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E-Malt.com Newsletter 06a
February 04 - February 06, 2008
Open!
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Quote of the week

"To accomplish great things, we must not only act, but also dream; not only plan, but also believe."
Anatole France
Currency Rates
Base Currency: Euro, EUR
on 06-February-2008

1 EUR = 1.475 USD
1 EUR = 0.7488 GBP
1 EUR = 1.473 CAD
1 EUR = 1.6312 AUD
1 EUR = 157.76 JPY
1 EUR = 2.5906 BRL
1 EUR = 36.2627 RUB
1 EUR = 10.6123 CNY
Base Currency: US Dollar
on 06-February-2008

1 USD = 0.678 EUR
1 USD = 0.5077 GBP
1 USD = 0.9987 CAD
1 USD = 1.1059 AUD
1 USD = 106.962 JPY
1 USD = 1.7564 BRL
1 USD = 24.5855 RUB
1 USD = 7.195 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend
February 06, 2008
Crop 2007 Crop 2008
2rs Barley €311.0-313.0 2rs Barley €299.0-301.0
6rw Barley €267.0-269.0 6rw Barley €257.0-259.0
2rs Malt €571.5-573.5 2rs Malt €545.5-547.5
6rw Malt €516.0-518.0 6rw Malt €493.0-495.0

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


Top Industry News

UK & Netherlands: SABMiller secures $1.2 bln Grolsch takeover and becomes the world’s biggest brewer ahead of InBev ...Click here
Japan: Asahi Breweries profit down in 2007, sees rise in 2008 ...Click here
Papua New Guinea: SP Brewery to invest K90 million in production expansion ...Click here
Bulgaria: Boliarka beer to be exported to the USA ...Click here
Australia: Coopers Brewery to export beer into Sweden and Vietnam ...Click here
France: France should organize itself better to ensure its leadership on barley-malt world market ...Click here
Denmark, Sweden & Finland: Barley market rather quiet ...Click here
Canada: Higher barley production and lower prices for 2007-2008 ...Click here
Australia: Victorian barley Buloke approved for malting and brewing status ...Click here
USA: Barley market prices continue to climb ...Click here




Czech Republic: K Brewery Group buys Platan beer maker ...More Info
Denmark & Netherlands: EU inquiry deadline for Carlsberg buy of Scottish & Newcastle assets March 7 ...More Info
Nigeria: Champion Breweries reports a fantastic 12% increase in turnover for 2006 ...More Info
USA: Heineken opens demand point in Savannah ...More Info
Uganda: Bar operators warned against freezing beer ...More Info
Canada: Government committed to delivering barley marketing freedom to Western Canadian farmers ...More Info
Ukraine: Farmers will reseed barley areas affected by frost ...More Info
Australia: Victoria, NSW and South Australia barley pools remain constant ...More Info
Australia: ABB’s grower indicator rate to rise ...More Info
Go to our news database with more than 12121 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

UK & Netherlands: SABMiller secures $1.2 bln Grolsch takeover and becomes the world’s biggest brewer ahead of InBev

SABMiller, the world's second-biggest brewer, has acquired 94.7 percent of Grolsch NV shares, securing its 816 million euro ($1.2 billion) takeover of the Dutch brewer, Reuters reported February 6.

SABMiller, which has offered to buy Grolsch at 48.25 euros a share, said in a statement on Wednesday its bid was unconditional and shareholders who had not yet offered their shares could tender them until February 20.

About 79.9 percent of shares were tendered by Grolsch shareholders, in addition to 14.8 percent of shares it had bought, SABMiller said.

SABMiller had secured support from the key family shareholders which owned 37 percent of the Dutch brewer before making its bid.

The deal is a sign of consolidation in the global brewing industry as brewers look to cut costs as input prices for malting barley and aluminum cans have risen and to create a bigger platform for their top brands.

London-based SABMiller, which makes Miller Lite, Castle and Peroni beers, has said it planned to expand the Grolsch brand across Africa and Latin America, where the premium beer market is still in its infancy.

The Dutch company is best known for its Grolsch premium pilsner and its green swing-top bottles, first introduced in 1897. Grolsch currently makes the ...More Info


Japan: Asahi Breweries profit down in 2007, sees rise in 2008

Japan's Asahi Breweries Ltd posted a 2 percent fall in operating profit for, hit by a sharp increase in malt and aluminium prices, and it sees a profit rise for 2008, according to Reuters, February 5.

Japan's biggest beer company said its 2007 operating profit was 87 billion yen, marking the third straight year of profit decline, though the firm had managed to keep its domestic beer shipments at the previous year's level in the face of a continued fall in the overall market.

Faced with rising raw materials costs, Asahi and its rivals have decided to raise prices of beer sold in Japan this year -- the first price hike in 18 years.

For 2008, the brewer, known for "Super Dry" beer, forecast an operating profit of 92 billion yen, up 5.8 percent from last year and compared with an 89.6 billion yen consensus in a poll of 14 analysts by Reuters Estimates.

Hit by an ageing population and diversifying tastes, Japan's beer market has been in decline for more than a decade, with total volume shrinking more than 10 percent since the peak in 1994.

Defection from beer is likely to accelerate this year due to price hike. Asahi has said it expects ...More Info


Papua New Guinea: SP Brewery to invest K90 million in production expansion

SP Brewery announced it will invest K90 million to expand production at its breweries in Port Moresby and Lae, The National published February 5. It is the brewery’s largest investment in its two plants in over two decades.

“The expenditure has been approved due to the company’s confidence in the growth of the local market, caused largely by the positive economic conditions,” SP Brewery (SPB) board chairman Sir Joseph Tauvasa said yesterday.

“The 2008 National Budget parameters handed down by the Somare Government has given the confidence to the board of SPB to further invest in the company’s infrastructure, namely the expansion and upgrading of our brewing facilities,” he added.

“Capacity will be increased from 60 million litres to 95 million litres during the period which the (SPB) board believes to be sufficient to cater for growing domestic demand servicing our export ambitions to Pacific Island countries, Australia and beyond.”

This is the company’s first major investment since the late 1980s. According to Sir Joseph, the investment project would be spread over three years which the company hoped would limit disruptions to its operations.

“The expanded brewery (facilities) will allow us to produce our brands more efficiently and help us meet competitive threats should the need ...More Info


Bulgaria: Boliarka beer to be exported to the USA

Bulgaria's brewery 'Boliarka VT' (Veliko Turnovo) launches beer export to the USA, money.bg informed February 6.

First quantities of beer will go to the gambling Mecca of Las Vegas this spring, reported Anton Nenov, executive director of 'Boliarka VT'.

The state of Nevada was chosen due to the biggest Bulgarian colony in the States.

The export will include almost the entire portfolio of the brewery - light, dark and special beer.

The brewery works in Veliko Turnovo city (Central Bulgaria) is the biggest beer exporter in Bulgaria. Last years' export was 58,000 hectoliters ('Bolirka VT' - 33,000).

About 6% of the produced beer is for the foreign market, mainly for South Romania. The export started in April last year

Greece and Spain also import Bulgarian Boliarka beer.

According to the brewery data the sold beer in 2007 is 10% more compared to the previous year. The brewery stands at 4th place in the country.

The incomes from sales for 2007 were 35 million BGN (17 million EUR). Round 3 million EUR will be invested in 2008 in new equipment and repairs of storage rooms.


Australia: Coopers Brewery to export beer into Sweden and Vietnam

Coopers Brewery has opened up new export markets into Sweden and Vietnam, according to company’s press release, February 6.

The first shipments of beer to the two countries left Adelaide this month (February) and are expected to arrive in the next two to three weeks.

Coopers Chairman and Marketing Director, Mr Glenn Cooper, said the consignment to Sweden comprised four containers of Stout and resulted from Coopers winning a quota to supply beer from the Swedish Government.

“In Sweden, the government regulates the sale and distribution of all alcohol and exporters need quotas before they can send product to that country,” he said. “The Swedish government recently tendered for the supply of Stout and we were successful in obtaining a quota.”

Mr Cooper said Coopers already exported beer directly into Finland and Norway as well as Belgium and Germany.

He said the shipment of Pale Ale, Sparkling Ale and Stout being sent to Vietnam had been arranged through the Annan Group, a specialist gourmet retailer. Mr Cooper said that while Coopers beers had previously been sold in Vietnam, they had been sent there by agents based in Singapore and Malaysia.

Exports accounted for 3% of Coopers total sales during 2006-07.


Malt News

France: France should organize itself better to ensure its leadership on barley-malt world market

France is one of the world’s leaders in the field of barley and malt, but it should organize better to be sure of maintaining its leadership, AGRA Press reported February 3.

“In a free world market, France has the infrastructure and the expertise in the network barley-malt-beer, that ranks it among the leaders”, according to Philippe Lehrmann from Boortmalt group.

France malt production constitutes 15% of European Union’s total production and the malt export is of 30%.

The 2006/2007 production campaign hasn’t brought the forecasted results both in volumes and quality. The prices exploded and destabilized the existing weak equilibrium. The trading logic is no longer applicable to current market conditions. The volatility has taken control of the sector and the trading conditions should be reviewed in order to resist the market mutation.

One of the solutions for that are the “option contracts” very popular in colza. In this type of contract each party fixes its own price on the future market independently of the other. The system will allow each unit of the network to manage the price volatility.


Barley News

Denmark, Sweden & Finland: Barley market rather quiet

Market commenced rather quiet, everyone watching France which “played” firm without real turnover, H. Abildstrøm & Co ApS reported February 4. Then in the middle of the month some brewers again took some malt for 08-09 which immediately was felt in the barley market here advancing prices for crop 07 by 3€ and 08 by 4-7 €.

Crop 2007

A few cargoes were changing hands, mainly trading house sellers. Recently during the latest weeks, however, we have seen Swedish, Finnish and Danish farmers showing up with minor quantities which have had a dampening effect on the prices here.

Rumours and concrete information about weak germinative energy have been spreading since November 07 and definitely there are problems here and there in Denmark, a little bit in Sweden and we hear also found in south of England. This is not caused by bad handling, late drying or cooling but apparently the play of the nature which did not accept to land exactly on the contracted 95% of 5 days but rather between 2-3% below and 3-4% above. Our opinion: for every 1% lower than 95% germination the maltsters can expect a considerable amount of barley (30 – 60.000 ts ?) to be ...More Info


Canada: Higher barley production and lower prices for 2007-2008

While area seeded to barley is forecast to increase marginally from 2007-2008, production is projected to increase by 10% to 12.1 Mt, assuming trend yields, according to Agriculture and Agri-Food Canada, January 30. Total supply is expected to increase at a slower pace, as a result of lower carry-in stocks.

Domestic feed consumption is projected to increase, as a result of increased supplies and lower prices. Assuming normal crop quality, barley exports, including exports of barley products, are expected to decrease to 2.4 Mt, from 2.8 Mt for 2007-2008. Feed barley exports are forecast to decrease significantly, as exportable supplies increase for both Australia and the Black Sea region.

Carry-out stocks are expected to rise by over 20% to 1.6 Mt. Domestic feed barley prices are forecast to decrease by $20/t, from a record high expected for 2007-2008 of $205/t for 1CW, I/S Lethbridge. The CWB pool returns for malting and feed barley are projected to decrease.


Australia: Victorian barley Buloke approved for malting and brewing status

The Victorian-bred barley line, Buloke, has been approved for malting and brewing status and given formal Barley Australia Accredited Variety status, following extensive testing and trialing around Australia under the Australian barley industry’s Malting and Brewing Industry Barley Technical Committee (MBIBTC), Barley Australia reported January 31.

Barley Australia Chairman David Thomas said the elevation of Buloke to malting status offered the marketplace increased choice in quality Australian malting barleys.

“This variety is ready to go to the market place complete with quality data that has been endorsed by the Australian malting and brewing industry following the comprehensive evaluation it has been through.

“Because of this, it enables purchasers to have confidence in the processing performance of the parcel they buy,” Mr Thomas said.

Buloke barley was bred by Mr David Moody of the Victorian Department of Primary Industries at Horsham. It was one of several elite lines to come from the former Malting Barley Quality Improvement Program (MBQIP), a valued collaboration of industry and government investment in barley breeding.

Buloke is licensed to and available through AWB Seeds.


USA: Barley market prices continue to climb

Despite the cold weather, barley prices showed no signs of cooling off as they continued their upward journey the past two weeks, Farm & Ranch Guide reported February 2.

Malting barley prices are either above $6 a bushel or close to it on the majority of elevator boards, and feed barley prices aren't far behind.

Malting prices continue to creep higher as the maltsters try to coax what barley remains out there on the farm into the market, according to Kelly Kotowicz at the Alvarado Farmers Elevator in Alvarado, Minn.

“They're trying to bust some barley loose and get some stuff bought up,” Kotowicz said. “In many parts of the barley producing regions the crops were off by as much as 15 to 20 percent in 2007, and they are out looking for bushels to make up for those smaller yields.”

Another factor that figures into the equation is uncertainty of where barley acreage will be in 2008. If plantings are smaller due to competition from other crops, that could have a negative impact on malting barley supplies.

“There are a lot of undecided acres out there yet, and I think that will happen all the way to the end,” he said. “It seems like ...More Info

Scientific Digest

The influence of gypsum treatment on the acquirement of nutrients from soils by barley

J. Matula, M. Pechová Research Institute of Crop Production, Prague-Ruzyne, Czech Republic

Abstract
The aim of the present paper was to determine the impact of gypsum treatment of soils on initial growth and nutrient uptake by spring barley. Topsoil from 36 different farmed fields was used for the research. Two variants were established for each soil: control – without gypsum application, and response variant – with the application of 3.3 ppm CaSO4.2 H2O. Barley was grown on these soils for 21 days in a plant growth chamber under controlled conditions of cultivation. Concentrations of nutrients (N, NO3 –, P, S, K, Mg, Ca, Na, Fe, Mn, Zn, Cu, B and Mo) were determined in the yield of barley shoot biomass. Paired t-test was used for the evaluation of results. After the gypsum treatment the yield of barley shoot biomass was significantly higher (by 15% on average) and nitrogen utilisation was better on all soils. The concentration of sulphur increased five times on average and Ca concentration increased by 22%. Significant increases were measured in Mg, Mn and Cu. Insignificant differences were recorded in K, Na, Fe and Zn. The uptake of anion nutrients (P, B and Mo) was influenced significantly. The concentration of P and Mo decreased on average by 28% and 31%, respectively. B concentration was higher by 10% on average. Keywords: soils; gypsum; nutrient uptake; barley; N; P; S; K; Mg; Ca; Na; Fe; Mn; Zn; Cu; B; Mo
... Load full article, 8 pages, 138 Kb, PDF file

Malting barley prices.
French barley prices. Nominal prices
EURO = USD 1.475 February 06, 2008 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  314.00  463.50  302.00  445.50 
2RS  Prestige  313.00  462.00  301.00  444.00 
2RS  Cellar  312.00  460.50  300.00  442.50 
2RS  Sebastien  311.00  459.00  299.00  441.50 
2RS  Astoria  311.00  459.00  299.00  441.50 
2RS  Cork   311.00  459.00  299.00  441.50 
6RW  Esterel   268.00  395.50  258.00  380.50 

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

Theoretical malt prices

EURO = USD 1.475 February 06, 2008
Crop year  2007 
Parity  FOB Antwerp 
Position  Feb 2008 - Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  574.50  847.50  598.50  882.50  590.50  870.50  604.50  891.50 
2RS  Prestige  573.50  845.50  597.00  880.50  589.00  868.50  603.00  889.50 
2RS  Cellar  572.50  844.00  596.00  879.00  588.00  867.00  602.00  888.00 
2RS  Sebastien  571.00  842.00  594.50  877.00  586.50  865.00  600.50  886.00 
2RS  Astoria  571.00  842.00  594.50  877.00  586.50  865.00  600.50  886.00 
2RS  Cork   571.00  842.00  594.50  877.00  586.50  865.00  600.50  886.00 
2RS   Average price  572.50  844.00  596.00  879.00  588.00  867.00  602.00  888.00 
6RW  Esterel   517.00  764.00  542.00  799.00  533.50  787.00  548.00  808.00 
Asia Malt 70/30  556.00  820.00  579.50  855.00  571.50  843.00  585.50  864.00 
**  Asia Malt 50/50  545.00  804.00  569.00  839.00  560.50  827.00  575.00  848.00 


EURO = USD 1.475 February 06, 2008 
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  549.00  809.50  572.50  844.50  564.50  832.50  578.50  853.50 
2RS  Prestige  548.00  808.00  571.50  843.00  563.50  831.00  577.50  851.50 
2RS  Cellar  546.50  806.00  570.50  841.00  562.00  829.00  576.50  850.00 
2RS  Sebastien  545.50  804.50  569.00  839.50  561.00  827.50  575.00  848.00 
2RS  Astoria  545.50  804.50  569.00  839.50  561.00  827.50  575.00  848.00 
2RS  Cork   545.50  804.50  569.00  839.50  561.00  827.50  575.00  848.00 
2RS   Average price  546.50  806.00  570.50  841.00  562.00  829.00  576.50  850.00 
6RW  Esterel   494.00  730.00  518.50  765.00  510.50  753.00  524.50  773.50 
Asia Malt 70/30  531.00  783.50  554.50  818.50  546.50  806.50  561.00  827.00 
**  Asia Malt 50/50  520.50  768.00  544.50  803.00  536.50  791.00  550.50  812.00 

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: E-malt.com (Based on French Malting Barley Prices)

Table of the week

Canada: Barley Supply and Disposition as of January 30, 2008

  2006-2007 2007-2008f 2008-2009f
  Seaded area, '000 ha 3,690  4,397  4,420 
  Harvested area, '000 ha 3,223  3,998  3,950 
  Yield, tonne/ha  2.97  2.75  3.06 
  Production, '000  metric tonnes 9,573  10,984  12,100 
  Imports, '000 metric tonnes 43  35  35 
  Total Supply, '000 metric tonnes 12,905  12,511  13,435 
  Exports, '000 metric tonnes  1,988  2,800  2,400 
  Food & Industry Use, '000 metric tonnes 147  150  150 
  Feed, Waste, Dockage, '000 metric tonnes 8,896  7,861  8,885 
  Total Domestic Use, '000 metric tonnes 9,426  8,411  9,435 
  Carry-out Stocks, '000 metric tonnes 1,492  1,300  1,600 
  Average Price, CA$/tonne 165  195-215  175-195 

f: forecast, Agriculture and Agri-Food Canada, January 30, 2008
Graph Of The Week


Source: HGCA

These Days in Business History
February 4
1847 1st US telegraph company established in Maryland
1874 Robert Liefmann, German economist is born
1917 Belgium Council of Flanders established
1957 1st electric portable typewriter placed on sale (Syracuse NY)

February 5
1817 1st US gas co incorporated, Baltimore (coal gas for street lights)
1850 Adding machine employing depressible keys patented, New Paltz, NY
1878 Andre-Gustave Citroen is born, France, auto maker

February 6
1953 US controls on wages & some consumer goods were lifted
1964 France & Great-Britain sign accord over building channel tunnel
1974 Dutch speed limit set at 100 km due to oil crisis
Agenda