The BARTh RepoRT - Barth Haas Group
Transcription
The BARTh RepoRT - Barth Haas Group
T h e B A R T H R e p o rt Hops 2012/2013 C o nt e nts World Market Key Data 2 Foreword 3 Cover Picture 3 Political Situation 4 European Union 4 Economic Situation 6 Key Data of the USA, China, Japan and Germany 6 World Beer Production 2011/2012 7 Beer Output Development 8 Market Analysis 8 Hop Forward Contract Rates 9 Hop Alpha Acid Production 9 Hop Alpha Acid Balance 10 Hop Acreage and Crop 2011/2012 11 Development 2001 – 2012 12 Country Special Belgium23 Country Report 2012 Crop/America USA23 Country Report 2012 Crop/Asia China27 Country Reports 2013 Crop/Australia/Oceania Australia28 New Zealand 29 Hop Plant Development 2013 Outlook 2013 Currency Exchange Rates Conversion Table Publishing Details Members of Barth-Haas Group Dry Hopping 29 30 30 30 30 31 32 Country Reports 2012 Crop/Europe Germany14 Czech Republic 18 Poland19 Slovenia20 England21 Spain21 France22 W o r l d M ark e t K e y D ata Hop area under cultivation in ha Hop production in mt Hop alpha production in mt 100,604 Beer production in mill. hl 1,929 1,951 89,090 48,529 46,971 Hops 12/13 2 10,378 9,139 2011 2012 2011 2012 2011 2012 2011 2012 -6.7% -3.2% 0.7% -11.4% 9.5% -11.9% 3.5% 1.2% F o r e W o rd decided to find out just how each hop variety smells, what aromas it has and what effects these aromas can have in the finished beer. Therefore, in close cooperation with two world champion beer sommeliers and a perfumist, Joh. Barth & Sohn has so far itemised the aromas of 87 hop varieties and provided a detailed description of them in the Hop Aroma Compendium (48 varieties in Volume 1 and 39 in Volume 2). Unique aromas were discovered in each hop variety. As the original hop aroma can only give an indication of the ultimate hop aroma in the beer, the team developed a hop evaluation process using cold extraction, thus enabling them to arrive at an approximate aroma prediction for dry hopping. In view of the current interest being shown by the brewing industry, we have dedicated a separate article to this special brewing process on the last page of this report. No other raw material used in brewing has such a great influence on the aroma, flavour and bitterness of the beer as hops. And no other raw material has as many aromas as hops. In the past, hop varieties were divided into aroma varieties and bitter or high alpha varieties and the hops were used in the brewing process accordingly. In comparison to earlier production processes which were mainly orientated towards hop bittering, US craft breweries focus their attention solely on the flavour profiles of their beers. Over the last few years this has resulted in a different view being taken of the hop as a raw material and of its potential for many aromas. For that reason we Joh. Barth & Sohn is currently working on volume 3 of the Hop Aroma Compendium. This will feature further hop varieties from countries including Germany, the Czech Republic, Poland, Slovenia, England, China and New Zealand. The book is due to be published at the end of 2013. Volumes I to III will then catalogue approx. 130 hop varieties. The Hop Aroma Compendium Volumes 1 and 2 are available in German and English and can be ordered from the publishing house Hans Carl. Join us in discovering hops and their incomparable aromas – in the interests of beer and of your customers! Source material from all over the world was required to produce this report. We would like to thank all those who provided us with information. A b o ut t h e F r o nt C o v e r Beer flavour through dry hopping. The picture shows a fully loaded hop kiln with freshly harvested hops in the process of being dried. The title is a word play with “Hop drying” which is the necessary process to prevent hops from spoiling, being turned into “Dry hopping” the process of imparting wonderful flavour into great beers. Hops 12/13 3 P o l itica l S ituati o n The unstable situation in the Middle East and on the Arabian Peninsula continued to dominate the daily headlines. For two years president Bashar al-Assad of Syria has been trying to put down a rebellion against his regime with unrelenting force. According to reports by the United Nations in April 2013, over 70,000 people have been killed and a quarter of the population have had to flee their homes since the outbreak of the civil war. The war in Syria also heightened tensions in Iraq and led to an increase in acts of terrorism there, mostly committed against Shiite Muslims and the security forces. After more than four decades of authoritarian rule, democratic elections took place for the first time in Libya in July 2012. In October 2012, Mustafa Abushagur, who had been elected prime minister, was dismissed by the Libyan parliament after only four weeks in office. The national assembly subsequently elected the former diplomat Ali Zeidan as his successor and approved the cabinet proposed by him. In Egypt, Mohammed Mursi was confirmed as the new president in June 2012 after winning a run-off. There were repeated, often violent, protests against the Islamic president who vastly extended his powers by amending the constitution. In a referendum in December 2012, a majority approved the highly controversial new constitution. The break-up of the grand coalition in Israel led to early elections. In March 2013 the formation of a new alliance resulted in a new government. Benjamin Netanyahu remained prime minister. In November 2012 and April 2013 Israel responded to rocket attacks by militant Palestinians with military measures in the Gaza Strip. In Africa, a new trouble spot appeared on the map. After a military coup in Mali in March 2012, Islamic fundamentalists conquered the north of the country. In December the UN Security Council authorized the deployment of peacekeeping forces in the crisis-stricken country. After France began a military operation in support of the government troops in January 2013, other countries gradually joined in the fight against the Islamists. In the longer term it is planned to have an African peacekeeping force to safeguard peace in Mali. In February 2013 under its new dictator Kim Jong Un, North Korea carried out a third nuclear test following those in 2006 and 2009. In March the regime declared a state of war with South Korea. Although already isolated and subjected to tough sanctions, the country also provoked the West with rocket tests and threatened the USA with a nuclear attack on several occasions. Barack Obama was re-elected for a second term in office as president of the United States of America in the elections in November 2012. The Republicans retained their majority in the US house of representatives, the Democrats theirs in the senate. Xi Jinping, who had been elected chairman of the Communist Party in China in November 2012, was declared the new president of the People’s Republic in March 2013 as expected. He is also the head of the armed forces of the world’s most populated country. In politically crisis-ridden Italy, in April 2013 the electoral assembly re-elected the 87-year-old retiring president Giorgio Napolitano as president. He was the only one trusted to break the deadlock after the parliamentary elections. Only ten days later, Enrico Letta of the Democratic Party was sworn in as prime minister. His cabinet replaced the 15-month government of the independent prime minister Mario Monti. For the first time since independence in 1947, in Pakistan a civilian government survived an entire period in office and handed over power to a democratically elected successor. In May 2013 the country elected the religious conservative politician Nawaz Sharif as prime minister. After 33 years on the throne, Queen Beatrix of the Netherlands, abdicated on 30 April 2013. Her eldest son Willem-Alexander succeeded her to the throne. He is the first male monarch of the Netherlands for 123 years. Eur o p e an U ni o n ( E U ) European Currency Union (ECU) Political and economic stability were the focus of activity for the ECU. Associated with this was the safeguarding of peace within the Community and in Europe as a whole. The escalation in the banking crisis necessitated further political intervention in 2012 in order to placate nervous financial markets. The European Stability Mechanism (ESM) came into Hops 12/13 4 effect on 27 September 2012. The ESM constitutes an important element in an overall package designed to permanently strengthen the European Economic and Monetary Union, and will supersede the European Financial Stabilisation Mechanism (EFSM). The ESM’s authorised capital amounts to 700bn EUR, of which 500bn EUR can be made available for loans. In addition to the 80bn EUR of paid-in capital, it has been provided with guarantees of 620bn EUR. Eur o p e an U ni o n ( E U ) On 13 December 2012, the EU finance ministers agreed upon a common supervisory authority for banks for the euro zone. Apart from the monitoring of banks, the establishment of supervision (expected 2014) is considered to be a prerequisite for direct ESM aid for banks. These funds will not be charged to national budgets, and will therefore have no effect upon demands for budget cuts pertaining to the respective country. Exceptions have been allowed to help distressed banks that require aid before direct ESM aid is available. Spain has already applied for 40bn EUR of aid for its financial institutions. The Spanish state will assume liability for any payment defaults. Spain’s financial sector is suffering under the consequences of the property bubble that burst in late 2007/early 2008. Furthermore, severe austerity programmes and high unemployment are depressing economic development. In December 2012, Greece was granted further tranches of already appointed loans from the EU. An additional aid package was launched to counteract new shortfalls in the national budget up until 2020. Furthermore, due to the desolate economic state of the country, banks are having to contend with large loan defaults. In an effort to rescue Cyprus, in March 2013 EU ministers agreed upon a loan of more than 10bn EUR for the country. Cyprus must put up a further 13bn EUR itself, whilst complying with strict demands for budget cuts. The Euro Group elected a new president. In January 2013, European finance ministers elected Dutchman Jeroen Dijsselbloem as successor to Luxembourg’s Jean-Claude Juncker. The EU is seemingly prepared to allow countries with excessive budget deficits more time to comply with the EU’s self-imposed ceiling of 3 % of the respective country’s gross domestic product (GDP). Crop Protection On 26 and 27 September 2012, representatives of all hop-growing EU member states met at the Hop Research Institute in Hüll. The objective of this meeting was the establishment of the “Commodity Expert Working Group (CEG) Hops” within the framework of the “Technical Working Group Minor Uses”. This transnational working group has the task of improving coordination among all participants involved in licensing plant protection products on the basis of Article 51 of EU Regulation (EC) No. 1107/2009 concerning the placing of plant protection products on the market. This working group is made up of 17 members from nine EU countries and the USA, and met for the first time in Brussels on 21 February 2013, in order to discuss further procedures and to set initial joint projects in motion. The Common Agricultural Policy (CAP) – CAP reform from 2013 After the European Commission published the legislative proposals for the reform of the Common Agricultural Policy (CAP) in October 2011, EU institutions and interest groups entered into a debate on these proposals. In June and December 2012, the European Council published proposals for technical and political changes in two progress reports. In four reports, the European Parliament proposed approx. 8,000 amendments to the Commission’s texts. Among these was a motion by members of the European Parliament from Germany calling for the support scheme for hop growers’ organisations in Germany to be maintained at the current level of 2.28m EUR per year. They also called for the attestation of equivalence for the import of hops from non-EU countries likewise to remain unchanged (Directive (EC) No. 1295/2008). Out of these proposed amendments, the European Parliament’s Committee on Agriculture drafted 279 lines of compromise. These were voted upon by the Committee on Agriculture at the end of January 2013, and a preliminary negotiating mandate was granted. On 14 March 2013, the European Parliament accepted most of the Committee’s resolutions by a majority, and therewith granted a final mandate for negotiations with the European Council and the Commission. On 19 March 2013, the European Union’s agricultural ministers finally agreed upon outlines for further development of the Common Agricultural Policy. They also spoke out in favour of upholding the specific support measures for the hop growers’ organisations in Germany. On the basis of the results obtained by the EU Agricultural Council, the Irish council presidency is striving for political accord with the European Parliament by June 2013. To this end, the council presidency, the European Parliament and the European Commission have been holding talks since April 2013 in the hope of reaching compromise on the issues that are dividing the council and Parliament. Formal adoption of the CAP legislative package is planned for Autumn 2013. Delays in achieving political accord on the long-term financial framework of the EU mean that the new CAP regulations will also be late in coming into force. 2014 will see transitional regulations in place, which – taking into consideration the financial ceilings of the 2014-2020 long-term financial framework – will otherwise more or less constitute an update of existing regulations. The new agricultural policy regulations are to come into force from 2015. Hops 12/13 5 Ec o n o mic S ituati o n There was a further decline in world economic growth. From a global perspective, the euro zone remained the greatest economic trouble spot. While the economies in other regions of the world recovered, Europe lagged behind. Following an increase of 3.9 % in 2011, the gross domestic product (GDP) of the global economy as a whole fell back to 2.6 % in 2012. The four most important economies in global terms developed differently (see key indicators). There was an increase in GDP in the USA and in Japan. China and Germany, on the other hand, saw their GDP decline. After achieving growth of 1.6 % in 2011, the countries of the European Union closed the year 2012 with a decrease in GDP of 0.3 %. By far the highest negative growth figure among the euro states was registered by Greece, with 6.4 %. The decisions of the world’s major central banks reflected their continuing efforts to support the economic development of their respective countries. In July 2012, the Governing Council of the European Central Bank (ECB) lowered its benchmark interest rate to 0.75 %. The continuing recession in the euro zone prompted the ECB to further reduce the interest rate to 0.5 % in May 2013. The economies of Europe’s crisis-stricken countries (Greece, Italy, Portugal and Spain) in particular failed to come to life. The benchmark rate had never been below one per cent since the currency union was established. The US Federal Reserve (Fed) extended its zero-interest policy and provided additional money supply by means of billion-dollar purchases of bonds (known as quantitative easing). In addition, it continued to exchange shortterm US treasury bonds for bonds with longer maturities. In June 2012 the People’s Bank of China (PBC) also lowered its benchmark interest rate, fixing it at 6.31 % (-0.25 %). This was followed by a second reduction, to 6.00 %, in July 2012. The interest rate had been steadily increased from 2010 in order to prevent the economy from overheating. It had not been reduced since 2008. Regardless of the slowdown in economic growth, the international stock markets saw their leading indices rise significantly to reach a new all-time high. The rally began in early June 2012. Germany’s leading share index (Dax), which had closed at 6,264 points on 31 May, reached an all-time high of 8,558 points on 22 May 2013. In similar fashion, the Dow Jones, which had closed at 12,393 points on 31 May 2012, also climbed to an all-time high on 22 May 2013, closing at 15,542 points. In July 2012, as a result of the debt crisis, the euro fell below the level of 1.22 USD for the first time in two years. During the period from June 2012 to May 2013, the highest exchange rate was noted at 1.37 USD on 1 February 2013. The decline in the price of crude oil continued in the second quarter of 2012. The lowest oil price was reached on 22 June 2012 when a barrel of Dated Brent FOB Sullom Voe crude oil was quoted at slightly below 89 USD. From August 2012 to March 2013 the oil price ranged between approx. 110 and approx. 119 USD. The downward trend that had already begun in mid-February led to a price of 101 USD on 31 May. The national debt of the USA has grown to more than 16 trillion dollars. In the US Congress, the Democrats and the Republicans failed to reach agreement on the budget. Therefore, on 1 March 2013 automatic spending cuts came into force, imposing massive mandatory savings on the state. On 21 March the Senate passed a budget proposal for the coming six months, thereby securing the USA’s current state spending up to the end of the budget year on 30 September 2013. K e y D ata GDP growth (real) in % The figures for 2010 and 2011 have been revised according to the latest statistics *) Interest rate for 10-year bonds. China: Lending rate for long-term loans. USA China Japan Hops 12/13 6 Balance of Payments in USD bn Balance of Trade in USD bn Inflation Rate Ø in % Interest Rate Ø in %*) Unemployment (as of 31.12.) in % 2010 2.4% -442.0 -634.9 1.6% 3.19% 9.6% 2011 1.8% -465.9 -727.4 3.2% 2.76% 9.0% 2012 2.2% -475.0 -727.9 2.1% 1.78% 8.1% 2010 10.4% 305.4 181.5 3.3% 6.01% 4.1% 2011 9.3% 201.2 155.0 5.4% 6.86% 4.1% 2012 7.8% 206.5 230.7 2.6% 6.78% 4.1% 2010 4.7% 203.8 75.6 2011 -0.6% -0.7% 1.18% 5.1% 119.7 -32.1 -0.3% 1.13% 4.6% -87.0 0.0% 0.86% 4.4% 2012 2.0% 60.4 2010 4.2% 206.8 205.3 1.1% 2.78% 7.7% Germany 2011 3.0% 224.4 220.9 2.1% 2.65% 7.1% 2012 0.7% 238.2 241.9 2.0% 1.56% 6.8% W O R L D B EE R P R O D U C T I O N 2 0 1 1 / 2 0 1 2 Europe Country Russia Germany United Kingdom Poland Spain Ukraine Netherlands France Belgium Czech Republic Romania Italy Turkey Austria Ireland Portugal Denmark Hungary Serbia Bulgaria Sweden Belarus/ White Russia Finland Switzerland Greece Croatia Slovakia Lithuania Norway Slovenia Estonia Latvia Moldavia BosniaHerzegovina Georgia Macedonia Albania Montenegro Cyprus Luxembourg Iceland Malta Armenia TOTAL America 2011 98,140 95,545 45,694 36,000 33,573 30,510 23,647 19,110 18,571 17,776 16,900 12,510 9,800 8,917 8,514 8,299 6,590 6,241 5,523 5,020 4,491 4,690 2012 97,400 94,618 42,049 37,800 33,000 30,050 24,272 19,000* 18,500* 18,265 17,900 12,791 9,980 8,927 8,197 7,500 6,600* 6,159 5,418 5,240 4,500* 4,285 3,978 3,546 3,700 3,589 2,975 2,922 2,348 1,973 1,360 1,533 1,071 3,784 3,515 3,500* 3,400* 3,022 2,900* 2,308 1,878 1,443 1,405 1,135* 807 923 630 575 437 321 303 189 136 147 549,524 857 825 660 550* 439 335 292 185* 147 137 545,168 Australia/Oceania Country 2011 2012 Australia 17,380 17,350 New Zealand 3,000 2,800 Papua New Guinea 700 800 Tahiti 187* 187* Fiji Islands 181 185 New Caledonia 137* 137* Solomon Islands 63* 63 * Samoa 60 60 Vanuatu 9* 9* 21,717 21,591 TOTAL Country USA Brazil Mexico Columbia Venezuela Canada Argentina Peru Chile Ecuador Dominican Republic Cuba Panama Costa Rica Paraguay Guatemala Bolivia El Salvador Nicaragua Jamaica Uruguay Honduras Puerto Rico Trinidad Belize Guyana Bahamas Dutch Antilles Suriname Barbados St. Lucia Martinique St. Vincent Grenada St. Kitts Haiti Antigua Aruba Dominica Cayman Islands TOTAL Africa 2011 2012 226,480 229,314 133,000* 132,800* 81,500* 82,500* 21,000* 22,550* 23,500* 21,470* 19,515 19,525 17,000* 16,700* 11,500* 13,200* 5,960* 6,000* 5,500* 5,925* 3,300* 3,400* 2,660* 1,800* 1,500* 1,500* 1,500* 1,300* 800* 950* 950* 900* 900* 700* 420* 300* 260* 140* 140* 2,600* 2,050* 1,660 1,500* 1,400* 1,300* 1,100* 1,000* 950* 950* 845* 750* 430* 320* 260* 140* 140* 90* 80* 70* 60* 45* 30* 23* 20* 18* 16* 12* 4* 565,443 90* 80* 70* 60* 45* 30* 23* 20* 18* 16* 12* 4* 571,247 Asia Country 2011 2012 China 489,880 490,200 Japan 56,000 55,465 Vietnam 27,800* 29,800 Thailand 20,600 23,700 India 18,500 19,500* South Korea 18,497 18,875 Philippines 15,700 15,800* Taiwan 5,132 5,461 Kazakhstan 4,250 4,801 Cambodia 3,100* 4,000* Uzbekistan 3,125 3,325 Malaysia 2,600 2,700* Indonesia 2,250 2,650 Laos 1,937 2,196 Iran 3,300 2,000 Sri Lanka 950 1,200 Singapore 1,100 1,100 Israel 1,020 1,100* Myanmar (Burma) 1,000 1,100* Mongolia 571 651 Aserbaidjan 441 521 Nepal 425 508 Hongkong 540 445 Tajikistan 300* 310* Kirgisistan 202 219 Libanon 202 200* Turkmenistan 180* 200* Pakistan 65 90 Jordan 80 85* Bangladesh 12 12 Syria 79 0 679,838 688,214 TOTAL Country 2011 2012 South Africa 30,870 31,500* Nigeria 19,596 24,000* Angola 8,200* 9,500 Cameroon 6,000 6,900 Kenya 4,900 5,188 Dem. Rep. of the 4,800 5,000* Congo (Zaire) 4,400 Ethiopia 3,264 Tanzania 3,500 4,000* Uganda 3,020 3,546 Congo 1,837 2,800* (Brazzaville) Namibia 2,300 2,500 Ghana 1,834 2,200* Simbabwe 1,946 2,121 Mozambique 1,830 1,993 1,900* Burundi 1,765 Ivory Coast 1,600 1,800 Tunisia 1,419 1,500* Gabun 1,100 1,200 Sambia 1,040 1,154 Madagascar 1,239 1,147 Rwanda 1,100 1,100* Burkina Faso 900 1,100 Algeria 1,015 1,000* Egypt 1,000 1,000 Benin 850 960 Morocco 850 850 Botswana 429 517 Tschad 450 500 Togo 400 440 Mauritius 400 400 Lesotho 382 372 221 272 Sudan Réunion 236 240* Swaziland 209 214 Malawi 210* 210* Eritrea 260 200 Guinea (Conakry) 220 200 Equatorial Guinea 200 200 Central African 170 170 Republic Liberia 185 154 Senegal 170 150 Sierra Leone 108 130* Mali 110 120 Niger 65 60 Seychelles 60 60 Guinea-Bissau 45* 45* Gambia 30 40 Cape Verde 8* 8* 112,343 125,061 TOTAL figures in 1,000 hl in italics: corrections for 2011 as stated in last year’s report. * estimate A list of the “Top 40 Countries” according to ranking can be found in the Beer Production Market Leaders Report. World total TOTAL 2011 2012 1,928,865 1,951,281 Hops 12/13 7 B e e r o ut p ut D e v e l o p m e nt 2011 1,000 hl The output volumes for 2011 quoted in last year's report have been revised in some cases. European Union Rest of Europe Europe total North America Central America/Caribbean South America America total Asia Africa Australia/Oceania WORLD TOTAL 2012 1,000 hl 2011 +/- % rel. 2012 +/- % rel. 386,599 162,925 549,524 327,495 16,018 221,930 565,443 679,838 112,343 21,717 384,024 161,144 545,168 331,339 16,733 223,175 571,247 688,214 125,061 21,591 1.4% -2.3% 0.2% -0.3% 2.3% 3.9% 1.4% 7.7% 7.2% 0.2% -0.7% -1.1% -0.8% 1.2% 4.5% 0.6% 1.0% 1.2% 11.3% -0.6% 1,928,865 1,951,281 3.5% 1.2% Due to subsequent corrections to the beer output volumes for 2011, production volume was in fact 3.7 m hl higher than stated in last year’s report. Based on the updated 2011 output figure, beer production in 2012 rose by 22.4 million hectolitres, or 1.2 %, worldwide. The five most important beer-producing countries are still China, the USA, Brazil, Russia and Germany. Europe failed to match the previous year’s result. A decrease in beer output volumes was registered both in the European Union states and in other European countries. Great Britain recorded by far the greatest decline (-3.6m hl). In contrast, Poland and Romania achieved an increase in production of 1.8m hl and 1.0m hl respectively. The development in North America was also on the positive side. The USA posted an increase of 2.8m hl. South America’s total volume was significantly reduced by the fall in output in Venezuela of 2.0m hl. America increased overall output by 5.8m hl. For many years China had been the outright leader in the list of countries with the highest growth in beer output. In 2012, in Asia it was led by Thailand (+3.1m hl), Vietnam (+2.0m hl) and India (+1.0m hl), with China increasing output by only 0.3m hl. With an increase of 12.7m hl, Africa kept up its vigorous growth in beer production which has been maintained since 2002. In 2012, Nigeria (+4.4m hl) was the country with the highest growth in output volume worldwide, recording the greatest increase amongst the African countries for the third year in succession. Angola (+1.3m hl) and Ethiopia (+1.1m hl) also contributed to the good result in 2012. M ark e t A na l y sis Crop year 2012 illustrated that the years of market imbalance between supply and demand are now approaching an end. After four years in which an annual surplus of between roughly 1,400 mt and 3,200 mt alpha was produced, the surplus sank considerably to only approx. 460 mt alpha. This improvement in market balance was due entirely to a further reduction in world acreage for the 2012 crop, amounting to 1,558 ha less than for the 2011 crop, as well as the unrelenting growth of the US craft beer movement and its enthusiastic imitators throughout the world. Craft brewers in the USA, for example, required about a quarter of the local hop production for the manufacture of their stronglyhopped beer creations with their wide spectrum of flavour characteristics. Thus this segment, with its many small players, required almost the same amount of hops from the 2012 crop as the rest of the US brewing industry with its market share of over 93 %. As further strong growth in the US craft sector is to be expected, it is likely that, in the USA, this segment will require more hops from the 2013 crop than needed for the production of the mainstream US beers. Hops 12/13 8 This brings with it a wide range of consequences, which have already been noticeable during the 2012 crop marketing period and which must be carefully monitored in the future. • The USA was the only major hop-growing country in which hop acreage significantly increased. An increase of approx. 1,400 ha for aroma and flavour varieties faced acreage clearance of approx. 500 ha in the category of high alpha varieties. • With a total of 55 hop varieties, the USA has cultivated by far the widest spectrum of varieties in the world, followed by Germany with 27 varieties. • In both countries, the range of varieties has increased meteorically in the last few years; in the USA this was particularly due to the demand from craft brewers who, when buying, are more concerned with quality and aroma diversity than with price. • At the moment, growers in the United States are reducing the high alpha segment in favour of cultivating aroma and flavour varieties. Up until 10 years ago, it was presumed that the US hop industry would be exporting approx. 80 % of its predominantly high alpha hop production. However, in the meantime M ark e t A na l y sis this figure has been reduced to just 50 %, due to the rapid growth of the US craft beer segment with its demand for aroma and flavour hops. The remaining 50 % is equally divided between US craft brewers and the US mainstream brewers. • As a result, Germany has inherited the leading role as most significant supplier of alpha acids to the world market. However, where prices are concerned, this market share leadership has not yet been particularly valuable, as past surpluses are still depressing the market. On the whole, the international brewing industry will be increasingly dependent upon the supplier countries USA and Germany, in particular upon the Yakima Valley and Hallertau growers. US and German share of the world market: Crop Acreage Volume Alpha acid 2012 64% 70% 78% 2011 62% 67% 77% Due to the continued weak spot and forward contract prices for almost all high alpha varieties in Europe, and due to the far from excessive spot and forward contract prices for many European aroma varieties, the number of growers in Germany and other European countries is simultaneously dwindling from year to year. The situation can definitely be described as complex. On the one hand, due to past surpluses, world hop market prices are at rock bottom, particularly where the high alpha segment is concerned. The warehouses of hop marketing companies are full to the brim with sold but still undelivered goods. On the other hand, the market is witnessing a boom in demand for hop varieties required by the US craft industry - a boom that has been barely noticed by the international brewing industry. In order to escape the price malaise that is affecting the entire hop market, all hop-growing countries and hop growers are increasingly trying to produce varieties that can be sold in this segment. The market is swaying between the euphoria of those who are supplying the brewers for whom hops are “the grapes of beer” and are thus prepared to pay accordingly, and the depression affecting the majority of growers. Against this background, further reductions in acreage are clearly to be expected in the future. Ultimately, it will be down to the brewing industry to determine the path the world hop industry will take in the future. If the US craft beer industry continues to grow as it has done, and should similarly stronglyhopped beers continue their positive development in other countries, the much larger mainstream brewers may well find themselves in a genuine purchasing race in the future. This will initially relate to specific varieties, but may well then spread to include hop acreage in general. HOP F O R W A R D C O N T R A C T R A T E S Forward contract rates (as per spring 2013) Country 2013 2014 2015 2016 Germany USA Czech Republic Poland Slovenia England 80% 100% 100% 75% 65% 70% 70% 90% 100% 75% 45% 40% 55% 75% 95% 80% 40% 30% 35% 60% 90% 85% 40% 20% Due to insufficient availability of official data, the forward contracting rates are based on estimates and have been calculated on the basis of the acreage expected for 2013 and the long-term average yield. HOP A LPH A A C I D P R O D U C T I O N Alpha acid production world-wide has been divided into variety groups: GROUP I: Fine aroma hops such as Hallertau Mittelfrueh, Hersbruck Spaet, Klon 18, Lubliner, Saazer, SA-1, Spalt, Savinjski Golding, Styrian Golding (Celeia), Strisselspalt, Tettnang. Varieties with a long-term average alpha of up to 4.5% GROUP II: Aroma hops such as Aurora, Bobek, Cascade, Cluster, First Gold, Fuggles, Golding, Hallertau Tradition, Mount Hood, NZ Hallertau, Opal, Perle, Saphir, Smaragd, Spalt Select, Sterling, Willamette. Varieties with a long-term average alpha of over 4.5% GROUP III: Bitter hops/ High Alpha hops such as Admiral, Chelan, Chinook, Columbus/Tomahawk/Zeus (CTZ), Galena, Hallertau Magnum, Hallertau Merkur, Hallertau Taurus, Herkules, Kirin Flower, Marco Polo, Marynka, Millennium, Northern Brewer, Nugget, NZ Pacific Gem, Phoenix, Pride of Ringwood, Super Pride, Target, Tsingtao Flower, Victoria, Warrior. Hops 12/13 9 HOP A LPH A A C I D P R O D U C T I O N Group I - Fine aroma hops Germany 41.9 % (previous year 39.8 %), Czech Republic 36.6 % (previous year 43.2 %) With the world hop crop divided into these groups, alpha acid production was as follows: 2011 Crop share Group Group II – Aroma hops Germany 46.2 % (previous year 53.7 %), USA 34.2 % (previous year 24.0 %) Group III – Bitter hops/ high alpha hops USA 40.9 % (previous year 41.5 %), Germany 38.5 % (previous year 36.9 %) Minor corrections have been made to the 2011 figures for crop and alpha volume quoted in last year’s report. I II III Crop mt 10.9% 10,927 28.2% 28,386 60.9% 61,291 100.0% 100,604 TOTAL 2012 Alpha Ø Alpha mt 3.9% 7.5% 12.8% 10.3% 424 4.1% 10.5% 2,118 20.4% 30.1% 7,836 75.5% 59.4% 10,378 100.0% 100.0% Although the alpha acid content averaged 10.3 %, as in the previous year, alpha production fell by 1,239 mt year on year as a result of the lower world hop production volume in 2012. Comparing the 2012 crop year with 2011, the share of the bitter and high alpha variety group in total production volume dropped by 1.5 %. At the same time, the average alpha acid content increased and so, despite the lower hop production volume, did the share of the alpha produced. Alpha share Crop share Crop mt Alpha Ø 9,310 26,847 52,933 89,090 3.5% 7.0% 13.1% 10.3% Alpha mt Alpha share 324 3.5% 1,888 20.7% 6,927 75.8% 9,139 100.0% With the global growth in the craft brewing segment, consideration of the hop market purely in terms of alpha acid is becoming increasingly less important. There was no change to the ranking of the top alpha producers. Germany was again in first place with 40.2 % (2011: 40.5 %), followed by the USA with 38.2 % (2011: 36.3 %) and China with 7.6 % (2011: 8.7 %). The alpha acid values upon which the calculations are based are recorded using the method of EBC analysis 7.4 % as is at the time of processing (ToP). H o p A l p h a A cid B a l anc e Alpha supply Crop year 11,000 Surplus/Deficit 10,500 2009 +2,929 mt a / − 10,000 2010 +3,219 mt a / − 9,500 2011 +1,414 mt a / − 9,000 2012 +1,909 mt a / − 8,500 2013* + 457 mt a / − 8,000 Brew year 2008 2009 2010 2011 2012 10,952 mt a 10,424 mt a 10,378 mt a 9,139 mt a 9,477 mt a 7,495 mt a 7,733 mt a 8,063 mt a 8,469 mt a 8,682 mt a* 7,500 Alpha demand (Brew year) Alpha production (Crop year) * Estimated demand 7,000 6,500 Brew year Hopping rate 2009 4.09 g a/hl 2010 4.15 g a/hl The growing craft beer sector is increasingly influencing the way in which the alpha acid balance is determined. This has made it necessary to establish a new basis for calculating alpha demand. The alpha acid balance shown here is based on this new method. The 2008 brewing year (2007 crop year) represents the zero point for the calculated hop surplus. As in the past, these statistics do not take into account the alpha degradation that occurs during the time between processing the hops and their actual use in Hops 12/13 10 2011 4.18 g a/hl 2012 4.34 g a/hl 2013* 4.35 g a/hl the brewing industry or the approx. 200 mt of alpha required for use outside the brewing industry. The alpha surplus produced in the crop years 2008 to 2012 for the brewing industry thus amounts to almost 9,000 mt of alpha. Estimated alpha demand for the 2013 brewing year is based on an assumed increase in beer output volume of approx. 2 %. HOP A C R E A G E A N D C R OP 2011 2012 Acreage Production Ø-Alpha ha mt % Germany Czech Republic Alpha mt Acreage ha Production Ø-Alpha mt % Alpha mt Hallertau 15,229 32,757.3 11.3% 3,699 14,258 29,794.1 10.9% 3,238 Elbe-Saale Tettnang Spalt Other 1,392 1,222 366 20 2,882.6 1,783.5 643,7 43,4 12.0% 5.9% 6.8% 9.0% 347 106 44 4 1,284 1,215 351 20 2,546.1 1,607.4 481,2 46,4 12.5% 5.2% 6.2% 8.5% 319 84 30 4 18,228 3,516 592 524 38,110.6 4,556.2 882,9 648,8 11.0% 4.3% 4.5% 4.3% 4,199 196 39 28 17,128 3,400 500 466 34,475.2 3,280.0 541,8 516,3 10.7% 4.1% 4.1% 4.2% 3,674 134 22 22 4.3% 9.0% 7.7% 7.3% 12.8% 5.5% 8.5% 9.4% 4.7% 9.4% 8.8% 9.5% 11.7% 10.0% 263 219 190 104 121 36 38 16 13 24 16 3 1 0 4.1% 8.6% 6.6% 8.1% 11.4% 5.3% 7.9% 10.2% 4.2% 9.7% 8.0% 9.5% 0.0% 9.6% 178 157 103 118 118 40 35 12 9 23 13 2 0 0 Total Saaz Tirschitz Auscha Total Poland Slovenia England Spain France Austria Romania Slovakia Belgium Bulgaria Portugal Hungary Netherlands 4,632 1,564 1,379 1,114 533 500 240 241 221 181 150* 17 6 3 6,087.9 2,426.0 2,470.3 1,425.4 944,5 657,6 449,1 166,0 273,8 254,7 180,0* 26,6 11,4 2,6 4,366 1,510 1,160 1,054 541 439 246 245 214 158 150* 12 0 3 4,338.1 1,818.2 1,556.2 1,461.0 1,029.0 751,9 445,9 114,0 203,0 234,4 160,0* 19,5 0,0 3,6 European Union Ukraine Turkey Russia Belarus/White Russia Switzerland Croatia 29,009 646 358 220 53 18 6 53,486.5 681,0 251,7 200,0 55,0 37,4 8,0 9.8% 7.0% 9.6% 4.9% 10.0% 8.8% 9.6% 5,243 48 24 10 5 3 1 27,226 465 348 220 53 18 0 46,610.0 454,0 322,0 160,0 50,0 37,8 0,0 9.6% 6.2% 9.2% 4.7% 9.5% 7.9% 0.0% 4,482 28 30 7 5 3 0 Rest of Europe 1,301 30,310 1,233.1 54,719.6 7.4% 9.7% 91 5,334 1,104 28,330 1,023.8 47,633.8 7.1% 9.6% 73 4,555 Washington 9,438 23,273.0 13.2% 3,062 10,133 22,042.8 13.0% 2,857 Oregon Idaho 1,701 916 3,637.7 2,474.1 29,384.8 226,1 10.3% 13.4% 12.8% 9.2% 374 331 3,767 21 1,809 981 3,821.7 1,917.7 10.0% 13.0% 384 249 12,923 198 27,782.2 280,5 12.6% 10.6% 3,490 30 8.5% 12.8% 3 3,791 63* 13,184 55,0* 28,117.7 8.0% 12.5% 4 3,524 411 EUROPE USA Total Argentina Canada 42* 37,8* 12,285 29,648.7 AMERICA China 12,055 188 Xinjiang 2,725 8,408.0 6.3% 526 2,536 6,523.0 6.3% Gansu 1,733 4,894.8 7.7% 374 1,453 3,665.1 7.7% 282 Total 4,458 181 13,302.8 342,0 6.8% 6.5% 900 22 3,989 168 10,188.1 344,7 6.8% 6.2% 693 21 35 4,674 19,1 13,663.9 12.0% 6.8% 2 924 30 4,187 16,8 10,549.6 12.0% 6.8% 2 716 AFRICA 456 456 955,0 955,0 15.4% 15.4% 147 147 458 458 1,002.7 1,002.7 13.8% 13.8% 138 138 Australia 454 1,044,0 12.1% 126 452 1,092.6 12.8% 140 New Zealand 350 804 573,0 1,617.0 9.8% 11.3% 56 182 360 812 694,0 1,786.6 9.5% 11.5% 66 206 48,529 100,604.2 10.3% 10,378 46,971 89,090.4 10.3% 9,139 Japan India ASIA South Africa AUSTRALIA/OCEANIA WORLD in italics: corrections for 2011 as stated in last year’s report. * estimate Hungary and Croatia stopped hop growing in 2012. Hops 12/13 11 D EVELOP M E N T HOP A R E A U N D E R C U L T I V A T I O N in H A 70,000 60,000 58,903 57,297 56,787 56,237 53,500 52,029 50,273 50,000 50,639 49,466 50,455 48,529 46,971 40,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 HOP P R O D U C T I O N in M T 120,000 113,669 110,000 100,000 111,175 99,214 100,604 100,932 99,899 94,385 91,584 90,000 92,266 87,056 89,090 85,585 80,000 2001 Hops 12/13 12 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 – 2012 HOP A LPH A P R O D U C T I O N in M T 11,000 * not taking into consideration the quantities destroyed in warehouse fires 10,952 10,378 10,000 10,424 9,477 9,000 8,646 9,139 8,749 8,103 8,000 7,903 7,663 7,000 7,103* 6,722 6,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 B EE R P R O D U C T I O N I N M I LLi o n HL 1,929 1,951 2011 2012 1,863 1,900 1,819 1,800 1,833 1,787 1,696 1,700 1,600 1,552 1,603 1,479 1,500 1,424 1,443 1,400 1,300 1,200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Hops 12/13 13 G e rman y Area Variety 4,199 4,000 3,984 3,674 3,500 3,419 3,000 3,244 2,500 2008 2009 2010 2011 2012 Rounding differences of the acreage may cause differences in addition. 2011 3,129 2,634 773 729 614 220 74 8,172 220 25 245 3,164 2,422 925 213 52 4 6,780 31 15,229 +/-164 -10 9 -13 -166 17 0 -327 -30 -3 -33 -468 35 -130 -34 -19 -2 -619 8 -971 2012 2,965 2,624 782 716 448 237 74 7,845 190 22 212 2,696 2,457 795 179 33 2 6,161 39 14,258 2011 2.08 2.05 1.90 1.13 2.24 2.11 1.49 1.97 1.65 2.21 1.71 1.89 3.11 2.18 2.40 1.93 1.58 2.38 1.58 2.15 2012 2011 2012 1.87 6,492.84 5,535.96 1.86 5,386.56 4,868.83 1.74 1,470.03 1,361.32 1.32 823.88 948.23 1.97 1,376.86 883.01 2.00 464.35 474.11 1.63 110.14 120.48 1.81 16,124.66 14,191.94 1.83 362.60 346.84 2.12 55.14 46.64 1.86 417.74 393.48 2.09 5,991.35 5,643.00 3.03 7,543.93 7,442.35 2.00 2,012.13 1,587.10 2.35 511.75 421.22 2.02 100.61 66.55 4.88 6.30 9.75 2.46 16,166.07 15,169.97 0.99 48.87 38.75 2.09 32,757.34 29,794.14 Elbe-Saale Perle Hallertau Tradition Other Aroma Total Aroma Northern Brewer Total Bitter Hallertau Magnum Herkules Other High Alpha Total High Alpha Other Total Elbe-Saale 153 33 8 193 125 125 868 134 63 1,066 8 1,392 -18 0 0 -17 -19 -19 -60 -7 -2 -70 -2 -108 135 33 8 176 106 106 808 127 61 996 6 1,284 2.06 1.63 1.56 1.97 1.70 1.70 2.01 2.97 2.18 2.14 1.07 2.07 1.84 1.02 1.28 1.66 1.56 1.56 2.02 2.75 1.73 2.09 0.68 1.98 314.56 53.69 11.98 380.23 212.21 212.21 1,745.54 398.48 137.48 2,281.50 8.68 2,882.62 248.69 33.74 10.25 292.68 165.37 165.37 1,629.67 348.62 105.68 2,083.97 4.10 2,546.12 Tettnang Tettnang Hallertau Mittelfrueh Perle Other Aroma Total Aroma High Alpha Other Total Tettnang 776 263 80 68 1,186 34 1 1,222 14 -25 -9 12 -7 -1 2 -7 790 238 71 80 1,179 33 3 1,215 1.27 1.40 2.14 2.08 1.41 3.38 0.52 1.46 1.17 1.38 1.73 1.73 1.29 2.77 0.24 1.32 987.52 367.95 171.09 141.71 1,668.27 114.95 0.28 1,783.50 925.59 328.48 122.80 138.30 1,515.17 91.54 0.72 1,607.43 Spalt Spalt Spalt Select Hallertau Mittelfrueh Other Aroma Total Aroma High Alpha Other Total Spalt 91 99 72 64 326 40 0 366 15 -15 -15 3 -12 -3 1 -15 106 84 57 67 314 37 1 351 1.06 2.27 1.31 1.98 1.66 2.54 0.00 1.76 0.94 1.64 1.08 1.51 1.28 2.18 0.00 1.37 96.78 224.27 94.54 126.59 542.18 101.56 0.00 643.74 99.40 138.12 61.47 101.38 400.37 80.78 0.00 481.15 16 4 20 0 0 0 16 4 20 1.95 3.26 2.20 2.10 3.20 2.32 30.84 12.58 43.42 33.57 12.80 46.37 9,895 370 7,924 39 18,228 -365 -52 -693 10 -1,100 9,530 318 7,231 49 17,128 1.89 1.70 2.36 1.47 2.09 1.72 18,746.18 16,433.73 1.76 629.95 558.85 2.41 18,676.66 17,439.06 0.89 57.83 43.57 2.01 38,110.62 34,475.21 Rhen.-P./ Aroma Bitburg High Alpha Total Rheinpf./Bitb. Hops 12/13 14 Development of production Ø Yield mt/ha Production mt Hallertau Perle Hallertau Tradition Hersbruck Spaet Hallertau Mittelfrueh Spalt Select Saphir Other Aroma Total Aroma Northern Brewer Other Bitter Total Bitter Hallertau Magnum Herkules Hallertau Taurus Nugget Hallertau Merkur Other High Alpha Total High Alpha Other Total Hallertau Alpha production in mt 4,500 Development of acreage Acreage ha Total Aroma Total Bitter Total High Alpha Total Others GERMANY TOTAL G e rman y Farm Structure There were 1,294 hop-growing farms in Germany in the reporting period. The downward trend thus continued, with 83 (or 6 %) fewer than in the previous year. In the Hallertau region alone, 73 producers stopped farming hops (-6.5 %). Hop acreage also decreased by the same percentage. The average acreage cultivated by hop farms in Germany was 13.2 ha, with farms in the Hallertau region averaging 13.6 ha. In both cases, these figures remained unchanged. Growth, Crop Estimate and Weights The winter of 2011/2012 began with mild conditions and plentiful rainfall in December. These mild and humid conditions continued into January, with the result that the water supply in the soil was fully replenished. In early February 2012 a 14-day cold period began, with temperatures falling to below –20 °C. While the hop plants in the Hallertau and Tettnang regions survived this period unscathed thanks to the protection of the snow cover, severe black frosts in the eastern Elbe-Saale region caused extensive winterkill damage. As in the previous year, a period of unusually warm and dry weather conditions in March caused the soil to dry out rapidly, allowing the spring work to be carried out in perfect conditions from the middle of the month. However, in the last week of April, rising temperatures accelerated the development of the hop plants and led to rapid vertical growth which made it necessary to train the shoots under considerable time pressure in some cases. Most of the plants had been strung by the second week of May, without any additional delay. In the second half of May, growing conditions were favourable, with isolated thundery showers and otherwise only a slight amount of rainfall. This was followed in June by abundant rainfall which provided the hop plants with a sufficient supply of water. By mid-month most of the hop varieties had reached trellis height. Plant development was therefore well within the long-term average. Due to rising temperatures towards the end of June there were widespread cases of infestation by common spider mites. From early July initial symptoms of wilt could be observed again this year, but the extent of infestation was in most cases significantly lower than in the previous two years. One reason for this was the above-average incidence of rainfall in August. This provided a sufficient supply of water, but at the same time created favourable conditions for downy mildew infection, which made it necessary to take intensive measures to protect the hop plants. On 23 August, a thunderstorm with gale-force winds and hail caused damage in the northern part of the Tettnang region. Hop plants covering an area of approx. 250 ha were affected to varying degrees, with approx. 40 ha suffering severe damage. Towards the end of August, the development of the hop plants was still within the long-term average and picking of the early-maturing varieties began from 25 August. Thanks to optimum weather conditions, the hops could be brought in with high visual quality. The volume harvested in 2012 was 34,475 mt, which was very close to the official estimate of August 2012. Compared with the previous year, the volume produced was 3,635 mt, or 9.5 %, lower. In the last five years the acreage developed as follows: Variety 2008 ha 2009 ha 2010 ha 2011 ha 2012 ha Perle Hallertau Tradition Hallertau Mittelfrueh Tettnang Hersbruck Spaet Spalt Select Saphir Spalt Other Aroma Total Aroma Northern Brewer Other Bitter Total Bitter Hallertau Magnum Herkules Hallertau Taurus Nugget Other High Alpha Total High Alpha Other 3,297 2,503 2,034 731 740 842 187 90 77 10,502 438 32 471 4,277 1,868 1,140 281 120 7,686 37 3,380 2,605 1,150 765 768 841 185 84 87 9,866 401 27 427 4,266 2,388 1,106 279 106 8,145 34 3,403 2,624 1,069 772 758 801 196 91 87 9,800 375 27 402 4,202 2,542 1,054 266 89 8,152 33 3,396 2,757 1,065 776 776 719 225 91 89 9,895 345 25 370 4,039 2,614 953 244 75 7,924 39 3,203 2,748 1,012 790 785 538 253 106 96 1) 9,530 296 22 2) 318 3,509 2,642 821 207 51 3) 7,231 49 4) GERMANY TOTAL 18,695 18,472 18,386 18,228 17,128 Percentage per variety group in 2012: Aroma varieties 56 % Bitter varieties 2 % High alpha varieties 42 % Rounding differences of the acreage may cause differences in addition. 1) Other aroma varieties include: Hersbruck Pure, Opal, Saaz, Smaragd 2) Other bitter varieties include: Brewers Gold 3) Other high alpha varieties include: Hallertau Merkur, Target, Zeus 4) Others include: Record, others/breeding selections Hops 12/13 15 G e rman y Variety table page 15 Acreage and Variety Development Acreage in Germany fell for the fourth year in succession. Compared to the previous year, the reduction amounted to 1,100 ha, or more than 6 %. The total hop acreage of 17,128 ha in 2012 represents the lowest level since Germany was reunified in 1989. The decline in acreage was mainly caused by clearances among the high alpha varieties Hallertau Magnum (-530 ha = 13 %) and Hallertau Taurus (-132 ha = 14 %) as well as among the aroma varieties Perle (-193 ha = 6 %) and Spalt Select (-181 ha = 25 %). In total, the decline in acreage was 365 ha (3.7 %) in the aroma variety group, 52 ha (14.1 %) among the bitter varieties and 693 (8.7 %) among the high alpha varieties. Contract Market After the close of hop year 2011, the growers in the Hallertau region received their first offers of contracts in March 2012. The hop traders were interested in forward contracts for the varieties Hersbruck, Herkules and Hallertau Taurus. In May and again in August the prices for high alpha varieties were raised, depending on the term of the contract. Price adjustments and a widening of the variety range in September proved highly successful in encouraging growers to sell. The traders took out contracts on significant quantities. Purchasing of limited quantities of Hallertau Mittelfrueh hops continued throughout the winter in the Hallertau region. Selected growers were offered a contract price of 6.00 EUR/kg for crop years 2014, 2015 and 2016. In February 2013, new prices were offered for Hersbruck and Saphir hops. There were no changes in the remaining contractual offers for the varieties Hallertau Tradition, Perle, Hallertau Magnum, Hallertau Taurus and Herkules to the terms offered in autumn 2012. One hop trader offered selected growers purchase contracts for their total harvested volume in crop year 2013, with specified minimum and maximum prices. These terms were offered for the following varieties: Hersbruck (min. 3.50 EUR/kg, max. 4.50 EUR/kg), Perle (min. 2.00 EUR/kg, max. 3.20 EUR/ kg), Hallertau Tradition (min. 2.50 EUR/kg, max. 3.70 EUR/kg), Hallertau Taurus and Herkules (min. 13.00 EUR/kg alpha acid, max. 17.00 EUR/kg alpha acid). The prices for the varieties Hersbruck, Spalt Select, Hallertau Tradition, Perle and Nugget were adjusted again in April. The prices for Hallertau Magnum and for Herkules and Hallertau Taurus were the same as those offered at the end of September 2012. In the Tettnang region, forward contract negotiations also began in March 2012. In autumn 2012 traders were primarily interested in the Tettnang variety. The terms offered for Herkules hops were the same as those offered in the Hallertau region. The Tettnang growers were offered the opportunity of forward contracts for the Hallertau Mittelfrueh variety from crop year 2015. Contractual offers – an overview Area / Time Variety names: Hallertau Magnum (HM) Hallertau Mittelfrueh (HA) Hallertau Taurus (TU) Hallertau Tradition (HT) Herkules (HS) Hersbruck (HE) Nugget (NU) Perle (PE) Saphir (SR) Spalt Select (SE) Tettnang (TE) Hops 12/13 16 Hallertau March 2012 Variety HE HS/TU Begin. of Sept. 2012 HS/TU End of Sept. 2012 HE SE SR HT PE HM HS/TU February 2013 HE HE SR April 2013 HE SE HT PE NU NU Tettnang March 2012 TE HA Sept./Oct. 2012 TE HA Price basis EUR/kg EUR/kg α EUR/kg α EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg α EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg α EUR/kg EUR/kg EUR/kg EUR/kg EUR/kg 2012 10.00 12.00 6.30 4.70 2013 2014 2015 2016 2017 2018 2019 2020 3.60 12.50 13.50 3.50 3.30 3.70 3.70 15.00 16.00 3.70 3.50 3.80 3.80 15.50 18.00 4.00 3.70 3.90 2.50 2.20 15.00 4.00 4.00 4.00 4.30 3.50 3.00 2.50 28.00 3.10 3.00 2.70 17.00 4.20 4.20 4.00 4.30 3.60 3.00 3.00 29.00 3.20 3.50 3.00 19.00 4.40 4.20 4.00 4.30 3.70 3.50 3.50 30.00 3.30 3.90 16.00 18.00 4.00 3.80 4.00 3.70 3.80 4.00 17.00 18.50 4.10 3.90 4.00 3.80 4.00 18.00 19.00 4.10 4.00 4.00 3.90 4.00 19.00 19.50 4.10 4.00 4.00 4.00 4.00 20.00 20.00 4.10 4.00 4.00 4.00 4.00 20.00 21.00 21.00 22.00 23.00 4.20 4.20 4.20 4.20 4.20 4.40 3.80 3.70 3.80 31.00 3.40 4.40 3.90 3.80 4.00 32.00 3.50 4.50 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 6.30 4.70 6.70 6.30 4.70 6.70 6.40 6.70 5.00 6.70 5.00 6.70 5.00 6.70 5.00 6.70 5.00 6.70 5.00 G e rman y Spot Market 2012 Purchasing of non-contracted hops began with offers for all varieties in the first week of September. At the same time, as in previous years, the major hop trading companies offered growers the opportunity of placing their unsold hops in their marketing pools at advance payment prices. Within only a few weeks most of the hops had been sold or had been consigned to the various marketing pools. Purchasing terms at fixed prices on a stable price basis were as follows: Hallertau Mittelfrueh 5.00 EUR/kg, Spalt Select 2.50 EUR/kg, Hallertau Tradition 1.80 EUR/kg, Hersbruck 1.80 EUR/kg to 2.50 EUR/kg, Perle 1.50 EUR/kg, Saphir 3.10 EUR/kg, Opal 1.80 EUR/kg, Northern Brewer 2.00 EUR/kg. 11.00 EUR/kg of alpha acid was offered across the board for the high alpha varieties. In the Tettnang region, the Tettnang variety was purchased at a price of 6.50 EUR/kg from early September 2012. In early October the price offered rose to 6.80 EUR/kg. No fixed prices were offered to the Tettnang growers for the Hallertau Mittelfrueh variety. Depending on the trader, the advance payment prices paid for this variety within the framework of the purchasing initiatives and pools were between 2.00 EUR/kg and 3.00 EUR/kg. At the time of going to press, these hop purchases had in most cases not yet been settled. The prices for contracted and non-contracted hops reflect the extent to which overproduction in recent years has affected the hop market, particularly in the high alpha segment. Alpha Acids The average alpha acid levels in the hops harvested in 2012 were mostly above the mean value of the last 10 years, although for a considerable number of varieties the figure was below the average of the last 5 years. Allowing for the production volumes per variety, the alpha yield amounted to 3,674 mt. The volume of alpha produced was therefore 525 mt, or 12.5 %, lower than in crop year 2011, which was a very good year in terms of alpha acid values and yields per hectare. Details of the alpha acid levels of the main German varieties: Alpha acid values as is, as per EBC 7.4, in freshly harvested hops. All other alpha acid values mentioned in the Barth Report were recorded on the basis of % as is, EBC 7.4 ToP (Time of Processing). Area Variety 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Hallertau Hallertau Mittelfrueh 3.1 Hersbruck Spaet 2.1 Saphir – Opal – Smaragd – Perle 3.9 Spalt Select 3.2 Hallertau Tradition 4.1 Northern Brewer 6.0 Hallertau Magnum 11.7 Nugget 8.5 Hallertau Taurus 12.3 Hallertau Merkur – Herkules – Elbe-Saale Hallertau Magnum 10.2 Tettnang Tettnang 2.6 Hallertau Mittelfrueh 3.1 Spalt Spalt 3.1 4.3 3.0 3.4 – – 6.4 4.9 6.3 9.8 14.8 10.6 16.5 13.5 – 14.0 4.7 5.0 4.4 4.4 3.5 4.1 – – 7.8 5.2 6.3 9.8 13.8 11.3 16.2 13.3 – 14.4 4.5 4.8 4.3 2.4 2.2 3.2 – – 6.2 4.3 4.8 6.4 12.8 10.2 15.1 10.3 – 12.4 2.2 2.6 2.8 The alpha acid table shows the average alpha acid values measured in freshly harvested hops by members of “Arbeitsgruppe Hopfenanalyse” (AHA) on the fixed date of 15 October. The members of AHA are the in-house laboratories of the German hop-processing plants, the Bavarian state institute of agriculture's hop department (Hüll), BLQ Weihenstephan, VLB Berlin and Labor Veritas (Zurich). These values constitute the basis for any adjustments 3.9 2.6 4.6 7.4 6.1 7.9 4.7 6.0 9.1 12.6 10.7 16.1 13.0 16.1 13.3 4.0 4.3 4.6 4.4 2.9 5.1 9.4 6.7 8.5 5.4 7.5 10.5 15.7 12.0 17.9 15.0 17.3 12.2 4.2 4.7 4.1 4.2 3.4 4.5 9.0 6.4 9.2 5.7 6.8 10.4 14.6 12.8 17.1 14.8 17.3 13.7 4.2 4.5 4.4 3.8 3.5 4.5 8.6 7.4 7.5 5.7 6.5 9.7 13.3 11.5 16.3 12.6 16.1 13.1 4.0 4.2 3.7 5.0 4.5 5.3 9.7 8.0 9.6 6.4 7.1 10.9 14.9 13.0 17.4 15.2 17.2 13.7 5.1 5.1 4.8 4.6 3.0 4.4 9.0 6.0 8.1 5.1 6.7 9.9 14.3 12.2 17.0 14.0 17.1 14.1 4.3 4.7 4.1 Ø5 Ø 10 Years Years 4.4 3.5 4.8 9.1 6.9 8.6 5.7 6.9 10.3 14.6 12.3 17.1 14.3 17.0 13.4 4.4 4.6 4.2 4.0 3.1 – – – 7.5 5.1 6.2 9.3 13.9 11.3 16.2 – – 13.1 4.0 4.3 4.0 of supply contracts containing “alpha clauses” between the brewing industry and the hop industry. The alpha clause was devised jointly by the German brewers' association and the hop industry association and was applied for the first time as a result of the 2003 harvest. It is a contractual provision used solely in forward contracts for aroma varieties. The average values serve as the basis for parties concluding new supply contracts containing an alpha clause. 2012 crop with good average alpha acid levels Values in % Hops 12/13 17 C z e c h R e p ub l ic Variety 300 300 250 283 263 265 200 178 150 100 2008 2009 2010 2011 +/-233 -8 -27 10 -258 1 0 1 -9 2012 3,806 242 229 21 4,298 53 3 56 12 2011 1.24 1.95 1.83 1.34 1.31 1.63 1.07 1.60 0.48 2012 0.92 1.66 1.51 0.80 0.99 1.20 1.37 1.21 1.12 2011 5,020.2 487.8 467.2 14.7 5,989.9 84.7 3.2 87.9 10.1 2012 3,493.6 402.2 344.7 16.7 4,257.2 63.4 4.1 67.5 13.4 CZECH REPUBLIC TOTAL 4,632 -266 4,366 1.31 0.99 6,087.9 4,338.1 2012 Acreage/Production/Alpha Content A reduction in area was reported from all three growing regions: Saaz -116 ha, Tirschitz -92 ha und Auscha -58 ha. The decline mainly affected the Saaz variety. In February, a long period of severe frost exacerbated by a lack of protective snow cover led to widespread winterkill in hop plants. As a result, in some locations shoots failed to grow in more than 25 % of the hop plants. Temperatures were above average for the entire duration of the vegetation period and there was a lack of extensive rainfall. However, at the burr stage and at the onset of cone development the hops were growing well. From the end of July, however, there was a complete drought, with temperatures above 30 °C. At the start of picking the growers stopped the harvest over the middle of the day due to scorching temperatures of up to 37 °C. The high temperatures and drought prevented the cones from ripening fully, which had a corresponding impact on production volume. Although the 2012 alpha acid levels did not match the very good values of the preceding year, they were still above the long-term average (2011 results in brackets): Saaz 3.4 % (3.7 %), Premiant 7.2 % (7.9 %) and Sládek 6.3 % (6.5 %). The very low crop yield and the slightly lower alpha levels led to a 32 % drop in the alpha yield compared to the previous year. 18 Development of production Ø Yield mt/ha Production mt 2011 4,039 250 256 11 4,556 52 3 55 21 Farm Structure Both the acreage and the number of growers have been declining since 2001. 118 farms remained in 2012, five fewer than in the previous year. The average hop acreage per grower dropped from 37.7 ha in 2011 to its current level of 37.0 ha. Hops 12/13 Saaz Sládek Premiant Other Aroma Total Aroma Agnus Other High Alpha Total High Alpha Other Alpha production in mt 350 Development of acreage Acreage ha Market Situation On the assumption of a normal harvest, approx. 95 % of the crop had been sold by forward contract before the 2012 harvest. The contract prices ranged between 140 and 190 CZK/kg (5.60 to 7.60 EUR/kg) for the Saaz variety and between 90 and 120 CZK/kg (3.60 to 4.80 EUR/kg) for the Premiant and Sládek varieties. Due to the below-average yields there were next to no non-contracted hops and consequently there was no spot market. The majority of growers were unable to meet the existing forward contracts and suffered major financial losses as a result. The entire Czech hop stock was sold out for the first time since crop year 2008. At the beginning of October 2012 the Czech hop producers were already being offered forward contracts for the Saaz variety at contract prices of between 160 and 180 CZK/kg (6.40 EUR/kg and 7.20 EUR/kg), starting with the 2013 crop and running until the 2017 crop year. So many contracts were concluded that forward contract rates reached 100 % for the first two years and 95 % or 90 % for the subsequent years. The hop acreage in the Czech Republic is likely to change only very slightly by the 2013 harvest. Extensive new plantings of the Saaz variety are planned for autumn 2013. Several new aroma varieties have been licensed in recent years, among them a variety called Kazbek. Its flavour hop characteristics make it an interesting variety which deserves particularly close attention. P o l and Variety Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt Lubelski Perle Hallertau Tradition Other Aroma Total Aroma Marynka Other Bitter Total Bitter Hallertau Magnum Other High Alpha Total High Alpha 2011 248 96 68 7 419 557 43 600 522 23 545 +/49 -8 11 0 52 -94 7 -87 -12 -7 -19 2012 297 88 79 7 471 463 50 513 510 16 526 2011 1.11 1.54 1.56 0.74 1.28 1.62 1.14 1.59 1.73 1.54 1.72 2012 1.24 0.95 1.28 0.60 1.18 0.95 1.03 0.96 1.49 0.54 1.47 2011 276.2 147.4 105.9 5.2 534.7 902.4 49.1 951.5 904.3 35.5 939.8 2012 368.1 83.6 100.9 4.2 556.8 439.1 51.5 490.6 762.2 8.6 770.8 POLAND TOTAL 1,564 -54 1,510 1.55 1.20 2,426.0 1,818.2 Farm Structure In crop year 2012, 665 growers were involved in hop production. This was 24 fewer farms than in the previous year. As total acreage declined at the same time, the average hop-growing area per farm remained constant at 2.3 ha. Acreage/Production/Alpha Content The largest contributor to the reduction in area was the bitter variety Marynka (17 %). In contrast, the acreage planted with the aroma variety Lubelski increased by 20 %. Changes in acreage across all varieties amounted to a decline of 3 %. Here it should be noted that an unknown number of trellis systems were not strung in 2012, which means that the specified area does not refer solely to productive acreage. In spring the growing conditions for hops were unfavourable, with the weather being too dry and cold. It was only in June that there was any quantity of rain worth mentioning, and it turned warmer. Very hot weather followed at the beginning of July. The temperatures of up to 40 °C were not conducive to optimal growth of the hop plants which were already suffering from delayed development. It was only at the end of July that the badly needed rainfall arrived. The growers were not happy with the yields. At least the alpha acid levels reached values which were mostly significantly above the long-term average, with the exception of the Marynka variety. The results for the variety groups in 2012 were as follows: Aroma varieties 4.7 % (2011: 4.9 %), bitter/high alpha varieties 10.4 % (2011: 10.2 %). The alpha yield declined by 28 % in comparison with the two previous crop years. Market Situation The proportion of the 2012 crop committed by forward contract was around 60 to 70 %, although the supply arrangements made between the Polish dealers and the Alpha production in mt 350 312 300 250 256 219 200 150 140 157 100 2008 2009 2010 2011 2012 Rounding differences of the growers did not include fixed price agreements. The acreage may cause differences final contract price across all varieties was between in addition. 11.00 and 14.00 PLN/kg (2.70 to 3.40 EUR/kg). Due to the low yields, the entire crop of Lubelski was virtually sold out. Other varieties were purchased for 3.00 to 6.00 PLN/kg (0.75 to 1.45 EUR/kg) in a very weak market. There were no buyers interested in the Marynka variety, which left stocks unsold in spring totalling 30 to 40 mt. Both the yields and the alpha levels of the Polish hops are too low to be internationally competitive. Scarcely any hops are exported nowadays. The growers continued to protest about the attitude of both policy-makers and breweries with the slogan “Polish hops in Polish beer”. More farms are likely to be abandoned due to the lack of economic viability in hop production, which will result in a further decline in acreage. Large numbers of forward contracts for the Marynka variety expired after the 2012 harvest and could not be extended due to the lack of demand. This will result in a decline in acreage of approx. 60 ha for this variety. In many cases, the variety Lubelski has been planted instead. Nevertheless, overall acreage can be assumed to have declined by approx. 60 ha in 2013. The forward contract rate is estimated to be about 75 %. The Polish hop-breeding institute IUNG presented a new high alpha variety named Magnat. This is a further selection from the variety Hallertau Magnum (mother) crossed with a Polish wild hop. There are very high expectations of this variety, but almost no experience from field trials. However, from the available research findings it can be concluded that this variety will not come up to the yields of new high alpha varieties from other countries. Magnat has the potential to be better than the Hallertau Magnum grown in Poland and could constitute a major breakthrough, at least for Polish hop growing. Hops 12/13 19 S l o v e nia Variety Alpha production in mt 200 150 190 166 173 175 100 103 50 Aurora Styrian Golding (Celeia) Savinjski Golding Bobek Other Aroma Total Aroma Hallertau Magnum Other High Alpha Total High Alpha SLOVENIA TOTAL 0 2008 2009 2010 2011 Development of acreage Acreage ha +/-158 51 -36 -32 -5 -180 -34 -5 -39 2012 654 230 133 84 15 1,116 25 19 44 2011 1.92 2.25 1.08 1.87 0.99 1.84 1.19 0.83 1.08 2012 1.38 1.46 0.97 1.59 0.46 1.35 1.17 1.14 1.15 2011 1,558.2 402.8 182.7 216.9 19.7 2,380.3 70.0 20.0 90.0 2012 901.1 335.2 128.8 133.4 6.9 1,505.4 29.2 21.6 50.8 1,379 -219 1,160 1.79 1.34 2,470.3 1,556.2 2012 Acreage/Production/Alpha Content The total acreage declined by 16 %, with the acreage of one variety, Styrian Golding (Celeia), expanding by 28 %, while that of all the other varieties was reduced. The largest reduction in area was attributed to the Aurora variety. Up to the end of July there was every indication that production volume would be normal. From then on, however, there was hardly any rainfall and it turned very hot. Throughout August the temperature was often over 35 °C. The weather conditions prevented the hops from developing normally and from reaching optimum harvest maturity. The result was a yield per hectare which was far below average. Likewise the alpha levels of the old regional varieties were in some cases significantly below their long-term averages. Savinjski Golding only achieved an alpha level of 2.8 % (2011: 3.8 %), while the alpha content recorded for Styrian Golding (Celeia) was 3.6 % (2011: 4.1 %). The Aurora variety also fell short of its long-term average alpha content, with 8.2 % (2011: 9.1 %). Bobek was the only variety to achieve an above-average result, with 5.5 % (2011: 5.7 %). The conditions prevailing during the harvest led to a very high proportion of cone bracts in the crop. The smaller area, lower yields per hectare and lower alpha levels resulted in a 46 % reduction in alpha yield compared to the previous year. 20 Development of production Ø Yield mt/ha Production mt 2011 812 179 169 116 20 1,296 59 24 83 Farm Structure After three years during which the number of hop producers had stayed constant, four farms ceased production. The remaining 129 growers farmed a hop acreage averaging 9.0 ha, compared to 10.4 ha the previous year. Hops 12/13 Market Situation Before the 2012 harvest a high proportion of the Styrian Golding (Celeia) crop was already under forward contract. The reduction in acreage over recent years and the low yield in crop year 2012 contributed to a stabilisation of the market situation for the varieties Savinjski Golding and Bobek. The available non-contracted quantities of these aroma varieties were quickly sold out. Even stocks from previous years could be sold due to the high demand. The situation for the Aurora variety was quite different: despite the reduction in acreage already carried out and the low yields in crop year 2012, at the beginning of April 2013 the growers still had unsold stocks totalling approx. 200 mt. The high financial losses suffered due to growing Aurora could not be compensated for by the relatively good proceeds from sales of other aroma varieties. In Slovenia the total acreage remains unchanged. In 2013 the entire Savinjski Golding crop has been sold through forward contracts. The Slovenian hop growers’ greatest hope lies in the continued market expansion for the variety Styrian Golding (Celeia). An increase in area for this variety of approx. 80 ha in 2013 seems realistic. The yield from the existing acreage is probably covered by forward contracts. The total acreage for the variety Aurora is to be reduced by approx. 10 %. Despite the slight upturn in the market for the aroma varieties (with the exception of Aurora) this hopgrowing country is facing grave difficulties. It is very difficult for the farmers to give up hop production. In many cases the investments made over the last few years have been too high and the long tradition of hop growing is held in very great esteem. However, the hop growers can no longer afford to produce for the spot market. Production in the coming years is therefore likely to adapt increasingly to the forwardcontract volume. ENGLAND Variety Golding First Gold Fuggle EK Golding Challenger Other Aroma Total Aroma Target Pilgrim Other High Alpha Total High Alpha ENGLAND TOTAL Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt 2011 185 149 89 82 79 256 840 102 88 84 274 +/-10 -8 6 -6 -17 -3 -38 -4 -2 -16 -22 2012 175 141 95 76 62 253 802 98 86 68 252 2011 1.21 0.74 1.53 1.78 1.52 1.28 1.26 1.34 1.42 1.21 1.33 2012 1.32 0.88 1.57 1.87 1.99 1.23 1.35 1.53 1.46 1.52 1.50 2011 223.3 109.7 136.4 146.2 119.7 326.6 1,061.9 136.6 125.4 101.5 363.5 2012 231.3 124.3 148.8 142.4 123.2 312.2 1,082.2 150.2 125.5 103.1 378.8 1,114 -60 1,054 1.28 1.39 1,425.4 1,461.0 Farm Structure In the county of Yorkshire one farmer has gone into hop production for the first time. As a result, in crop year 2012, there were 56 producers farming an area averaging 18.8 ha, compared with an average of 20 ha the previous year. the long-term average (comparable values for the 2011 crop in brackets): Golding 5.6 % (4.7 %), EK Golding 6.4 % (5.7 %), First Gold 7.9 % (7.4 %), Fuggle 5.0 % (4.8 %), Challenger 9.0 % (7.3 %), Target 11.8 % (10.3 %). Despite the almost identical volumes harvested in 2011 and 2012, overall alpha yield rose by 14 %. Acreage/Production/Alpha Content Apart from the Fuggle variety, which expanded by 6 ha, all the other varieties showed a decline in acreage. The total acreage strung with hops declined by 6 %. Spring began with very dry and very warm weather conditions, and the plants grew quickly. However, towards the end of April exceedingly cold and wet weather set in. Apart from a short period in July when flowering began, temperatures remained below the norm and there was a lot of rain. It was the wettest summer in the United Kingdom for 100 years. Although the number of sunshine hours up until harvest was low, the cones developed higher alpha acid levels than Market Situation At the start of the harvest, around 80 % of the expected yield was under forward contract at prices averaging 7.00 GBP/kg (8.70 EUR/kg) for aroma varieties and 5.00 GBP/kg (6.20 EUR/kg) for high alpha varieties. At the time of reporting, a small quantity of aroma spot hops remained unsold. The spot hops sold were traded at average prices of 5.00 GBP/kg (6.20 EUR/kg) for aroma varieties and 4.00 GBP/kg (5.00 EUR/kg) for high alpha varieties. In spring the contract rate for the 2013 crop was estimated at around 70 %. The acreage is due to remain unchanged. Alpha production in mt 140 120 114 100 80 118 114 104 93 60 40 0 2008 2009 2010 2011 2012 S p ain Variety Aroma Nugget Columbus Hallertau Magnum Total High Alpha Test Varieties SPAIN TOTAL Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt 2011 1 503 26 3 532 0 +/0 -15 20 1 6 2 2012 1 488 46 4 538 2 2011 0.40 1.78 1.74 1.57 1.77 0.00 2012 0.40 1.96 1.38 1.45 1.91 0.65 2011 0.4 894.1 45.3 4.7 944.1 0.0 2012 0.4 957.8 63.7 5.8 1,027.3 1.3 533 8 541 1.77 1.90 944.5 1,029.0 Alpha production in mt 140 129 122 120 121 118 100 102 80 2008 2009 2010 2011 2012 Hops 12/13 21 SPAIN Farm Structure The number of hop growers decreased by 3 in the 2012 crop year, leaving 237 active producers. There was a simultaneous expansion in hop-growing acreage, however, which led to the average area per grower rising slightly to 2.3 ha. Acreage/Production/Alpha Content While the acreage of the most widely planted variety, Nugget, fell by 3 % in comparison to the previous year, that of the Columbus variety increased by 77 %. The changes in varietal planting patterns resulted in a slight increase in total acreage of 1.5 %. The winter and spring were very dry. Spring work started late. The weather in July and August was generally very hot. However, the yield per hectare for all varieties was above that of the previous year and equal to the long-term average at 1.9 mt. The varieties Summit and Millennium planted for experimental purposes produced a crop for the first time. The Spanish growers have high hopes for these varieties. The alpha acid content for the Nugget variety remained slightly below its long-term average at 11.2 % (2011: 12.7 %). The total alpha volume was only 2.5 % below the alpha yield produced in crop year 2011. Market Situation Before the 2012 harvest began, the growers had already sold almost the entire production volume to the domestic brewing industry at an average price of 3.50 EUR/kg for cone hops. At the time of reporting, a small quantity of 28 mt remained unsold. Due to farmland reallocation measures, the hopgrowing area available for the 2013 crop will decline to approx. 480 to 490 ha. The area is expected to increase again in 2014. F ranc e Area Variety Alpha production in mt Alsace 60 50 40 36 33 36 40 30 Nord 27 20 10 Hallertau Tradition Strisselspalt Other Aroma Total Aroma Bitter-High Alpha Total Alsace Aroma Bitter-High Alpha Total Nord FRANCE TOTAL 2008 2009 2010 2011 Development of acreage Acreage ha +/-42 -23 17 -48 -7 -55 -1 -4 -6 2012 107 93 161 361 53 414 11 14 25 2011 1.68 1.63 0.70 1.32 1.26 1.31 1.28 1.45 1.35 2012 1.93 1.73 1.50 1.69 2.12 1.74 1.12 1.31 1.23 2011 250.5 189.6 100.5 540.6 75.5 616.1 15.4 26.1 41.5 2012 207.0 161.0 241.0 609.0 112.1 721.1 11.8 19.0 30.8 500 -61 439 1.32 1.71 657.6 751.9 2012 Acreage/Production/Alpha Content The acreage also declined across all varieties and growing regions. The only expansion recorded was for “other aroma varieties” in the Alsace growing region. This is primarily due to the Aramis variety which is said to have some flavour hops characteristics. The acreage for this variety rose by 32 ha to its current 52 ha. The weather conditions in May and June, which turned out to be cooler and somewhat wetter than usual, had a beneficial effect on the development of the varieties Savinjski Golding and Fuggle. It remained very cool 22 Development of production Ø Yield mt/ha Production mt 2011 149 116 144 409 60 469 12 18 31 Farm Structure There was a major decline in the number of growers Rounding differences of the in France. In the 2011 crop year there were 83 farms acreage may cause differences growing hops, but by 2012 this figure had dropped to in addition. 58, representing a decline of 30 %. The average acreage per producer rose from 6.0 ha to 7.6 ha. Hops 12/13 and wet in July and early August, but neither the production volume nor the alpha acid content suffered as a result. In fact, the opposite was the case. A slightly above-average yield and, as in the preceding year, above-average alpha levels were achieved. The values recorded in the 2012 crop year for the variety groups were 4.3 % (2011: 4.5 %) for the aroma varieties and 9.9 % (2011: 10.8 %) for the bitter/high alpha varieties. Due to the increased production volume, the alpha yield rose by 11 %. Market Situation At the time of picking, only 40 % of the yield was under forward contract. In April 2013 approx. 120 mt of the 2012 harvest remained unsold. Little change is expected in the total acreage. However, approx. 70 ha of the Hallertau Tradition variety is being cleared and replaced with Strisselspalt hops for which contracts have already been concluded. C O U N T R Y S PE C I A L - B e l gium Variety Group Aroma High Alpha BELGIUM TOTAL Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt 2011 60 121 +/5 -28 2012 65 93 2011 1.19 1.51 2012 1.34 1.58 2011 71.6 183.1 2012 87.4 147.0 181 -23 158 1.41 1.48 254.7 234.4 General Poperinge was and remains today the centre of Belgian hop growing. The town undertakes a variety of initiatives to maintain this old tradition. For instance, the national hop museum has recently been expanded. Another example was the initiative to develop a logo for Belgian hops. Breweries using at least 50 % Belgian hops in their beers are entitled to display the “Houblon Belge – Belgian Hops” logo developed in 2011, thus drawing attention to the use of quality Belgian hops. Belgium is one of the nations with the largest variety of beers worldwide. Farm Structure Both the acreage farmed and the number of hop growers are declining. The 23 active producers in crop year 2012 farmed an average area of 6.9 ha per farm. In spite of this small scale, the growers have difficulty in agreeing upon a common way forward. Acreage/Production/Alpha Content The overall area declined by 13 %, with cultivation of aroma varieties expanding slightly and the area under high alpha varieties being reduced. There was heavy rainfall over protracted periods during the growing season. The production yield was adversely affected by strong winds which made it necessary to retrain the shoots several times (up to 7 times, depending on the variety) and also resulted in laterals being broken off. An alpha acid content averaging 5.8 % was recorded for the aroma varieties. The high alpha varieties achieved an average value of 12.0 %. Varietal Range Belgium has a very large range of hop varieties most of which originate from England. Out of a total of 24 hop varieties, 12 belong to the group of aroma hops and 12 to the bitter/high alpha hops. The range of varieties is the result of growing and marketing efforts to find varieties which are suited to Belgium. There are three dominant varieties: the high alpha varieties Target (41 ha) and Hallertau Magnum (37 ha) and the aroma variety Challenger (29 ha). The Country Special report features a hop-growing country to which we would not normally devote a separate country report due to its small size. Alpha production in mt 40 34 32 30 27 24 20 23 10 2008 2009 2010 2011 2012 Market Situation Only approx. 60 % of the expected production volume in crop year 2012 was under forward contract. In April 2013 around 60 mt of Target hops which had already been processed into pellets remained unsold. Aroma varieties can mostly be marketed at adequate prices. Bitter and high alpha varieties, on the other hand, are generally difficult to sell and the prices are also very low due to the lower alpha yield per hectare compared to other producer countries. Growers were unable to conclude longer-term forward contracts. Only small amounts of the 2013 aroma hop crop could be sold. The growers are planning to clear bitter and high alpha varieties. These will be partly replaced with aroma varieties, particularly those with flavour hop characteristics. USA Farm Structure The number of growers (decision making entities) in the US for crop 2012 increased to 76 from 74 the year before. One of the new entrants was actually a former hop grower who returned to production after idling his farm for the past three years. The other was the result of a partial transfer of a farm to the next generation. Despite the addition of two entities, the average US farm size increased to 170 ha from 163 ha in 2011 as a result of an overall expansion in acreage. Acreage/Production/Alpha Content The USDA acreage survey for crop 2012 showed an expansion of 868 ha, or a 7 % increase compared to the area strung for harvest in the previous year. This was the first time US acreage had increased since 2008. Between crop 2008 (the high point of hop acreage in recent history) and crop 2011, the industry had taken out about 4,500 ha or 27 % of its planted yards. Hops 12/13 23 USA Area Alpha production in mt 4,985 5.000 3.750 3,767 4,180 3,624 3,490 2.500 1.250 2008 2009 2010 2011 2012 The conversion of acres to ha and lbs to mt results in slight statistical variance and rounding differences in the figures. *As growers in the Idaho region have only been registering total acreage and total crop volume since 2002, varietal group distribution has been estimated. Variety Development of acreage Acreage ha 2011 853 259 200 185 362 195 97 125 38 400 2,714 2,876 1,002 231 401 573 358 348 240 163 105 427 6,724 9,438 +/237 339 180 123 -82 26 121 -18 11 105 1,042 -538 99 261 -13 -187 -4 6 -26 -2 -26 83 -347 695 2012 1,090 598 380 308 280 221 218 107 49 505 3,756 2,338 1,101 492 388 386 354 354 214 161 79 510 6,377 10,133 2011 2.19 1.58 2.00 1.12 1.69 2.26 2.03 2.86 0.95 1.14 1.84 2.86 3.03 1.93 3.41 2.04 3.09 2.21 2.92 2.87 2.32 1.78 2.72 2.47 2012 2011 2012 2.08 1,869.4 2,264.7 1.52 408.0 907.7 1.88 399.5 715.9 1.44 207.7 443.0 1.52 612.4 426.6 2.20 441.5 486.7 1.50 196.5 327.5 2.64 357.9 282.1 1.40 36.1 68.8 1.28 457.2 647.4 1.75 4,986.2 6,570.4 2.63 8,218.2 6,138.5 2.34 3,040.2 2,572.1 1.90 445.8 936.4 2.97 1,365.6 1,150.6 1.95 1,168.6 753.8 2.97 1,107.0 1,052.6 1.88 768.9 666.4 2.96 701.8 634.0 2.26 468.3 363.2 2.20 243.1 174.1 2.02 759.3 1,030.7 2.43 18,286.8 15,472.4 2.18 23,273.0 22,042.8 315 106 87 37 75 44 40 28 4 107 843 582 98 47 131 858 1,701 51 34 4 47 0 -10 -6 -3 0 41 158 73 -27 0 -96 -50 108 366 140 91 84 75 34 34 25 4 148 1,001 655 71 47 35 808 1,809 1.93 1.82 2.11 2.01 1.69 1.48 1.80 1.85 2.23 2.08 1.90 2.60 2.52 2.66 1.15 2.37 2.14 1.86 2.02 1.96 2.00 1.71 1.69 1.72 1.65 2.15 1.87 1.88 2.32 3.09 2.79 1.94 2.40 2.11 606.4 192.8 183.5 74.3 126.6 65.0 72.1 51.9 8.9 222.6 1,604.1 1,511.4 247.3 124.8 150.1 2,033.6 3,637.7 682.5 282.8 178.1 167.8 128.1 57.5 58.4 41.3 8.6 277.2 1,882.3 1,521.0 219.4 131.1 67.9 1,939.4 3,821.7 180 736 916 186 -121 65 366 615 981 1.50 3.00 2.70 0.85 2.61 1.95 269.7 2,204.4 2,474.1 311.2 1,606.5 1,917.7 Total Aroma* Total High Alpha* 3,736 8,319 1,387 -519 5,123 7,800 1.84 2.71 1.71 6,860.0 8,763.9 2.44 22,524.8 19,018.3 USA TOTAL 12,055 868 12,923 2.44 2.15 Washington Cascade Centennial Simcoe® Amarillo® Willamette Cluster Citra® Palisade® Mount Hood Other Aroma Total Aroma CTZ Summit® Chinook Super Galena Galena Apollo Nugget Bravo Millennium Warrior® Other High Alpha Total High Alpha Total Washington Oregon Willamette Cascade Mount Hood Centennial Golding Liberty Perle Tettnang Palisade® Other Aroma Total Aroma Nugget Super Galena Millennium Other High Alpha Total High Alpha Total Oregon Idaho* Total Aroma* Total High Alpha* Total Idaho Crop 2012, however, was not a mere reactivation of same acreages removed during the previous three years. On the contrary, hop yards planted to alpha varieties still declined by more than 500 ha in 2012 and leading this contraction was the variety complex Hops 12/13 24 Development of production Ø Yield mt/ha Production mt 29,384.8 27,782.2 of CTZ with close to 700 ha, followed by Galena with close to 200 ha and Bravo with approx. 50 ha. The only alpha varieties that showed a significant expansion were Chinook with more than 300 ha and Summit with 100 ha. USA More than offsetting this trend was an expansion of yards planted to aroma and flavour hop varieties by nearly 1,400 ha. This increase is particularly significant, since this expansion represented 37 % surge in these types of hops. With crop 2012, the average grower had planted approx. 40 % of its hop fields to aroma/flavour hop varieties, which is up from just 31 % the year before. Varieties leading this shift from alpha to aroma/ flavour hops were Centennial with more than 400 ha, Cascade with approx. 340 ha, Simcoe® with approx. 180 ha, Amarillo® with more than 120 ha, Citra® with more than 120 ha and Crystal with more than 60 ha. For Centennial, Amarillo®, Citra® and Crystal, this increase in planting meant a greater than doubling of the acreages from the previous year. Willamette, the once dominant aroma variety in the US, slipped to a distant third place and is now grown on less than half of the acreage of Cascade, as further fields of this variety were removed once again for crop 2012. Varietal Development Acreage for the main varieties has developed as follows over the past five years: Variety 2008 ha 2009 ha 2010 ha 2011 ha 2012 ha Cascade Centennial Willamette Amarillo® Simcoe® Cluster Citra® Mount Hood Crystal Golding Palisade® Other Aroma Total Aroma Columbus-Tomahawk-Zeus (CTZ) Summit® Nugget Chelan/Super Galena Chinook Apollo Galena Bravo Millennium Warrior® Other High Alpha Total High Alpha 891 102 2,985 52 174 87 1,451 5,742 5,213 972 1,318 641 167 282 1,207 90 429 159 331 10,809 900 121 2,100 49 74 207 103 1,476 5,030 5,004 1,310 1,134 887 245 302 1,083 135 365 122 500 11,087 799 177 1,349 115 96 159 46 101 93 151 668 3,754 3,510 1,261 1,003 946 254 334 841 168 253 120 219 8,909 1,002 308 677 185 200 195 97 125 54 94 129 670 3,736 3,203 1,004 999 953 308 463 614 283 210 105 177 8,319 1,343 720 646 308 382 221 218 140 118 111 111 804 5,123 2,512 1,102 1,009 928 619 445 427 237 208 79 235 7,800 USA TOTAL 16,551 16,117 12,663 12,055 12,923 The overall expansion of the production area, however, did not translate into a higher amount of hop volume than was harvested in 2011. Average yields declined by 12 % partly due to the high degree of newly planted baby hops and partly due to unfavourable weather conditions. As a result, crop 2012 fell more than 1,600 mt below crop 2011, producing only 27,782 mt of hops. The overall reduction in volume, however, is the combination of an approx. 3,500 decline in volume of alpha varieties versus an approx. increase of 1,900 in aroma/flavour hop varieties. Despite the large scale shift of production away from alpha varieties in favor of aroma/flavour varieties, the US still produced close to 3,500 mt of alpha which is Acreage for individual varieties has been estimated in part as Idaho only registered total acreage figures. The addition of rounded acreage figures can lead to differences in some cases. still significantly more alpha than was grown before the great expansion of 2008 but approx. 275 mt less than last year. It is important to note, however, that alpha from the traditional alpha varieties declined by approx. 425 mt from 2011 to 2012, whereas aroma/ flavour varieties increased by approx. 145 mt. The alpha production from aroma/flavour varieties in crop 2012 was approx. 650 mt or about 19 % of the total calculated crop alpha. It is questionable whether alpha from aroma/flavour hop varieties can be accounted for in the same manner as alpha from the traditional alpha varieties, as the aroma/flavour hops are typically used quite differently than the traditional alpha varieties. Hops 12/13 25 USA Alpha Acid Table Variety Willamette Cascade Cluster Galena Nugget Columbus-Tomahawk-Zeus (CTZ) Summit® Bravo Apollo 2008 2009 2010 2011 2012 Average 4.7% 6.2% 6.4% 11.9% 12.3% 13.3% 15.8% 15.5% 17.0% 4.3% 5.6% 7.0% 11.6% 12.2% 13.5% 14.8% 15.0% 16.5% 4.8% 6.5% 6.8% 11.5% 12.3% 14.1% 16.3% 15.0% 16.7% 5.6% 6.9% 7.3% 12.5% 13.2% 14.7% 16.1% 15.0% 16.7% 4.9% 6.7% 6.7% 12.6% 13.8% 15.3% 15.9% 15.0% 17.5% 4.9% 6.4% 6.8% 12.0% 12.8% 14.2% 15.8% 15.1% 16.9% Crop Development Washington: The snowpack around the reservoirs was 108 % of normal at the beginning of the growing season which assured adequate irrigation water supplies for the crop. The temperatures were warmer for most of the growing season except for June which was cooler than normal. During this time, these cooler temperatures created some shorter growth for varieties that were trained late and for baby hops that were planted late. The months of July, August, and September had average temperatures that were hotter than normal. In these three months, hops bloom and develop into cones. There is some speculation that the increase in temperature affected cone development, as some varieties had bloom that barely turned into cones or did not obtain the normal cone size. The undeveloped and smaller sized cones were thought to have had a negative effect on yields. While precipitation was slightly higher than normal, growers were able to apply preventive measures to control mildew. Insects were present, but were kept under control throughout the growing season. Oregon: The winter conditions during the months of November through February were close to normal. However, as in 2010 and 2011, the months of March and April produced cooler temperatures and above average precipitation. Spring growth was somewhat repressed and resulted in lighter vine development which carried into summer. During June and July the weather was abnormally variable and never provided extended periods of ideal growing conditions. As a result, yields were inconsistent over the spectrum of varieties and the overall production per acre was slightly less than in 2011. Quality: US growers produced high quality hops in 2012. The visual qualities such as colour of cones, lack of disease and insect damage is comparable to crop 2011, if not slightly better. Seed counts were down to 0.66 % compared to 1.34 % in 2011. The leaf and stem increased slightly to 0.29 % compared to 0.12 % in 2011. Hops 12/13 26 Contract Market The contract market activity for hops from crop 2012 and beyond developed fully in early spring and continued into early summer. Initially most contracting focused on aroma/flavour hops varieties like Cascade, Centennial, Golding, Mt. Hood and others with most contracts being written for crop years 2012 through 2015. Prices ranged from 6.28 USD to 7.72 USD/kg for Cascade, Centennial, Golding, and Glacier. Mt. Hood obtained a price of 7.17 USD to 11.02 USD/kg. A number of proprietary varieties like Simcoe®, Ahtanum®, Amarillo® among others were expanded under a pool or other non-traditional pricing arrangements. The limited availability of these proprietary varieties coupled with their high market demand provided licensed growers with the highest returns per ha or in excess of 18,000 USD per ha. As a comparison, public varieties, depending on demand, ranged between 12,000 and 16,000 USD per ha. CTZ and Nugget were the two high alpha varieties which carried most of the alpha market. The CTZ started selling in January for 13.23 USD, 16.53 USD, and 19.84 USD/kga for crop years 2012, 2013, and 2014 respectively with the volume being relatively small. The CTZ market picked up again in August – December with larger volumes of CTZ selling for 24.25 USD, 25.35 USD, 26.46 USD, and 27.56 USD/kg alpha for the crop years 2013, 2014, 2015, and 2016 respectively. Nugget sold in October at 26.46 USD, 30.86 USD, 31.42 USD, 31.97 USD, and 32.52 USD/kg alpha for the years 2012, 2013, 2014, 2015, and 2016. The contract market for crop 2013 and beyond started to develop already in January 2013, as demand from the craft brewing industry continued unabated. Established acreage of aroma/flavour varieties had already been contracted which meant that additional supplies needed to be planted new. Heavy expansion of varieties like Cascade and Centennial had to compete with significant increases in acreages of proprietary varieties such as Citra®, Simcoe® and Amarillo®. USA As a result, prices rose from approx. 6.50 USD/kg to more than 8.00 USD/kg for Cascade, 8.80 USD to approx. 9.00 USD for Centennial and a number of other varieties selling for 9.90 USD/kg. Most contracts continued to have a three-year contract duration with approx. price increases of 0.10 USD/kg plus premiums for the subsequent years. Spot Market 2012 With crop 2012 having been 100 % contracted and yields falling short of contracts, the few spot hops that were produced sold quickly during and right after harvest. Most of the spot market activity centered on aroma varieties. Spot Cascade sold between 14.33 USD to 15.10 USD/kg. Mt. Hood, Liberty, and Sterling sold for 11.02 USD/kg. Golding had a market price of 13.23 USD/kg and Willamette sold between 3.86 USD to 4.41 USD/kg. A few alpha spot hops, such as CTZ, sold for 24.25 USD to 26.46 USD/kg alpha and Nugget at 26.46 USD/kg alpha. CHINA Area Variety Xinjiang Tsingtao Flower Kirin Flower Marco Polo SA-1 Other Aroma Total Xinjiang Tsingtao Flower Nugget High Alpha Other Aroma Total Gansu Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt 2011 1,728 464 180 233 120 2,725 1,069 188 446 30 1,733 +/-155 -101 67 0 0 -189 -206 -13 -49 -12 -280 2012 1,573 363 247 233 120 2,536 863 175 397 18 1,453 2011 3.06 3.26 3.75 2.58 2.78 3.09 3.16 1.29 2.74 1.67 2.82 2012 2.38 2.92 3.20 2.58 2.78 2.57 2.89 0.89 2.46 2.42 2.52 2011 5,286.0 1,514.0 675.0 600.0 333.0 8,408.0 3,379.3 243.0 1,222.5 50.0 4,894.8 2012 3,740.0 1,060.0 790.0 600.0 333.0 6,523.0 2,490.6 156.0 974.9 43.6 3,665.1 Total Aroma Total Bitter Total High Alpha 383 3,261 814 -12 -462 5 371 2,799 819 2.57 3.12 2.63 2.63 983.0 2.60 10,179.3 2.35 2,140.5 976.6 7,290.6 1,920.9 CHINA TOTAL 4,458 -469 3,989 2.98 2.55 10,188.1 Gansu Farm Structure Although the acreage in China in the 2012 crop year was significantly smaller than it had been in 2011, the number of farms growing hops only declined by one. Whilst there were again 33 farms producing hops in the Xinjiang growing region, only 19 farms remained in the Gansu region. On average, the 52 producers cultivated 77 ha of hops per farm in 2012 compared to an average of 84 ha in 2011. Acreage/Production/Alpha Content Hop acreage declined by 11 % in total. As in the previous year, the Tsingtao Flower variety suffered the greatest decline, with 361 ha being removed from production. The winter was cold with large amounts of snow. Training the hops was delayed by 10 to 14 days in comparison with normal years. The entire vegetation period proved insufficient to compensate fully for the delay in growth. Harvesting started about 5 days later 13,302.8 than usual. The harvested yields were not quite up to the long-term average in either of the hop-growing regions. On the other hand, the alpha acid content of 6.8 % across all the varieties was somewhat above the average, as had also been the case in 2011. The Tsingtao Flower variety was again close to the longterm average with 5.8 %. The alpha acid yield fell by 23 % year on year. Alpha production in mt 1.200 1,001 1.000 965 900 800 600 716 693 400 200 0 2008 2009 2010 2011 2012 There are no reliable statistics on acreage and production volume in China. The figures presented here which, due to the size of the Chinese hop-growing regions, are often based on estimates, have been gathered using our own sources. Market Situation At the end of August 2012 approx. 70 % of the crop was committed through purchase agreements between farmers and buyers. Purchase agreements of this kind are common in China. They only contain specifications of quantity and quality. The actual price is negotiated at a later date. The spot market got off to a brisk start. Hops with good alpha acid values were in great demand. By the end of September there were scarcely any unsold lots of hops left. Hops 12/13 27 CHINA Depending on the quality, the farmers obtained prices of between 18.00 and 22.00 CNY/kg (2.20 – 2.70 EUR) for alpha hops and between 22.00 and 25.00 CNY/ kg (2.70 – 3.06 EUR) for aroma hops. With heavy purchasing of the 2012 crop, stocks of hops from earlier years were also reduced. However, an unknown volume of old stocks remained. It is very difficult to establish how large the production area will be for the 2013 harvest. In 2012 it was noted that while some farms were not training all of their hop plants, they were not clearing them either, but were leaving the trellis systems in place. In the Gansu growing region two farms, with a combined hop acreage of 130 ha, abandoned hop production completely after the 2012 harvest. According to estimates, the acreage devoted to hop growing in China in 2013 is probably around 2,900 ha. Approx. 70 % of the yield from this area has already been reserved without a defined price. Due to the shortage of cheap labour, farmers are increasingly switching over to machine picking. This changeover is responsible for a marked loss in the quality and quantity of the hops. C r o p 2 0 1 3 : A ustra l ia Area Variety Tasmania Super Pride Pride of Ringwood Millennium Other Total Tasmania Topaz Pride of Ringwood Super Pride Other Total Victoria Alpha production in mt 180 166 160 140 120 148 140 144 126 100 80 2009 2010 2011 2012 2013 Hops 12/13 28 Victoria AUSTRALIA TOTAL Development of acreage Acreage ha Development of production Ø Yield mt/ha Production mt 2012 +/- 2013 2012 2013 63 0 63 2.43 2.41 47 0 47 2.98 2.98 35 -35 0 1.85 0.00 53 24 77 1.55 1.77 198 -11 187 2.22 2.26 105 -34 71 2.94 3.76 60 -13 47 2.00 2.02 50 20 70 2.51 2.43 39 35 74 2.51 2.58 254 8 262 2.57 2.76 452 -3 449 2.42 2.55 2012 153.1 141.1 64.6 81.0 439.8 309.5 120.0 125.4 97.9 652.8 2013 151.8 135.0 0.0 136.0 422.8 267.0 95.0 170.0 191.0 723.0 1,092.6 1,145.8 Farm Structure The number of hop farmers remained unchanged, as did the average cultivated acreage per farm. In 2012 and 2013, Australia’s eight farmers cultivated an area of approx. 56 ha each. than the hot weather had led to expect, and the average levels compared with the previous year were as follows: Pride of Ringwood 9.1 % (8.8 %), Super Pride 14.7 % (14.2 %). Overall alpha production increased by 6 %. Acreage/Production/Alpha Content Overall acreage remained stable. However, with regard to varietal range, there were large-scale changes in varietal planting patterns. The acreage listed applies to the harvested acreage of full-yielding hops, although, in some cases, first-year plants were also harvested in crop year 2013. A winter of normal climatic conditions was followed by a long, hot summer. Hop growth continued pretty much as expected. Lack of rain was compensated for by substantial irrigation. Throughout the continent, Australia registered the highest average summer temperatures ever recorded. Nevertheless, the harvest yielded approx. 10% more hops than expected. Furthermore, the alpha acid results were much better Market Situation At the time of picking, approx. 82 % of the 2013 harvest was under contract. In order to meet the high demand from craft breweries worldwide at least in part, the transition from high alpha varieties to flavour hops is being continued. Galaxy™ is perhaps the best known of the newer varieties, and a doubling of production over the next few years has already been planned. Expansion plans are also well under way for Ella and Summer and, after excellent ratings at Brau 2012, Topaz, with its appealing floral aromas and gentle touch of sweet fruits, is proving increasingly popular for craft brews. Newcomer Vic Secret (characterised by resinous pine and pineapple notes) is now set to be launched globally. C r o p 2 0 1 3 : N e w Z e a l and Variety Group Aroma High Alpha Other NEW ZEALAND TOTAL Development of acreage Acreage ha 2012 190 130 40 360 +/40 -25 -25 Development of production Ø Yield mt/ha Production mt 2013 230 105 15 -10 Farm Structure Two farms discontinued hop growing. The remaining 17 farms cultivated an average hop acreage of 21 ha. In crop year 2012 the average was 19 ha per farm. Acreage/Production/Alpha Content Although the acreage strung with aroma varieties was increased, the group containing high alpha and other varieties witnessed a reduction. Plant development was impaired by a cool spring. An extremely dry summer and picking season caused the total yield to fall approx. 10 % short of expectations. Alpha acid levels were similar to those of the previous year and, thanks to excellent weather conditions at the time of harvest, the hops were of very good quality. 350 2012 1.86 2.19 1.38 1.93 2013 1.75 2.37 2.08 1.95 2012 354.0 285.0 55.0 694.0 2013 402.6 248.7 31.2 682.5 Due primarily to acreage reduction among high alpha varieties, the alpha yield was 6 % lower than that of the 2012 harvest. Market Situation At the time of reporting in early May, 95 % of the 2013 harvest had been sold. In the future, the volume of hops to be produced will continue to depend on the forward contract rate. A forward contract rate of 95 % has been targeted, which will minimise the availability of spot hops. The New Zealand hop industry remains focused on the sustainable production of hops, from both an environmental and a business perspective, and maintains the viewpoint that hops constitute an essential brewing ingredient and not a mass commodity for low-cost producers. Alpha production in mt 90 87 83 80 70 66 62 60 50 56 2009 2010 2011 2012 2013 HOP PL A N T D EVELOP M E N T 2 0 1 3 Germany The comparatively dry autumn was followed by a snowy winter. While the months of November to January were unusually mild, the temperatures in the months of February and March were somewhat below the long-term average. Soils were repeatedly covered with snow until the middle of March and, as a result, in most regions the spring work did not begin until the end of March. The changeable weather conditions continued into early April, causing the trimming of the hop plants to be interrupted repeatedly. The nights were cool right to the end of April and the hop plants only developed slowly. It was only in the final week of April and early May that the daytime and nighttime temperatures rose significantly, encouraging growth. Training the hop plants therefore only started after the beginning of May, somewhat later than in previous years. The wet weather conditions until the end of May ensured adequate water supplies. However, the plants were unable to make up completely for the delay in growth from the spring. As control measures for primary infection with downy mildew could be carried out under favourable conditions, there was relatively little disease pressure until the end of May. USA Winter precipitation in the Cascade mountain range has been near normal and adequate irrigation water flows are expected throughout the growing season in the Washington growing areas. While temperatures in Oregon have been slightly cooler than normal, the winter months in Washington have been slightly warmer than average. Growers welcomed the milder climate and the ability to get into their fields sooner, as substantial amounts of hop yards needed to be replanted and as previously idled acreages were brought back into production. The warmer temperatures also helped to establish the newly planted yards as well as the mature fields in early spring and provided a solid base for a normal crop. Hops 12/13 29 Out l o o k 2 0 1 3 Germany The number of hop growers in Germany has continued to decline. In 2013, 1,231 farms remain, 64 fewer than last year. The acreage survey recorded a decline in acreage of approx. 279 ha, or 1.6 %, to 16,849 ha. This decrease in acreage is divided up among the variety groups as follows: aroma -178 ha (of which Perle -155 ha); bitter/high alpha -83 ha (of which Hallertau Magnum -407 ha, Hallertau Taurus -112 ha, Herkules +444 ha); others -18 ha. The new flavour varieties from Hüll, Hallertau Blanc, Huell Melon, Mandarina Bavaria and Polaris, have already been grown on an area of 104 ha. become the second most planted variety behind the CTZ variety complex. Further significant expansions of aroma/flavour varieties compared to 2012 include Citra® (+146 %), Simcoe® (+34 %) and Centennial (+25 %) that along with other aroma/flavour varieties saw an expansion of approx. 750 ha. In contrast, hops belonging to the alpha category lost ground by close to 500 ha. Steep declines were recorded in the specific alpha varieties of Nugget, Galena, and Chelan totalling an acreage reduction of approx. 550 ha, while the higher yielding varieties that include Apollo, Bravo, CTZ, Summit® and Millennium remained practically unchanged. USA As reported by the US Department of Agriculture (USDA) on 12 June 2013, the total hop acreage in the US increased by 1,258 ha to 14,181 ha. While this 10 % expansion of overall acreage is significant and greater than last year, the continued shift from alpha hops to aroma/flavour hops is even more striking. Aroma/flavour hops have increased their share of total acreage from just 40 % in 2012 to nearly 50 % in 2013. Cascade has increased by approx. 800 ha to more than 2,100 ha or about 15 % of the total US acreage and has World Never in the history of hop growing have stocks of alpha from previous harvests been so large. Fortunately, the brewing industry’s demand for alpha worldwide appears still to be increasing. In view of the fact that acreage in crop year 2013 is approx. 440 ha smaller than in crop year 2012, no further increase in stocks of alpha is to be expected, assuming that yields are average. After five years of overproduction, it looks as if the market in brewing year 2014 will arrive at a balance of supply and demand. Currency Exchange Rates These exchange rates can only serve as an indication. They vary from bank to bank and are not binding. 1 EUR equals (reference by ECB): on 31 May 2012 USA 1.2403USD Australia 1.2736AUD China 7.8989CNY United Kingdom 0.7999GBP Japan 97.6600JPY on 31 May 2013 1.3006USD 1.3540AUD 7.9789CNY 0.8537GBP 130.4700JPY Canada Poland Switzerland Russia Czech Republic on 31 May 2012 1.2761CAD 4.3915PLN 1.2010CHF 41.2975RUB 25.6930CZK on 31 May 2013 1.3434CAD 4.2792PLN 1.2406CHF 41.4400RUB 25.7110CZK Conversion Table Area: 1 hectare (ha) = 10,000 m2 1 hectare (ha) = 10,000 m2 1 Bavarian „Tagwerk“ 1 acre = 2.934 Bavarian „Tagwerk“ = 2.471 acres = 0.341 ha = 0.4047 ha Volume: 1 hl = 100 l 1 hl = 100 l 1 barrel (bbl/USA) 1 barrel (bbl/GB) = 26.42 gall = 0.8523 bbl (USA) = 22.01 gall = 0.6114 bbl (Brit.) = 31 gall = 1,1734 hl = 36 gall = 1,6365 hl Weight: 1 metr. ton (mt) = 1,000 kg 1 Zentner cwt (D) = 50 kg 1 hundredweight (cwt/USA) 1 hundredweight (cwt/GB) 1 centner (GB) 1 kg 1 lb = 20 cwt (D) = 2,204.6 lbs = 110.23 lbs = 1.102 cwt (USA) = 110.23 lbs = 0.984 cwt (GB) = 100 lbs = 45.36 kg = 0.9072 Ztr. = 112 lbs = 50.800 kg = 1.0160 Ztr. = 100 lbs = 45.36 kg = 0.9072 Ztr. = 2.20462 lbs = 0.45359 kg Pub l is h ing D e tai l s Publisher: Joh. Barth & Sohn GmbH & Co KG, Freiligrathstrasse 7/9. 90482 Nuremberg Project responsibility: Stephan Barth, Managing Partner, Nuremberg Editor: Heinrich Meier, Georgensgmuend Hops 12/13 30 Layout: Lingner Marketing GmbH, Fuerth Cover: Lingner Marketing GmbH, Fuerth Print: Pinsker Druck und Medien GmbH, Mainburg Nuremberg, July 2013 M e mb e rs o f Joh. Barth & Sohn GmbH & Co. KGPhone: +49 911 5489-0 Freiligrathstrasse 7/9 Fax: +49 911 5489-330 90482 NurembergE-Mail: [email protected] Germanywww.barthhaasgroup.com ® John I. Haas, Inc. Phone: +1 202 777-4800 5158 MacArthur Blvd, NW, Suite 300 Fax: +1 202 777-4895 Washington, DC 20016E-Mail: [email protected] USAwww.barthhaasgroup.com Barth-Haas Hops AcademyPhone: +49 911 5489-0 Freiligrathstrasse 7/9 Fax: +49 911 5489-330 90482 NurembergE-Mail: [email protected] Germanywww.hopsacademy.com Botanix Ltd.Phone: +44 1892 833415 Hop Pocket Lane Fax: +44 1892 836987 Paddock Wood, Kent, TN12 6DQ E-Mail: [email protected] United Kingdom www.botanix.co.uk Hop Products AustraliaPhone: +61 3 6282 2000 26 Cambridge Road Fax: +61 3 6245 0970 Bellerive, Tasmania 7018 E-Mail: [email protected] Australiawww.hops.com.au Barth Haas (Beijing) Trade Co., Ltd.Phone: +86 10 6590 7096 Unit 26–28. Level 6 Fax: +86 10 6590 7095 China World Tower 1 No. 1E-Mail: [email protected] JianGuoMenWai Avenue www.barthhaaschina.com 100004 Beijing, People´s Republic of China Simply Hops Ltd.Phone: +44 800 1075073 Hop Pocket LaneE-Mail: [email protected] Paddock Wood, Kent, TN12 6DQ www.simplyhops.co.uk United Kingdom barth unlocking the potential of hops Barth Innovations Ltd.Phone: + 44 1892 830890 Hop Pocket LaneE-Mail: Paddock Wood, Kent, TN12 6DQ [email protected] United Kingdom BetaTec Hop ProductsPhone: +1 202 777-4800 5158 MacArthur Blvd. NW. Suite 300 Fax: +1 202 777-4895 Washington, DC 20016E-Mail: [email protected] www.betatechopproducts.com 2 NATECO2 NATECO2 GmbH und Co. KGPhone: +49 8442 66-0 Auenstrasse 18-20 Fax: +49 8442 66-66 85283 WolnzachE-Mail: [email protected] Germanywww.nateco2.de Hopfenveredlung St. JohannPhone: +49 9444 878-0 GmbH & Co. KG Fax: +49 9444 878-178 Mainburger Strasse 15 E-Mail: 93358 St. Johann [email protected] Germanywww.hopfenveredlung.de Hops 12/13 31 D r y H o p p ing Discover the enormous wealth of possibilities There is evidence that the Mongolians probably knew about dry hopping as much as 2,000 years ago. In Germany it was not unusual to dry-hop beer from the middle of the 19th century, or even earlier. From a historical perspective, dry hopping originated in England. There are numerous records from 1800 onwards which relate how fresh hops were placed in or added to casks containing fermented beer (cask ales). Today, dry hopping is being talked about in Germany again, although until a few years ago the practice of dry hopping of beer (i.e. in the fermentation or storage cellar) was no longer of any significance. There are several reasons why this has now changed: • Until the beginning of last year it was not clear whether dry hopping was permissible under the German Purity Law. In January 2012 the Bavarian brewers' association declared unambiguously that: “... the practice of adding hop products – with the exception of hop extract – known as dry hopping and used to round off the flavour of the beer does not constitute a violation of statutory regulations.” • Many dry-hopped US craft beers are so successful that German brewers are now following their example. • Dry hopping allows the hops to be used to their best advantage and enables specific hop aromas to be transferred to the beer. • And, last but not least, the wide range of hop varieties, dosages and types of beer mean that the opportunities for producing new flavour profiles are virtually endless. Any hop variety (aroma and bitter hops) can be used for dry hopping. Dry hopping is a cold extraction in a weak alcoholic solution. The higher the alcohol content, the more substances (not only aroma compounds) are extracted into the beer. Several parameters have a significant effect on the result: Contact area and contact time Extraction can only take place if the compounds to be extracted are accessible. Hop powder or pellets are therefore more suitable for dry hoping than cone hops. Hop pellets dissolve quickly and uniformly, providing a maximum contact surface. It is harder to extract the aroma compounds from cone hops because the structure of the lupulin glands is intact. The contact time for dry hopping can vary greatly. In some breweries it is only a few hours (extraction in such cases being enhanced by vigorous stirring or tank transfer), in other breweries the hops remain in the tank for up to 20 days. Temperature Generally, dry hopping is carried out in the storage cellar where temperatures are very low. Sometimes the hops are even added to the primary fermentation. Depending on the fermentation process, different temperatures influence the extraction behaviour of the aroma compounds. More substances are likely to be extracted at higher temperatures. Hop product In Germany the only hop products which can be used are cone hops or hop powder and pellets. Elsewhere in the world there is of course a large range of hop products which can be used for dry hopping. These include • Oil-rich hop extracts • Water-soluble hop oil fractions (PHA products) • Pure hop oil • Hop oil emulsions All these products can be manufactured from single varieties. Methods There is a great variety of techniques by means of which dry hopping can be carried out. Hop pellets are often placed in the storage tank in advance, whereas in the case of cone hops various nets are filled with the hops and these are then put into the storage tank. The hops can obviously also be soaked in beer or water first and the extracted solution subsequently used. Some processes also use a type of hop strainer through which the beer is pumped in a cycle. In other words, there is no standard equipment. In the case of pellets or powder, a process of precipitation and/or centrifugation is used to remove the hops. Many of the dry-hopped beers are also bottled without being filtered. And what quantity of hops should be used? For dry hopping, the dosage should be orientated towards the oil content of the hops. This means that in general a smaller quantity of bitter varieties is required than of aroma varieties. A rough guideline for quantity is to use 0.5 - 1 ml oil/hl (i.e. depending on the variety, 20 - 250 g hops/hl). Oil dosage of more than 2 ml/hl is not uncommon either. In addition to dry hopping, it is recommended to add an aroma portion to the whirlpool in order to consolidate the hop aroma in the beer. However fascinating the existing results of dry hopping are, there are still some unanswered questions which we would like to investigate: • Which key aroma compounds are contained in dry-hopped beers? • What effect does the yeast have on the aroma profile of dry-hopped beers? • What effect does dry hopping have on the flavour stability of the beer? • Which other hop compounds are introduced into the beer as a result of dry hopping? • How does dry hopping influence the physical stability of the beer? Dry hopping gives breweries undreamt-of opportunities for offering the consumer beers with unique flavours. Please note our report „Market Leaders and their Challengers in the Top 40 Countries” with the table of the 40 biggest brewing groups worldwide.