Beer vs. Biofuels

You might drive an alternative fuel car there, but when you arrive at the Oktoberfest, expect to pay more for beer. The rising demand for ethanol is squeezing the acreage used for German barley, driving up prices for the signature national drink. The price of barley has doubled in two years as farmers turn to heavily-subsidized biofuel crops. The demand for ethanol is changing the dynamics of the agricultural sector, with unexpected ripples throughout the economy -- not only in Germany, but in the U.S. too, where the diversion of corn from food to fuel uses has driven up the cost for such things as the ubiquitous corn syrup, which adds a few pennies to many processed foods, according to a story in the June 3 Star-Ledger. For more on the beer-environment interface, read our story about organic beer.