USA: Decreased demand for hops
USA exports around 70% of the annually grown hops. However, as countries improve the quality of the crop, many growers find it harder to survive, KVEW communicated on August 25. Dick Olsen has grown hops near prosser for 25 years. He says this year's harvest is nothing unusual.
"I think this is a pretty typical year for growing hops, it has been difficult It not only produces more to the acre, instead of 10 bails to the acre it produces about 18 bails to the acre and instead of about 9% alpha acids, it produces sometimes as high as 20% alpha acids," said Olsen.
The higher quality hops have led to an over supply, driving down demand. "That resulted in a lack of new contracts because there was so much in the market place and as a result the prices were decreased and growers had to remove acres," said George with the Washington Hop Commission. n fact, experts say farmers use 20% less land for hops today, than they did six years ago. Industry experts say the once flooded hops market is clearing up.
"As a result brewers are now realizing that they may not be able to purchase inexpensive hops supplies and they need to go ahead and start to contract for their needs to make sure those are covered," Mrs. Ann George stressed.
Growers hope this is true, at least for their sake. It's the long term that concerns many growers because China poses a huge threat to the market. The country is not only a cheap producer, but is looking to improve the quality of its hops.
In Washington state, the number of hops growers decreased dramatically. Experts say many farms have consolidated in order to stay competitive. In the last 40 years, from a few hundred to about 50.
Tilbage
E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .
