Biofuels impact on beer production

The environmental debate looks set to hit brewers, as increasing numbers of farmers are planting lucrative biofuels. Hop production in some parts of the US have halved in the last year, which has put particular pressure on small batch, boutique brewers.

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The US government offers attractive incentives to farmers who grow rapeseed and maize to produce ethanol. Simultaneously, 2007 was a particularly poor global harvest for both barley and hops. Ian Ward, owner of Brewers Supply Group, explains that these two factors have resulted in the market price for hops quadrupling from US$5 to $20.