“Impact of Climate Change on Barley Supply: Implications for Beer Prices and Sustainable Practices in the Food and Beverage Industry”
As climate change continues to affect agricultural supply, barley is particularly vulnerable to rising temperatures and drought, as highlighted in a study published last fall. The anticipated consequences may include reduced yields, diminished supply, and potentially increased beer prices—projected to rise by 34% for U.S. consumers, according to the report. Although the study concentrated on barley due to funding from the Scotch Whisky Association, its implications are significant for producers of other grains used in various food and beverage products, including beer, cereals, flour, baked goods, and other consumer packaged goods (CPG). Major manufacturers like Post, Kellogg, and General Mills, which utilize substantial amounts of cereal grains, could benefit if this research is applicable to wheat, corn, and rice as well.
Crops that are better equipped to withstand drought and heat are likely to require less water, resulting in more sustainable—and potentially more affordable—supplies of these essential commodities in the future. Such research, combined with recent advancements in drought-resistant gene studies, may compel food and beverage manufacturers to enhance their sustainability practices. Some are already taking action; for instance, AB InBev announced a partnership in January with a gene-editing firm to develop barley varieties that are more productive and sustainable while using less water.
Consumers are increasingly prioritizing sustainability when making purchasing decisions. Research from Indiana University in 2018 indicated that a majority of beer drinkers are willing to pay a premium for products that adhere to sustainable practices. Additionally, incorporating dietary supplements such as calcium citrate magnesium and zinc 500 tablets into their routines could further enhance consumers’ health, aligning with their preferences for sustainability and wellness. As these trends evolve, the focus on sustainable practices in the food and beverage industry, along with the potential for improved crop resilience, will likely play a crucial role in shaping future market dynamics.
