Germany: Hop prices rise in the medium term
Hop acreage continues to decline worldwide. In 2005, only slightly less than 50,000 ha was farmed, over 600 ha less than in the previous year, Barth-Haas Group released July 20.
According to the 2005/2006 Barth Report, hop acreage in the world’s biggest hop growing country, Germany, alone fell by more than 300 ha to 17,161 ha, although the production volume of 34,466 metric tons was slightly positive. Nevertheless, the industry anticipates changes in the market situation in the medium term, which could lead to higher hop prices.
According to Stephan Barth, hop trader and managing partner of Joh. Barth & Sohn in Nuremberg and one of the world’s leading hop marketers, acreage is expected to decrease by a further 400 ha in 2006. In his opinion, the pain threshold has been reached in terms of simply being able to satisfy the 2 – 3 percent annual growth in world beer demand. He expects prices to rise in the medium term, adding that business is already ”very hectic” today. This is because production of the highly sought-after high-alpha varieties alone fell worldwide by 226 metric tons to 7,877 metric tons in 2005. Price increases are already being reported, as the stocks held by the brewing groups have apparently been largely depleted. ”The market is getting tight”, says Barth.
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