Market Report 08/2024

In recent days, the "official" estimates for the 2024 hop harvest took place in all German hop-growing regions.

Germany

The results are as follows:

The result of the 2023 harvest was slightly below average (Ø 42,600 T) in terms of both yield per hectare and alpha acid levels. Despite the low alpha acid levels, more alpha acid was produced than the brewing industry required.

Corresponding stockpiles at growers, traders, and breweries are available and are making their presence felt on the spot market.

The cultivated area in Germany reduced slightly by 340 hectares from 2023 to 2024, now totaling around 20,300 hectares.

Although the weather during the 2024 harvest saw some extremes, with significant temperature fluctuations, heavy rain, and storms, the growing regions were largely spared from major damage. The crops are mostly healthy.

The estimated harvest volume of 48,964.0 T of raw hops is not only well above the poor 2023 harvest but also significantly above an average harvest. If the alpha acid values are also above the long-term average, as I expect, marketing the spot quantities from the 2024 harvest will be very challenging.

The harvest will begin around August 26, 2024, in all growing regions.

EU

In the EU, hop-growing areas remained almost unchanged, although in countries like Slovenia and Poland, the forward contract quota continues to decline sharply, and more hops are being produced without buyers, despite awareness of this issue.

USA

In the USA, the response to oversupply and declining demand for flavor hops led to the removal of 4,500 hectares from production. Over just four harvests (2021–2024), the American hop-growing area has reduced by one-third, now standing at 18,000 hectares. The industry has already recognized the signs of the times here. Whether this reduction is sufficient remains to be seen.