Friday, January 16, 2009

Uh-oh, higher barley prices?

An article in Yahoo! Finance News yesterday talked about a company that is attempting to use barley to produce ethanol. Some claim that the use of corn to produce ethanol has led to higher prices of all grains, including barley, because of the substitution effect. If corn is too costly because of demand for it for ethanol production, demand for other grains goes up because they are used in place of corn when possible, for example, for livestock feed.

Now this company wants to produce the ethanol directly from barley. Will this lead to even higher prices for barley for homebrewers?

1 comment:

  1. Hopefully it doesn't work out well for them. Mean thing to say, but that's how I feel. :)