by Loki » Sun 30 Dec 2007, 13:50:17
Strider, ethanol production may be affecting barley prices, but there's a lot more to the recent rise in beer prices than the evil evil ethanol.
This story has the requisite misleading "blame ethanol" headline, but then goes on to say that the prise rise this last year was actually due to increased energy, glass, and steel expenses, NOT ethanol.
$this->bbcode_second_pass_quote('', 'O')dell said his company's production costs have gone up 10 percent to 15 percent over the last year. Since Odell buys its barley in October for the following year, the jump in its production costs is mostly from increases in the prices of energy and glass, Odell said....
The rising cost of diesel and unleaded gasoline affects production, too, from the farming of barley to the delivery of beer....
The cost of stainless steel for kegs has doubled over the last year, affecting the production cost of draught beer, Odell said.
That said, barley production does seem to be down due
in part to ethanol, which will affect the prices of some beers over the next year. Some breweries aren't too worried, though:
$this->bbcode_second_pass_quote('', '"')We do feel a little heat of the prices. But comparably the amount of barley in a glass of beer is insignificant. Twenty-five percent is 25 percent. But we've been able to keep control of the cost of beer," said Lancaster Brewing Company brewmaster Christian Heim.
link As for hops, Oregon, Washington, and Idaho produce all of the hops in the United States, yet we don't produce a drop of ethanol. Some growers here have stopped growing hops because of overproduction and low prices going back years. And a large part of Europe's and Australia's crop was ruined by drought and other natural disasters. US production actually
, but the poor harvests elsewhere in the world must have still driven prices up.
$this->bbcode_second_pass_quote('', 'T')he shortage has helped U.S. hop farmers who in the past, have had a hard time profiting from their crop. Gayle Goshie and her family have been farming hops in Oregon's Willamette Valley for more than a century. She blames overproduction for hops' previously cheap place on the agricultural market. The glut pushed many hop farmers out business, which gradually helped hop prices recover. Though Goshie doesn't call this year's price spike a windfall, she's says it's helped those who stayed in the business.