Drink Up Now. Beer Prices To Rise.

[SpuGen]

http://www.nationalpost.com/Drink+Be...175/story.html

Rod Nickel, Reuters · Monday, Mar. 7, 2011

WINNIPEG, Manitoba — Brewers may get a reprieve this year from tight supplies of malting barley in top exporter Canada, but higher costs will likely to force them to raise the price of beer next year.

Flooding lowered the quality of the latest barley crops in Canada and Australia, leaving some unsuitable to turn into malt, the germinated barley product used in beer.

And by July, maltsters dependent on Canadian supplies will be "running on fumes" ahead of the harvest in autumn when the price of malting barley will jump by one-third, an official with the Canadian Wheat Board said.

"The tightness isn't just in Canada, it's everywhere," said Lorelle Selinger, manager of barley marketing and sales at the Wheat Board, which has seen its malting barley exports fall by half this crop year, which ends July 31.

Tight barley supplies are one example of how weather-caused crop disasters last year in Russia, Canada and Australia have pushed grain and oilseed prices to 2-1/2-year highs.

Many North American maltsters and brewers have a 2011 cost buffer because of forward pricing contracts with the Wheat Board, the monopoly seller of Western Canada's malt barley.

Barley is the second-biggest cost, after labor, for some brewers.

Molson Coors, one of Canada's two biggest breweries, is largely safe from barley price shock this year, said company spokesman Adam Moffat.

But barley prices are unlikely to ease soon, leaving the cost of next year's pint in question, other brewers say.

"(Crop) prices will stay very high probably much of 2012," said Michael Micovcin, Chief Executive of Saskatchewan-based regional brewer Great Western Brewing. "Ultimately, it will be passed on to the consumer, no question."

"DRINK UP NOW"

Beer price increases may happen in the second half of this year, but are more likely starting in 2012, said Dwayne Dubois, chief financial officer at Alberta's Big Rock Brewery.

"Drink up now, is my advice."

Brian Sawatzky, director of grain at Canada Malting Company, the country's biggest maltster owned by Australia's GrainCorp, said maltsters with lots of storage can sometimes ride out high prices, although stocks will be tight.

"Everybody really shoulders risk," he said.

Canada's biggest grain handlers generally like high crop prices. But they'll also take a hit — Viterra Inc. and Cargill Inc., Canada's No. 1 and 3 grain handlers, face higher costs through the jointly owned Prairie Malt.

Maltsters and brewers also face the challenge of turning lower-quality barley into malt that will produce consistent beer quality, said Great Western's brewmaster Viv Jones.

The smallest malting barley supplies in about nine years mean some barley doesn't germinate properly and is discarded.

Wet growing-season weather in Canada and Australia has forced the same quality problems on brewers around the world.

QUALITY MATTERS

Global malting barley exports look to be flat around 4.1 million tons in the current 2010/11 crop year, but the Wheat Board's Selinger said that's not the whole picture.

"This year all of the demand was met, but it was met with very poor-quality barley."

The Wheat Board will need the upcoming crop to satisfy beer thirst in China, the world's biggest malting barley importer and top beer brewer, which last year agreed to its biggest-ever purchase from Canada.

The industry is also eyeing spring planting decisions by Canadian farmers, who enjoy a rare chance to choose from many highly-priced crop options.

The Wheat Board forecast last week total Canadian barley production this year at 8.5 million tons, up 12% from last year, but still well off the five-year average.

Wet ground has raised chances of delayed planting, which might favor a barley rebound since the grain has a shorter growing season than other crops.

"The 2011 crop is going to be critical," said Dubois of Big Rock Brewery.

© Thomson Reuters 2011

[willystyle]

Because alcohol in Canada isn't already expensive enough.

[liu13]

why waste calories drinking beer? doesnt even taste good

[vafanculo]

i call bs. the powers that be most likely made up the whole barley drought to get in on the canadian price gouging trend

[adambomb]

Originally Posted by liu13

why waste calories drinking beer? doesnt even taste good

You're obviously not a man.

[Peturbo]

Originally Posted by liu13

why waste calories drinking beer? doesnt even taste good

Don't know what beer you have been drinking but a nice cold Heiniken taste fucking awesome.

[RCubed]

Lol.. I remember when I was in Germany.. Beer was cheaper than water.

[dinamix]

Originally Posted by liu13

why waste calories drinking beer? doesnt even taste good

I didn't know Liu13 Was a chick. Yeah women don't usually enjoy beer. U should stick to your margaritas
Posted via RS Mobile

[drunkrussian]

The tightness isn't just in Canada, it's everywhere," said Lorelle Selinger, manager of barley marketing and sales at the Wheat Board

this guy is in charge of marketing barley. Am I the only one who finds that hilarious?

[BNR32_Coupe]

what's up with these threads? this isn't news, prices fluctuate. that means it goes up and down, durr

[Ch28]

Originally Posted by liu13

why waste calories drinking beer? doesnt even taste good

perhaps a cosmo is what you prefer?

[liu13]

Originally Posted by adambomb

You're obviously not a man.

men drink liquor, pussies drink beer, queers drink wine

Originally Posted by Peturbo

Don't know what beer you have been drinking but a nice cold Heiniken take fucking awesome.

i rather have shots poured into an iced tea or orange juice

[JesseBlue]

and water was the bubbly type

[drunkrussian]

Originally Posted by liu13

men drink liquor, pussies drink beer, queers drink wine



i rather have shots poured into an iced tea or orange juice

i'm so manly, i take 151, mix it with blood and synthetic oil and drink it out of a virgin's vagina

...either that or a nice appletini with the girls

[Mr.Money]

If anyone was smart enough they wouldn't give a shit Because they took the Hobby up of Making your own Brew

[Kim Jong Un]

Originally Posted by liu13

men drink liquor, pussies drink beer, queers drink wine



i rather have shots poured into an iced tea or orange juice

You do really prefer that Apple-tini do you? OHHH girl I see you got your nails did.

[liu13]

Originally Posted by drunkrussian

i'm so manly, i take 151, mix it with blood and synthetic oil and drink it out of a virgin's vagina

...either that or a nice appletini with the girls

i two manned a bottle of 151 and drove my buddy home safely, top that

[drunkrussian]

Originally Posted by nwen

You do really prefer that Apple-tini do you? OHHH girl I see you got your nails did.

hey man, if by "shots in an iced tea" he meant long island iced teas (which really isn't supposed to have any ice tea in it and is more than just shots poured in), that's no woman's drink. and on that note, fogg n' sudds fishbowl fridays ftmfw

[drunkrussian]

Originally Posted by liu13

i two manned a bottle of 151 and drove my buddy home safely, top that

i two manned your mother and then she rode me til i fell asleep

[KuSouL]

Originally Posted by liu13

i two manned a bottle of 151 and drove my buddy home safely, top that

i hope you're joking ... or 15 years old

[liu13]

Originally Posted by KuSouL

i hope you're joking ... or 15 years old

true story, i've been the designated drunk driver since middle school, haven't gotten into an accident yet, but puked many times at a red light

edit: lol nice fails, watch out for a swerving mazda 3 on saturday, sunday mornings in east van

[Gt-R R34]

Wish I can fail. The is the worst BS ever on rs possible beating Hyde and his cars
Posted via RS Mobile

[liu13]

[RCubed]

Originally Posted by liu13

true story, i've been the designated drunk driver since middle school, haven't gotten into an accident yet, but puked many times at a red light

edit: lol nice fails, watch out for a swerving mazda 3 on saturday, sunday mornings in east van

You expect not to be failed? Here at RS, we do not condone this type of activity.
I think your mom also two manned a bottle of 151 when you were in the womb.

[liu13]