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Small craft brewery demand spurs hop production upward

Increasing demand from the craft brewing retail segment is driving U.S. hop production upward.

December 21, 2015

Increasing demand from the craft brewing retail segment is driving U.S. hop production despite concerns regarding heat drought impact in the prime hop region of Washington State’s Yakima Valley, according to a national agricultural report.

The National Agricultural Statistics Service’s national hop report reveals an 11-percent spike compared to 2014 with hop production increasing in Oregon, Idaho and Washington, hitting 78.8 million pounds. The acre harvest and production in Idaho is the highest since 1944 and in Washington it’s the biggest increase since 1915. Last year brought a 3-percent overall production increase.

The 2015 production value for the U.S. hop crop is $345.4 million, representing an increase of 33 percent compared to an earlier projection. According to the report, the average price per pound of hops is now $4.38, a robust increase compared to $3.67 last year and $3.35 in 2013.

The encouraging market trend is expected to continue, according to the Hop Growers of America and the Washington Hop Commission. Executive Director Ann George told the Capital Press that while certain hop varieties did not fare well this year due to temperature extremes the late-season bitter hops crop did unexpectedly well.

"Considering those challenges and the amount of first-year plants in the ground which have smaller yield, we are pleased with the final count and looking forward to next year," she told the Capital Press.

The small craft brewery segment is driving demand for aroma varieties and challenging the industry to expand production, George stated. The segment is expected to enjoy a 20-percent annual growth rate through the next five years, according to the Capital Press.