Germany is back in first place in hop cultivation
In the USA, significantly fewer hops are planted, making Germany return to the first place among hop growers. However, this is not necessarily good news for hop farmers: The market is under pressure, particularly due to the beer sales.
Germany is once again the world's number one hop grower. For the first time in nine years, hop farming areas in Germany have surpassed those in the USA, according to the German Hop Growers Association. The cause is that the decline in hop farming areas in Germany is much less severe than in the USA. In Germany, they are only decreasing by 340 hectares to 20,300, while in the USA, they are decreasing by more than 4500 hectares to 17,850.
A possible driver of the global decline could be the high hop storage stocks, which have led to falling prices, making hop farming less attractive. The hop growers' association also sees the situation in its industry with concern. Almost the entire production is used for beer production, and the sales of the beverage are stagnating worldwide, putting pressure on the market.
Long-standing Tradition in Germany
According to Erich Lehmair of the Hop Growers Association, the decline in the USA was much stronger than in Germany for several reasons. In the USA, there are more cancelable contracts, making production less attractive there more quickly than in Germany. Additionally, there is a different structure with much larger farms. These larger farms, under pressure from banks, have to switch more quickly than the typically family-owned smaller farms in Germany if the prospects are poor. With the smaller farms, there is often a long tradition and deep roots in the topic, making it harder for them to give up.
With the current shift, Hallertau is once again the largest hop growing area in the world. According to the figures of the world's largest hop trader, BarthHaas from Nuremberg, Hallertau was still just behind the US hop growing area of Washington last year, but with a stand of 2022. Both areas are the largest in their respective countries.
Germany and the USA make up the lion's share of global hop farming. According to the Hop Growers Association, there are 55,000 hectares of land worldwide - roughly 4800 fewer than last year. For the hop harvest in Germany, the prospects are positive, according to Lehmair: "The hop is doing well at the moment," he says. However, it is still uncertain whether this will last until the harvest. For that, among other things, rain is needed in the summer.
- Despite the USA being the second-largest hop grower, Germany has reignited its position as the world's leading hop producer, with an increase in hop farming areas that surpasses the decreasing areas in the USA.
- The economic interplay between thehop industry and beer sales is indisputable, as the stagnating global sales of beer put pressure on the hop market, making it a concerning situation for both Germany and the USA, two major players in global hop farming.
