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Lack of Hops mean rising prices
After a decade of an oversupply of hops, many farmers were forced to abandon the crop. Between 1995 and 2006, acreage dropped by 30 percent in the United States, where one-quarter of the world’s hops are grown. Adding to the problem is Australia’s worst drought on record last year, hail storms damaging European crops and heat damage in the western U.S. The increasing demand for ethanol has seen many farmers switch from other ‘beer’ crops such as barley and wheat to corn, pushing up prices for those crops. With the ever-increasing price of fuel, aluminum and glass, and the higher cost of barley and wheat, the shortage of hops is making it more difficult than ever for breweries to keep their costs down.
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