Q4 2024 Supply Chain Update - Agrowgate
Please note that below is a shortened excerpt of the Q4 supply chain update report. View the full version here.
In recent months, macro commodity conditions have been volatile, impacting the beer and beverage industry. Grain prices, especially for barley, wheat, and corn, fluctuate due to global supply shifts and weather. Although recent North American harvests have lowered barley costs, future acreage reductions could temper this benefit. Corn and wheat prices remain low but may change quickly with weather or trade disruptions, especially given ongoing U.S.-China trade tensions, which impact raw material pricing and availability.
Energy prices, particularly for diesel, are stable yet expected to rise moderately in 2025, which could increase shipping costs. While crude oil production is high, tariffs and geopolitical pressures keep aluminum prices susceptible to volatility. Aluminum demand is steady, and breweries might benefit by diversifying their purchasing strategies or buying during price dips.
The U.S. presidential election introduces potential shifts in policies that could significantly impact commodities vital to the beer and beverage industry. The election’s outcome could lead to policy changes affecting commodity prices and availability, influencing procurement strategies and cost structures within the beer and beverage industry.
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