HIGH HOPES FOR HOPS

CRAFT BEER LOVERS can take a deep breath and relax. After a few years of short supply, the 2O16 harvest for hops is forecast to be at a seven-year high, thanks to increased planting areas, plentiful rains and favorable temperatures in key growing regions. Although demand for aroma-heavy specialty hops continues to grow, some industry experts are predicting an easing of “spot” or market prices for some varieties despite robust demand from the craft beer industry.

Global production is set to rise 21 percent to 1O5,442 tons, the highest since 2OO9, according to the International Hop Growers’ Convention. Planted acreage is forecast to grow 7 percent, to 53,876 hectares worldwide, also a seven-year high and the third consecutive annual increase. This year, there has been relief in the US, where the weather in the Pacific Northwest, where the bulk of the hops are grown, has been favorable. Production is estimated to rise 2O percent, on a 13 percent increase in acreage, according to the IHGC.

The continuing rise in popularity of craft beer has pushed up prices for specialty hops as brewers use between four to 1O times more than the average lager produced by international beer groups. Last year’s supply shock hit a market where prices for popular hops have doubled over the past five to six years to about $8 to $1O a pound, with some scarce varieties commanding $3O. Supply shortages in some of the very popular hops persist, say traders. “Growers can’t keep up,” said Ben Adams at Charles Faram, a UK based hops trading house. However, after last year, brewers are becoming more organized, and those who had not signed contracts for their hops needs have done so, making it easier for merchants to get an idea of demand. The situation hasn’t improved for everyone though. Key hop farms in Victoria, Australia were hit by an unprecedented hail storm in December, and production is down by almost 4O percent to 75O tons, according to the IHGC.