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 in an attempt to assess the needs of the industry and facilitate communication between grower and brewer. The AOHGA was very pleased with the response received in the 2011 Brewer Survey and hopes for a similar level of response for the 2012 survey. Brewers Please check your email inboxes in the coming weeks for additional information on the survey. 2011 Acres Harvested by AOHGA Growers* Hop Variety Total Acreage Ahtanum 1.97 Cascade 19.97 Centennial 6.80 Chinook 9.00 the quality and yield of the 2011 organic hop crop and is optimistic Citra 6.98 about the future of the industry. Fuggle 3.00 Golding 2.75 Hallertau 5.60 Liberty 1.00 Magnum 3.50 Nugget 0.17 Palisade 7.98 Simcoe 5.40 Sterling 15.00 Summit 2.04 2011 Organic Hop Harvest Recap Overall, the American Organic Hop Grower Association is happy with The AOHGA grower members helped us summarize the 2011 organic hop harvest by answering a few questions for us. Please see pages 2-3 of this report for their answers. TOTAL POUNDS OF ORGANIC HOPS In 2011, the total pounds of organic hops produced by AOHGA growers was: 70,700 lbs. *Includes AOHGA growers who responded to the survey. 1
2011 Organic Hop Harvest Recap Grower Response Did weather issues affect your crop this year, such as the cold spring we had in the Pacific NW? Jason Perrault: For us the biggest impact of the cool spring was on new plantings of organic hops. As a result of the cooler weather, timing of planting was critical. Even planting just a week too late had dramatic results. The established hops started out slow but tended to catch up by the end of the season. The cooler weather also resulted in higher incidence of aphid which caused us to adjust our management somewhat. The end result was a slight reduction in quality and yield on at least one of the more susceptible varieties and higher pest control costs across the board. With that said some of the aroma hops seemed to respond well to the mild weather and alpha levels were higher than average. Pat Leavy: The phrase "every year is different" always comes to mind when the weather seems to be going against you. This is why most growers try to use cultural practices which on average are the best for what is considered typical weather. Some adjustments are made during the growing season but it is always a guessing game and we are often wrong. Nobody likes extremes, but that is always part of the mix. The 2011 season was cooler than normal in the Northwest which generally slows things down, maybe that was a good thing. Brad Carpenter: I believe that the cold spring had an negative result for babies. Possible reducing 20% of projected amounts. Lau Ackerman: We had a cold/wet spring and the crop came out of the ground nearly a month behind last year. Jason indicated that they saw an increase in aphid pressure this year. Did anyone else experience similar issues with pests? PL: The cooler 2011 weather did change the mix of pest problems. The major insect pests of hops (aphids and spider mites) are temperature sensitive. The aphids were more of a problem this year because of the cooler temperatures and the spider mites were delayed. Hop farming is very much a "you win some and you lose some" kind of business. Organic hop farming is no different. LA: Weeds were the big problem this year with the wet spring making it hard to get into the yard in a timely manner. We had some mite pressure but not too bad. Blue Ridge Hops: We had a serious infestation of spider mites in July which significantly reduced our yield. We purchased predatory mites in hopes of curbing the spider mite population and according to the supplier, the predatory mites will survive our winter and will hopefully be in place to deal with the spider mites next year before they do so much damage. Any advice from other growers on dealing with spider mites would be greatly appreciated! How do you feel your communication with organic brewers has changed since last harvest? JP: Through the efforts of the AOHGA, a more aggressive sales strategy by growers, and a number of proactive brewers, I think we've seen a vast improvement in communication with organic brewers. With that said there still seems to be a bit of a "wait and see" attitude with a portion of the industry. This concerns me given the fact that it takes time to ramp up production, especially organic production. Growers will need to have a pretty 2
2011 Organic Hop Harvest Recap Grower Response (continued) (continued from page 2) accurate picture of demand by January/February of 2012 in order to supply BR: We seem to be getting lots more inquiries about out crop in recent weeks. organic hops for brewing in 2013. Any other thoughts about your organic hops this year? There are plans to plant in 2012 to answer the predicted demand, but things will get tight if there is a significant JP: There are still some unknowns portion of requests beyond those previously contracted or at least communicated to the growers. going forward, but this is the nature of the business. In the past year, the efforts of the AOHGA to foster communication between growers and PL: The communication between brewers has helped tremendously. I growers and brewers has increased am also encouraged by the fact that in substantially this past year. However, the past year organic hop acreage and there are still non organic hops being the varieties planted have expanded used by organic brewers when there is significantly. I have every reason to an organic version available. Hopefully, this coming year this will not be the believe this trend will continue. Additionally, our production methods continue to evolve, and I am very pleased case and this issue will be behind us. There has been a good effort by many with the quality of organic hops coming from U.S. hop growers right now. brewers to adapt and change their variety mix in preparation of Jan 1, Future improvement is insured 2013. through significant investment of both BC: The communication and understanding public and private dollars in research between brewer and grower projects including work on cover has very much improved. cropping, variety trials, pest control, Only One Harvest Left Before January 2013 and organic specific variety development. Based upon the progress we've seen this year, the future looks pretty bright for U.S. organic hops. PL: Every year (34) I learn more about growing hops, and not just my organic hops. I think organic hop production is important to the futures of both the hop and brewing industries. Organic production pushes the envelope, especially in breeding varieties which are less susceptible to pests, something which is in everyone's interest regardless whether you brew an organic beer or not. BC: Our family intends to plant more acres to fill needs for the brewers. LA: Looking forward to a better year with greater yield and fewer weeds! ORGANIC HOP INVENTORY As of Nov 17, the total pounds of organic hops unsold in inventory for AOHGA growers is: 39,704 lbs. This is just a reminder that there is only one more hop harvest before the proposed USDA rule goes into effect on January 1, 2013, requiring organic hops in organic beer. There is still time to ensure the organic hops you need are available in 2013, but the critical time to have that conversation is right around the corner. January and February are when discussions between grower and brewer should take place. Multi-year contracts should be negotiated to establish plantings, and new contracts need to be secured during these months. During March and April, farmers are busy establishing their hop yards for the year. After March 2012, changes to the variety mix or acreage will not be able to be made until the following year, meaning those hops won t be available until the fall of 2013. 3
Member Spotlight Fremont Brewing Company Fremont Brewing is a family-owned microbrewery founded in 2009 to brew small-batch artisan beers made with the best local ingredients organic when possible - we can find. Known as the Center of the Universe, Fremont is industrial and sleekly postmodern -- home to artists, fishermen, tradespeople, technology geeks, and lots of beer lovers. We use barley from Washington State, hops from wizards in Yakima Valley and water from the Cedar River Watershed in the Cascade Mountains. Fremont Brewing started in the midst of the Great Recession and produced 300 barrels of beer in our first year. Closing out our second year, we will produce 4,000 barrels of beer and look forward to producing 7,000 barrels of beer in 2012. THE BEER Fremont crafts four beers year-round: Interurban IPA, Universale Pale, Wandering Wheat and a Seasonal; Solstice in the Summer, Harvest in the Fall, and Abominable in the Winter. We also have over 200 wood barrels aging bourbon beers, sour beers and other woody delights. We invite you to come along with us and enjoy our passion - Because Beer Matters. ORGANIC HOPS We support the growth of the organic hops industry because Fremont Brewing believes that Washington State (we can always share with Oregon) should be the world s leading producer of organic hops. Not only will the growth of the organic hop market pro- vide more variety for brewers but, we believe, it has the potential to engage the next generation of hop growers as they wrestle with the many complexities of organic hop farming. COWICHE CANYON PROJECT In 2010, Fremont Brewing partnered with Ron Britt and Associates and Brad Carpenter of Carpenter Ranch to launch the Cowiche Canyon project. Designed to test varieties and methods of organic hop production as well as focus the consumer s attention on the scrumptious potential in organic hop beers, the Cowiche project began as a ¼ acre plot with Simcoe and Citra and has grown to a ½ acre within two seasons. Our Cowiche Canyon Organic Fresh Hop Ale is eagerly anticipated every year and is beginning to get national attention. A portion of the proceeds from the sale of every beer also goes to the Cowiche Canyon Conservancy: http:// cowichecanyon.org. To learn more about Fremont Brewing, please visit our web site at: http://www.fremontbrewing.com. 4
Member Spotlight Sierra Nevada Brewing Company Sierra Nevada first planted an experimental hop yard adjacent to their brewery in 2003, as an educational tool for consumers. The brewery planted the hops as a reminder that beer is an agricultural product. The property where the hops were planted was formerly a parking lot, and transferring that commercial space back into a useable plot of land was not a simple task. Those first few years, the hops were pretty crude. Traditional English varieties struggled under the Chico heat and the hops were often brown and sparse. As the years progressed, the brewery chose different varieties, which fared much better under the punishing summer sun. As the annual yield became better, the hops field expanded from just less than three acres, to just over 8 acres of hops. With the addition of nearly 30 acres of two-row malting barley, Sierra Nevada first released Estate Ale in the summer of 2009. It is one of the few 100% estate made beers available anywhere in the world. In addition to Estate Ale, Sierra Nevada also uses their estate hops in a host of draughtonly releases including 20 th Street Ale the hops are grown along 20 th Street in Chico and several smallbatch beers from our Beer Camp program. Sierra Nevada Estate Homegrown Ale was granted Organic certification via Oregon Tilth during the 2010 season, and has maintained the certification ever since. Today the hop yard is mainly comprised of three varieties: Cascade, Chinook, and Citra, but also includes a small amount of experimental hops as well. A great deal of care is focused on soil quality, cover crops, careful watering, and natural fertilizer and weed control thanks to the herd of sheep that grazes through the spring and fall which contribute to healthier plants and larger yields. The estate hop yard makes up only a tiny fraction of the total amount of hops Sierra Nevada uses throughout the year. Most of the brewery s hops come from the large commercial concerns in Yakima, Washington, Willamette, Oregon, and throughout Europe and New Zealand. The brewery relies on groups like the American Organic Hop Grower Association to promote the expansion of organic hop acreage in the U.S. and to encourage good agronomic practices and promotion of organic hops. Today s consumers are more conscious than they have ever been, and want products that are healthy and free from pesticides, chemicals and artificial materials. This has never been more true for beer than it is today. Beer is a unique beverage and one that reflects the environment in which it is made. Great ingredients make for great beer, and organic hops are an integral part of that recipe. 5
AOHGA Grower Members B.T. Loftus Ranches, Inc. Patrick Smith 1209 Morrier Lane, Yakima, WA 98901 509.452.3931 patrick.smith@loftusranches.com Perrault Farms, Inc. Jason Perrault 11051 Lateral A Rd, Toppenish, WA 98948 509.848.2497 jason@perraultfarms.com Blue Ridge Hops Rita Pelczar and John Wright 313 Laurel Branch Rd Marshall, NC 28753 301.602.0722 blueridgehops@aol.com Roy Farms Jim Boyd 401 Walters Rd, Moxee, WA 98936 509.452.3494 jim@royfarms.com Carpenter Ranches, LLC Brad Carpenter 400 Carpenter Road, Granger, WA 98932 509.854.1750 brad@carpenterranches.com Sierra Nevada Brewing Co. Lau Ackerman 1075 E 20th St, Chico, CA 95928 530.893.3520 lau@sierranevada.com MEMBER SPOTLIGHT The Oregon Hophouse Patrick Leavy 22675 Butteville Rd NE, Aurora, OR 97002 503.678.6840 hophouse@centurytel.net The Member Spotlight is a program for AOHGA members where we highlight 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 s only a matter of time before we ll contact you to participate! 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. 6
AOHGA Associate Members Ron Britt & Associates Washington State University Thank You to Our Members for Your Support! 7