Craft brewers left with bitter taste as barley crop gets drenched

Winnipeg

BAD weather from Canada to Europe is about to alter the economics of the beer industry's fastest-growing market. Craft brewers such as Jeff Orr, who co-founded Tool Shed Brewing in Calgary, rely on high-grade barley malt used to create the unique flavours that have led to a boom in the popularity of small-batch beers. Malt accounts for 43 per cent of Orr's ingredient costs. But this year, grain quality has dropped after parts of the Canadian Prairies got three times the normal rainfall.

And it isn't just in Canada, the world's sixth-largest barley grower. France and Germany, the biggest producers after Russia, are also harvesting less this year because of heavy rains. Global barley output is set to drop for the second time in three years, US Department of Agriculture data shows. That's boosting costs for brewers, and some are passing that along to customers.