Download Hop News From America By: Douglas MacKinnon The

Hop News From America
By: Douglas MacKinnon
The situation is difficult this year for growers in America. U.S. aroma hop production will be
lower than average this year. Extreme temperatures in July and more heat in the middle of
August have caused problems with spider mites in many varieties. Many aroma hops are even
somewhat red. Normally that would be a problem but with supply so short even those hops are
in demand. With the low yields in aroma hops and average production expected in alpha hops,
there are very few hops that are not already sold. That means that although the spot market price
has increased very few growers can benefit. Growers have already and will continue to benefit
from the increase in forward contracts, which is potentially even more valuable than receiving a
high price for hops today.
The year has not been without tragedy. Eighty hectares of alpha hops collapsed on the 21st of
August. The hops have been harvested but yield on those yards was greatly reduced. The
varieties would typically only be ready in early September.
Some growers began harvesting alpha hops at the end of last week. It is still too early to know
how the yields will be. Growers are expecting an average or slightly better than average alpha
crop with normal alpha acid production. If the heat continues, however, it is possible that those
varieties harvested later in September may see some reduction in yield. As always, it is not
possible to predict exactly how the crop will turn out until it is in the bale. One thing is certain
at this time. There will be no surplus of hops this year. The market appears to be very close to
equilibrium. That may provide the stability the industry has been searching for for over a
decade.
Douglas MacKinnon is chairman of the International Hop Growers Convention executive
committee. He also publishes the MacKinnon Report, a subscription newsletter that reports
developments and market activity within the hop industry. You may contact Doug at
[email protected]