Mash efficiency refers to the extent to which you are able to pull the sugars out of the malted grain and into the water. A high percentage of sugar recovery (75-90%) is called 'high mash efficiency'. A low percentage (60-75%) is called 'low mash efficiency'. Since the amount of sugar in the water correlates quite closely to the amount of alcohol you will have in the beer, it is important to understand mash efficiency in order to produce consistent results.
A low efficiency can be compensated for by increasing your grain bill (the amount of malted grain you start with). For example, if your mash efficiency is at 70% resulting in an alcohol content of 4% in your beer, you can increase your grain bill by 20% to bring the sugar and alcohol content higher. But this also adds cost to your brewing as the extra grain costs money and with more grain, you need a larger mash tun which also adds cost. The best way to increase mash efficiency is through proper technique.
First, it is important to ensure is that your ingredients are fresh. The yield will be lower with oxidized/stale grain.
Second, it is important to have a proper crush size and properly crush the grain. For most systems, a crush size of 0.04-0.48" (1.2mm) is the best It is also very important that grain be 'crushed' and not 'ground'. Grinding involves shearing of grain into fine particles (that gum up), whereas crushing sends cracks throughout the grain that open up to insides of the grain to water and enzymatic digestion. A 3 roller mill generally provides a better crush than a 2 roller mill, and if all rollers are geared that is better.
A third step is to ensure proper water chemistry. Water chemistry is a complex topic which we won't get into here, but if you suspect water issues, try brewing with bottled (spring or RO) water that you know is fairly neutral, add the minerals you need (calcium is especially important with minimum 50ppm recommended), and compare results.
Fourth, ensure mash pH is between 5.1-5.3.
Fifth, ensure the grain is thoroughly mixed with the water. Clumps of grain and air can easily form when mixing the grain with the water. These clumps prevent water from accessing the crushed grain inside the clump, preventing the carbohydrates from being dissolved into the water and preventing enzymes from breaking the carbohydrates up into sugars that the yeast can digest. Mash in using the following steps:
Ensure the pump is turned off as the grain should be given time to settle slowly.
Add grain slowly in a circular motion so it doesn't 'pile up' on the surface, and allow time for the grain to sink naturally
Dark malt should be crushed separately and added last as it tends to crush finer which impedes the flow of wort; keeping it near the surface ensures it does not form a dense 'mat' near the bottom.
Ensure any grain/air clumps are broken up and a proper grain bed forms. The BREWHA Mash Mixer is an easy and effective way to mix the mash but do not overmix by mixing too quickly or too much and DON'T go near the bottom of the Colander to the disrupt the grain bed that has naturally formed by the larger grains settling faster through the water. With a proper crush and slow addition, mixing can and should be very minimal.
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