Increase in Barley Costs May Push Beer Prices Higher
Russia and Ukraine produce 13% and 5% of the world’s barley respectively, and with no end in sight for the war and Russian sanctions, the cost of barley is likely to push the cost of beer higher.
That is on top of already surging prices of beer due to inflation and supply chain issues. Brooklyn Brewery’s CEO Eric Ottaway told e-Malt News that the price of a six-pack has increased by 50 cents to a dollar over the past year, and prices will go up by a “similar amount again before the end of the year.”
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Even before the war, a barley shortage contributed to higher prices. Last year US barley production declined due to drought as well as a decrease in acreage cultivated.
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