Hops - Who Knew?

The US is the second largest grower of hops after Germany (WSJ). The US has about 70 commercial growers according to Hop Growers of America. Last year's crop was valued at $169 mln, the most valuable crop since 1995's $135 mln. Prices were up on lower yields in some hops producing countries including the US. In 2006, the crop was valued at $118 mln. Hops are selling on the spot market for $20-30 a pound, up from $5 a few years ago. Larger brewers typically work with long-term supply agreements.

Until the 1920s, New York was the center of hops farming in the US. Then downy mildew and powdery mildew crippled production. Now nearly all the hops are grown in Washington, Oregon, and Idaho. Farmers in those states increased the acreage devoted to hops by 27% this year. High prices are also leading growers in other areas to take up the crop, though the specialized equipment and labor necessary to get the hop cones off the vines, dried, and packed may make it difficult to turn a profit. Smaller craft breweries often use more hops than their larger counterparts, and are interested in buying locally produced hops.