Tài liệu Barley Malt Beer handbook pptx

agrib usiness
handbook
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Barley
Malt
Beer
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Barley
Malt
Beer
agrib usiness
handbook

3
TABLE OF CONTENTS

INTRODUCTION 5
1. BARLEY 7
1.1 Production of barley 7
1.2 World production and main suppliers of barley 9
1.3 Barley sale prices 12
1.4 Barley trade 13
1.5 Current trends: malting barley has a new competitor for acreage 15
2. MALT 17
2.1 Processing into malt 17
2.2 World production and main suppliers of malt 19
2.3 Sale price of malt 22
2.4 Malt trade 23
2.5 Global growth in malt demand 24
2.6 Reaching conclusions 25
2.7 Other relevant information 25
3. BEER 27
3.1 Brewing process 27
3.2 World beer production 29
3.3 Beer trade 31
3.4 Consumption 32
3.5 Other relevant information 33
4. THE MALTING AND BEER INDUSTRIES IN THE WESTERN
BALKANS AND EARLY TRANSITION COUNTRIES. 35
4.1 The supply of raw materials: the Achilles’ heel
of the local beer industry 35
4.2 Development of the local beer industry:
a driving factor for maltsters 44
4.3 EBRD experience in the region 62
5. FURTHER READING AND INFORMATION 65
4

This handbook is part of a series of agribusiness manuals prepared
by FAO's Investment Centre Division for EBRD's Agribusiness team,
under the FAO/EBRD cooperation. The production of the manuals was
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Fund and Western Balkans Fund. The purpose of this handbook is to
help agribusiness bankers and potential local investors acquire basic
knowledge on the beer sector, worldwide and with a special focus on Early
Transition Countries and Western Balkan Countries. This volume was
prepared by Inna Punda, Agribusiness Consultant, FAO and reviewed by
D'mitry Prikhodko, Economist, FAO. Electronic copies can be downloaded
from www.eastagri.org, where a database of agribusiness companies,
including beer companies, that operate in Early Transition Countries and
Western Balkan Countries is also available. For more information, please
contact
The designations employed and the presentation of material in this information product
do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture
Organization of the United Nations (FAO) concerning the legal or development status of any
country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers
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these have been patented, does not imply that these have been endorsed or recommended by
FAO in preference to others of a similar nature that are not mentioned. The views expressed in this
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All rights reserved. Reproduction and dissemination of material in this information product for
educational or other non-commercial purposes are authorized without any prior written permission
from the copyright holders provided the source is fully acknowledged. Reproduction of material
in this information product for resale or other commercial purposes is prohibited without written
permission of the copyright holders. Applications for such permission should be addressed to:
Director
Investment Centre Division
FAO

Viale delle Terme di Caracalla, 00153 Rome, Italy
or by e-mail to:
© FAO 2009
5
INTRODUCTION
Beer is an ancient beverage. Clay tablets describing the beer brewing process
and dating back more than 5,000 years have been found in Mesopotamia.
According to these tablets, Sumerians used to prepare “beer bread” out of
germinated barley seeds. By crumbling this bread into water, they obtained
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resulting in a drink-free of a harmful bacteria.
Over time, different types of starchy plants have been used for brewing,
including maize (in South America), soy (in India and Persia), millet and
sorghum (in Africa), and rice (in the Far East). Nowadays, beer production
from barley malt is the most common brewing process worldwide.

7
1. BARLEY
1.1 Production of barley
1.1.1 Key production parameters
Barley is a short-season, early maturing crop which is amongst the most
highly adapted grains to grow in climates ranging from sub-arctic to sub-
tropical areas. The main risk factors for winter varieties are freezing winter
temperatures and over-heating during grain maturation. A temperate climate
is ideal for barley. Barley adapts to a wide variety of soils and is, for example,
less sensitive than wheat to dryness or poor land.
The planting period runs from mid-September to October for winter barley,
while spring barley is generally planted in March to April. Crop density at the
time of planting varies from 180 to 200/m², depending on prevailing farming
practices and intended use of the crop. The growing season depends a lot on

the variety and time of planting. Winter varieties complete their development
cycle with a cumulative temperature of 1,900–2,000°C, while spring varieties
need only 1,500–1,700°C. Harvesting usually takes place from the end of
June to mid-July for winter barley and in August for spring barley.
According to FAOSTAT, worldwide yields averaged 2.4 tons/ha in 2007 (2.6
and 1.5 tons/ha for WBCs and ETCs respectively). However, depending on
climate, variety, technology, and other conditions, barley yields can range from
0.8 to 7.5 tons/ha. In dry regions, irrigation contributes to increased output.
1.1.2 Different types of barley
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depending on the physical arrangement of the kernels on the plant. Barley is
also described as hulled or hull-less depending on the presence of beards or
awns covering the kernels.
There are two types of barley: winter (2R or 6R) and spring (2R).
The advantage
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higher yields as compared with spring barley. 2R barley has a lower protein
content than 6R barley and is therefore more suitable for malt production.
High protein barley is best suited for animal feed.
Traditionally, spring malting barley was produced in regions with moderate
temperatures and adequate rainfall throughout the growing season (650 mm
per year). Winter malting barley was mostly grown in the milder arid and semi-
arid regions of Europe. Due to its higher yield potential, winter malting barley is
now increasing in acreage in traditional spring barley regions. New varieties of
8
winter malting barley could provide brewers with better quality, namely higher
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Barley is used commercially for animal feed, malt production (barley is one of
the most important ingredients in beer production), and for human consumption.
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barley is fodder for livestock. Only 13% of the barley produced worldwide is
processed into malt.
1.1.3 Malting barley specic parameters
Malt barley is one of the principal ingredients in the manufacture of beer.
Brewers can either purchase malt barley to manufacture malt themselves
or purchase malt from malting companies. In either case, malting quality
barley must meet the special quality specifications shown below
. Accepted
malting barley varieties must allow malt production within parameters that
meet brewers’ specifications. The malting characteristics of barley also
depend on growing conditions, harvesting conditions, and storage.
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criteria:
ŶHigh germination capacity
ŶPurity (in the variety)
ŶGraded grain
ŶLow protein content
The detailed specications
1
of these requirements are:
Ŷ Germination %: min. 97% after 3 days
Ŷ Germination index: min. 6.0
Ŷ Water content: 12.0 %, max. 13.0 %
Ŷ Protein content: > 9.0 % and < 11.5 %
Ŷ Grading: min. 90 %, > 2.5 mm.
Ŷ B-glucan content: max. 4 %
Ŷ Micro-organisms below a set level
Ŷ Pesticide residues according to national law
Ŷ Ochratoxin according to national law
Ŷ Aflatoxin according to national law

Ŷ Variety purity: min. 99 %
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have tightened. This has been driven by the demand of maltsters to address
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stringent in their requirements.
1 Source: Carlsberg Research Centre
9
Currently, there is increased emphasis towards:
Ŷ+LJKPDOWH[WUDFWDWORZPRGL¿FDWLRQOHYHOV
ŶHigh diastatic (enzymatic) power levels
ŶLow malt colour levels
ŶUniformity of grain size
1.1.4 Key production costs and average margins for producers
For an average yield of 5.25 tons per ha for spring (malting) barley obtained in the
United Kingdom in good cropping conditions, with availability of all necessary good
quality inputs, the variable costs per hectare are roughly as follows:
Production Level Low Average High
Yield: (tons per ha) 4.4 5.25 6.1
Output, per 1 ha, USD
a
776 927 1,078
Variable Costs, USD
Seed
Fertilizer
Sprays
(Herbicides 54%, fungicides 41%, Other 5%)
81
108
113
Total Variable Costs, USD 302

Gross Margin, USD per ha 475 626 777
a) UK pound sterling converted at the exchange rate of 1.56
Source: Farm Management Pocketbook. John Nix. 09/2007
In addition to these costs, operating costs for machinery (and its depreciation),
fuel, salaries, etc. must be added. The calculation of producers’ margin should
also account for the income derived from straw, an important by-product, which
is often collected after harvesting. Average straw output is approximately 2.75
tons per ha, valued at USD 20–80 per ton, which can increase producers’
gross margin by USD 100 per ha on average.
1.2 World production and main suppliers of barley
World barley production reached 136 million tons in 2007, up 3 million tons
from the previous year's results. Barley is the second most important coarse
grain
2
after maize (785 million tons in 2007) and outweighs by far sorghum (65
million tons). Three regions produce more than a half of the world’s barley: the
European Union (43%, mainly Spain, Germany and France with about an 8%-
share each), Russia (11%) and Canada (9%). Europe has long been a producer
2 Coarse grains generally refers to cereal grains other than wheat and rice. They include corn,
barley, oats and sorghum.
1
0
of malt barle
y
. The use of subsidies to encoura
g
e production has resulted in the
E
uropean Union competin
g

with
C
anada as the lar
g
est malt barle
y
exporter.
Presentl
y
, Russia is the lar
g
est countr
y
producer o
f
this crop in the world, with
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p
lanted hectares, o
f
which onl
y
1.3 million were exported.
In 2006, 139 million tons of barle
y
were produced
g
loball
y
, which is an avera

g
e
r
esult
f
or the last three
y
ears.
Figure 1: Global barley production and malt exports in 2006, in M tons
Figure 1:
Global barley production and malt exports in 2006, in million tons
Barley production (139 M tons) Malt trade (7.1 M tons, +14% vs. 200S)
S
ource: FAOSTAT Database
|
© FAO 2009
Amon
g
the main barle
y
producin
g
countries, EU, Canada, USA, and Australia
a
re also the lar
g
est malt exporters
(
see Fi
g

ure 1
)
.
Table 1: World barley production and its recent evolution
2
00
32
00
3
200
4
200
4
2
00
52
00
5
200
6
200
6
2
00
72
00
7
2
007
/

0
62
007
/
0
6
Area harvested, M haArea harvested, M ha
5
7.7
5
7.7
5
7.
65
7.
6
55
.7
55
.7
56
.
656
.
6
56
.
656
.
6

+0.1
%
+0.1
%
Production quantit
y
, M ton
s
Production quantit
y
, M ton
s
142.1142.1
1
5
3
.
91
5
3
.
9
138
.
9138
.
9
139
.
1139

.
1
136
.
2136
.
2
-2%-2%
Yi
e
ld,
tons
/haYi
e
ld,
tons
/ha
2.52.5
2.72.7
2.
5
2.
5
2
.5
2
.5
2.42.4
-2
%

-2
%
S
ource: FA
OS
TAT Database
|

©
FA
O
200
8
A sli
g
ht decline in barle
y

y
ields in 2007 is mainl
y
due to unfavourable climatic
c
onditions in the main producin
g
countries, particularl
y
in Australia
(
due to

c
ontinuous drou
g
ht
)
.
11
Figure 2: The evolution of average barley yields in the main producing
countries (tons/ha)
S
ource: FA
OS
TAT Database
|

©
FA
O
2009
Table 2: Area cultivated, production quantity and yield of barley
3
in the
main producing countries in 2007
C
ountry
C
ountry
A
rea
h

arveste
d
,
M

h
a
A
rea
h
arveste
d
,
M

h
a
P
ro
d
uct
i
on quant
i
ty,
P
ro
d
uct
i

on quant
i
ty,
M
ton
sM
ton
s
Yield, tons
/
h
a
Yield, tons
/
h
a
W
or
ld
tota
l
:
W
or
ld
tota
l
:
5
6

.
6
5
6
.
6
136
.
2136
.
2
2.4
(
average
)
2.4
(
average
)
Russian Federation
(#
1
)
Russian Federation
(#
1
)
9
.
69

.
6
1
5.
71
5.
7
1
.
61
.
6
C
anada
(#
2
)C
anada
(#
2
)
4.
1
4.
1
11
.
811
.
8

2
.
92
.
9
S
pain
(#
3
)S
pain
(#
3
)
3
.
23
.
2
11
.
711
.
7
3
.
63
.
6
G

ermany
(#
4
)G
ermany
(#
4
)
1
.
91
.
9
11
.
011
.
0
5
.
75
.
7
France
(#
5
)
France
(#
5

)
1
.
71
.
7
9
.
59
.
5
5.
6
5.
6
S
ource: FA
OS
TAT Database
|

©
FA
O
200
8
The share of the Western Balkan and the Earl
y
Transition countries in world barle
y

p
roduction is 0.5
%
and 1.4
%
respectivel
y
. It is estimated at 0.4 million tons
f
or the
WB
C
s and 1.1 million tons
f
or the ET
C
s. The bi
gg
est producers in the two re
g
ions
a
re Azerbai
j
an, Serbia, K
y
r
gy
zstan, Moldova and Uzbekistan

.
7KHZRUOGRXWSXWR
I
EDUOH\WRLQFUHDVHGVLJQL
¿
FDQWO\LQE\VRPH

4
to nearl
y
14
8
million tons. In Europe, the output is seen to rise sharpl
y
b
y

,WLVGL
I¿
FXOWWRDFFHVVUHJLRQDOPDOWLQJEDUOH\GDWD:HHVWLPDWHWKDWDSSUR[LPDWHO\

R
I
WKH
b
arle
y
consumed in the region is used
f
or animal

f
eed.
4 FAO Food Outlook/Global Market Anal
y
sis. 06/200
8
12
UHÀHFWLQJLQFUHDVHGSODQWLQJVLQVHYHUDOFRXQWULHVEXWDOVRDUHFRYHU\
of yields after adverse weather conditions in 2007.
As for malt quality barley, the 2006 crop had major shortages in Europe and
Australia:
ŶEurope had a poor year starting with cold conditions and leading to a hot
dry summer, resulting in a wet harvest rising to pre-sprout damage. This
resulted in a shortage of 1 million tons of malting barley;
Ŷ
Australia faced drought conditions resulting in a disastrous harvest. In place
of a typical 9 million tons only 4 million tons, were harvested.
Poor harvests in Europe and Australia have motivated Far Eastern brewers
to favour North American maltsters, who are perceived to be a more reliable
supply
.
European barley yields and quality in 2007:
Ŷ Climate related poor yields observed in Europe for the second year
running. 58.5 million tons vs. 56.2 in 2006;
ŶHighly unusual weather in Northern Europe dashed hopes of a recovery in
barley stocks;
Ŷ Poor output in Northern Europe, better than expected in Scandinavia;
ŶLow yields and the withholding of barley by growers propelled barley
pricing to record highs;
Ŷ Higher proteins and lower plumps expected;

ŶAn average of EUR 280 per ton for 2008 crops is expected to attract
seeding.
1.3 Barley sale prices
Barley prices have been highly volatile in recent years. For instance, in
early 2008 feed barley prices increased by around 45%
5
compared with the
previous year. This was due to drought weather conditions in major producing
countries and export limitations imposed by some exporters in CIS. Increased
production in 2008, coupled with concerns over economic slowdown in the
near future, has put downward pressure on barley prices.
5 FAO. Food Outlook/Global Market Analysis. 06/2008
1
3
Table 3: Feed and malting barley prices, 2008
Export prices
(
fob, USD per ton
)
Export prices
(
fob, USD per ton
)
1
8
1
8
N
ov
N

ov
1111
N
ov
N
ov
y
ea
r

y
ea
r

a
go
a
go
EU
(
France
)
Fee
d
EU
(
France
)
Fee
d

Australia
(
Adelaide
)
FeedAustralia
(
Adelaide
)
Feed
Bl
ac
k
Sea
F
eed
Bl
ac
k
Sea
F
eed
N
ov
N
ov
N
ov
N
ov
N

ov
N
ov
14
9
14
9
1
34
1
34
1
30
1
30
1
54
1
54
142142
14
0
14
0
330330
27
8
27
8

EU
(
France
)
Sprin
g
Maltinh
(
Rouen
)
EU
(
France
)
Sprin
g
Maltinh
(
Rouen
)
Australia
(
Adelaide
)
Maltin
g
Australia
(
Adelaide
)

Maltin
g
Canada
(
St. Lawrence
)
maltin
g
Canada
(
St. Lawrence
)
maltin
g
N
ov
N
ov
N
ov
N
ov
N
ov
N
ov
1
93
1
93

224224
27
3
27
3

224224
27
9
27
9
aa

336336
400400
a)
10
Nov quotation
.
S
ource: International
G
rains
C
ouncil
G
rain Market Indicators
,
11
/

200
8

1.4 Barley trade
In 2008, the world barle
y
trade is expected to increase to 16.
5
m
illi
o
n t
o
n
s
6
±DQHDUO\
P
LOOLRQWRQLQFUHDVHFRP
S
DUHGZLWK7KHLQFUHDVHUHÀHFWV
l
ar
g
er export availabilities
f
rom Australia, the European Union, the Russian
F
ederation, and Ukraine, which to
g

ether are likel
y
to more than offset reduced
p
roduction in Canada and Kazakhstan.
The lon
g
-term world maltin
g
barle
y

f
orecast su
gg
ests that
g
lobal maltin
g
barle
y
trade will increase from about 4.5 million tons
(
2006
)
to 6.4 million tons b
y
201
1
7

.
Figure 3: World malting barley trade
6
RXUFH
&
DQDGLDQ:KHDW%RDU
G

6
FA
O
. Food
O
utlook
/G
lobal Market Anal
y
sis. 06
/
200
8
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,
-  













;YLUK
>VYSKTHS[PUNIHYSL`I\SR
*>)SVUN[LYT
MVYLJHZ[Z
4;VUZ
14
E
urope, Australia and Canada are the ke
y
pla
y
ers in the price of maltin
g
barle
y
(
see Fi
g
ure 4
).
Figure 4: Malting barley exports
6
RXUFH$%%
Table 4: The world’s top barley exporters and their world share
(HS
8
1003)

C
ountr
yC
ountr
y
Trade value
,
M U
SD
Trade value
,
M U
SD
20062006
200
7
200
7 Trend 2007
/
06Trend 2007
/
06
A
ustra
li
a
A
ustra
li
a

700700
44
3
44
3
-37
%
-37
%
F
rance
F
rance
6
5
66
5
6
1
,
18
7
1
,
18
7
+
81
%+
81

%
G
erman
yG
erman
y
312312
665665
+113
%
+113
%
C
anada
C
anada
23
7
23
7 45
1
45
1
+
90
%+
90
%
R
ussian

R
ussian
Fede
r
a
ti
o
n
Fede
r
a
ti
o
n
1
5
81
5
8
4
16
4
16
+163
%
+163
%
O
th
e

r
sO
th
e
r
s
900900
1
,
8811
,
881
+109
%
+109
%
T
otal ex
p
orts:
T
otal ex
p
orts:
2
,
9642
,
964
5,

044
5,
044
+
70%
+
70%
S
ource: Cop
y
right © United Nations, 2008 – UN Comtrade Databas
e
Table 5: The world’s top barley importers and their world share
C
ountry
C
ountry
T
rade value, M U
S
D
T
rade value, M U
S
D
2
006
2
006
2

007
2
007
T
rend 2007
/
06
T
rend 2007
/
06
Saud
i Ar
ab
i
aSaud
i Ar
ab
i
a
1,
214
1,
214
2,
142
2,
142
+
76%

+
76%
C
hin
aC
hin
a
406406
26
7
26
7
-
34%
-
34%
J
a
p
an
J
a
p
an
p
261261
41
4
41
4

+
59
%+
59
%
N
et
h
er
l
an
d
s
N
et
h
er
l
an
d
s
23
4
23
4
31
4
31
4
+

34
%+
34
%
B
e
lgi
um
B
e
lgi
um
g
2
18
2
18
3
31
3
31
+
52
%+
52
%
O
th
e
r

O
th
e
r
r
e
p
orters
r
e
p
orters
p
1
,5
301
,5
30
2
,
3662
,
366
+
55
%+
55
%
T
otal im

p
orts:
T
otal im
p
orts:
p
3,
863
3,
863
5,
835
5,
835
+
51
%+
51
%
S
ource: Cop
y
right © United Nations, 2008 – UN Comtrade Databas
e
8 The Harmonized Commodit
y
Description and Coding S
y
ste

m
4PSPVU[VUULZ






    
6[OLYZ
<:(
,<
*HUHKH
(\Z[YHSPH
15
1.5 Current trends: malting barley has a new competitor for
acreage
Ŷ,QWHUPVRITXDOLW\PDOWVWHUVFRQWLQXHWRLGHQWLI\VSHFL¿FYDULHWLHVWKDWDUH
DEOHWR
VKRZTXDOLWLHVRISURWHLQH[WUDFW\LHOGORZPRGL¿FDWLRQJHUPLQDWLRQ
etc. However, they then go on to choose other varieties which may be able
to give them an overall combination of not only quality but also lowest cost
IURPWKHLUSXUFKDVHSRVLWLRQ7KLVDWWLPHVGULYHVWKHGHPDQGIRUVSHFL¿F
varieties by maltsters.
Future brewery quality requirements will focus on:
Ŷ Filterability
Ŷ Head retention
Ŷ Improved shelf life
Ŷ Haze and flavour
The increased availability of good malting barley varieties and their

VXFFHVVIXOSURGXFWLRQHQVXUHVWKHVXI¿FLHQWSURGXFWLRQRIPDOWZLWKUHTXLUHG
VSHFL¿FDWLRQV
ŶBio-fuels: ethanol & bio-diesel. Government programs in the EU and the
USA continue to promote growth; as production of bio-fuels goes up, year
end stocks have gone down.
ŶFeed grains
: increasing demand for meat adds to growth in demand for
feed grains.

17
2. MALT
2.1 Processing into malt
Malting is the controlled germination of cereals, followed by a termination of
this natural process by the application of heat. Further heat is then applied
to “kiln”
9
WKHJUDLQDQGSURGXFHWKHUHTXLUHGÀDYRXUDQGFRORXU$EDVLFUXOH
is that, for malt to be made, the barley must be capable of germination, so
maltsters source barley with a minimum germination of 98%.
Processing into malt is an essential step which allows the use of barley grains
in the brewing process. In bio-chemical terms:
ŶThe envelopes of the small nucleus containing starch chains are disintegrated;
ŶEnzymes (diastase, which will remain inside the germinated grains) are
produced.
2.1.1 Process description
Incoming grain is received at moisture levels of between 10 and 12%. Every load
is sampled, inspected, and tested at the intake point. Once tipped, the grain is
cleaned through screeners to remove stones, foreign bodies, dust, and straw.
Once cleaning and drying processes are complete, the grain is stored in silo.
7KHUHDUH¿YHVWDJHVLQWKHSURFHVVRIFRQYHUWLQJEDUOH\LQWRPDOW

Ŷ Barley grading & cleaning
Ŷ Steeping (24 hours)
Ŷ Germination (96 hours)
Ŷ Kilning (24 hours)
Ŷ Malt cleaning & grading
The processing cycle is completed in approximately 9 days.
2.1.2. Conversion factors from raw material
Approximately 120 to 130 kg of screened barley are necessary to obtain 100 kg of
malt (depending on grain quality and purity). The average ratio used is 1.267.
2.1.3. Key processing costs
The economics of the malting industry critically depend upon the selection of
barley varieties, their protein content, plumpness, and moisture content. The
following economic considerations are for illustrative purposes only (European
standard plant).
7KHNLOQLVZKHUHWKHPRGL¿HGJUHHQPDOWLVWUDQVIHUUHGWRZKHQWKHPDOWVWHUFRQVLGHUVWKDWWKH
process of germination should be terminated (UK Malt).
18
Table 6: Illustrative operating costs for malt production
(Assumptions: 8,700 ha per year operation – annual processing capacity of
80,000 tons of barley)
Item
Ratio
per ton of barley
Cost
USD/ton of barley
Barley 1 ton 135
Fuel energy 750 kWh 22.5
Electricity 130 kWh 13
Water 7 m
3

7.7
Spare parts Lumpsum 3
Miscellaneous, analysis Lumpsum 1
Labour (50 people) (USD 20,000/year) 12.5
Total direct operating costs 194.7
6RXUFH*URXSH6RXIÀHW
Raw barley accounts for as much as 70% of total malt production costs.
Table 7: Cost
10
of raw materials for the production of light malt from the
Primorsky-98 variety of malting barley
Raw material Unit price, USD
Quantity needed
per 0.415 kg
Cost of raw material,
USD
Barley, kg 0.26 0.02 0.13
Water, filtrated, L 0.0047 0.46 0.06
Hydrogen peroxide, L 1.24 0.00027 0.01
Cost of 0.415 kg of malt
=> Cost of 1 kg of malt
0.2
0.47
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:KROHVDOHSULFHVDVRI
1
9
Figure 5: Malt processing fee dynamics
6
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


2.2 World production and main suppliers of malt
Worldwide, there are few malt processin
g
companies. Recent trends have called
f
or consolidation and mer
g
ers. For instance, Malteurop
(
France
)
, the lar
g
est
m
altin
g
compan
y
in the world, with a current annual production capacit
y
of more
than 2.2 million tons, has recentl
y
taken over Lesaffre
(
France

)
and has made
s
ome other acquisitions in Eastern Europe. InBev
(
Bel
g
ium
)
has taken over the
bi
gg
est US brewers Anheuser-Busch. The newl
y
created Anheuser-Busch InBev
LV WKH OHDGLQJ JOREDO EUHZHU DQG RQH RI WKH ZRUOG¶V WRS ¿YH FRQVXPHU SURGXFW
c
ompanies. The top ten maltin
g
companies produce approximatel
y
9.4 million tons
or 44% of
g
lobal malt production.
Figure 6: The world’s largest malting companies
6
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20
The Malteurop Group is the world’s leading malt producer, with a current
annual production capacity of more than 2.2 million tons. The Group is present
in 12 countries in Europe, North America, Oceania, and Asia, with 23 industrial
sites and 700 employees. Founded in 1984, the Malteurop Group belongs to
a group of cooperatives, including Champagne Céréales, one of the leading
cereal/grain collectors in France
11
.
*URXSH 6RXIÀHW has 24 malt plants in France, Eastern Europe (Czech
Republic, Poland, Hungary, Slovakia, Romania), Russia, and Kazakhstan. It
produces a complete range of brewing products: malts from spring and winter
barley, wheat malts, kiln dried (Pilsen, Munich, Vienna) or roasted (caramel,
FRORUDQWURDVWHGFHUHDOVDQGJULWVDQGPDL]HÀDNHV,QWKHFRPSDQ\
produced 1.47 million tons of malt
12
.
Cargill Malt purchases and processes malting barley into quality malt that is
supplied to the brewing industry worldwide. Headquartered in Minneapolis,
Minnesota, Cargill Malt operates nine malting plants in Belgium, France,
Spain, Holland, Germany, the United States, Canada, and Argentina. Cargill
Malt runs two technical centers, one in Belgium and one in the United States.
In 2007, Cargill Malt production reached 1.25 million tons
13
.
United Malt Holdings, UMH. In 2006–2007, Castle Harlan, together with its

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¿UP DFTXLUHG *UHDW :HVWHUQ 0DOWLQJ &DQDGD 0DOWLQJ &RPSDQ\ %DUUHWW
Burston Malting, and a 60% interest in Bairds Malt to create United Malt
Holdings (UMH), one of the world’s largest producers of malt for use in the
brewing and distilling industries. The businesses were acquired from Conagra
Foods Inc of the United States and Tiger Brands of South Africa. The remaining
40% of Bairds Malt was acquired in 2007. UMH has approximately one million
tons of annual malt production capacity from 14 plants in 4 countries. It is
a major supplier to beer makers such as Foster’s Group. The CHAMP and
Castle Harlan – private equity investors bought the businesses that make up
UMH in 2006 from US-based ConAgra Foods Inc.
14
Global changes in malting capacity resulted in some 1.1 million tons of new
malt capacities around the world, mainly in Eastern Europe (+1 million tons).
11 See www.malteurop.com
12 Company's data
13 Company's data
%DVHGRQKWWSZZZFDVWOHKDUODQFRPSUR¿OHVPDOWKWPODQG
/>21
Figure 7: Malt investments/divestments, 2003–2006, in thousand tons
S
ource: Malteurop 03/2007 Presentation
In 2006, beer production rose b
y
197 million hl and, consequentl
y
, malt
demand b
y
2.2 million tons. This resulted in a capacit

y
investment shortfall o
f

1.1 milli
o
n t
o
n
s

of
m
a
l
t
15
.
12
%
DVHGRQ¿
J
XUHVWKHZRUOGEDUOH
\
IRUPDOWSLFWXUHORRNVDVIROORZV
Barle
y
productionBarle
y
production

14
8
M t
o
n
s
14
8
M t
o
n
s
Î
Maltin
g
barle
y
Maltin
g
barle
y
p
roduction 26 M tons
p
roduction 26 M tons
Î
Malt
p
roductionMalt
p

roduction
21 M t
o
n
s
21 M t
o
n
s
Î
B
ee
r: 1
9
.
5
B
ee
r: 1
9
.
5
Whiske
y
: 0.
9
Whiske
y
: 0.
9

F
ood
:
0
.
6
F
ood
:
0
.
6
6
RXUFH$%%
M
a
l
t pro
d
uct
i
on wor
ld
w
id
e
h
as
b
een stea

dily

i
ncreas
i
n
g
over recent
y
ears
(
see Table 9
)
. This has been lar
g
el
y
due to increasin
g
demand
f
or malt
f
rom
f
ast
g
rowin
g
re

g
ional beer markets, particularl
y

C
hina and the
f
ormer
S
oviet
R
epu
bli
cs
.
15 Malteuro
p
03/2007
p
resentation12
22
Table 8: Main malt producing countries and recent evolution, thousand tons
C
ountr
yC
ountr
y
20002000
20012001
20022002

20032003
20042004
20052005
TRENDTREND
2005
/
200
4
2005
/
200
4
T
O
TAL Worl
d
T
O
TAL Worl
d
1
7,
8201
7,
820
18
,
48718
,
487

18
,
29618
,
296
18
,
64018
,
640
19
,
14019
,
140
19
,7
0419
,7
04
+3
%
+3
%
W
or
ld

l
ea

d
ers:
W
or
ld

l
ea
d
ers:
#
1
C
hin
a#
1
C
hin
a
2
,
8
7
02
,
8
7
0
2
,

9
5
42
,
9
5
4
2
,
8
7
02
,
8
7
0
2
,
3802
,
380
2
,7
302
,7
30
3
,
2203
,

220
+18
%
+18
%
#
2 U
SA#
2 U
SA
2
,4
042
,4
04
2
,
0602
,
060
1
,
9
5
21
,
9
5
2
1

,
9231
,
923
1
,
9901
,
990
2
,
0862
,
086
+5
%
+5
%
#
3
G
erman
y#
3
G
erman
y
1
,
6351

,
635
2
,
0002
,
000
2
,
0002
,
000
2
,
0
7
22
,
0
7
2
1
,7
971
,7
97
1
,4
361
,4

36
-20
%
-20
%
#
4 U
K#
4 U
K
1
,45
21
,45
2
1
,4
901
,4
90
1
,47
71
,47
7
1
,5
011
,5
01

1
,4
251
,4
25
1
,
3321
,
332
-7
%
-7
%
#
5 Franc
e#
5 Franc
e
1
,
1
5
51
,
1
5
5
1
,

1621
,
162
1
,
1831
,
183
1
,
2111
,
211
1
,
2111
,
211
1
,
2251
,
225
+1
%
+1
%
S
ource: FA
OS

TAT internal
f
ollow-up, 200
8
2.3 Sale price of malt
Processin
g
barle
y
into malt is an ener
gy
-consumin
g
process and, with the increase
i
n ener
gy
pr
i
ces, ma
l
t pr
i
ces w
ill
cont
i
nue to r
i
se.

P
resent
ly
, crop
7
1
6
13
ma
l
t pr
i
ces
r
an
g
e
f
rom U
S
D 583 to 649 per ton, crop 8 prices ran
g
e
f
rom U
S
D 520 to 600.
Figure 8: Malting barley and malt prices 2002–2007 (EUR/ton)
Source: Roger Martin, 200
7

M
alt production in the EU 27
f
rom the 2007 harvest was sli
g
htl
y
hi
g
her than it
was in the previous
y
ear. However, the EU cannot satis
fy
the demand
f
or malt
e
xports at the moment and will probabl
y
export 250–300 thousand tons less
m
alt
(
a
f
ter excludin
g
exports
f

rom Romania and Bul
g
aria
)
. An even hi
g
he
r

demand
f
or the EU malt is expected
f
rom the new harvest, so ever
y
bit o
f

c
apacit
y
will be needed to satisf
y
the demand
.
16 Crop 2007 prices are prices from the 1st of Jul
y
2007 to the 30th of June 2008.
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Figure 9: Malt market price evolution
S
ource: www.e-malt.co
m
2.4 Malt trade
M
a
j
or malt producers are inte
g
rated with the
g
rain tradin
g
businesses, which
r
educes the risks related to the ori
g
ination of maltin
g
barle
y
from producers.
6
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their supplies
.
In 2006–2007, the
g
lobal trade o
f
maltin
g
barle
y
decreased to 5.5 million
tons
(
in
g
rain equivalent
)
– 0.2 million tons less than the previous
y
ear.

Thi
s
d
ecrease was
l
ar
g
e
ly

d
ue to a re
d
uce
d
supp
ly
on t
h
e
gl
o
b
a
l
mar
k
et,
h
i

g
h prices, and increasin
g
local production. For instance, due to increased
investments b
y
sector leaders, barle
y
producin
g
countries like Russia, Ukraine
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Accordin
g
to available information, Bel
g
ium was the ma
j
or malt exportin
g
c
ountr
y
in 2007 and Brazil was the main importer
(
Tables 9 and 10
).
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24
Table 9: The world’s top malt exporters, 2007 (HS 1107)
Countr
y
Countr
y
Trade Value
,
M US
D
Trade Value
,
M US
D
2
006
2
006
2
007
2
007

Tr
e
n
d
Tr
e
n
d
2
00
7
/06
2
00
7
/06
Bel
g
iu
m
Bel
g
iu
m
3
7
53
7
5
5

7
35
7
3
+53
%
+53
%
Fr
a
n
ce
Fr
a
n
ce
3
4
73
4
7
4
08
4
08
+18
%
+18
%
Ca

n
adaCa
n
ada
1
80
1
80
2
62
2
62
+45
%
+45
%
A
us
tr
a
li
a
A
us
tr
a
li
a
171171
22

9
22
9
+34
%
+34
%
German
y
German
y
142142
1
92
1
92
+35
%
+35
%
O
th
e
r
sO
th
e
r
s
7

93
7
93
1
,
29
7
1
,
29
7
+64
%
+64
%
Total ex
p
orts
:
Total ex
p
orts
:
2
,
00
8
2
,
00

8
2
,
96
2
2
,
96
2
+48
%
+48
%
S
ource:
C
op
y
right
©
United Nations, 2008 - UN
C
omtrade Database
Table 10: The world’s top malt importers, 2007
2
006
2
006
2
007

2
007
2
00
7
/06
2
00
7
/06
Br
a
zi
l
Br
a
zi
l
21
8
21
8
2
80
2
80
+28
%
+28
%

Ja
p
a
n
Ja
p
a
n
2
04
2
04
24
8
24
8
+21
%
+21
%
Bel
g
iu
m
Bel
g
iu
m
14
3

14
3
24
6
24
6
+72
%
+72
%
German
y
German
y
9999
1
39
1
39
+41
%
+41
%
USAUSA
8181
1
30
1
30
+61

%
+61
%
O
th
e
r
sO
th
e
r
s
1
,
15
7
1
,
15
7
1
,
54
0
1
,
54
0
+33
%

+33
%
Total im
p
orts
:
Total im
p
orts
:
1
,
90
2
1
,
90
2
2
,
58
3
2
,
58
3
+36
%
+36
%

S
ource: Copyright © United Nations, 2008 - UN Comtrade Database
2.5 Global growth in malt demand
International maltsters are currentl
y
facin
g
some challen
g
es. Japanese malt
demand has been declinin
g
due to economic conditions and lower sales o
f

full malt beer.
O
ther malt markets such as Brazil have been ver
y
competitive
in recent
y
ears due to imports of lower qualit
y
and lower priced winter barle
y
f
rom the EU. New maltin
g
capacit

y
in the EU, Russia, and Ukraine are also
increasin
g
competition in offshore malt markets.
World share 2006
World share 2006