Ingredients going up in price

I have not personally experienced increased malt prices yet but I expect to soon. I recently listened to a podcast with the CEO of BestMalz and he discussed how they had to double their prices for malt to their customers (breweries). An interesting 'twist' is that energy costs are now something like 80% of their operating costs. A reflection of today's economy (perhaps more impactful in Europe?).

You can watch the podcast:



Cheers!

 

The crop year in Germany was poor. Grain from Russia to make up for shortfalls - not gonna happen. Energy has always been high in Germany, now it's higher.

 

Jeff, in the past how did energy prices in Germany compare to other countries (e.g., France, Czech Republic)? Was (is) there a specific reason for Germany's higher energy prices?

Cheers!

 

Petroleum and Natural gas are high due to lack of supply in the country and high taxes to deter use and pay for roads, public transportation, and so on. Other countries are a little less or some more depending mainly on their taxes.

A barrel of oil's price is set on the world market, taxes are local.

Eric Toft stated recently that he has worked for 5 years to get easements for a natural gasline to Schönram, but the Russian Ukraine war made him decide to stick with heating oil for the brewery.

 

Just saw that the high heat and drought in Europe this summer has resulted in 25% less hops harvested there.

 

North American malt is becoming drastically more expensive too, just part of the economy we live in now.

 

+1 to jerry,
It sucks but everything goes up eventually. Even my homegrown hops. Diesel, fertilizer, manure, electricity even twine goes up.
Just how it goes.

 

Bought a back of local pils from Blue Ox here is Maine, it has been probably over a year since I did so last. I went to a difference store so I know there is about a $20 difference between stores for bags. Last time I bought the pils, $50 from store A, this time $90 from store B (so would have been $70 from A if I ordered a couple weeks ago).

 

I scored a bag of Best Malz pils for 64 bucks last month and felt like I won the lottery...

 

2 row great Western is $75 here in Boise. Grain prices held up at $45 a bag in the last decade now were all getting hosed from the farmer to the consumer.

 

Fossil fuel prices throughout the Euro zone should be pretty consistent, unless local excise taxes vary considerably. Any user of natural gas across Europe will see prices spiking due to the loss of Russian supplies. Fossil fuel, likely natural gas, should be the biggest part of a Maltster's consumption, and this is probably the source of the European malt price increases. Electricity prices are another matter. Germany abandoned their nuclear infrastructure, and they have been paying the price for a few years.

 

Jeff (@hopfenunmaltz) addressed this aspect in his above post: "Petroleum and Natural gas are high due to lack of supply in the country and high taxes to deter use and pay for roads, public transportation, and so on."

And that is a 'double whammy' for Germany.

It would appear that the German people are 'extra' screwed here.

Cheers!

 

Taxes do vary.
https://taxfoundation.org/gas-taxes-in-europe/

Listening to a podcast from the CEO of Best Malz, he said energy is now 80% of the operating costs, excluding the barley cost. Big increase.

Germans are leery of nuclear power since they got radiation contamination from Chernobyl. Fukushima was another that made them say no. They have been moving to NG and renewabe energy. Russia is "giving it" to them again.

 

Went back to my source and the price is now$85