Analysis - Europe barley surplus shrinks, but price set to fall for brewers
This year's harvest is "positive"
Western Europe's 2013 malting barley harvest will be good news for brewers with prices expected to fall to 6% below last year's, an analyst has predicted.
Bernstein analyst Trevor Stirling said today (28 May) that the region should see a 1.5m tonne surplus, compared to 2.1m tonnes last year, with malting barley selling for US$415 per tonne. "Much could happen between now and harvest, but the outlook is positive for brewers," Stirling said.
The surplus should help global stocks recover from 2010's harvest, which was badly damaged by heat waves and fires in Eastern Europe.
A lessening of fears over the US crop has also pushed down prices, Stirling said. Last year, droughts in the US led to record crop failures but the analyst added that prices this year will likely be marginally down on 2012.
In Russia, prices are also expected to be down on last year's. However, costs should still be higher than for a “normal” Russian crop, Stirling said.
The EU accounts for about 45% of the global barley harvest and a higher percentage of the malting barley harvest. Malting barley, used by brewers, is of a higher quality than feed barley and is normally converted into malt before it can be used to brew beer.
Stirling said that Western Europe's malting barley prices could drop further still if corn prices continue to fall. A low corn price would make the grain more attractive to feed buyers and take demand away from barley, Stirling said.
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
The final death count of Typhoon Haiyan, which hit the Philippines last week, is still a long way from being known. The relief effort is well underway, however, and drinks companies are among those th...
Ranked sixth in hot drinks in 2012, the company has a strong presence in other hot drinks, in particular in chocolate-based flavoured powder drinks under the Toddy brand. Competing for the same target...
PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....
PepsiCo India is one of the largest players in packaged foods and soft drinks in India. The holding became the new title sponsor of the Indian Premier League (IPL) for five seasons starting from 2013....
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- just the Ten - Top News Stories of 2014
- Review of the Year 2014 - Part II: Beer & Cider
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018