Tsingtao Brewery Co Ltd, China's second largest brewer, said its net profit for the first nine months this year rose 24% to hit RMB 699.82 million, fuelled by higher sales volume, China Knowledge posted on November, 3.

The company, however, did not give comparable data for the same period last year.

Tsingtao reported an operating revenue of RMB 13.07 billion, up 17.6% from that of the same period last year.

Earnings per share stood at 0.53%. Gross profit margin was 41.4%, representing 1% decline year-on-year, according to the company's statement filed with the Shanghai Stock Exchange.

The Chilean brewer Compañía Cervecerías Unidas S.A. (CCU) announced on October, 29, its consolidated financial results, stated in Chilean GAAP for the third quarter and full year ended September 30, 2008. All US dollar figures are based on the exchange rate effective September 30, 2008 (US$1.00 = Ch$551.31).

“We are satisfied with the results obtained during the third quarter of 2008. They were reached in a challenging economic scenario, with unexpectedly high cost inflation,” the company posted.

The consumer price index variation for the quarter was 3.2 %, reaching for the last 12 months 9.2% with a noticeable acceleration. Under this scenario the company increased volumes by 11.4% resulting in an expansion in revenues of 12.6% in real terms and 23% in nominal terms.

According to Chilean GAAP, for comparison purposes previous year figures have been adjusted for inflation. CCU’s operating income and EBITDA grew by 7.4% and 7.8% respectively, in real terms, i.e. above inflation. These achievements were obtained despite of the costs pressures, as a result of strong volumes and controlled costs and expenses, the brewer said.

The Chilean beer segment increased its volumes by 6.6% at an average price slightly lower than in 2007, in real terms. In August the prices ...More Info

Danish brewer Carlsberg is expected to post a 60.2 percent rise in nine-month 2008 operating profit, on the back of soaring turnover in Eastern Europe, a Reuters poll was made public on October, 30.

According to the average forecast in a poll of 13 analysts, the Danish brewer is expected to report earnings before interest and taxes (EBIT) of 6.68 billion Danish crowns ($1.17 billion), up from 4.17 billion crowns in the corresponding period of 2007.

"The market will be focusing on the development in Russia and on Carlsberg's own expectations for the Russian market in the years to come." Jyske Bank said in a research note

Sales are seen rising 33.7 percent to 45.37 billion crowns, with turnover in Eastern Europe surging 93 percent to 14.66 billion crowns.

"The uncertainty of the Russian economy has lately dragged down the shares in Carlsberg and the fear of declining private consumption and, in particular, a devaluation is high on the agenda." Jyske continued.

The brewer, which is due to report on November, 5, has forecast full-year 2008 operating profit of about 5.9 billion crowns.

Ireland’s Competition Authority has ruled that the takeover by brewing giant Heineken of Beamish & Crawford will not lessen competition and will not result in price fixing in the Irish stout market, Irish Examiner posted on November, 1.

The position was outlined in the authority’s detailed determination, published on October, 31. The acquisition was sanctioned on October, 3.

It is the first time since the authority assumed responsibility in January 2003, for assessing mergers under the 2002 Competition Act, that part of a merger notified to the European Commission was referred back to the authority for assessment, it said.

And as part of that assessment, the authority said it carried out one of the most exhaustive market definition analyses ever undertaken by the agency.

The authority said it considers that the proposed acquisition will not result in coordinated effects in the on-trade stout market, or will not result in a substantial lessening of competition in the on-trade stout market.

“In the Heineken/Beamish & Crawford merger, however, it is not clear whether Beamish & Crawford would continue to exist as it did, if the merger did not go ahead, since, for example, one of the brands of lager it sells, Foster’s, is owned ...More Info

FEMSA, Mexico’s leading brewer, is planning to make new investments in its Brazilian beer operations, Gazeta Mercantil posted on October, 31.

According to the company’s Chairman of the Board and Chief Executive Officer Jose Antonio Fernández Carbajal, FEMSA is considering the expansion of the production capacity in the north region of Brazil. Today, the brewer’s plant in Manaus is producing 500 thousand hl of beer annually. Mr Fernandez said the company has not decided yet whether it should expand the current line or construct a new plant in the region.

If FEMSA opts for the former, the investment must constitute US$ 25 for hectolitre. If it chooses the second alternative, the costs jump to US$60 for hectolitre, it is reported.

The month of October did not reflect the anticipated trouble in the industry of malt yet, and malt markets were surprisingly active for the time of the year, experts communicated on November, 1.

Brazil’s beer sales must have been even better than expected in 2008, because brewers covered more malt for shipment in November/December. Brazilian and African buyers also purchased malt for shipment in 2009.

As reported by industry participants, there are constant inquiries from East European and Asian hand to mouth buyers. Business has been done to Armenia, Georgia and other former soviet countries.

German brewers were attracted by present price levels, they covered fairly large quantities of their demand for 2010, it was reported.

According to experts, prices were attractive, although most EU maltsters are sold out for 2008 and extremely well sold for 2009.

Two-row spring barley malt, FOB in bulk in vessel traded between EUR 370 and 380 per ton, contracts for 2010 were concluded slightly below the EUR 400 mark.

World barley production is estimated at an 14-year high of 156.4 mln tons, up 3.6 mln from the September figure and 16% above last year’s outturn, the IGC posted in its latest report of the end of October.

Total barley consumption is forecast to increase by 8%, to 149.8 mln tons, up 1.5 mln from the September Report.

Global feed use is forecast at a 13-year high of 104.4 mln tons as a result of more ample availabilities and barley’s increased competitiveness versus other feed grains, including maize.

Due to rising domestic feed barley supplies, Canada’s feed use is forecast 0.2 mln tons higher than before, at 8.5 mln.

Following this month’s larger production estimate, US feed consumption is lifted by 0.6 mln tons, to 1.7 mln.

Feed use in Russia and Ukraine is forecast at 13.5 mln tons and 5.5 mln respectively, unchanged from last month.

Total EU consumption is placed at 55.1 mln tons, with feed use trimmed slightly, to 42.3 mln due to recent sharp falls in maize prices.

World malting and other industrial consumption is forecast to increase to 28.1 mln tons, although growth in beer demand in some countries may be affected by the global economic downturn.

According to the IGC estimates, the EU barley crop 2008/2009 amounted to 63.5 mln tonnes, 1.2 mln tonnes more than it was expected in the previous report and 6.1 mln tonnes more than the 2007/2008 result, APK – Inform communicated on November, 4.

Particularly, the main increase of production estimates is registered for Denmark, Spain, and the UK. Denmark’s barley crop is estimated at 3.5 mln tonnes versus 3.1 mln tonnes harvested last year. Finland will repeat last year’s volume (2 mln tonnes), it was reported.

From the beginning of the current season up to October, 28, the EU Cereals Management Committee licensed the export of 2.38 mln tonnes of barley versus 2.1 mln tonnes during the July – September period of 2007/2008 marketing year.

Besides, since July 2008 European importers got licenses for the import of 183 thousand tonnes of barley, whereas last year saw only 29 thousand tonnes licensed for import during the same period.

The EU feed barley markets dropped by almost EUR 20 in one month time, experts reported on November, 1.

French barley, basis July, delivered Rouen was quoted EUR 120 to 122, but also 117 for delivery in January/March.

German shippers bid 127.5 November and 130 December delivered North German ports. These levels correspond to interior prices of about EUR 110, according to industry participants.

As we have previously reported, there was no demand for malting barley of crop 2008. Prices of French two-row spring barley fell to EUR 140 FOB Creil and 145 FOB Moselle, basis July. Six-row winter barley Cervoise is quoted at EUR 120 FOB Creil, the variety Esterel, which is hardly available any more, at EUR 130 to 135.

According to latest information, German spring barley is traded for EUR 160.

As there is much talk of quality problems, fusarium and germination problems in the U.K. and Northeast France, protein in Denmark, rejections of shipments have increased during October. However, it is obvious that ample availability of good quality barley and the enormous price difference between old contracts and the present market are the reasons behind buyers’ strict policies.

Barley of crop 2009 had recently achieved premiums of more than EUR 20 ...More Info

The large export surplus of barley in the world had depressed price levels since harvest time in the Northern Hemisphere as the financial crisis accentuated the bad shape of world commodity markets, traders reported on November, 1.

Analysts report the following FOB prices: Rouen USD 171, Odessa 170, Novorossiysk 165/175. Jordan, however, purchased January shipment at USD 156/159 CIF.

Australian malting barley, new crop, traded at USD 310 CIF China recently, but is reported down to USD 260.

French 6row barley, variety Cervoise, is quoted at USD 220 CIF China.

The EU opens its intervention stores in November, and present price levels in interior markets are only EUR 5 to 10 per ton above intervention buying levels, it is reported.

Analysts maintain that Black Sea barley offers will dominate markets, until or unless the Russian winter stops the grain flow to Black Sea ports.

Dennis E. Langrell, Michael J. Edney

Abstract

The quality data for the 2007 harvest was derived from 75 separate varietal composites, representing a total of 1 065 000 tonnes of barley selected for malting purposes. Barley crop volume for 2007, at 11 127 000 tonnes, was about 25% higher than 2006, and 3% higher than the 10-year average of 10 780 000 tonnes. This was largely attributable to increased seeded acreages, and generally warmer and moister growing conditions. Barley yields, overall, were higher than average. Manitoba had a second consecutive good year for barley quality and volume, due to early seeding and favourable growing season. Fusarium infestation levels in the eastern prairies were relatively low. Southwestern Saskatchewan and southeastern Alberta suffered from lack of moisture throughout the season, lowering its yield and quality. Central areas of the prairies suffered from excess moisture and heat, while northern areas experienced excess moisture and an extended harvest period. Malting barley selected in 2007 was of reasonably good quality. Thousand kernel weights and kernel plumpness levels were lower than those of 2006. Protein levels were good, but were higher than levels in 2006. Barley colour and appearance in 2007 was average. Barley germination characteristics in 2007 were similar to those of 2006, with minimal water sensitivity present. Malt made from 2007 barley was of good, average quality with good levels of soluble protein, adequate enzyme levels, and average levels of wort beta-glucan and viscosity, but higher colour. Extract levels were lower than expected, given the relatively low barley protein. Modification rates were good, and uptake of water during steeping was reasonably fast. Overall, the 2007 malting barley crop was of average quality. Load full article, 25 pages, 466Kb, PDF file