Monthly Archives: January 2017

Conspiracy in the Hop Market

I sometimes hear from people who must love conspiracy theories that hop merchants and growers fix prices and that some are in cahoots with one another. The truth is that merchants rarely communicate with one another. Growers get together more often. When anybody in the industry meets, it’s as much about disinformation as information. That’s […]

Contracts vs. Cash Flow

Unbelievably, there are still hop growers increasing acreage in 2017. They say “they have contracts” or “the wheels are in motion” or that “the plans have been in the works for a while”. That was OK back in July, but the picture has become much clearer in the past few months. Time to change the plan!  Last […]

Innovation lacking in the hop industry

Innovation is something the hop industry really hasn’t figured out yet. Sure, there are new varieties coming out of every orifice of the hop industry these days. There are so many that it’s becoming difficult for growers to manage them all. The mind-numbing flow of new varieties continues. Once you start the variety-producing machine it’s […]

Anatomy of the current surplus-shortage-surplus cycle

The anatomy of the current surplus-shortage-surplus cycle is not entirely unique. There are many similarities between this and cycles of the past.    A massive oversupply occurs in response to over contracting. Spot hop prices plummet. Once it is clear a stable exists, brewers try to renegotiate expensive contracts into less expensive longer-term contracts. Contracted demand decreases […]

Opposite Roles

Happy National Opposite Day!! Yes, it’s today! I bet you didn’t even know there was such a day, did you? It seems the hop and brewing industry are ahead of the times. For at least the past 6 months, members of the hop and craft brewing industries are playing opposite roles. Here’s an example … Today, […]