Costs of Making Beer

[nzbrewer]

I thought this could be a place to record all the increases we are dealing with in the production of beer, which have to be ultimately passed on to the consumer.

Malt has been increasing at double digit figures.

Hop have been hit by a global shortage after years of over production and low prices.

Fuel prices are adding to the cost of everything getting ingredients and materials to the brewery, as well as shipping finished product.

Details to follow

[nzbrewer]

This comes from an email from a glass bottle supplier in England

"Some of our manufacturers have informed us that they will be implementing price increases of between 6 and 10%. The percentage of energy costs in the production process of glass has increased from 17% to 31%, placing great pressures on operating costs and profitability. We have also seen a significant slide in the pound to euro exchange rate which is further exacerbating the situation for glass sourced from the EU."

[Stu McKinlay]

Get used to it folks. It is going to hit some of us harder than others but it is not going to stop. I've been following the oil issue for about 3 or 4 years, and the cheap credit issue for as long as I can remember (probably since I was about 13 or 14). Hard times are on the way and they are going to bite us all very badly. Think about the economy that your parents and their parents lived in. They are coming to a suburb near you very soon. If you have relatives overseas, and no mortgage, go and visit them now.

For the worst end of the situation, research "the long emergency" (Kunstler).
For the middle of the road, check out The Guardian, The Economist, The Times, Wall Street Journal over the last few weeks... Richard Heinberg, or The Hirsch Report.
For the optimistic viewpoint listen any major oil company, real estate agent, stockbroker, most politicians...

My advice: cider, NZ malts and NZ hops - get used to them all. Have fun with whatever else you can afford, while you can.

I truly believe that global warming will never become a real issue in the lifetime of anyone who is already born. Oil is about to become far too expensive. As the price of oil goes up, so does the price of everything - except our hourly rates ;-) Autolysis will ensue. Who said the revolution wouldn't be televised?

[Craig]

If we talk about a recession for long enough, I'm convinced we'll actually make it happen. Perception definitely drives behaviour. That said, I agree many New Zealanders have been very happily living off false economic growth through rediculous increases in house prices. It is about time we learned to take the good with the bad.

Of note I believe we have actually enjoyed very static beer prices for at least the last 5+ years. I'm thinking of switching the kids from milk to beer a couple of years earlier than first planned. Maybe a milk-stout will be a good half-way house.

Back to the topic at hand... yes, I would agree us fella's haven't seen anything yet re rising beer prices. A fundemental issue re malt prices is the ludicrous endeavour to replace Oil with bio fuels. You cannot beat digging pre-formed energy straight out of the ground. Growing food for cars is in direct competition with growing food humans. I not a save the world do-gooder, it just defies good logic especially when it impacts on Beer (the human social lubricant).

Besides the food shortage issue... there is also resource inputs issue associated with trying to growing more. Average basic fertiliser prices in NZ (and the world) have gone from $200/tonne to $480/tonne. That is well over 200% in the space of a year. These increases are yet to flow through to Malt prices. Sulphur one of the key ingredients has gone from being an excess by-product of the Oil refining process at $50/tonne to a highly sought after mineral at $1000/tonne. All metals / resources in general are skyrocketing. Quite exciting...?

I agree with your centiment Stu, the world economy is at threat and we may see a return of more local cottage industries that are less impacted by the cost of transport. Local brewpubs on every corner???

My basic take on the whole situation is the planet cannot sustain 8 billion people, especially if we all want to live like Americans (me included). I also don't believe humans will voluntarily solve the problem, as we are all too greedy. Nature will prevail and balance the equation for us.

All I really need is beer. I think it should be added specifically to that Maslow (or what-ever it is) hierarchy of basic needs. Then everyone would understand... and all world problems could be solved.

[Dan]

This all sounds a but worrying, It may be time to buy that lifestyle block just outta town while I still can! and get a horse and wagon.

[Barry]

hehe, sounds good Dan, time to get our Amish on maybe.

I'll reply with an actual contribution later...

[James P]

Already on to purchasing the cult... er um I mean lifestyle block for the cultivation of grains and hops...

[Steve Baker]

Make sure you have plenty of guns to keep the starving hoards off your land ;)

[Mike Shadow]

A network of sharpened stakes and punji traps around your property may also be handy as ammunition could be a little hard to come by after the first few waves.

[Stu McKinlay]

Sorry, I forgot to include another group in the optimistic group...
bampots: http://nz.youtube.com/watch?v=NbakN7SLdbk

[Stu McKinlay]

http://www.economist.com/world/na/displaystory.cfm?story_id=10337782

[Barry]

Recommended listening is the Brewing Network Sunday session 3 December 2007. A more accurate perspective on crop displacement (it's not as simple as trading barley acres for corn).

http://www.thebrewingnetwork.com/archive/dwnldarchive12-02-07.mp3

[David Falconer]

i have always been interested in trying NZ pale malt but have never managed to find a source any ideas ?