Possible hops price hike a bitter brew

Seattle -- Possible price increases for hops, the key ingredient in beer, is leaving a bitter taste in the mouths of beer crafters across the United States.

Hops and malt, a form of barley necessary for fermentation, are in short supply nationwide, the Seattle Post-Intelligencer reported, because of poor crops, high demand, a weak dollar and increased use of ethanol, prompting farmers to plant corn instead of hops or barley.

"Given the shortage of both ingredients, there's some potential for price increases," said Ray Daniels, a director with Brewers Association, a craft breweries trade organization. "In another two to three months, we'll have a better idea where everyone is."

A price increase would be a significant event in Washington State because residents buy 10 percent of their beer from craft brewers, who in turn, sell much of their product in-state. It produces more craft beer than all but seven other states, 4.78 million gallons in 2006.

While supplies of hops and malt are low, demand is high. Imported and craft beers account for 17 percent of beer consumed in the United States, up from less than 1 percent in 1978, the newspaper reported.

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