Drought affects beer prices

[Mississauga Matt]

This was in today's Edmonton Sun:

Drought conditions could drive up beer prices as the region faces one of its worst grain crops, says a farm lobby group.

And the quality of your beer could also be at risk due to the poor harvest, adds a barley growers' association.

Rod Scarlett, executive director of Wild Rose Agricultural Producers, said crop failures caused by the drought mean less barley on the market, which increases demand and price for the grain.

"The price of beer might go up," said Scarlett.

Canadian Wheat Board spokesman Louise Waldman said the price of malt barley has climbed from $175 a tonne in June to its current price of $207 a tonne.

"It will probably rise a bit more," said Waldman.

Greg Rockafellow, past president of the Western Barley Growers Association, said he's concerned the drought may affect the quality of beer.

That's because farmers may decide they can make more money by selling quality barley for feed closer to their farms, instead of selling it to someone else and having to pay higher shipping costs, he said.

Livestock feed is in high demand because of the drought.

"It will make a difference in the quality of your beer if the malters can't get quality barley," he said. "Malters" are companies that buy barley and turn it into malt for breweries.

Larry Kerwin, a brewmaster at Big Rock's Calgary brewery, said lower-quality barley doesn't affect a beer's taste, but it can make it cloudy - something North American beer drinkers don't like.

"We're hoping (the malters) will be able to find enough quality barley," said Kerwin, adding it's too soon to say if the price of beer will be affected by higher barley prices.

[Manul]

What's the barley contribution to the beer price these days? Maybe somewhere around 5% of the retail price. This shouldn't affect the prices too much. Ha...

<font size=-1>[ This Message was edited by: Manul on 2002-08-08 11:47 ]</font>

[Mississauga Matt]

I'll bet the Molson's and Labatt's execs breathed a huge sigh of relief when they found out it was the price of barley and not corn sugar being threatened.