Organic Hop Market Report

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Organic Hop Market Report American Organic Hop Grower Association May 2011 JANUARY REPORT RECAP 2011 Spring Planting Report The spring planting season for the 2011 crop has now passed, but we are

1 Organic Hop Market Report American Organic Hop Grower Association May 2011 JANUARY REPORT RECAP 2011 Spring Planting Report The spring planting season for the 2011 crop has now passed, but we are pleased to report that: Over 50 new acres of certified organic hops were planted, and many existing acres were converted to varieties in demand. At least eight new varieties were planted this spring, including Ahtanum, Citra, Chinook, Newport, Perle, Simcoe, Sterling, and an experimental, highalpha variety. These eight varieties will be grown in addition to the plethora of varieties that are already grown organically, which includes Cascade, Centennial, Fuggle, Golding, Magnum, Palisade, and Summit, just to name a few. The additional acreage and varieties were planted due to the contact that was made between brewer and grower this spring. We cannot reiterate enough the importance of this communication. (See page 2 for detailed AOHGA grower data.) In January, the AOHGA distributed its first-ever Organic Hop Market Report and Brewer Survey. The report presented information on the NOSB s recommendation to remove hops from the National List on January 1, 2013, the unsold inventory of certified organic hops, and current and projected acreage data. In the report, the AOHGA estimated that while 127 acres of hops were in certified organic production in 2010, 308 acres are certified and available for production in 2011, and 362 acres will be certified and available for production in This additional acreage is already certified, so the threeyear transition does not apply to this acreage. Along with the report, we sent out an informational brewer survey, which gave organic brewers an opportunity to let the growers know which varieties they demand and in approximate quantities. We were very pleased with the response we received from the survey, and we learned that many of the hop varieties in demand by organic breweries are already being produced organically, such as Cascade, Centennial, and Magnum. Now it is just a matter of connecting the supply with the demand. 1

2 Current Acreage by AOHGA Growers* Hop Variety For 2011 Harvest For 2012 Harvest Total Acreage Ahtanum Cascade Centennial 8 8 Chinook 5 5 Citra Experimental 2 2 Fuggle Golding Hallertau 6 6 Liberty 1 1 Magnum Nugget < 0.5 < 0.5 Palisade Perle 1 1 Simcoe Sterling Summit Willamette < 0.5 < 0.5 *Includes AOHGA growers who responded to the survey. Please note that the acreage listed here is not necessarily available. Much is already spoken for in the form of contracts. Contracting in the Hop Industry MILESTONES IN THE HOP INDUSTRY JANUARY-MARCH Discussions between grower and brewer take place. Multi-year contracts can be negotiated to establish plantings, and new contracts are secured. MARCH-APRIL Hop yards are established for the year. New varieties and additional acreage are planted at this time. APRIL-JULY Growing season is in full swing. AUGUST-SEPTEMBER Each year, the supply of hops available and the particular mix of varieties produced is largely a function of contracting. In some cases, these contracts were signed years in advance. Very few hops are produced for the spot market. The risks of a low price or even no price at all are unacceptable given the high production costs of hops. The more specialized the market, the higher the risk is to the grower. The production of organic hops is no different, in fact, the organic hop market is the most specialized segment of the hop marketplace. The long term investment in organic production requires a multi-year commitment by the brewer to the grower or dealer. The practice of hop contracting is decades old and has developed to the point that at times during the hop market cycle, the only hops produced are hops under contact. Although the hop dealer has historically been the first purchaser from the grower, direct contracting with the hop grower by the brewer has become a common practice. It is this interaction between the growers and brewers that is critical to the functioning of an organic hop market. The AOHGA strongly advises brewers to contact its members for their organic hop needs. (See page 5 for contact information for AOHGA grower members.) That year s hop crop is harvested and baled on the farm. It is then sent to warehouses for processing and storage. OCTOBER-DECEMBER The hops that were harvested in August/ September are processed, stored, and/or shipped to breweries around the world. 2

Blackfoot is certified organic by the Montana Department of Agriculture since 2002. Blackfoot produces both organic (20% of volume) and conventional ales and lagers.

3 Member Spotlight Blackfoot River Brewing Company Blackfoot River Brewing Company was established in 1998 in Helena, Montana. As Montana s first and only certified organic brewery, Blackfoot has been producing organic beer since its very first batch in Blackfoot is certified organic by the Montana Department of Agriculture since Blackfoot produces both organic (20% of volume) and conventional ales and lagers. We are a draft only brewery with about half of our beer sold onsite through our tap room, and the remainder distributed to restaurants and taverns across Western Montana. Blackfoot River Brewing is running near capacity and will produce approximately 3,200 barrels in Our Organic Beers Blackfoot produces two year-round organic beers: Organic Pale Ale, and Northfork Organic Porter. We originally created these beers using New Zealand-grown Hallertauer and Cascade hops, but have been transitioning to U.S. Grown organic hops as they become available and as contracts allow. Organic Pale Ale (aka O.P.A) A classic British-style pale ale brewed from the finest certified organic 2-row malt and certified organic hops. Golden in color, medium-bodied, and crisp in flavor. (IBUs: 26, ABV: 5.6%) North Fork Organic Porter A traditional English-style Brown Porter brewed from the finest certified organic 2-row pale, munich, crystal, chocolate malts, and organic hops. Dark reddish-brown in color, fullbodied, with a roasty coffee-like character. (IBUs: 43, OG: 1.065) Why we support Organic Hops We support the growth and use of organic hops primarily because of good land stewardship. As we all know, hops can be a very chemically intensive crop, and we believe that farming without chemicals is better for people and the Earth in the long run. Furthermore, we really believe in sourcing ingredients as close to home as possible. We much prefer to source U.S. grown organic hops over imported ones any day, besides, they are just plain better hops. We have been deeply involved with the Montana Brewer s Association since its inception and understand the need for a small niche industry to be well organized and represented. We support the AOHGA because we really need to grow the organic hop industry in this country, and having a strong, effective trade association is key to making that happen. On the selfish side, we really want to see more varieties of U.S. grown organic hops. We like to make many different beer styles through the year, and we need a wide variety of hops to do it right. We are really looking forward to the day when we can get organic hops in almost any variety! The biggest obstacle for our brewery to making more organic beer has been the lack of organic availability in more than just a few varieties. For more information on Blackfoot River Brewing, visit their website at 3

Member Spotlight Plough Monday Hops Plough Monday Hops is a small twoacre Willamette Valley organic hop farm located in the agriculture community of Elmira (Lane County), Oregon off of the Long Tom

Certified Organic by the Oregon Tilth, we are headed into our fourth harvest.

4 Member Spotlight Plough Monday Hops Plough Monday Hops is a small twoacre Willamette Valley organic hop farm located in the agriculture community of Elmira (Lane County), Oregon off of the Long Tom River, in the foothills of the Coastal Mountain Range. Our small, family owned farm grows, harvests and packs whole leaf Chinook, Magnum, Fuggle, and the brewer s favorite, Cascade hops. Certified Organic by the Oregon Tilth, we are headed into our fourth harvest. All hops are handpicked, dried in small 100 pound batches and vacuum sealed with food grade nitrogen to ensure the highest quality hops for your brewing or herbal needs. Originally conceived to market to organic breweries, the hop exemption has caused us to move our hops to herb supply companies. We are still hopeful that once our plants reach full maturity we will have enough product to support a small organic brewery. Plough Monday is essentially a oneman operation run almost entirely by Norm Vidoni, who designed and built our trellis and custom dryer and handles everything form vehicle maintenance and trellis repair, to planting, plowing and hand weeding the fields. Norm receives some help from his business partner Charlie Whedbee (who resides in Seattle), harvest labor and a substantial amount of lady bugs. For more information on Plough Monday Hops, visit their website at or contact Norm Vidoni at or norm@ploughmonday.com. MEMBER SPOTLIGHT The Member Spotlight is a new program for AOHGA members where we will be highlighting the great things our members are doing in the organic community. We are asking our members to provide information for the Member Spotlight in the order in which they joined the association, so it will only be a matter of time before we ll be contacting you to participate! 4

AOHGA Grower Members B.T. Loftus Ranches, Inc. Patrick Smith 1209 Morrier Lane, Yakima, WA 98901 509.452.3931 patrick.smith@loftusranches.

com Blue Ridge Hops Rita Pelczar and John Wright 313 Laurel Branch Rd Marshall, NC 28753 301.602.0722 blueridgehops@aol.

com Carpenter Ranches, LLC Brad Carpenter 400 Carpenter Road, Granger, WA 98932 509.854.1750 brad@carpenterranches.

com The Oregon Hophouse Patrick Leavy 22675 Butteville Rd NE, Aurora, OR 97002 503.678.6840 hophouse@centurytel.net Sierra Nevada Brewing Co.

com AOHGA Membership Membership in the American Organic Hop Grower Association is open to anyone who would like to join.

5 AOHGA Grower Members B.T. Loftus Ranches, Inc. Patrick Smith 1209 Morrier Lane, Yakima, WA Perrault Farms, Inc. Jason Perrault Lateral A Rd, Toppenish, WA jason@perraultfarms.com Blue Ridge Hops Rita Pelczar and John Wright 313 Laurel Branch Rd Marshall, NC blueridgehops@aol.com Plough Monday Hops Norm Vidoni W Sheffler Rd, Elmira, OR norm@ploughmonday.com Carpenter Ranches, LLC Brad Carpenter 400 Carpenter Road, Granger, WA brad@carpenterranches.com Roy Farms Jim Boyd 401 Walters Rd, Moxee, WA jim@royfarms.com The Oregon Hophouse Patrick Leavy Butteville Rd NE, Aurora, OR hophouse@centurytel.net Sierra Nevada Brewing Co. Lau Ackerman 1075 E 20th St, Chico, CA lau@sierranevada.com AOHGA Membership Membership in the American Organic Hop Grower Association is open to anyone who would like to join. Our current membership levels are: Grower Members: Certified organic hop growers can join as grower members. They have voting rights, and their annual fee is $100 per certified acre. Associate Members: Associate memberships are open to anyone in the industry who supports the use of organic hops in organic beer, including growers. The annual fee for associate members is $100 per year. For more information on membership, please contact us at info@usorganichops.com. 5

6 AOHGA Associate Members Ron Britt & Associates Thank You to Our Members for Your Support! About the AOHGA The American Organic Hop Grower Association is a non-profit association devoted to promoting the use of organic hops. For more information on the AOHGA, please visit 6

Organic Hop Market Report

Organic Hop Market Report American Organic Hop Grower Association December 2011 ANNUAL BREWER SURVEY In January 2012, the AOHGA again plans to distribute a Brewer Survey to the organic brewing community