ABB Grain has warned investors that the profits growth of 26% they had been expecting will not materialise, blaming a downturn in Asian beer drinking and scrimping by Australian farmers.

The Adelaide-based group, Australia's biggest exporter of barley and malt, said that underlying earnings would come in at Aus$43m-53m in the year to September, a range Aus$10m lower at both ends than forecast two months ago.

The alert puts ABB on course to match last year's performance, when earnings came in at Aus$46.9m, but to miss the figure of Aus$59.0m which analysts had predicted.

However, its shares eased a modest 2.7% to Aus$9.10 on the news, supported by the group's offer from Viterra which ABB said "remains on track".

Beer consumption

Michael Iwaniw blamed the profits shortfall on "slower deliveries" of malt, a major brewing ingredient, in Asia, where the financial crisis had cut growth in beer consumption.

In Australia, farmers remained cautious over the threat of drought, and had curbed purchases of fertilizer and chemicals.

"Growers have shown a reluctance to commit to these purchases in advance of greater certainty around cropping conditions," Mr Iwaniw said.

However, he added that recent rains "gave some optimism for a return to a more normal-sized crop year", and forecast a rebound in malt deliveries.

"Longer term beer consumption projections remain strong," he said.