Growth predicted for beer prices in Russia

The Union of Brewers of Russia (UBR) has asked the government to introduce quotas on the export of barley and malt and increase export duties. This request is stated in a letter from the organization to Russian Prime Minister Mikhail Mishustin, RIA Novosti reports. Otherwise, beer prices may rise in 2022 due to higher prices for malt, the union predicts.

According to the SPR, the purchase prices for brewing malt increased by 30-50 percent compared to January 2021. The rise in price of the product was called “unprecedented” in the union. “The observed sharp rise in prices can lead to a significant rise in the cost of brewing products, a decrease in beer production and, as a result, a reduction in excise receipts to the regional budgets of the Russian Federation”, – warned of the risk of rising prices in the union.

The reasons for the rise in prices are the fires in Turkey and the poor harvest of malting barley in Europe – because of this, Russian malt is actively supplied abroad, which leads to a shortage in the domestic market. In addition, the yield of barley fell. At the end of August 2021, 15.9 million tons of barley were harvested – 2 million tons less than in the same period last year. Experts doubt that it will be possible to harvest the planned 18 million tons of barley by the end of the year.

In early August, Evotor, a manufacturer of online checkouts, reported that the average price of draft beer in Russia in June 2021 increased by nine percent compared to the same period last year – from 98 to 107 rubles per liter. The largest average check was recorded in Moscow – 214 rubles.

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