Beer, as we know it, may be in danger.
We frequently hear of hops shortages, though rarely does one hear of an equally important problem: malted (roasted) barley shortage. While demand currently fits supply, within a decade, supply could be problematic.
How did this happen?
In the past 135 years of global temperature data, 4 of the 5 hottest months on record all happened in 2015. Near-droughts, excessive rain and weather fluctuations yielded poorer quality crops in 2013 and 2014.
As poor as the Canadian crops were, the American crops suffered even worse. By virtue of NAFTA, tariffs on Canadian malt were eliminated and American breweries began purchasing Canadian crops without restraint.
Most barley is produced to feed cattle. Canadian beef production is down. Mad cow disease continues to hurt Canadian beef export. In addition, an increasing number of citizens are eating healthier and sustainably by reducing or eliminating red meat from their diets.
Barley for beef feed is competing with soybeans, canola and corn, all genetically modified crops with better resilience, production and pricing than barley. Monsanto Company invested $10M over 10 years for short-season corn in Alberta, destroying barley competition in Canada’s biggest barley province.
Macrobreweries tend to use alternatives to malt, such as corn and rice, to cheapen production. Popular macro beers also tend to be lighter and lower in alcohol. Therefore, craft breweries use, on average, 4x the amount of malt per unit volume than macrobreweries, creating a higher demand on barley.
THE FUTURE OF BEER
In the next 10 years, we have 180k metric tonnes of malting capacity under build. Projections show we’ll need 1M metric tonnes (Canada Malting Group Annual Presentation, Halifax, 2015). Canada will begin importing European and Australian malt sooner than later, though the incoming El Niño cycle will likely yield a very harsh winter in Europe and hotter and drier conditions in Australia. Expect wheat beers to gain prominence since wheat is more resilient than barley and GMO wheat will likely enter the commercial market soon. Brewers may also begin experimenting more with sugary alternatives to barley, like sorghum, millet, rice, corn, quinoa, spelt, oats, and rye.
But, you know, the picture isn’t that bleak. We adapt. We’ll always find a way to get buzzed. Ever had prison hooch with rotted fruits fermented in a sock?
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