Brazil: Agromalte, Brazil's biggest malt producer, based in the southern state of Parana, is expected to invest 60 million Brazilian reais (US$22.31 mln/16.47 mln euro) in the next few years to expand its production capacity, Latin America News Digest commented on December 27, 2004. Agromalte, which is the largest of the 10 companies controlled by Parana-based co-operative Cooperativa Agraria Mista Entre Rios, is expected to produce 135,000 tonnes of malt in 2005, an increase by 8 % year-on-year.

Agromalte also plans to increase its malt imports to 50,000 tonnes in 2005, up by 25 % year-on-year, according to the co-operative's vice president Paul Illich. Cooperativa Agraria Mista Entre Rios traditionally sells its malt output to Brazil's main beer producing companies.

Agromalte's sales, in turn, are expected to total some 140 million reais ($52.05 mln/38.42 mln euro) in 2005, up from 120 mln reais ($44.61 mln/32.93 mln euro) estimated for 2004, according to Illich.

The company's investments in production capacity expansion are due to an increasing demand of the local beer producing sector. Brazil's brewers are expected to close 2004 with sales increase of between 3.0 pct and 3.5 pct year-on-year, versus a 2.5 pct sales reduction registered for 2003, according to estimates of Brazil's brewers union Sindicerv.

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