Despite many of the things we love around here being directly related to gold and oil, we rarely pay much attention to commodities prices. That’s all set to change, however, after the emergence of a new primary production crisis. Disturbing reports are emerging that price increases for many materials common to brewing may begin to drive up the cost of beer.

Falling barley production, skyrocketing transport and energy costs and increases in the price of other materials such as aluminum and glass bottles are identified as the main culprits in this financial disaster:

Barley prices have steadily inched up each month, ending 2006 averaging $3.19 per bushel in December — an increase of about 24 percent from December’s average price of $2.57 in 2005. Meanwhile, production has fallen 15 percent to 180 million bushels, down from 211.9 million in 2005, mainly due to droughts in Australia and the Midwest and more farmers choosing to grow different crops like corn and soybeans.

Bernstein Research analyst Robert van Brugge forecast that this year’s barley price increases will impact brewers’ cost of goods sold — or the cost of the raw materials used in production — by 1 to 2 percent in 2007.

The analyst said he believes brewers will be forced to pass along some of that increase this year to consumers.

After the great hops blaze of last October, this couldn’t come at a worse time. For the first time since the dark ages, are we looking towards a world where beer is a luxury, rather than a staple?

Barley prices may push cost of a beer up [Business Week via A Good Beer Blog]