In most parts of Europe spring was cold and rainy and poor weather in combination with the economic problems caused a continuation of low beer sales, analysts report.

Germany’s April beer sales declined by 11%, January-April - by 2.8%. The U.K. beer sales dropped by 5.1% in the first three months of this year, Ukraine reports a 4% decline in Jan/March beer sales. Russians purchased 3.7% less beer in April 2010, January-April sales declined by 14.8%. USA saw its April beer sales fall by 5%. Japan’s January-April beer sales dropped by 3.2%.

The best news of the month came from AmBev, which reported a plus of 14.1% in Jan/March for Brazil and 11.6% for Latin America and Canada combined.

The poor performance of the beer market in the early months of the year has vanquished the hope that beer and malt markets could turn around in 2010 and resume their former growth, experts said.

Reports come from several countries that small brewers and craft brewers are gaining market shares at the expense of the large groups.

Brewer Companhia de Bebidas das Americas, or AmBev, will invest 260 million Brazilian reals ($139.5 million) in a new plant in the northeastern Brazilian state of Pernambuco, Dow Jones reported on June, 8.

The investment is part of plans to pump BRL2 billion into expanding its local productive capacity by 10% to 15%.

Surging demand has prompted AmBev to set aside BRL670 million to invest in expanding its production and distribution facilities in the north and northeast of Brazil, two of the country's poorer regions.

AmBev, Brazil's largest beer and soft drinks producer, is controlled by Belgium-based AB InBev NV.

Soren Ravn, Carlsberg Brewery Malaysia’s new managing director, finds the country’s beer market quite different from his previous experience, The Star reported on June, 5.

At 36, Ravn is the youngest managing director in the history of Carlsberg Malaysia. Prior to his appointment effective March 1, he was managing director of Carlsberg Hong Kong & Macau.

“The beer market here is much bigger compared to Hong Kong,” he said, adding that his first few weeks in the job “have been quite amazing.”

“In terms of volume size, Malaysia is much bigger. Hong Kong is just a city and Macau, an island.”

He notes however that unlike Hong Kong and Macau, the beer market in Malaysia had its own “limitations.”

“(In Hong Kong / Macau) the entire adult population drink beer, with some consuming more than others. But in Malaysia, there is a clear split because there’s part of the population that drinks while others (Muslims) don’t.”

“The challenge here was to be able to sell our beer but at the same time do it in a more respectful manner. We want to grow our consumer base but at the same time make sure we don’t insult anybody.”

Another significant difference, says Ravn, is that there are no ...More Info

Australia’s No. 1 brewer Foster’s continued to lose market share in the beer sector in April, The Australian cited AC Nielsen data on June, 7.

The company's Victoria Bitter brand remained Australia's biggest-selling beer by value, but its market share was down from 17 per cent 12 months earlier to 15 per cent.

This was partly offset by increased market share for Foster's Carlton Draught brand, which rose from 13 to 14 per cent over the 12 months to the end of April, while the Corona brand distributed by Foster's in Australia also lifted its share, by one percentage point to 5 per cent of the market by value.

The low-carbohydrate Pure Blonde, the company's most successful new product of the past decade, continued to decline, with sales down 14 per cent by value in April compared with 12 months earlier, and market share shrinking from 5 to 4 per cent.

Beer sales by volume were down by 3 per cent across the industry, the second straight month of decline, although prices were up 4 per cent overall.

Foster's had forecast a slowdown in beer sales over the second quarter of calendar 2010 compared with the same period a year earlier, when revenue was boosted ...More Info

Since months there is a remarkable price difference between old and new crop barley in the EU, industry analysts said in a research note.

French two-row spring barley, basis July 2009, FOB Creil, is quoted at EUR 107,-. If we add monthly increments of 0.93 till July, the spot price becomes EUR 118,-.

New crop barley, basis July 2010, but for deferred delivery Jan/June, costs EUR 140,-.

There is no business for delivery in the second half of 2010, but buyers believe they can obtain prices in between the two levels, certainly for the early months after harvest, industry sources report.

Danish barley, new crop, basis October, FOB seaport, traded at levels of EUR 143,-/144,-, according to market sources.

French winter barley is nominally quoted, basis July 2010, FOB Creil, Cervoise EUR 115,-, Esterel EUR 122,-.

According to insiders’ reports, the market mood is friendly, only a surprisingly good crop could turn the trend around.

Both crop years, 2011 and 2012 are reported to be carrying further premiums of EUR 15,- each, showing the market pessimism about the future malting barley production in the EU.

Both feed and malting barley prices seem to be stuck in a narrow trading range, Larry Raap, from Sun Prairie Grains in Minot, N.D., was quoted as saying on June, 5 by Farm & Ranch Guide.

Mr. Raap said he didn’t look for that pattern to change anytime soon.

“It's been really quiet. I think everyone has enough (barley) on hand,” Raap said. “And I think acre-wise, the number of acres are down somewhat this year, but there is enough carryover that I don't think it's going to help push prices up anytime soon. Prices have only moved five to 10 cents either way for probably the last couple months. The industry seems to be pretty comfortable with what they have.”

One somewhat encouraging sign that the mountain of barley looming over the producers is starting to shrink is the fact that the barley pipeline isn't plugged up at this time, shipments are going through the system, albeit at a slow pace.

“We've been loading cars - it's not wide open, but they have been taking some,” he said. “It's kind of a slow procedure but we should be able to get all of last year's out before the new crop hits. ...More Info

Delays in Canada’s barley seeding are now major, Integrated Malt Barley Management (IMBM) reports.

Saskatchewan’s barley seeds are at 60% against a 5 year average of 86% - the past 2 years were at 95 and 97% respectively.

A good harvest will once again depend on good weather in September which has been the case in Western Canada the last 2 years.

North America’s markets remain quiet, IMBM reports.

NYSE Liffe’s malting barley futures market opened in May. The basis is EU two-row spring barley, varieties Sebastian and Tipple, usual specifications, delivery months Jan/March/May/Aug/Nov, FOB Antwerp/Ghent, in Euro currency, min. contract quantity 50 tons. First trading month is November 2010, experts summed up earlier this month.

As at the beginning of this month, the closing prices were Nov 160,-, Jan 166,50, March 168,25, May 169,75, For a comparison with physical markets one must deduct EUR 18,-for transport and fobbing, and the monthly increments of EUR 0,925 to arrive at a price for July, FOB Creil, experts said.

Although the number of concluded contracts is called encouraging for a beginning, there is not enough liquidity yet, and futures and physical markets do not match, Futures November 160,- = Creil, basis July 148,25, physical is market 144,-.

Hail storms in Hallertau on 25th and 26th May covered an area of roughly 3,600 ha of hops, Hopsteiner reports.

Approximatively 2,500 ha were badly affected.

Yields in this area are likely to suffer considerable losses, Hopsteiner, one of the world’s leading hops producers, informs.

Those hop gardens which were not hit quite as badly will most probably revive during the vegetation period. Hopsteiner’s initial estimates suggest that there could be a shortfall of approximately 2,500 metric tonnes.

Jan De Bruyn, Johan Vissenaekens

ABSTRACT Within the framework of traceability, quality and food safety of malting barley, a group of European Maltsters has developed a common audit-system called JOSUA. JOSUA leads to uniformity of supplier-evaluation within the malting industry. It offers clear insight in area's for improvement for the suppliers of malting barley, not only on an individual basis but also in general.
Cerevisia, 33(1) 2008 http://www.cerevisia.eu