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TechnographIncreasing beer prices? Blasphemy!
By Aaron Gaudette, Mustang Daily (U-Wire)
Posted: 5/12/08 Section: Opinion Columns
In case you haven't heard, we have an imminent crisis on our hands.
The news-savvy college student has likely heard that food prices are on the rise, to the point that Third World governments are being overthrown to protest the unavailability of life's most basic commodity.
But a threat to one of the most sacred pillars of the college experience has subsequently emerged from these developments, unbeknownst to many of us who take this pillar for granted.
Ladies and gentlemen, I'm talking about the increasing price of beer.
The cause of this price hike is complex to some and tragic to all, and it can't be placed squarely upon any one source. The Bush administration, American farmers and alternative fuels have all dirtied their hands in this atrocity.
First, the push for corn ethanol use has had a hand not only in the price of beer going up, but in the general increase in food prices as well. More acreage is being devoted to growing corn, which is then being converted to fuel. Aside from all of the inherent fallacies of the American push for corn ethanol use, the incentive for growing corn has caused many ranchers to rely on other feed grains - including barley - to feed their livestock.
This newfound demand has contributed to a 57 percent jump since last year in the price of barley, which is up to $22 for a 50-pound bag in some parts of the country.
Another contributing factor is that the ingredients that come from hops can be stored for years, which causes the price of hops to fall and can put smaller farmers out of business. This aspect of the beer industry is naturally cyclical, and prices inevitably rise again once reserves are depleted and incentive for growing hops is restored.
But a peak reached in 1996 caused a low in 2004, and acreage commitments to hops in the years following have not been enough to stave off a shortage this year that will likely last into 2009. Hops prices have skyrocketed as a result, with some varieties becoming entirely unavailable and others being sold for more than $20 a pound. Last year, the more common types of hops would typically be sold for $3 to $5 a pound.
The news-savvy college student has likely heard that food prices are on the rise, to the point that Third World governments are being overthrown to protest the unavailability of life's most basic commodity.
But a threat to one of the most sacred pillars of the college experience has subsequently emerged from these developments, unbeknownst to many of us who take this pillar for granted.
Ladies and gentlemen, I'm talking about the increasing price of beer.
The cause of this price hike is complex to some and tragic to all, and it can't be placed squarely upon any one source. The Bush administration, American farmers and alternative fuels have all dirtied their hands in this atrocity.
First, the push for corn ethanol use has had a hand not only in the price of beer going up, but in the general increase in food prices as well. More acreage is being devoted to growing corn, which is then being converted to fuel. Aside from all of the inherent fallacies of the American push for corn ethanol use, the incentive for growing corn has caused many ranchers to rely on other feed grains - including barley - to feed their livestock.
This newfound demand has contributed to a 57 percent jump since last year in the price of barley, which is up to $22 for a 50-pound bag in some parts of the country.
Another contributing factor is that the ingredients that come from hops can be stored for years, which causes the price of hops to fall and can put smaller farmers out of business. This aspect of the beer industry is naturally cyclical, and prices inevitably rise again once reserves are depleted and incentive for growing hops is restored.
But a peak reached in 1996 caused a low in 2004, and acreage commitments to hops in the years following have not been enough to stave off a shortage this year that will likely last into 2009. Hops prices have skyrocketed as a result, with some varieties becoming entirely unavailable and others being sold for more than $20 a pound. Last year, the more common types of hops would typically be sold for $3 to $5 a pound.
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