BARLEY SHORTAGE BAD FOR BEER BUSINESS
MOTHER NATURE has been wreaking havoc over the last year and no one is seemingly immune to her wrath. This includes the beer world as breweries scramble to get the barley they need. Heavy rains in the fall pounded the crop in barley country, leaving a lot of it unsuitable for brewing. That has limited the supply of top-quality brewing barley and sent waves of concern through the beer world. What it means for the beer consumer is uncertain. If costs increase, some breweries may have to pass them along to the customer.
Most of the US supply is grown in Idaho, Montana, North Dakota and other northern Midwest states, said Scott Heisel of the American Malting Barley Association trade group. Some of the grain is produced in other places, including North Carolina, but historically the upper Midwest has been the primary barley supplier. Heavy rains before the August harvest caused the grain to sprout early. In some areas, more than 5O% of the crop was damaged. Brewers do have other sources: Barley also is grown in Canada and Europe. “(But) most of the barley is under contact,” Heisel said. “lt has been bought for a set price. There isn’t a whole lot that no one owns. There is not a lot of extra supply.” Heisel expects breweries to find the grain they need, “whether that means importing barley or using as much of the (US) crop as possible,” he said.
Even if the customer doesn’t notice, the brewers will. Classic beer has just four basic ingredients: grain, yeast, hops and water. Sierra Nevada’s head brewer Scott Jennings doesn’t expect beers to disappear. “It’s not a life-or-death situation,” he said. “Prices of our raw materials can change at the drop of hat. Maybe breweries will be able to absorb costs, or maybe not. Brewers are not trying to get rich.”