The Associated Press

German brewers are bumping up their beer prices as more farmers abandon their barley crops and try growing rapeseed and corn to be used in biofuels.

The green consumer push for more resources dedicated to biodiesel and ethanol – clean-burning fuels made from vegetable oil – has prompted many farmers to convert their fields. The Bavarian Brewers Association says it has observed a barley price increase of more than 40 per cent over the past two years.

Organizers of the famous Oktoberfest have already announced a 5.5 per cent price hike. Thirsty consumers will now pay a record $10.70 US for a one-litre mug of beer.

German brewers say consumers should expect to pay about $1.35 more for a 10-litre case. The German Farmers Association says the increase will likely be more modest at around 45 cents per case.

"The financial pressure on Germany's small- and medium-sized breweries is immense," brewers association head Walter Koenig said. "The increasing costs of raw materials may become a serious threat for many breweries.

"Beer drinkers across the country will get upset when beer prices will rise even further in the fall," said Koenig.