Cleaner fuel, dearer beer?

22nd February 2007, Comments 0 comments

22 February 2007, AMSTERDAM - Heineken CEO Jean-François van Boxmeer pointed out on Wednesday that the increasing demand for grain for biofuel will put pressure on the price of grain, and by extension on malt and hop prices as well, two important raw materials.

22 February 2007

AMSTERDAM - Heineken CEO Jean-François van Boxmeer pointed out on Wednesday that the increasing demand for grain for biofuel will put pressure on the price of grain, and by extension on malt and hop prices as well, two important raw materials.

“That won’t only affect us, but all brewers and food producers. Structural pressure on the price will continue, though it will be difficult to predict how this will develop exactly.”

Café and bar patrons will not immediately feel the effects when buying a round. Raw materials account for only 20 percent of the price of a beer, and contracts with barley farmers are already set for 2007. But beer drinkers will notice the higher prices in the long run, Heineken warns.

[Copyright Expatica News 2007]

Subject: Dutch news

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