World: Hop producing countries in the Northern Hemisphere are enjoying ideal weather for hop production

July 2006 Hop Report
By Douglas MacKinnon

Growers in nearly every hop producing country in the Northern Hemisphere are enjoying ideal weather for hop production. Hop producing countries south of the Alps such as Slovenia and Bulgaria have had unusually hot summers thus far with little rain causing plant stress and grower concern. While there are some isolated problems in one or two varieties, on the whole in Europe and America, it is shaping up to be a good year in the hop yards with little or no serious trouble from pests or diseases.

Across the Atlantic in America, short supply of aroma varieties has led to good prices for those who still have hops left to sell. Alpha hop prices have also strengthened, and will likely continue to do so through the summer, as acreage reduction in the past several years has brought supply more in line with demand, a situation that favors growers.

The weak dollar persists to the delight of American exporters. With no sign of strengthening on the horizon, American hops are selling at better prices and at lower prices than their European counterparts. This trend has brought two things the American hop industry has not seen for quite some time, profit and forward contracts. Profits from 2006 are not likely to lead to speculative planting of hops in upcoming years because recovering from the losses of previous years is a priority for most growers. This means we can expect the current equilibrium between supply and demand to survive several seasons.

It is bloom time in the hop yards. Bloom is a critical time for hop growers. It is a time when the plants are most vulnerable to the nemesis of every hop grower, powdery mildew. Every hop bloom has the potential to turn into a hop cone. When infected with powdery mildew, cones do not develop or are light and therefore do not end up in the bale. Needless to say, this is a tense time for most hop growers but less tense than in previous years. If the current weather trends continue and problems with pests and disease stay low during the month of July, the biggest challenge many growers will face is where to sell any hops that may remain once their contracts are filled.

Douglas MacKinnon is chairman of the International Hop Growers Convention executive committee. He publishes the MacKinnon Report, a subscription newsletter that reports developments and market activity within the hop industry. For subscription information please contact Doug at
doug@mackinnonreport.com

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