Brewing and malting firms in East Anglia may have to find an alternative source for their barley from outside the region.
According to the National Farmers Union, some areas in the east of England have received only ten per cent of their usual rainfall since March.
The organisation is expected that an official drought will be declared in East Anglia this week, with resulting crop losses expected to be anywhere between 20 per cent and 50 per cent of the harvest.
With dry conditions across Europe pushing up prices, brewing and malting firms will be facing higher overheads.
Jenny Bashford, water policy adviser for the National Union of Farmers, explains: "We're even hearing at the moment about some farmers with total crop loss.
"That's not something any business can compete with and crop insurance has never been available."
Farmer Edd Banks confirmed to the Daily Telegraph recently that the spring barley has been hit badly by the unseasonably warm weather.
Typical Guttridge equipment used in the brewing industry includes:
Conveyors – screw conveyors – chain conveyors – belt conveyors
