I mentioned the other day the negative impact on milk prices driven by the increasing production of ethanol and the resulting demand for corn. The USDA just yesterday raised the wholesale price of milk again. The fact that milk prices are going up maybe didn’t hit close enough to home for some you.
How would you feel if you knew that not only is milk for the morning cereal going up as a result of the increased demand for corn but the price of beer and tequila as well. That’s right party animals according to the Financial Times the strong demand for biofuel feed stocks such as corn, soybeans, and oilseed rape (canola) is encouraging farmers to plant these crops instead of barley, driving up its price. What’s the number one ingredient in beer? You got it…Barley.
Futures prices for European malting barley have risen 85 percent to more than €230 ($320) a ton since last May. Barley and hops account for about 7 percent to 8 percent of the cost of brewing beer. Meanwhile, barley production here in the
The rise in barley prices has also been driven by the drought in Australian which reduced the crop by two-thirds. Couple that with the heavy rains in
That’s only the barley and beer side of the party equation. About a quarter of Mexican farmers who now grow agave, which is used in the production of tequila, are expected to burn their fields to make way for corn, as prices have nearly doubled from what they were a year ago, due to US ethanol demand.
So there you have it. Our leaders have decided that it makes more sense to give Archer-Daniels Midland windfall profits using your taxes while burdening you with higher prices for the necessities of life. The next time you have to dig deeper for your Doritos, beer and tequila supply you’ll know who to thank.