Malt & Hop Prices Soaring....

[Ross]

From the Wall Street Journal


Craft beer makers have faced escalating costs over the past year. Prices for malting barley, which accounts for a beer's color and sweetness, have jumped as farmers increasingly shifted to planting corn, which has been bringing higher prices because of high demand from makers of biofuels, like ethanol. The weak dollar also has made it more expensive for U.S. brewers to buy commodities from Europe.


The news worsened for craft brewers significantly in recent weeks. Firms that turn barley into brewing malt informed craft brewers of price increases ranging from 40% to 80%, and hops suppliers announced increases ranging from 20% to 100%, depending on the variety of hops.

The price of hops -- which give beers their bitterness and aroma -- has risen because of shortages across the globe, due in part to poor crops in Europe. Some European brewers are competing with American brewers for hops grown in the Pacific Northwest.


For years, hops were cheap due to a glut. That prompted growers over the past decade to replace hops with other crops, such as apples. Now, the amount of hops acres world-wide is about half the total of 12 years ago, says Ralph Olson, a hops dealer with Hopunion CBS LLC in Yakima, Wash. That's caused some hops varieties to quadruple in price over the past year, he says.

To cope with higher malt and hops prices, smaller brewers are trying to secure longer-term contracts for the ingredients. And, in some cases, they're tweaking their recipes.

Full article here


Cheers Ross

 

[ozpowell]

From the Wall Street Journal
Craft beer makers have faced escalating costs over the past year. Prices for malting barley, which accounts for a beer's color and sweetness, have jumped as farmers increasingly shifted to planting corn, which has been bringing higher prices because of high demand from makers of biofuels, like ethanol. The weak dollar also has made it more expensive for U.S. brewers to buy commodities from Europe.
View attachment 15565

The news worsened for craft brewers significantly in recent weeks. Firms that turn barley into brewing malt informed craft brewers of price increases ranging from 40% to 80%, and hops suppliers announced increases ranging from 20% to 100%, depending on the variety of hops.

The price of hops -- which give beers their bitterness and aroma -- has risen because of shortages across the globe, due in part to poor crops in Europe. Some European brewers are competing with American brewers for hops grown in the Pacific Northwest.


For years, hops were cheap due to a glut. That prompted growers over the past decade to replace hops with other crops, such as apples. Now, the amount of hops acres world-wide is about half the total of 12 years ago, says Ralph Olson, a hops dealer with Hopunion CBS LLC in Yakima, Wash. That's caused some hops varieties to quadruple in price over the past year, he says.

To cope with higher malt and hops prices, smaller brewers are trying to secure longer-term contracts for the ingredients. And, in some cases, they're tweaking their recipes.

Full article here
Cheers Ross

Nothing but bad news on all fronts coming out of the US lately....

Cheers,
Michael

 

[domonsura]

Nothing but bad news on all fronts coming out of the US lately....

Cheers,
Michael

Aren't you glad you don't live there.......... B)

 

[JasonY]

Aren't you glad you don't live there.......... B)

Not really

Ordered a 40Gal SS pot with welded couplings from B3 this morning and it has already shipped ... man it sucks :icon_cheers:

 

[Tony]

there was a story in the local paper about beer prices rising due to the malt crisis.

I bought a bag the other day and prices are getting up there ($2.80/kg) but its still cheaper (1/8th) that of pup prices to make it myself. and its better

we have been paying abolut $1.80/kg for ages but a shortage is going to push prices up. problem is when the crops come back the prices will stay high :angry: always happens doesnt it.

It will have to get up to 8 dollars a KG for base malt before it becomes unviable but i dont see that happening. and its still half pub prices now. thay will go up too.

I cant see a 25KG bag getting to $200 though.

If it does, may have to cut back drinking and supliment with some cheap dextrose from china. the chinese put the knife into ausie dextrose production. I can give you the numbers but its scary........... and we are digging up all our natural resources, sending it there (a lot of the big mines are owned by the chinese too) so they can build up and sell stuff back to us so cheap out local buisnesses cant compete and close down.

But Johny likes sighning deals with them.

opps :icon_offtopic:

I will shut up now.

cheers

 

[Bobby]

and you think Mr Rudd wouldnt sign deals with China too?

 

[Duff]

and you think Mr Rudd wouldnt sign deals with China too?

Bobby,

Come on now, people can be short sighted some times.

Cheers.

 

[Kai]

From the Wall Street Journal
Craft beer makers have faced escalating costs over the past year. Prices for malting barley, which accounts for a beer's color and sweetness, have jumped as farmers increasingly shifted to planting corn, which has been bringing higher prices because of high demand from makers of biofuels, like ethanol.

I was under the impression that malting barley commanded a better price than cereals for biofuel.

 

[Screwtop]

And the mega mega brewing multinationals would have nothing to do with the drastic rise in price of 25Kg bags. Don't want small brewing operations getting a foothold, better keep them right where they are. Have a look at the tonnage prices at the farm gate.

 

[Tony]

yeah thats probably a big part of it....... out of our hands though.

like i said...... still cheper than a schooner of VB at the pub

cheers

 

[Uncle Fester]

It will have to get up to 8 dollars a KG for base malt before it becomes unviable but i dont see that happening. and its still half pub prices now. thay will go up too.

Damn straight - If we are paying $200 a bag for malt, then a carton of megaswill will be proportionately higher.

Home brewing will remain 1/3 or so the cost of commercial beer, and three times the quality. Failing that, 8 Kg of cane sugar in 25 litres and then a little evaporation magic ???


Festa.

 

[braufrau]

From the Wall Street Journal
Craft beer makers have faced escalating costs over the past year. Prices for malting barley, which accounts for a beer's color and sweetness, have jumped as farmers increasingly shifted to planting corn, which has been bringing higher prices because of high demand from makers of biofuels, like ethanol. The weak dollar also has made it more expensive for U.S. brewers to buy commodities from Europe.

Wow! The greenies have been predicting a hike in grain price when we start burning food in our cars but I didn't expect to see a concrete example so soon!

 

[Tony]

greenies..................... HA ........... what do they know.

Nt fav line in TV history was a married with children moment.

Peggy runns downstairs all excited.......

Al.... Al.... I have csonething great to tell you!

Al jumps up excitedly like he just won lotto and replies........

What....... an owl pecked the eyes from an environmentalist ?

I litterally wet myself laughing.......... and never forgot the moment.

sorry :icon_offtopic: again

cheers

 

[braufrau]

I litterally wet myself laughing.......... and never forgot the moment.

eeewwww! Too Much Information!

 

[redbeard]

Prices for raw seed, ie barley, wheat, oats have increased 100% in last 12 mths & the current worldwide drought will continue its rise. kellogs, nestle, sanitarium will soon see a lot of pain, when their futures contracts expire / need to renew & then pass this $$ pain onto us. alas all aus hb'ers via the malters will also pay increased prices ... aus is till a lucky country but tax cuts dont mean sh*t when you start paying increased prices cause of short term greed, price collusion betweeen major retailers & a drought that is destroying irrigation areas that has traditionally supplied produce. the mis-management of inland waterways unfortunately takes a while to show, and even then no one wants responsibility ....

</rant>

edit - speelingz

 

[Screwtop]

Be wary of doomsdayers expanding on things, read this and have a look at the website, this is to do with beer price increases in the US a little less than the 100% being touted around. Source:http://www.usatoday.com/money/industries/f...er-prices_N.htm

Kelly says a major price increase has come from malt made from barley. Malt costs have risen 9% in the past year, he says.

Nationwide, average barley prices have risen 17% since the beginning of the year to the highest in 11 years. The increase is partly because farmers are devoting less acreage to the grain in favor of more lucrative crops, especially corn.

Prices for corn have jumped in response to strong demand for the grain to produce ethanol, a fuel alternative blended with gasoline.

Listen to ABC radio market reports for farmgate prices of Malt Barley (not Feed Barley) in Australia. Don't think we are growing much Maize for ethanol production here at present, or other bio fuels for that matter, anyway its sustainable but still dirtys up out atmosphere.