Base Currency: Euro, EUR on 07-July-2004 1 EUR = 1.2294 USD 1 EUR = 0.6673 GBP 1 EUR = 1.6320 CAD 1 EUR = 1.7250 AUD 1 EUR = 134.57 JPY 1 EUR = 3.7460 BRL 1 EUR = 35.6403 RUB	Base Currency: US Dollar on 07-July-2004 1 USD = 0.8138 EUR 1 USD = 0.5427 GBP 1 USD = 1.3275 CAD 1 USD = 1.4031 AUD 1 USD = 109.49 JPY 1 USD = 3.047 BRL 1 USD = 28.99 RUB
EUR/USD Chart

Thailand: Asia Pacific Breweries Ltd. announced on July 6 that Tiger Beer begins local brew in Thailand. Further extending its leadership position as a premium Asian beer, Tiger Beer is now brewed in Thailand by Thai Asia Pacific Brewery Co. Ltd (TAPB), making Thailand the 7th country to brew the popular beer according to Asia Pacific Breweries. TAPB is an associate company of SGX main board-listed Asia Pacific Breweries Limited (APB). Since its launch in Singapore in 1932, Tiger Beer has made inroads into many markets around the world. Today, Tiger Beer is available in more than 60 countries including the United Kingdom, the United States and the Middle East. Pleased that Tiger Beer is another step closer towards achieving its goal of becoming a major Pan-Asian beer brand, Mr Koh Poh Tiong, Chief Executive Officer, APB said, "Brewing Tiger Beer in Thailand adds one more piece to the Asian map for the growth of the brand." Tiger Beer has a strong following in Asia - it is the market leader in Singapore and one of the leading brands in Vietnam and Cambodia. It is also widely enjoyed in many European cities such as London, Manchester, Dublin, Glasgow, Berlin, Copenhagen, Stockholm and many others. Currently, APB is also intensifying its marketing efforts in USA, which has seen recent demand for Tiger Beer rise. Tiger Beer is not new to the Thai beer market as Singapore has been exporting it to Thailand since the 1930s. In view of Thailand's improving economic progress, its sizeable beer market and growing affluence of its population, APB and TAPB have decided that it is now timely to brew Tiger Beer in Thailand and enlarge its foothold in this community. "TAPB has already successfully gained about 80% of the Thai premium beer market with Heineken beer. Our next step, therefore, is to grow the premium beer segment and we believe that we can achieve this by brewing Tiger Beer locally...more info

Ireland: Belgian brewing force, Interbrew announced on 6th July 2004 its intention to sell its manufacturing facilities in Northern Ireland. Interbrew wrote in a press release that it is to seek a buyer for its manufacturing facilities at Bass Ireland's Ulster brewery in Belfast. This decision follows the loss of contract bottling volume at the brewery. A successful sale would include a long-term supply contract with Interbrew UK to brew and package beer for the markets in Ireland. The sale process has now commenced and will be concluded by September 2004. However, if a viable future cannot be secured for these manufacturing facilities, they will be closed in early 2005. The Bass Ireland Ulster Brewery was founded in 1897 and is the only major brewery in Northern Ireland. It brews and kegs Bass and Tennent's Lager and kegs Stella Artois for the Northern Ireland and Republic of Ireland market places. 285 people (80 within manufacturing) are employed by Bass Ireland and a further 75 in Interbrew Ireland in the Republic of Ireland. Interbrew is a publicly traded company (INTB - Euronext) based in Belgium. The company's origins date back to 1366, and today it is one of the leading global brewers. Interbrew's strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting its consumers first. Interbrew has a portfolio of more than 200 brands, including Beck's®, Stella Artois®, Leffe®, Hoegaarden®, Staropramen® and Bass®. It employs nearly 50,000 people, and runs operations in 21 countries across the Americas, Europe and Asia Pacific. In 2003, the company realized a net turnover of more than 7 billion euro...more info

Mexico: Mexican bottler and brewer Femsa announced on Monday, July 5, it plans to sell 2.5 billion pesos ($219 million) of local bonds to finance the repurchase of a 30 % stake in its beer unit owned by Belgium's Interbrew . Femsa, the second largest Coke bottler in the world and the No. 2 Mexican brewer, said in a statement the local debt would be sold on Tuesday to investors who offer the lowest rates in an auction. Femsa, brewer of Tecate, Dos Equis and Sol beers, said the debt would be offered in two tranches of 1.25 billion pesos each, one lot for four years and the other for five years, according to Reuters. In May, Femsa agreed to pay Interbrew $1.245 billion to unwind their 10-year-old partnership. Femsa said it would finance the operation -- in which it will take back the 30 percent stake Interbrew holds in Femsa's beer subsidiary -- through cash flows and new debt. Femsa filed a 5 billion peso ($437 million) debt program with the Mexican stock exchange in May.

South African and UK-listed SABMiller plc (SAB), one of the world's largest brewers by volume, plans to sell its entire 21% stake in South African retailer Edgars Consolidated Stores Ltd (Edcon, ECO) via a private placement, the group said in a statement. SABMiller said the disposal of 11.2 million shares in Edcon would be in the form of a global private placement to South African and international institutional investors outside the US, and to qualified institutional buyers (QIBs) inside the US, via an accelerated bookbuilding exercise to be led by joint bookrunners Citigroup and JP Morgan. The bookbuilding would begin immediately and was expected to close on Thursday, July 8. SABMiller initially acquired its holding in Edcon in 1982, the majority of which was unbundled prior to SABMiller's initial public offering on the London Stock Exchange in 1999. The group said the final disposal of its residual stake in Edcon was in line with its stated strategy of focusing on its core brewing and beverage operations, Business Day posted on July 6. Edcon would not receive any proceeds from the sale, the group added. As the announcement was made after the Monday market close, Edcon's shares did not react to the news. The stock closed 2% lower on the day, at 148.00 rand from 150.99 rand at Friday's close, with 41,189 shares having changed hands in 51 transactions on the day. SABMiller's 2003/04 lager sales volumes totaled in excess of 137 million hectolitres. It has a brewing presence in over 40 countries across four continents, while outside the US, it is one of the largest bottlers of Coca- Cola products in the world. In the year ended 31 March 2004, the group generated US$1.39 billion pre-tax profit from a turnover of US$12.645 billion. SABMiller plc is listed on the London and Johannesburg stock exchanges.

China: Shares in Guangdong Brewery soared on July 6 amid speculation about a possible overseas investment in the company. The shares rose by a third, rallying in the afternoon session in Hong Kong. “People are speculating that an overseas party (is interested) but I've not heard any concrete details,” Steven Leung, trader at UOB Kay Hian Holdings, told Reuters. A company official could not immediately be reached for comment. Guangdong’s shares closed at HK$2.70, their highest level since 1997. Last month, Heineken was reported to be considering increasing its stake in Guangdong. Earlier this year, Heineken Asia Pacific Breweries China Pte Ltd, Heineken’s joint venture with Singapore’s Asia Pacific Breweries (APB), acquired a 21.5% stake in the Chinese brewer.

Malt News

EU malt licence fixations July 2003 – June 29, 2004 were 2,432,075 tonnes as compared to 2.038 million tonnes in 2002/03. A plus of 400,000 tonnes looks enormous and is not realistic, analysts revealed. A statistical error is not excluded, and another explanation is that there was a carryover of long-term licences from 2001/02 to 2002/03 leading to reduced bookings in the latter year. “We daresay, however, that malt export shipments in the crop year 2003/04 have increased by up to 200,000 tons and not decreased, as was prognosticated last summer,” analysts wrote in a press release.

EU malt export licence fixations:

(in tonnes)	2000 - 2001	2001 - 2002	2002 - 2003	July 01, 2003 - June 29, 2004
France	523,190	701,134	661,772	774,761
Germany	305,980	468,314	408,063	422,047
Belgium	277,584	296,368	287,850	317,292
U.K.	254,793	350,621	294,995	443,501
Finland	65,550	91,890	100,758	114,165
Denmark	52,326	96,812	94,791	90,452
Sweden	50,847	101,000	76,916	78,369
Netherlands	54,835	51,310	66,219	80,703
Ireland	26,003	35,145	31,140	38,900
Austria	4,850	8,840	8,620	60,211
Spain	3,000	2,400	5,640	10,000
Greece	1,800	1,744	1,306	979
Portugal	340	221	85	695
Italy	-	-	2	-
Total old EU	1,621,098	2,205,799	2,038,157	2,432,075
New EU members                                                                   since May 01/2004
Czech Republic				34,340
Poland				7,604
Hungary				2,830
Slovakia				1,000
Total EU	1,621,098	2,205,799	2,038,157	2,477,849

	Total Wheat malt, tonnes
Total 2000/2001	4,686
Total 2001/2002	12,805
Total 2002/2003	30,908
July 01/2003 – June 29/2004	15,768
	Total Roasted malt, tonnes
Total 2000/2001	23,967
Total 2001/2002	23,480
Total 2002/2003	23,603
July 01/2003 – June 29/2004	23,821
New members	617

Malt business for the year 2004 has been reported to Romania, Russia and Ukraine. Quantities were quite substantial. Russia's beer output increased by 19,0 % during January/April of this year, the Ukrainian beer sales by 20,4 % during the same period. Russia reports that malting capacities are far from being fully used, as a consequence of last year's disastrous barley quality. More import demand is expected from both countries. Austria and the Southeastern part of the expanded EU, Czech Republic, Slovakia, Hungary is sold out or uncompetitive, respectively, therefore malt is sold increasingly through Baltic ports again, even to Southern Russia and the Ukraine.

Ukraine, Kiev: Sarmat brewing company is to build its own malting plant near Kiev by 2007-2008. The new plant is to have a production capacity of 80 thousand tonnes of malt per annum. Sarmat group hopes the new malting will supply with malt all its brewers. Now Sarmat output about 13.8 thousand tonnes of malt per year. ZAO Sarmat group controls five breweries: OAO Lugansky Brewery (90.6% shares), OAO Crimea non-alcohol brewery (93.98%), ZAO Dnipro (99.9%), ZAO Poltavpivo (90.5%) and ZAO Kiev Brewery no 1 (77.12%). Sarmat Group is the fourth largest brewery on the Ukraine’s beer market after Sun Interbrew, Obolon and BBH. Ukraine imported approx. 13 thousand tonnes of malt in January-March 2004, 4 thousand tonnes more than in the same period last year, Galina Korenkova, the general director of ZAO Ukrpivo, revealed at the press conference on July 1. She also said Ukraine purchased about 15 thousand tonnes of barley from foreign countries, 7 thousand tonnes more than for the same period last year. G. Korenkova mentioned the increase of barley imports is attributed to a poor harvest of 2002-2003 crop year.

Barley News

Crop prospects in the Northern Hemisphere are really good, and bull markets of the crop year 2003/04 are a thing of the past. Only the old crop soybean market remains tight. Barley markets dropped to unbelievably low levels, Black Sea barley was US$ 150 FOB at the turn of the year and is about US$ 75 now, for crop 2004. Jordan purchased feed barley at US$ 116 to 110 CIF, Iran at 109, Saudi-Arabia is reported at 105, Israel a small lot at 95. In view of the world balance and the uncertainty of EU export restitution Black Sea prices are incomprehensible. French barley costs min. US$ 123 FOB Rouen.

Australia: Canberra: Australian grain marketer ABB Grain Ltd. cut on Monday, July 5, its estimate of returns for barley sales. Managing director Michael Iwaniw is attributing the decline to a number of global and domestic factors. Factors cited include a cut in import subsidies by Saudi Arabia, the world's largest importer of feed barley, large European crops and undercutting of Australian prices by eastern European sellers, Dow Jones posted on July 5. Iwaniw said Australian barley prices were also being undermined by an increasing number of sellers, who are undercutting prices to achieve sales. As a result, ABB Grain reduced its estimate of returns for growers through its collective sales program for barley grown last crop year ended March 31, 2004, and its estimate for the crop to be harvested this crop year. ABB Grain cut its estimated return for number one pool old crop feed barley by A$7 to a range A$170-A$180 a metric ton and dropped the new crop pool by A$12 to a range A$135-A$145/ton. The estimate of returns for old crop malting barley was cut A$5 to a range of A$200-A$210/ton, while the new crop estimate was cut A$10 to a range of A$165-A$175/ton. ABB Grain holds an export monopoly over barley produced in South Australia and accumulates barley and other grains elsewhere, some of which it sells through collective sales pools. The company is a major global supplier of the cereal. Iwaniw said old crop malting barley pools are still quite strong, with the company holding some unsold stocks...more info

Weather in the Northern and Eastern EU has continued variable, but altogether beneficial for grain crops. Local problems of dryness and cold temperatures will have little effect on the overall result. It can be assumed that the percentage of malting quality of winter and spring barley will be high enough to provide for all domestic needs plus an export surplus of about 1.5 million tonnes. Malting barley markets for new crop: French, July, FOB Creil, Scarlett EUR 123, Esterel (6rw) EUR 108, according to analysts. Danish, October, FOB seaport Barke/Alliott EUR 132. UK, October, FOB seaport, Optic/Cellar EUR 130. Bavarian, October, FOB Main, Scarlett EUR 136. Prices are low, they reflect a feed barley market around intervention price levels (101,31) and a low premium for malting quality. Of course, maltsters are trapped by low malt prices and try their utmost to get prices further down.

Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2004 are available online www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Graph of the week
Agenda

July 2004:
VI Moscow Beer Festival;
Lucky Baldwin's IPA Festival;
BevTek / BrewTek China;
Vermont Brewers Festival;
BEVTECH 2004 Thailand;
World Brewing Congress 2004;
Hop, malt and beer of Russia Exhibition;

August 2004:
Great British Beer Festival;
Worcester Beer and Cider Festival;
BeerTek China Beer and Brewing Technology Exhibition;
Peterborough Beer Festival 2004;
FOODWORLD Food and Beverage Exhibition;
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry;

September 2004:
6th BELGIAN BEER WEEKEND;
China Brew 2004 / China Beverage 2004;
International Brewery and Soft Drinks Industry Exhibition;
FOOD & BEVERAGE PROCESSING & PACKAGING INDONESIA 2004;
Pivoindustria International Beer Industry Exhibition;
National Beer Wholesalers Show 2004;
PAN ASIAN FOOD & BEVERAGE TRADE SHOW 2004;
Barley Malt Quality Evaluation Short Course;
EUROMALT BARLEY SEMINAR 2004;
bevex Beverage Trade Fair;
InterBev 2004;
YUGOSLAVIA INTERNATIONAL FAIR OF FOOD & BEVERAGES 2004;
BevExpo 2004;
Great American Beer Festival;

More events are available on site e-malt.com