Interesting article in this week's emalt about the new world of malt contracting.
Quote: Malt markets have changed drastically since two years, therefore it is impossible to estimate the amount of business already done for crop 2008, analysts have recently reported.
Almost all large international and even some national brewing companies have switched a large percentage, in some cases all of their needs, to LTA’s, which fix the quantity, delivery period and malting margin of contracts, but leave the barley price, in some cases also the cost of energy and of transport, open for later fixation. In this way a few Million tons of malt have been covered for 2009, similar quantities also for 2010 and 2011, not only from European, but also from Canadian and Australian industries."
Interesting parts for me is how risk is shared. Also how Canada fits into this new world.
Quote: Malt markets have changed drastically since two years, therefore it is impossible to estimate the amount of business already done for crop 2008, analysts have recently reported.
Almost all large international and even some national brewing companies have switched a large percentage, in some cases all of their needs, to LTA’s, which fix the quantity, delivery period and malting margin of contracts, but leave the barley price, in some cases also the cost of energy and of transport, open for later fixation. In this way a few Million tons of malt have been covered for 2009, similar quantities also for 2010 and 2011, not only from European, but also from Canadian and Australian industries."
Interesting parts for me is how risk is shared. Also how Canada fits into this new world.
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