Iowans Should Expect To Pay More For Their Local Beers

As Russia’s war on Ukraine continues, local businesses here in Iowa are getting more concerned- especially breweries.

According to RaboResearch, together Ukraine and Russia produce 18 percent of the global production of barley and supply around 30 percent of the global barley exports. With the current conflict, The Western Producer says analysts are expecting Ukraine’s production to fall by 35 percent and exports to decline by 47 percent.

Local breweries such as Single Speed in Waterloo have been watching the conflict in Ukraine closely. David Morgan, Single Speed owner told KCRG that they experienced a price increase in the grain market last year when farmers didn’t have a great harvest. He says they will likely see the price spike from the current conflict next year; however, if there is a shortage- there isn’t much he can do.

To be quite honest in the world of barley, there aren’t a lot of alternatives… demand is going to be higher than supply is, and prices are just gonna go up, and you’re just going to have to find a way.

Get our free mobile app

Morgan says he is hoping that the US can have a better growing season than last year to make up for the lack of grain that Europe is producing.

According to the National Agriculture Statistics Service, the United States produced 2.2 million acres of barley in 2020 totaling 171 million bushels of barley. However, in 2021, production was estimated at 119 million bushels which is down 31 percent from 2020.

Morgan told KCRG that grain shortages with supply chain issues is forcing Single Speed to raise its prices this fall.