Grrr

[cameraman]

You know what this ethanol for fuel crap has done?

It has increased the price of corn,
which lead many farmers to switch over to planting corn,
which greatly decreased the planted acreage of non-corn crops,
which has resulted in a 40-80% increase of the cost of brewing malt.

Add to that huge increases in the market price of hops over the last few years and you will soon see a large increase in the price of your local microbrews, on the order of a dollar a six pack.


This is a crisis of epic proportions for us. It is nothing short of a catastrophe. All we can do now is just hope to be able to stay in business and continue to make good beer for our customers. What we're hoping is that our customers will understand the situation and not think that we're out trying to gouge them but we're dealing with grain prices that have doubled and hops prices that are up 60 percent. This is just something that has never been seen before in this industry. I seriously doubt that there will be any new brewers wanting to get into the industry under these conditions, and we'll probably see some just deciding that with these prices, it's no longer worth it.

:flame:

[dando]

You know what this ethanol for fuel crap has done?

It has increased the price of corn,
which lead many farmers to switch over to planting corn,
which greatly decreased the planted acreage of non-corn crops,
which has resulted in a 40-80% increase of the cost of brewing malt.

Add to that huge increases in the market price of hops over the last few years and you will soon see a large increase in the price of your local microbrews, on the order of a dollar a six pack.



:flame:

It's also increased the co$t of livestock feed, which has already impacted beef prices. Less of an impact on other meats so far. :\

-Kevin

[Indy]

People will adjust. I don't really care what my brews cost. With a cheap beer at a bar being $3.50-$4.75, no one who gives a damn what he is drinking even blinks at a $10 six-pack.

Think wine. Twenty years ago most people considered $10 to be a special occasion wine. Now the red wine sweet spot for non-chain retailers is in the $24-34 range, and that is for everyday stuff.

Those who will suffer are the companies producing bilge water, thus the panic among A-B, Miller, Coors and others.

[Indy]

Besides, farmers have been suffering for far to long under a system that has put them at the mercy of the big processors. Finally they have a little leverage in their markets. That is a good thing.

[Ankf00]

despite recent bumper crops of corn this decade the subsidies have led to much of it just rotting away in the open. and now the subsidies are worse...

[cameraman]

Those who will suffer are the companies producing bilge water, thus the panic among A-B, Miller, Coors and others.

Nope, they will suffer the least. Ounce for ounce the average Sierra Nevada requires twice the grain and four times the hops as any Bud or Miller/Coors product. The microbrew production costs will increase far ahead of those of the pisswater manufacturers. Not to mention the economies of scale - you get your grains cheaper when you buy it by the barge load.

[extramundane]

Add to that huge increases in the market price of hops over the last few years and you will soon see a large increase in the price of your local microbrews, on the order of a dollar a six pack.


No kidding. I haven't bought brew supplies in a year or so. Went to buy a pound of hops and nearly shat myself. $15+/lb for freaking Centennials. :flame:

[Indy]

Nope, they will suffer the least. Ounce for ounce the average Sierra Nevada requires twice the grain and four times the hops as any Bud or Miller/Coors product. The microbrew production costs will increase far ahead of those of the pisswater manufacturers. Not to mention the economies of scale - you get your grains cheaper when you buy it by the barge load.

Yes, but their customers are far more price sensitive than microbrew customers. They sell much of their product to national chains, which have enormous leverage in price negotiations. My prediction: the pisswater will get even more watery and more piss-like.

The future of retail in North America is in quality over quantity. The time has come to admit we overconsume and are too fat. If Bubba can't get with the program, then he can drop his Bud and switch to $9.99/1.75L vodka.

The trend in the marketplace is to buy smaller (or less) of something which is better. The explosion in truly wonderful beer is a reflection of this. It is a good time to be a beer drinker. :thumbup:

[Sean Malone]

Front page article in the county paper how local 'buffalo wing' sports bars are already feeling the pinch from ethanols demand on corn crops. There are at least four wing bars on every city block so we can stand to thin the herd. :)

[oddlycalm]

You know what this ethanol for fuel crap has done?

It has increased the price of corn,
which lead many farmers to switch over to planting corn,
which greatly decreased the planted acreage of non-corn crops,
which has resulted in a 40-80% increase of the cost of brewing malt. There isn't a single positive thing I can think of to say about the corn ethanol hysteria. Inefficient conversion (optimists claim a 20% net gain) from a subsidized commodity by subsidized distilleries. In the end it will impact the environment and foreign oil consumption about as much as a popcorn fart in a high wind. In the mean time it will drive up prices of food from milk to breakfast cereal. Ethanol makes sense if you have surplus sugar, but corn is a non-starter.

Oh, and beer and the parts to build beer will be more expensive....:(

oc

[Sean Malone]

And yet I see microwave popcorn costs decreasing, lending proof that it's not actually made from corn at all. :)