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  1. #1
    Irreverent One
    Join Date
    Feb 2008
    Location
    Heart of the Beaver State
    Posts
    2,395

    Effect of corn prices on bourbon

    Anyone who's been paying attention knows that corn prices are way up. The primary reason is the the drive to add it to gasoline.

    A discussion about whether that is a good use for it belongs in the "Politics, Religion and Contorversy" forum. Here I just want to acknowledge the fact of this and inquire about the effects.

    There are many costs associated with producing bourbon. The cost of energy to heat the still. The cost of barrels. The cost of bottles. The cost of labor.

    Being that the cost of corn is just one factor in this mix, I'm tempted to believe that it is not a large one. But then, I don't know, because I don't produce bourbon.

    So for those knowledgeable about such things, I pose the question: how much effect will rising corn prices have on the price of bourbon?
    Scott

    "Remember that your sense of humor is inversely proportional to your level of intolerance."
    - Serge Storms

  2. #2
    Guru
    Join Date
    Nov 2006
    Location
    Northwest of Peoria
    Posts
    4,437

    Re: Effect of corn prices on bourbon

    It has been discussed at length several times. Type "corn prices" in the search field.

    The upshot is the price of the grain as expressed as a percentage of what you pay for when you buy a bottle of whiskey is low enough that even large increases have a negligible effect.

    Energy prices, on the other hand, I think are worth worrying about. Diesel fuel is about $4.15 a gallon hear and I wonder what the distilleries are now paying per therm of natural gas, as opposed to three or four years ago.

  3. #3
    Bourbonian of the Year 2002 and Guru
    Join Date
    Sep 1999
    Location
    Chicago
    Posts
    12,563

    Re: Effect of corn prices on bourbon

    All grain has gotten more expensive, as has fuel.

    But the biggest single cost associated with producing distilled spirits is still the Federal Excise Tax.

 

 

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