Beer excise rate hike will reduce demand for barley, warn brewers

Demand for barley in the domestic market will be reduced by the recent 22% excise rates imposed on beer, an Irish Brewers’ Association impact analysis study reveals.

The association has called on the Government to reverse the budget cut at the earliest opportunity. Beer consumption is down 2% year on year in the early months of this year, with consumers paying an extra 15c in tax on each pint, versus Dec 2011. This is made up of an additional 5c in Vat plus the 10c in excise.

IBA senior executive Thomas Burke said: “The brewing sector is a significant contributor to Irish agriculture, purchasing over 170,000 tonnes of malted barley from Irish farmers each year.