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Biofuels to blame as beer prices soar 40 per cent in Germany

Sunday, 24 June 2007

Biofuels may be good for the environment, but they are bad news for German beer drinkers. Prices in the country's pubs look set to rise by 40 per cent this year, because Germany's farmers are growing less barley for beer production and more crops for biodiesel and bioethanol.

The head of the German brewers' association, Richard Weber, has caused outrage among friends of the annual Oktoberfest beer jamboree by predicting the hefty price rise. He pointed out that the German barley crop has been halved this year and that prices have soared by 50 per cent within 12 months. Poor-quality harvests, caused by unusually hot weather, have not helped either.

As a result, Germany's brewers, which insist on the purity of their beer and offer organic brands to emphasise their green-tinged credentials, have turned over a new leaf. They are now demanding an end to the use of crops to make fuel.

"The energy and food sectors are competing for the same raw materials and the same acreage," said Mr Weber.

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