Hop growers adjust to meet demand of craft brewers
MOXEE, Wash. — The growth of U.S. hop production slowed this year, up just 3 percent compared with a 13 percent increase in 2013.
But the industry continues to expand as demand grows for more hops, said Ann George, administrator of Hop Growers of America and the Washington Hop Commission, both in Moxee near Yakima.
George attributes reduced growth to number of factors.
Producers are replanting hop yards to grow more aroma varieties for craft breweries rather than alpha varieties for large breweries. Aroma varieties yield less than alpha varieties, and immature plants in replanted yards yield less than mature plants.
Summer heat hurt yields, particularly in Oregon, George said.
Oil in the hop cone or flower is used for flavoring and stabilizing beer.
Craft breweries project 20 percent growth through 2020, George said. That means hop growers in Washington, Oregon and Idaho likely will continue increasing acreage, she said.
Washington produced 79 percent of the 2014 U.S. crop, Oregon 11 percent and Idaho 10 percent, according to a National Agricultural Statistics Service report issued Dec. 17. Washington’s production is in the Yakima Valley. Oregon is in the Willamette Valley.
Production increased 18 percent in Idaho, 2 percent in Washington and dropped 4 percent in Oregon, NASS said. Acreage increased in all three states.
Idaho likely will surpass Oregon in the next year or two as it has been expanding acreage at a faster rate due because land is more readily available with less competition from other high value crops, said Pete Mahony, director of supply chain management and purchasing for John I. Haas Inc., Yakima. Haas is a leader in hop processing, research and development.
Total U.S. acreage is expected to surpass 40,000 in 2015 with virtually all of the expansion being in aroma varieties that now account for 60 percent, Mahony said.
Cascade, the leading aroma variety, is now 16 percent of U.S. production and closing in on CTZ, a high alpha variety complex, that’s 23 percent of the crop, he said.
The U.S. hop industry is strong and should remain so for the next several years, Mahony said.
Michigan and New York are leading 14 additional states that are getting into hop production, George said. The U.S. and Germany are the top producers in the world.
Total U.S. production was 71 million pounds in 2014 compared with 69.2 million in 2013, according to NASS.
The crop was valued at $272 million, up 17 percent from a revised 2013 value of $232 million. The average price per pound was $3.83 versus $3.35 in 2013 and $3.17 in 2012.
Producers hung on through years of red ink from the late 1990s to 2007, George said. Better prices since then have allowed growers to upgrade harvest equipment, needed to handle many aroma varieties that mature at the same time, she said.
Hop Growers of America is holding its 59th annual convention and Hop Research Council Winter meeting at Rancho Bernardo Inn, San Diego, Calif., Jan. 20-23. More information: www.usahops.org.