Change to the Malt MarketChange to the Malt Market · United Malt Holdings Supertime Russky Solod...
Transcript of Change to the Malt MarketChange to the Malt Market · United Malt Holdings Supertime Russky Solod...
Change to the Malt MarketChange to the Malt Market
Rob WicksBusiness Unit Manager Barley and Malt
Joe White MaltingsJoe White Maltings
B d i lt i B ll t Vi t i i• Began producing malt in Ballarat, Victoria in 1858C tl l t lt i A t li• Currently largest malt company in Australia with 8 plants in 6 statesB t f ABB G i i 2004• Became part of ABB Grain in 2004
Malting ProcessClean and Grade Barley
Malting Process
↓
Steep (24 hours)p ( )↓
Germinate (96 hours)Germinate (96 hours)↓
Kil (24 h )Kiln (24 hours)
Malt is a friable grain with which when mashed in water at suitable gtemperatures will provide sufficient amino acids and carbohydrates to nourish yeast and produce beer. (You may wish to add hops for bitterness)
How is it madeHow is it made
Previously a Labour Intensive IndustryPreviously a Labour Intensive Industry
Now a capital intensive industryNow a capital intensive industry
Cost inputs (% Malt Price)Cost inputs (% Malt Price)B l i lt 70%• Barley in malt – 70%
• Energy, water and effluent – 5%
It’s all about the barley
World Barley for MaltWorld Barley for Malt
Malt Price InfluencesMalt Price Influences
• Beer Market• Beer Market• Barley MarketBarley Market• Malting Capacityg p y
TOP TEN BREWERSAs at end of 2007
Tsingtao Brewery Group
Molson-Coors
Yanjingl.
hl)
Carlsberg
Grupo Modelo
Tsingtao Brewery Group
olum
e (m
ill
Anheuser Busch
Heineken
Baltic Beverages Holding BBH
duct
ion
Vo
SABMiller
InBev
Anheuser-Busch
Pro
d
0 50 100 150 200 250 300
Source : The Barth Report 2007
Beer Production
700
500
600
700hl
400
500
d'n,
mil 2004
20052006
200
300
Beer
Pro 2006
2007
0
100
B
Africa America Asia Oceania EuropeCIS
Chinese Beer Production
Barley SupplyBarley Supply
B arley P ro duct io n
Australia
Africa
150
200Africa
Far east Asia
Near east Asia
50
100 Other
N&C America
02004 2005 2006 2007 2008e
CIS
Europe
Malting Barley ExportsMalting Barley Exports
• Europe, Australia and Canada key to Malting Barley price
ChinaChina
Top Ten Malting Companiesp g p
Boortmalt
JWM
Greencore
Rahr
United Malt Holdings
Supertime
Russky Solod
CofcoExistingPlanned
Malteurop (incl. ADM)
Soufflet
Cargill Inc.
United Malt Holdings
0 500 1,000 1,500 2,000 2,500
Malting Capacity ('000 mt)
T t lti i d i t l 9 400 000 t 44%• Top ten malting companies produce approximately 9,400,000mt = 44% global malt production
• Top ten brewing companies produce over 60% of global beer production
Malt ExportsMalt Exports
RussiaRussian Malt ImportsRussian Malt Imports
500 000
600,000
300,000
400,000
500,000
nnes
100,000
200,000
,
Ton
02002 2003 2004 2005 2006 2007
Japan’s Imported Malt (1991~2008) SOURCE; KIRIN, RMI CONFERENCE 2007
(i 1 000 )
8 0 0
9 0 0
Total Quantity
Max.Volume (1992)
806,226t(in 1,000mt)
2006(Estimate)
6 0 0
7 0 0
( )
4 0 0
5 0 0
3 0 0
4 0 0
Launch of New genreby Kirin & Asahi
1 0 0
2 0 0 Launch of Happoshu by Kirin
09 1 9 2 9 3 9 4 9 5 9 6 9 7 9 8 9 9 '0 0 '0 1 '0 2 '0 3 '0 4 '0 5 '0 6
7 08
OVERVIEW OF INVESTMENTS / DIVESTMENTS 2003-2006 (III)Source; Malteurope RMI Conference 2007
Metric Tonnes INCREASE OF CAPACITY
DECREASE OF CAPACITY
NET
E U 27 490 000 970 000 480 000E.-U.-27 490 000 970 000 - 480 000EAST EUROPE 1 040 000 ? + 1 000 000NORTH AM. 420 000 570 000 - 150 000SOUTH AM. 230 000 - + 230 000AUSTRALIA 100 000 40 000 + 60 000CHINA 500 000 100 000 + 400 000CHINA 500 000 100 000 + 400 000
2 780 000 1 685 000 1 100 000
2003 2006WORLD BEER PRODUCTION 1 478 Mio hl 1 675 Mio hl
197 Mio hl + 2 200 000 T of malt197 Mio hl + 2 200 000 T of malt
Malt Processing Fee;Malt Processing Fee;source SABMiller RMI conference 2007
Australian MaltstersAustralian Maltsters
Australian Malt Production
600700800900
MALTEUROPE
BBM
300400500600
1000
MT
BBM
KIRIN
ADMALT
0100200300 MALTCO
JWM
01995 2000 2004 2007 2008
JWM Plant Locations
Tamworth
Brisbane
Tamworth
Adelaide Ballarat
Perth
Devonport
Lake GardensDelacombe
Pt Adelaide Cavan
Asian MarketsAsia Malt ImportsAsia Malt Imports
800000900000
Vietnam
500000600000700000800000
nnes
VietnamThailandSingaporePhilippines
100000200000300000400000
Ton Philippines
MalaysiaKoreaIndonesia
0100000
2000 2001 2002 2003 2004 2005
IndonesiaIndia
FutureFuture
Threats• Energy and water prices relative toEnergy and water prices relative to
competitors.C titi f Chi• Competition from China.
OpportunitiesOppo tu t es• Superior access to quality Barley• Proximity to high growth markets in Asia
Thank You
• Questions