Copyright 1997 Alan T. Hagan. All rights reserved.
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Yeast is just not a product you can stow away and forget about until you need it next year. It is, after all, a living organism and if it's not alive at the time you need it, you won't get any use out of it. This ancient leavening, brewing, fermenting agent is a single celled microscopic fungus. When we incorporate it into our bread dough, beer wort or fruit juice it begins to reproduce madly (we hope) and produce several by-products. If you're baking, the by-product you want is carbon dioxide which is trapped by the dough and subsequently causes it to rise. In brewing or vintning what is wanted is the ethyl alcohol. Almost all yeasts used for these purposes are in the same genus (Saccharomyces or "sugar fungi"), but many different species have evolved and some are more suitable for a particular task than others. It's entirely possible to use grocery store bread yeast to brew beer or ferment wine, but the results may leave a great deal to be desired. It's also possible to use yeast from beer brewing to make bread and from what I've read the results were pretty much indistinguishable from bread yeast.
Leaving aside the brewing and vintning yeasts which are really outside the scope of this FAQ I am going to concentrate on bread yeast. It comes in two generally available forms; compressed or fresh and dried, sometimes called granular or instant active dry yeast. They are different genetic strains of the same species, but have different characteristics.
Compressed yeast is only partly dried (about 70% moisture) and requires refrigeration and keeps even better in the deep freeze. If kept in an air- and moisture-tight container to prevent it from desiccating this type of yeast will keep for a year in the freezer (0 degs F or less, but only about two weeks (maybe a bit more) in the refrigerator. Unless your kitchen is rather chilly it will not keep on the shelf. It should not have a mottled color or a sour odor.
Dried yeast has only an 8% moisture content and comes packed in foil envelopes. The smaller single use packets are not generally vacuum packed, but the larger commercial sized "bricks" of about a pound or two each generally are. They can last for months on the shelf, up till the expiration date which should be clearly stamped on the package. If packaged in the same manner as recommended for compressed yeast above and kept in the refrigerator or freezer it can last for several years. The larger packs of yeast should be transferred to an air and moisture tight container after opening.
Either type of yeast can be tested for viability by "proofing" them. This is nothing more than mixing a small amount of the yeast with an equal amount of sugar in warm water (105-115 deg F for dried; 95 deg F for fresh). Within about five minutes active yeast will become bubbly and begin to expand (at normal room temperature). Yeast which only slowly becomes active can still be used, but you will have to use more of it. If it shows no activity at all, it's dead and should be thrown out.
There is another means of providing yeast for baking besides buying it from the grocery store and that is by using a sourdough starter. I'm not going to address it here, but I will point out that it has a newsgroup all its own (rec.food.sourdough) and several FAQ's devoted to it. Drop in and read for awhile and you'll learn more than you thought you could ever want to know.
DISCLAIMER: Safe and effective food storage requires attention to detail and proper equipment and ingredients. The author makes no warranties and assumes no responsibility for errors or omissions in the text, or damages resulting from the use or misuse of information contained herein. Placement of or access to this work on this or any other site does not mean the author espouses or adopts any political, philosophical or meta-physical concepts that may also be expressed wherever this work appears.