23 July 2010
Joh. Barth & Sohn sees difficult years ahead for the hop market
Since 2006 the world hop industry has been riding a rollercoaster.
As a result, demand for hops will continue to fall. This was stated by
Stephan Barth, managing partner of Joh. Barth & Sohn, Germanys biggest provider
of hop-related services. He advised hop growers to clear hop land even in the
Hallertau region. There is no point in producing hops for a market that will not buy
them.
He added that the recession in the hop market until 2005 was followed by an
unprecendented boom on the spot markets in crop years 2006 to 2008. In response,
the international brewing industry placed long-term forward contracts on the
assumption that beer output would continue to rise. The reality, however, turned out
to be different: the hop supply deficit in crop years 2006 2008 has now become a
supply surplus.
The world economic crisis also left its mark on the beer market. In 2009, for the first
time in years beer production not only failed to rise, but fell slightly instead. However,
after the 2007 harvest in particular, due to the high volume of forward contracts with
the brewing industry, the hop growers had increased hop acreage. Now it emerges
that the brewing industry clearly has forward contracts that are surplus to
requirements.
In summing up, Barth stressed the following points: Too many hops are being
grown! Without further clearing of plantations, the hop market will not be able to
recover in the medium and long term".
Enquiries to:
Erich Dederichs
Press office, Joh. Barth & Sohn
Tel.: 0228 223258
ed@dederichs-kommunikation.de
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