Barley and Hops and Steel Add to Beer Prices

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August 20, 2008 @ 04:42 AM EDT
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25 January 2008

Barley and Hops and Steel Add to Beer Prices

expect 25-cent increase per poured beverage

Categories: Beer Environmental

That flowery citrus taste in your favorite beer might start costing you more. Worldwide hop harvest in fall 2007 was mediocre. Add to that the falling dollar and strong Euro and lots of the hops are finding their way to the other side of the Atlantic.

It takes about three years to get a hop field to production state. In the US there are an estimated 45 hop growers down from over 2,000 back in 1978.

Time for breweries to start experimenting with other bittering agents.

Barley, another staple of beer production saw prices increase over 17% during 2007. Part of the increase is attributable to farmers dedicating more acreage to more lucrative crops like corn (which is currently being gobbled up for making Ethanol).

The prices of aluminum and stainless steel are on the increase also as Asia feeds it need for raw materials.

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