Monday, March 7, 2011

Warning: Beer costs to increase by 30%




The worlds consumers are soon going to feel the effects of the rise in price of agricultural commodities such as wheat, corn and barley. Many of the processed and pre-packaged foods we eat contain these staples, and due to poor crop yields, increased demand and natural causes, we are soon going to have to pay for it. The cost of these commodities has been steadily rising for some time now, but it usually takes about a year for increase to show up at the consumer level. The most painful cost increase that will affect most of us in the Americas is barley, which has risen almost 30% since 2009. Barley is the main ingredient for beer, of which Americans consume about 80 litres per capita per year while Canada is not far behind at around 70 litres per capita per year. Currently, a six pack of Pilsner is considered a bargain at $12.45 at the cold beer and wine store and I can't imagine paying $16 or $17 dollars for the finest of cheap beers.

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