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Published 8:15 am Monday, December 30, 2024
American hop production totaled 87.1 million pounds in 2024, down 16% from the previous year, as the industry continues to deal with a glut of product, plateauing consumer demand for beer and shifting palates.
The value of production plummeted 21% to $445 million, according to the USDA’s National Hop Report.
The Pacific Northwest grows almost all the domestic hops crop and area harvested, price per pound and value of production dropped in every state.
“Our industry is working really hard to navigate this correction. Unfortunately, it’s going to need to take more time,” said Maggie Elliot, science and communications director for Hops Growers of America and the Washington Hop Commission.
“Like many ag industries in the Northwest, it’s hard times,” Elliot added.
Michelle Palacios, administrator of the Oregon Hop Commission, said the report’s details were expected.
“The numbers weren’t fun this year, to see the acreage reduced and to see the production follow. We do expect there may be some acreage reductions again, but we’re hopeful the decisions we’ve made over the last few years will get the market back in balance,” Palacios said.
Growers are shifting toward high alpha varieties aimed at foreign and domestic markets, Elliot said.
She added there’s been a sharp decline in proprietary aroma varieties used in craft beers.
Palacios said owners of those varieties are constricting production to help correct the market.
“There’s still tremendous interest and popularity with the varieties. It’s just that the market has been oversupplied for too long,” she said.
The pandemic resulted in lower draft beer sales but brewers kept up with hops contracts. Germany also didn’t cut acreage this season and the European Union is contributing to the oversupply, Elliot said.
Experts said consumers also are moving away from India pale ales, which are loaded with hops.
“IPAs are still popular, but there is a trend toward a less bitter beer and that changes the varieties that we’re needing to grow now,” Palacios said.
U.S. hops area harvested was 44,793 acres this season, down 18% from 2023.
Yield per acre was 1,944 pounds, up 29 pounds.
The average price per pound was $5.12, down 28 cents from a year ago.
The Evergreen State led the nation with 64 million pounds of hops worth about $320 million.
The area harvested in Washington was 33,000 acres, down 14%.
Yield per acre dropped 2.5% to 1,922 pounds and the price per pound was $5, down 30 cents.
The nation’s second leading hop producer was Idaho, with a 13,000-pound crop worth nearly $68.5 million.
Area harvested shrank 33% to 5,800 acres.
The yield per acre rose 17% to 2,273 pounds and the price per pound dropped 20 cents to $5.20.
Oregon was the third largest producer in the U.S. with a 9,800-pound harvest worth $56.5 million.
The area harvested dipped 17% to 5,635 and yield per acre rose 11% to 1,732 pounds.
Price per pound dropped 35 cents to $5.80.
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