Nuremberg, Germany - Worldwide scarcity of malt and hops means price rises are on the way for German beer, both in Germany and in its principal export market, Italy, a national breweries leader warned Tuesday. In all, about 15 per cent of German-brewed beer is drunk abroad, with export growth partly making up for declining sales in Germany.
Gerhard Ilgenfritz, president of the private brewer's federation, said the brewery-gate price of a 24-bottle crate was likely to rise 1.00 to 1.10 euros (1.46 to 1.60 dollars) at the start of 2008.
Speaking in the southern city of Nuremberg just before the November 14-16 beer trade fair Beviale, he said the world price of aromatic hops had doubled in the past two years and the price of brewers' barley had tripled.
World barley reserves had been run right down as world demand for grain soared, harvests contracted and pressure grew on farmers to grow for energy sales rather than food. Energy was also costing more.
China has become the world's biggest brewer, making 35.1 billion litres annually, followed by the United States (23.2 billion) and Germany (10.7 billion).
First-nine-month domestic sales of 8 billion litres were down 2.3 per cent, whereas exports of German beer gained by 5.2 per cent.
