World: International brewing groups seeking for malt offers but hardly buying yet

Most of the large international brewing groups, InBev, Heineken, Carlsberg, SABMiller, also African, Brazilian, Venezuelan, Japanese brewers have entered the malt market asking for offers for 2007, analysts reported.

However, hardly anyone bought so far. Malt average prices are € 270.00/€ 280.00 delivered breweries, € 260.00/€ 270.00 FOB seaport in bulk, and € 280.00/€ 290.00 FOB seaport in bulk in container.

Brewers, who had been able to depress malting margins down to levels below € 40.00 per t at the height of the maltsters' crisis, are now faced with price increases averaging € 30.00/€ 40.00 per t, which often is far above their budget numbers. Of course, they are trying to limit the damage, but also realize that maltsters have clear financial limitations.

Another year as 2005/06, and we would have seen a wave of maltsters' failures. The cost of energy and transport has increased substantially during the past 12 months, both factors together put about € 10.00 per t extra on the maltster's calculation. Especially river transport of barley and malt has been affected by the climate change. Low water levels occur more frequently than in former years and lead to freight surcharges and less available freight space.