1 USD = 7.5244 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Peru: Backus beer company to improve plant with US$250 million program... Click here

Poland: Rising prices fail to stop record beer sales... Click here

World: Premium beers performance is fantastic with 8% growth per year... Click here

Australia: Yatala Brewery to keep producing... Click here

China: Beer market still very fragmented... Click here

Bulgaria: Bulgarian top brewery Zagorka expands... Click here

Ukraine: Brewers steadily increase production capacity... Click here

Belgium: InBev to move 'maximum' 21 jobs from Leuven HQ to Czech Republic, Hungary... Click here

USA: Barley markets continue their price surge at record high levels... Click here

Europe: 2007 malting barley crop again disappointing... Click here

Canada: CWB to allow private barley contracts... Click here

More News
Canada: CWB releases September barley Pool Return Outlook for 2006-07 and 2007-08 crop years ... More Info

USA: Colorado - the largest beer producer in the country ... More Info

UK: Scottish & Newcastle appoints John Dunsmore as new Chief Executive ... More Info

Ukraine: Alfa Laval wins beer industry order for two breweries ... More Info

UK: SABMiller’s shares maintained "outperform" and rated “hold” ... More Info

India: Cobra Beer plans to invest $30 million to build 3 breweries in India ... More Info

India: United Breweries to raise Rs 425 cr through rights issue ... More Info

USA: Weyerbacher begins brewing pumpkin beer ... More Info

USA: Heineken launches Premium Light 'Irresistible' campaign ... More Info



Brewery News
Peru: Backus beer company to improve plant with US$250 million program

Peru's President Alan Garcia attended a special ceremony in which the beer manufacturing company, Backus presented its investment plan for the upcoming year, LIP reported September 26.

Robert Priday, president of Backus announced that the beer company planned to invest $US250 million in a project which is to be carried out within the next year.

It was announced that the multi-million dollar project has been targeted primarily towards the purchase of machinery that will allow the beer company to massively increase its production nationwide. Moreover, the project has been designed to improve logistics so that its products are received by consumers in an optimum state.

Priday reported that the beer production plant in Motupe, Lambayeque, Peru would receive over US$11 million, an investment which would increase capacity by 50 percent and allow the plant to produce over 200 million liters of beer annually. This has been reported to be the second most important factory in Peru.

The Backus president proudly announced that due to the million dollar program the latest technology would be purchased and the beer production process would be greatly improved all around.

"Peru is in a great moment in which it can receive investments from around the world," stated President Alan ...
More Info


Poland: Rising prices fail to stop record beer sales

Beer sales soared unexpectedly in the eight months to the end of August, jumping by 12% compared to the same period a year ago, according to data released by ZPPP, the industry body, Puls Biznesu published September 28.

Brewers sold 25.4 million hectolitres of beer over this period, up from 22.7 million, and per capita beer consumption hit 95 litres, significantly above the 90 litres considered by analysts to reflect the long-term potential of the Polish market.

The strong figures, which came despite bad weather and the fact that last year's figures were boosted by the football World Cup, took even brewers by surprise. "This is a fantastic and surprising result," said Marcin Piróg, spokesman for Carlsberg Polska. He attributed the increase to strong economic growth and rising disposable incomes, but also to changing consumer habits as a result of brewers' successful efforts to develop their offer and promote a beer culture. "Poles now consume beer the Czech way, i.e. almost on a daily basis".

Sales growth was fastest at Kompania Piwowarska, the market leader, up by 17%, helping it to increase its market share to 40%. Żywiec, the number two player, saw sales increase by 14%, whereas Carlsberg reported a ...
More Info


World: Premium beers performance is fantastic with 8% growth per year

The dynamic growth of the Premium and Superpremium sectors has been one of the global Beer market’s key recent developments, Canadean reported September 26.

According to a brand new special report from leading beverage industry analysts Canadean, over the last five years, sales of Premium and Superpremium Beer have grown by an average of 8% per annum and at twice the rate of Discount and Mainstream alternatives.

Driven by consumers and producers alike, this success can be attributed to a number of factors. Consumer tastes are changing and, armed with increasing disposable incomes, many consumers have ‘upgraded’ to the more expensive brands. There has also been a cultural shift away from the traditional ‘session’ drinking. Instead, there is a growing tendency for consumers to drink lower quantities of stronger Beer.

Meanwhile, attracted by the higher margins, the major brewers have all added Premium and Superpremium Beers to their portfolios. These brands have been targeted towards specific markets and supported strongly by extensive promotional campaigns. Of the major brewers, the portfolios of Heineken and Carlsberg are influenced most heavily.

Heineken has focused on its Premium Heineken and Amstel brands in addition to product and packaging innovations. Organic growth has been coupled with ...
More Info


Australia: Yatala Brewery to keep producing

Foster's Group Limited (Foster's) has hit back at claims by unions that up to 200 employees are set to take industrial action at the company's Yatala brewery, Foster’s announced in a press release, September 27.

Foster's General Manager Yatala, Noel Jago, said that the LHMU, AMWU and ETU were deliberately misleading the public by suggesting that the vast majority of the company's workforce would walk off the job.

"The three unions involved have just conducted a secret ballot over a proposal to take protected action," he said.

"However, what the unions haven't communicated is that only half of the 295-strong workforce at Yatala are actually union members and therefore participated in the vote.

"Of that number, only 93 people voted in favour of taking industrial action, with a majority of these indicating a preference for 4 hour stoppages.

"This translates to just 31% of the Yatala workforce voting in favour of the action, hardly the 'vast majority' to which the unions keep referring in their vocal campaign against us," he said.

"Only union members will be able to participate in the action, which means that whatever happens, at least half of our workforce will still be on the job."

Mr Jago said that Foster's was yet to ...
More Info


China: Beer market still very fragmented

The Chinese beer market is still a fragmented market with the top four breweries in China controlling only 45% of the total market share, Business Wire reported September 28.

The beer market in China is not national - it is an aggregation of local markets with each region having specific tastes, preferences and spending pattern. As a result of the localized nature of the beer market, small regional breweries dominate these fragmented markets. These regional local brands have a nationwide market share of less than 2%.

Foreign breweries have time and again tried to penetrate the Chinese beer market with differentiated strategies. The foreign breweries like SABMiller, Inbev and Anheuser-Busch with global presence and financial clout have entered the Chinese market through joint ventures/partnerships with domestic breweries. These global firms, mostly in partnerships with national breweries have opted for inorganic growth by acquiring the small regional players and as a result the fragmented market with the total number of breweries exceeding 800 has now reduced to around 500.

The Chinese beer market is still a fragmented market with the top four breweries in China controlling only 45% of the total market share. China Resources Snow Breweries is the top brewery ...
More Info


Bulgaria: Bulgarian top brewery Zagorka expands

Bulgarian brewery Zagorka AD will invest 15 million EUR for extension the capacity of the brewery situated in Stara Zagora, stated company's general manager Jan Derck van Karnebeek, according to Bulgarian press, September 28.

New warehouse will also be added to the plant site.

The investment project for 2009 foresees funds for an increase in the bottling capacity and for the introduction of a new filtration line.

The market share of the company is estimated at over 30%, which is an increase compared to the same period last year.

The growth in the sales is round 15.5%.

Zagorka's profits for the first 6 months of 2007 goes to 3.9 million EUR, without interests and taxes included.

For 13 years on the market, in the local brewery were invested more than 90 million EUR.


Ukraine: Brewers steadily increase production capacity

Ukrainian brewers produced 22.56 mil hl of beer in January-August 2007, 17.8% more than in the same period of 2006 when the production constituted 19.16 mil hl, according to Russian Beer Union, September 28.

According to ZAO “Ukrpivo” forecasts, beer production is to increase 12% in 2007 and will be around 30 mil hl.

Also, according to sector analysts, beer consumption will also increase this year from 55 to 60 liters per capita.

Ukrainian beer export has increased 6 times in the last six years. The production is exported in 30 countries.

95% of the beer is produced by 4 companies: ZAO “Obolon”, OOO “SAN Interbrew Ukraine”, BBH and “Sarmat”.


Belgium: InBev to move 'maximum' 21 jobs from Leuven HQ to Czech Republic, Hungary

InBev SA said it is its 'intention' to move 'a maximum' of 21 jobs from the Belgian brewer's headquarters in Leuven, Belgium, to the Czech Republic and Hungary, according to AFX News Limited, September 27.

A spokeswoman said the group continues to analyse the details of the move and also decide on whether affected staff can be relocated internally.

The spokeswoman also dismissed a report, seen in daily Le Soir, and citing local press, that jobs would also move to Romania.

Barley News
USA: Barley markets continue their price surge at record high levels

Backed with good feed barley export numbers and prospects of lower carryover stocks, barley prices continued on the upward journey in record-breaking areas the past two weeks, Farm & Ranch Guide reported September 27. Malting barley prices climbed to $5.25 a bushel in several locations and pulled feed barley prices along with them, with some elevators quoting the same price for feed barley.

However, John Zietz, barley supply chain manager for Cargill Malt, said a more accurate description of the situation is feed barley prices are pushing malting barley prices higher.

He noted there might be some price support over concern for dwindling barley supplies and the high prices for all major commodities, but they play a minor role when compared to current export figures.

The 2007 barley crop was good in some areas and a little disappointing in others.

“I would call the crop in North Dakota the proverbial mixed bag, because you always have areas where they have hail, too much rain or not enough. But we did have better topsoil and subsoil moisture going into the spring season, so that helped. And we did have some of that late heat, which hit the crop harder than it should have,” he said.

“I ...
More Info


Europe: 2007 malting barley crop again disappointing

This year’s malting barley crop in Germany has again been a disappointment, analysts of Bestmalz reported on September 26. In addition to a decline in the area of cultivation land of around 10% nationwide, a lack of rain in April also contributed to the below average crop. The low crop entails an average protein level of the delivered malting barley of around 12%. The low crop yield and the price development of the past weeks have caused the malt industry to tolerate barley with a protein level of up to 13% upon delivery. The sorting of the barley varies greatly depending on region. The changeable weather conditions during the crop led to goods containing more moisture than usual compared to last year. The main malting barley variety in Germany continues to be Braemar as well as, to a limited extent, Auriga, Belana, Pasadena and Scarlett. Trials have been conducted with the new varieties Marthe and Power.

Similar experiences have also been noted in France, the Netherlands, Austria, Czech Republic and Poland . Here, too, low crop yield and high protein levels characterise the crop; the situation is slightly better in Great Britain and Scandinavia. The most important varieties in the EU ...
More Info


Canada: CWB to allow private barley contracts

Despite a court victory maintaining its monopoly, the Canadian Wheat Board has decided to allow private contracts for about 500,000 tonnes of barley to stand, Sun Media Corporation reported September 25.

The contracts were signed after former agriculture minister Chuck Strahl announced in June that the wheat board's monopoly on barley marketing would end.

The wheat board said now that it's allowing those contracts to stand because it's important to Canada's reputation as a reliable supplier.

Demand for all grains is so keen that the wheat board expects farmers will be sweeping their bins clean.

Scientific Digest
Interactions between barley .ALPHA.-amylases, substrates, inhibitors and regulatory proteins

Authors
SVENSSON BIRTE(Technical Univ. Denmark, Kgs. Lyngby, Dnk) BOZONNET SOPHIE(Technical Univ. Denmark, Kgs. Lyngby, Dnk) BOZONNET SOPHIE(Carlsberg Lab., Copenhagen Valby, Dnk) WILLEMOEES MARTIN(Technical Univ. Denmark, Kgs. Lyngby, Dnk) WILLEMOEES MARTIN(Carlsberg Lab., Copenhagen Valby, Dnk) HACHEM MAHER ABOU(Technical Univ. Denmark, Kgs. Lyngby, Dnk) FUKUDA KENJI(Technical Univ. Denmark, Kgs. Lyngby, Dnk) FUKUDA KENJI(Carlsberg Lab., Copenhagen Valby, Dnk) KRAMHOFT BIRTE(Technical Univ. Denmark, Kgs. Lyngby, Dnk) KRAMHOFT BIRTE(Carlsberg Lab., Copenhagen Valby, Dnk) MAEDA KENJI(Technical Univ. Denmark, Kgs. Lyngby, Dnk) MAEDA KENJI(Carlsberg Lab., Copenhagen Valby, Dnk) HAEGGLUND PER(Technical Univ. Denmark, Kgs. Lyngby, Dnk) FINNIE CHRISTINE(Technical Univ. Denmark, Kgs. Lyngby, Dnk) BONSAGER BIRGIT C.(Technical Univ. Denmark, Kgs. Lyngby, Dnk) BONSAGER BIRGIT C.(Carlsberg Lab., Copenhagen Valby, Dnk) MORI HARUHIDE(Carlsberg Lab., Copenhagen Valby, Dnk) MORI HARUHIDE(Hokkaido Univ., Sapporo) SIGURSKJOLD BENT W.(Univ. Copenhagen, Dnk) ROBERT XAVIER(Ibcp, Lyon, Fra) JENSEN MALENE H.(Ibcp, Lyon, Fra) TRANIER SAMUEL(Ibcp, Lyon, Fra) AGHAJARI NUSHIN(Ibcp, Lyon, Fra) HASER RICHARD(Ibcp, Lyon, Fra) Journal Title;J Appl Glycosci

Abstract;
Barley .ALPHA.-amylase binds sugars at two sites on the enzyme surface in addition to the active site. Crystallography and site-directed mutagenesis highlight the importance of aromatic residues at these surface sites as demonstrated by Kd values determined for .BETA.-cyclodextrin by surface plasmon resonance and for starch granules by adsorption analysis. Activity towards amylopectin and amylose follows two different kinetic models, degradation of amylopectin being composed of a fast and a slow component, perhaps reflecting attack on A and B chains, respectively, whereas amylose hydrolysis follows a simple Michaelian kinetics. .BETA.-cyclodextrin binding at surface sites inhibits only the fast reaction in amylopectin degradation. Site-directed mutagenesis and activity analysis, furthermore show that one of the surface binding sites as well as individual subsites in the active site cleft have distinct roles in the multiple attack on amylose. Although the two isozymes AMY1 and AMY2 share ligands for three structural calcium ions, they differ importantly in the effect of calcium on activity and stability, AMY1 having the higher affinity and the lower stability. The role of the individual calcium ions is studied by mutagenesis, crystallography and microcalorimetry. Further improvement of recombinant AMY2 production allows future direct mutational analysis in this isozyme. Specific proteinaceous inhibitors act on .ALPHA.-amylases of different origin. In the complex of barley .ALPHA.-amylase/subtilisin inhibitor (BASI) with AMY2, a fully hydrated calcium ion at the protein interface mediates contact between inhibitor residues and the enzyme catalytic groups in a manner that depends on calcium and which can be suppressed by site-directed mutagenesis of Glu168 in BASI.... (author abst.)
... Load full article, 163 pages, 480 Kb, PDF file


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.4145 September 28, 2007 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  330.00  467.00  295.00  417.50 
2RS  Prestige  329.00  465.50  294.00  416.00 
2RS  Cellar  328.00  464.00  293.00  414.50 
2RS  Sebastien  327.00  462.50  292.00  413.50 
2RS  Astoria  327.00  462.50  292.00  413.50 
2RS  Cork   327.00  462.50  292.00  413.50 
6RW  Esterel   298.00  421.50  260.00  368.00 

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

Theoretical malt prices.
  EURO = USD 1.4145 September 28, 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  569.50  805.00  592.00  837.50  586.00  828.50  596.50  843.50 
2RS  Prestige  568.00  803.50  591.00  835.50  584.50  827.00  595.00  841.50 
2RS  Cellar  567.00  801.50  589.50  834.00  583.50  825.00  594.00  840.00 
2RS  Sebastien  565.50  800.00  588.50  832.00  582.00  823.50  592.50  838.50 
2RS  Astoria  565.50  800.00  588.50  832.00  582.00  823.50  592.50  838.50 
2RS  Cork   565.50  800.00  588.50  832.00  582.00  823.50  592.50  838.50 
2RS   Average price  567.00  801.50  589.50  834.00  583.50  825.00  594.00  840.00 
6RW  Esterel   529.00  749.50  552.50  781.50  546.50  773.00  557.00  788.00 
Asia Malt 70/30  555.50  786.00  578.50  818.50  572.50  809.50  583.00  824.50 
**  Asia Malt 50/50  548.50  775.50  571.00  807.50  565.00  799.00  575.50  814.00 


  EURO = USD 1.4145 September 28, 2007 
Crop year  2008 
Parity  FOB Antwerp 
Position  Oct 2008-Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  523.50  740.00  546.00  772.50  539.50  763.50  550.50  778.50 
2RS  Prestige  522.00  738.50  544.50  770.50  538.50  761.50  549.00  776.50 
2RS  Cellar  520.50  736.50  543.50  768.50  537.50  760.00  548.00  775.00 
2RS  Sebastien  519.50  734.50  542.50  767.00  536.00  758.50  546.50  773.00 
2RS  Astoria  519.50  734.50  542.50  767.00  536.00  758.50  546.50  773.00 
2RS  Cork   519.50  734.50  542.50  767.00  536.00  758.50  546.50  773.00 
2RS   Average price  520.50  736.50  543.50  768.50  537.50  760.00  548.00  775.00 
6RW  Esterel   479.00  679.00  503.00  711.50  496.50  702.50  507.50  717.50 
Asia Malt 70/30  508.50  719.50  531.50  751.50  525.00  742.50  535.50  757.50 
**  Asia Malt 50/50  500.50  708.00  523.50  740.00  517.00  731.50  527.50  746.00 

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

Prices Evolution
Prices evolution
Source: ABARE, September 2007
Table of the week
Canada: Barley Supply and Disposition as of September 17, 2007

  2004-2005   2005-2006   2006-2007   2007-2008 f 
  Seaded area, '000 ha 4,678  4,143  3,690  4,398 
  Harvested area, '000 ha 4,050  3,634  3,223  4,009 
  Yield, tonne/ha  3.26  3.21  2.97  2.96 
  Production, '000  metric tonnes 13,186  11,678  9,573  11,848 
  Imports, '000 metric tonnes 83  46  43  35 
  Total Supply, '000 metric tonnes 15,962  15,159  12,905  13,375 
  Exports, '000 metric tonnes  1,975  2,975  1,975  2,700 
  Food & Industry Use, '000 metric tonnes 268  167  167  180 
  Feed, Waste, Dockage, '000 metric tonnes 9,417  8,404  8,889  8,697 
  Total Domestic Use, '000 metric tonnes 10,073  8,894  9,438  9,275 
  Carry-out Stocks, '000 metric tonnes 3,435  3,289  1,492  1,400 
  Average Price, CA$/tonne 112  110  165  160-180 

f: forecast, Agriculture and Agri-Food Canada, September 17, 2007
Newsletter SummaryTop

Graph of the week

Source: IGC, August, 2007
These Days in Business History
27 September
1825 Railroad transportation is born with 1st track (Stockton-Darlington)
1968 France refuses UK entry into common market
1988 Senate votes for major federal tax code changes

28 September
1879 Sydney Australia inaugurates steam motor tram route
1923 Radio Times 1st published
1953 Dutch government proclaims 5% general pay increase on Jan 1, 1954

29 September
1915 1st transcontinental radio telephone message is sent
1950 Telephone Answering Machine created by Bell Laboratories
1979 Gold hits record $400.20 an ounce in Hong Kong

30 September
1452 1st book published, Johann Guttenberg's Bible
1988 IBM announces shipment of 3 millionth PS/2 personal computer
1997 Microsoft Corp releases Internet Explorer 4.0
Agenda
October 2007:
The International Brewing Convention 2007, UK
Newport International Oktoberfest, USA
Grain Market Outlook Conference & Cereals Industry Forum Conference 2007 , UK
Great American Beer Festival
World Beer Festival Durham , USA
Belgian beer and chocolat festival
Great American Beer Festival
Tasting Australia
Distillers Grains Quality & Utilization Short Course
2007 Master Brewers Association of the Americas Convention
Festival of Very Special Beers Belgium


November 2007:
14th Great International Beer Festival USA
The International Hop Growers' Convention (IHGC) Meetings, Germany
International convention for the drink technology and PET industry, India


December 2007:
Christmas Beer Festival Belgium

April 2008:
Craft Brewers Conference World Beer Cup Awards

More events are available on site e-malt.com

Copyright © E-Malt s.a. 2007