Address of the President of Barley, Malt, Hops and Beer Union A. Mordovin. Union’s results 2016 and future plans for 2017 (2016-12-28)

Dear colleagues and members of the Union!

On behalf of Barley, Malt, Hops and Beer Union and on my own behalf I wish you all the best wishes for the festive season – Happy New Year 2017 and Merry Christmas.

The year of 2016 is passing. This year brought satisfaction, excitement, losses and discoveries. But there were events and achievements meaningful for all us – participants of the production chain “malting barley – beer”.    

Let’s remember the key events:

– Proposals of the Union, concerning agricultural export support (by analogy with the German system Agrarexportfoerderung) were included into the state program 2013-2020;

– creation of the inter-department working group for agricultural export support;

– introduction of the Russian brewing competition “ROSGLAVPIVO” = the Best Russian Beer;

– enlarging of the USAIS system (“flow-through” USAIS) for all participants of the market, including retail sales;

– holding of Mid-Russian and Siberian Grain Forums and Field Days “Barley, Malt, Hops and Beer in Russia”;

– refusal of the Chinese company “Juxin Malt Technology” from construction of the Chinese-Belarusian industrial park “Great Stone”  with capacity of 300.000 tons of malt per year;

– co-development of the Federal law No 171 together with Viticulturists and Winemakers’ Union, concerning division to three sections: beer, wine and strong alcohol;

– amending of the grain purchase system for alcohol production by JSC “ROSSPIRTPROM”.

Plans of the Union for 2017:

– joint discussion of the subject matter of future sections of the Federal law No 171: beer and wine, legal arrangements (with participation of all public brewing and wine companies);

– holding of II International Beverage Exhibition BevialeMoscow;

– introduction of the Russian brewing competition “ROSGLAVPIVO” = the Best Russian Beer;

– conducting of the South-Russian, Mid-Russian and Siberian Grain Forums and Field Days “Barley, Malt, Hops and Beer in Russia”.

We wish all representatives of our industry good health, great mood, happiness, prosperity, accomplishment of desires and success in 2017!

Sincerely yours,
Alexander Mordovin
President of Barley, Malt, Hops and Beer Union

P.S. Excise taxes and policy

As a postscript, I can’t ignore but comment media frenzy over claims of some “brewing experts” to change excise policy of the whole alcohol industry.

New Year is coming, there is no harm in dreaming: to decrease excise taxes looks good, but the mentioned calling is not only half-assed but can’t be implemented. This is not about a final budget for two years, you may believe the person who has been cooperating with federal executive authorities for twenty years, nobody will let taking even a scrap.

Theoretically, the Ministry of Finance can decrease an excise tax for spirit and as a consequence to strong alcohol. But it will be necessary to make good the deficit of the budget. And I don’t wish brewers to be “the butt of the joke”, so beer excise rates can be reexamined and increased.

The Government will never refuse of excise taxes for a budget and if an excise rate is fixed, it won’t be decreased, so national vodka for 100 rubles will never exist in our country. It is a myth.

If it refers to a couple of hundred of millions or two billions rubles, the Ministry of Finance could come to terms, may be for the development of viticulture and wine making but that’s about it or they can compensate losses by increasing of excise taxes for other category – beer.

If it is so, what will happen with the brewing industry! In case, the excise tax for ethanol is decreased and beer excise rate remains the same or even increased, there will be a bottle of vodka for 100 rubles and beer for 60 rubles and at the worst, the cost of vodka and beer will be the same.

An excise tax is individual. Dear wine makers, brewers and vodka producers, everyone defends his own interests. The excise tax is a fighting tool and the brewing industry is still behind.

There is a German proverb:

«Wer zu spät kommt, den straft das Leben»

It bears noting that Germans ascribe its authorship to M.S. Gorbachev… Now, the brewing industry in terms of excise policy plays the role of the behinder and it is important not to become a latecomer.

So, dear colleagues, be careful in your wishes. It can come true…

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