Beer prices may rise next year due to poor barley crop in 2010
Posted March 7, 2011 9:27 pm.
This article is more than 5 years old.
TORONTO, Ont. – If you are a beer drinker you may have about a year to drink up or stock up before the price you pay could go up.
World beer prices are expected to rise after poor weather made for a bad barley crop in 2010.
The price hike is expected to occur in 2012, with an estimated 33 per cent increase in the price of the crop.
Barley crops in Canada and Australia took a big hit last year due to environmental issues such as flooding.
Considering barley is the main ingredient in most beer, the price of beer is likely to follow suit.
Lorelle Salinger with the Canadian Wheat Board told 680News consumers will not see a price hike for another year.
“(Companies) will do some of their purchasing up to twelve months forward, (which covers) most of their demand for the remainder of this crop year. They have probably locked in the price of the barley that they’re buying to fill their needs,” said Salinger.
Salinger says the crop is in extra demand due to the increase of beer sales in China, which she says has grown over 200 per cent in the last decade.
Greg Taylor, co-founder of Steam Whistle Brewing in Toronto, told 680News they have got a two year supply of barley, but they are still hoping the barley crop stabilizes to keep prices in line.
“I think we’re looking at at least two years where we’ll see stability with our barley malts. Unlike most domestic brewers, Steam Whistle is an all malt beer,” said Taylor.
He added that they are keeping their fingers crossed for a good barley harvest this year to keep their production high and their cost down.
