Hop Rush: German Hop Growers Inundated Amidst Skyrocketing Supply
- Farmers rapidly depleting hop reserves amidst surplus production
Hey there! Let’s dive into a brew-tastic hurdle facing the hop industry in Germany – a hopsoverload!
The three most popular aroma varieties, Perle and Hallertauer Tradition, are being scooped out of fields like never before, all thanks to a hop- explosion in Germany. Erich Lehmair, Chairman of the Association of German Hop Growers, reports that prices for hops have plummeted a whopping 90% compared to last year, landing at a measly euro per kilogram. This figure is rock-bottom, well-below the production cost!
Stephan Schinagl, purchasing manager at BarthHaas, the world's largest hop trading company, echoes Lehmair's concerns. The global hop market calls for a 5,000 hectare reduction, amounting to about 9%. Within Germany, up to 2,000 hectares of hop fields might need to be done away with.
Despite this, Germany should hold on to its title as the hop-king of the world. In the US, a similar clearing would have to take place. Last year, roughly 20,300 hectares of hops were planted in Germany - mostly in the Hallertau region between Munich and Nuremberg - while around 18,600 hectares were planted in the US.
Now, why is the hop-apocalypse happening, you might ask? It's a two-tapper: excess production and mediocre beer demand, joined by a third factor - tweaked recipes at major breweries. Some breweries have started swapping out aroma hops for bitter ones with high alpha acid content, which lends a stronger bitter taste to beer. Additionally, these bitter varieties are known to be more productive. As an example, one hectare of Herkules can replace three hectares of Perle!
Even though hops contribute a mere 1% to the cost of beer, it's still a gamble for hop growers. Will they pull up the roots, risking money if prices don't rise? Or will they let the hops keep growing, hoping for a price hike that doesn't come? The decision is all in the hands of the farmers, as they weigh the risks of losing money versus the risk of missing out on a potential profit.
But don't fret about your favorite brew just yet. Even if some hops are being cleared, reserves are plentiful for the surplus varieties, and no clearing is happening for the others. "No need to worry," Lehmair assures us! Cheers! 🍻
- The calculation has shown a significant drop in hop prices, with one kilogram now costing just a euro, a 90% decrease from last year, sparking concern within the employment policy of hop growers.
- Nuremberg, the city famous for its association with historic events, now hosts a meeting of hop growers discussing the need to reduce hop fields by up to 9%, similar to recommendations made in the employment policy of the global hop market.
- Despite the current hopsoverload, Germany's dominance in hop production remains unchallenged, as shown in the employment policy discussions, with the country maintaining its position as the world's 'hop-king' over nations like the US, which are also experiencing a similar harvested surplus.
