Grain prices creeping up.

[obscure]

I think the two biggest factors are the energy used in the processing (drying / pelletising) and transportation. There's then potentially things like increased labour costs.

I could be wrong but I suspect you also have some fertiliser in their too (which has skyrocketed in price).

 

[RoomWithABrew]

Largely, expect the price of a pint to go up. I was in America recently and beers were $7-10 per US pint.
All the more reason to homebrew!

A little more than that per 450ml " pint " here in NZ. Set to go up more with the lack of CO2.
Still can make 40 pints for the cost of a couple of pints at a bar. Crazy.

 

[RoomWithABrew]

Quick question, why do hops need to go up in price, are they not grown outside or am i missing something

They don't just grow, pick, dry and package themselves!
Even the ones outside my back door need picking and moving the 6 metres into my brew kettle!

 

[Clarence]

How very British of us to propose excuses for profiteering. The fact is, that in most cases, every step of the supply chain covers its costs. Maintains its margins as a percentage of costs. Adds a little bit more, just in case. And the end users cops the lot while shedding a tear for the straightened times of the supplier. Pathetic!
We need a bit (a lot) more innovation and thinking outside the box! Sure, there are rises that'll need to be passed on. Sure, some small businesses will go to the wall. But let's keep a bit of common sense shall we.
For example, the price of grain has increased due to issue with Russia. So what? We are net exporters of brewing and distilling barley. There's no reason for barley to go up except for fertiliser costs. How do organic producers manage. Don't we have an excess of cattle and sheep manure? Aren't we an island with loads of seaweed on our storm tossed beaches? Haven't we got the wherewithall to make our own fertiliser factories? The price of gas has peaked and started to fall, so energy is still dear, but not as bad as it might have been. So why is Minch Malt, a local Irish business, charging THBC nearly double if it's not profiteering? I could go on about hops in much the same way, but I'm not aware that there's an issue with hops just yet.

And another thing. When things get back to normal and Putin is put in his place, does anyone imagine that prices will slide back again? Dream on.

 

[Clarence]

Quick question, why do hops need to go up in price, are they not grown outside or am i missing something

Are they going up in price?

 

[chopps]

Clarence for Prime Minister!

 

[samale]

How very British of us to propose excuses for profiteering. The fact is, that in most cases, every step of the supply chain covers its costs. Maintains its margins as a percentage of costs. Adds a little bit more, just in case. And the end users cops the lot while shedding a tear for the straightened times of the supplier. Pathetic!
We need a bit (a lot) more innovation and thinking outside the box! Sure, there are rises that'll need to be passed on. Sure, some small businesses will go to the wall. But let's keep a bit of common sense shall we.
For example, the price of grain has increased due to issue with Russia. So what? We are net exporters of brewing and distilling barley. There's no reason for barley to go up except for fertiliser costs. How do organic producers manage. Don't we have an excess of cattle and sheep manure? Aren't we an island with loads of seaweed on our storm tossed beaches? Haven't we got the wherewithall to make our own fertiliser factories? The price of gas has peaked and started to fall, so energy is still dear, but not as bad as it might have been. So why is Minch Malt, a local Irish business, charging THBC nearly double if it's not profiteering? I could go on about hops in much the same way, but I'm not aware that there's an issue with hops just yet.

And another thing. When things get back to normal and Putin is put in his place, does anyone imagine that prices will slide back again? Dream on.

No doubt people are getting away with charging more than needed. You only have to look at the price of home heating oil

 

[An Ankoù]

How very British of us to propose excuses for profiteering. The fact is, that in most cases, every step of the supply chain covers its costs. Maintains its margins as a percentage of costs. Adds a little bit more, just in case. And the end users cops the lot while shedding a tear for the straightened times of the supplier. Pathetic!
We need a bit (a lot) more innovation and thinking outside the box! Sure, there are rises that'll need to be passed on. Sure, some small businesses will go to the wall. But let's keep a bit of common sense shall we.
For example, the price of grain has increased due to issue with Russia. So what? We are net exporters of brewing and distilling barley. There's no reason for barley to go up except for fertiliser costs. How do organic producers manage. Don't we have an excess of cattle and sheep manure? Aren't we an island with loads of seaweed on our storm tossed beaches? Haven't we got the wherewithall to make our own fertiliser factories? The price of gas has peaked and started to fall, so energy is still dear, but not as bad as it might have been. So why is Minch Malt, a local Irish business, charging THBC nearly double if it's not profiteering? I could go on about hops in much the same way, but I'm not aware that there's an issue with hops just yet.

And another thing. When things get back to normal and Putin is put in his place, does anyone imagine that prices will slide back again? Dream on.

You're spot on young Clarence. We Brits are getting as bad as the French, who seem to revel in getting shafted. My experience of supermarkets is that, if they can rip you off, they will. "budget" brands tend to be dearer Kg per Kg than premium brands for example. The trouble is that rather than having an innate sense of meanness, there's an innate sense of entitlement! It's "demeaning" to have to compare prices and look for bargains, everyone should have enough money not to have to do so! Foolish people. Prices will then rise again to mop up the pay rise.
But are we going down the same path?

 

[dad_of_jon]

The boss of tesco says some of their suppliers are 'trying it on'

https://www.bbc.co.uk/news/business-64364744
They are a business, not a charity after all, if they can get away with it I'm sure they will.

 

[Stu's Brews]

How very British of us to propose excuses for profiteering. The fact is, that in most cases, every step of the supply chain covers its costs. Maintains its margins as a percentage of costs. Adds a little bit more, just in case. And the end users cops the lot while shedding a tear for the straightened times of the supplier. Pathetic!
We need a bit (a lot) more innovation and thinking outside the box! Sure, there are rises that'll need to be passed on. Sure, some small businesses will go to the wall. But let's keep a bit of common sense shall we.
For example, the price of grain has increased due to issue with Russia. So what? We are net exporters of brewing and distilling barley. There's no reason for barley to go up except for fertiliser costs. How do organic producers manage. Don't we have an excess of cattle and sheep manure? Aren't we an island with loads of seaweed on our storm tossed beaches? Haven't we got the wherewithall to make our own fertiliser factories? The price of gas has peaked and started to fall, so energy is still dear, but not as bad as it might have been. So why is Minch Malt, a local Irish business, charging THBC nearly double if it's not profiteering? I could go on about hops in much the same way, but I'm not aware that there's an issue with hops just yet.

And another thing. When things get back to normal and Putin is put in his place, does anyone imagine that prices will slide back again? Dream on.

I'm certainly not advocating profiteering and I'm sure there is an element of that going on at the moment.

However, it is far too simplistic to say 'There's no reason for barley to go up except for fertiliser costs'; there are several other reasons for the cost of barley to go up including; fuel for farm machinery, transportation, labour, water for irrigation, etc. I'm reasonably sure that barley farmers aren't rushing out to buy new Lamborghini's at the moment.

The above are all increased costs just for getting the barley to the maltster; which is where the energy costs start to kick in during the kilning and roasting. Most big businesses agree their energy rates in advance; so even though wholesale prices are starting to drop the businesses will be locked in on whatever price they have agreed in their latest contract.

Unfortunately, the profiteering element is part of the nature of our capitalist markets that thrive on supply-and-demand; if people are willing to pay it then to an extent they can charge whatever they want. The only way prices will come down is if people stop buying; which will either happen because businesses/consumers refuse to pay the new prices or simply can't afford to do so.

 

[Dazzelknight]

Iv just checked my invoices. 25kg crisp MO (exc VAT) with Malt Miller
2021 £23.75
2022 £27.71
2023 £36.86
That’s quite a hike.
Be the same as petrol, quick to go up but doubt they will go down once trouble in Ukraine is sorted.

 

[AJA]

Iv just checked my invoices. 25kg crisp MO (exc VAT) with Malt Miller
2021 £23.75
2022 £27.71
2023 £36.86
That’s quite a hike.
Be the same as petrol, quick to go up but doubt they will go down once trouble in Ukraine is sorted.

There's at least competition in the malt market. You could move from Crisp to Baird's or Fawcett to save a tenner.
(Also there's no VAT on sacks of malt as it's a foodstuff)

 

[Clarence]

Clarence for Prime Minister!

Er, that's not setting the bar very high, now, is it!

 

[user 4749]

There's at least competition in the malt market. You could move from Crisp to Baird's or Fawcett to save a tenner.
(Also there's no VAT on sacks of malt as it's a foodstuff)

I just ordered grain from GEB and was charge VAT ,MM charge too

 

[AJA]

I just ordered grain from GEB and was charge VAT ,MM charge too

I see, I thought it was only charged when it was repackaged for homebrewers.

 

[gyurmaember]

What's this scaremongering again? Every year the same thread about grains and co2. Just checked my account at brewers select, the prices increased less than the inflation was last year.

 

[AJA]

What's this scaremongering again? Every year the same thread about grains and co2. Just checked my account at brewers select, the prices increased less than the inflation was last year.

It's gone from £21 to £25 for me at BS, so a bit more than inflation.
CO2 was a genuine concern just over a year ago, I couldn't find anyone to sell me any!

 

[user 4749]

I see, I thought it was only charged when it was repackaged for homebrewers.

I ordered a 25kg sack from GEB and was definitely charged VAT .Might be as its sold for homebrewing wonder if commercial brewers pay VAT

 

[Stu's Brews]

I ordered a 25kg sack from GEB and was definitely charged VAT .Might be as its sold for homebrewing wonder if commercial brewers pay VAT

Even if they get charged VAT when buying they can claim it back.

https://www.gov.uk/charge-reclaim-record-vat/reclaim-vat-business-expenses

 

[Cheshire Cat]

OB do you guys pay VAT to Crisp for our grain? I always assumed we had to pay VAT.