High harvest stocks are currently leading to an oversupply of hops on the world market. While the brewing industry groans and groans, beer lovers can rejoice – because the malt beverage will likely be available at a lower price in the future.
Beer production in the most important global market regions of Europe, North America and Asia is declining. According to a report by the German news agency dpa, there is an oversupply of hops on the world market. Not only this year’s harvest has increased by nine percent to 117,000 tons. “The high stocks from previous harvests are already putting increasing pressure on the market,” the chairman of the German hop industry association, Pascal Piroué, said in Nuremberg on Wednesday.
There are many requests from the brewing sector to cancel hop supply contracts. A continued weak beer market is expected next year.
Russia becomes self-sufficient
“As a result, spot hop prices in the 2023 harvest have already responded significantly and prices have fallen significantly,” Piroué said. Russia, previously a major buyer of European hops, is likely to become increasingly self-sufficient. “To rebalance the market, the area in all major growing areas would have to be noticeably reduced,” the expert said.
About 35,000 tons or almost a third of the hops grown worldwide come from Hallertau, located between Munich and Regensburg in Bavaria. Tettnang on Lake Constance and the Elbe-Saale region in Germany, like Slovenia, are among the larger growing areas.
In Austria, only Upper Austria (159 ha) and Styria (105 ha) are grown on more than 100 hectares, according to the latest available data from Statistics Austria for 2022. Last year, 239 tons of hops were harvested in Upper Austria and in Upper Austria 194 tons. Styria Furthermore, 19 tons came from Lower Austria and one from Burgenland.
Cultivated areas are cleared
The chairman of the German Hop Industry Association, Adi Schapfl, said that in the US one-seventh of cultivated area had already been cleared due to the huge oversupply of aromatic hop varieties. “We are currently also seeing a significant price drop for German free hops”, i.e. the quantities that have not yet been sold under contract in advance. “Acreage reduction could also have a consequence for the hop area in Germany.”
The German harvest increased by 20 percent to more than 41,000 tons compared to the previous year. However, the quantity and quality are below the long-term average. The error is due to July being too dry and climate change as a whole. Irrigation systems and new hop varieties should provide long-term relief, Schapfl says.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
