The mention of hops among ordinary people invariably evokes associations with intoxicating drinks, and only plant breeders know how luxurious this unpretentious plant looks in landscape design. Violent hop vines, twisting fences, gazebos and walls of houses, can turn the most ordinary household plot into a decoration for a fairy tale. And all this splendor without the extra cost and hassle!

Types and varieties of hops

In cultivation, 2 types of hops are commonly used:

• Common hop is a dioecious perennial plant with tetrahedral, highly climbing stem shoots that grow up to 6 m in length. Large lobed leaves are serrated along the edge. Male flowers are collected in loose paniculate inflorescences with greenish-white bracts. Female inflorescences are distinguished by a recognizable pineal shape. The flowering of ordinary hops continues from the second decade of June to the beginning of August.
• Japanese hop (climbing) is a fast-growing decorative annual, reaching a height of more than 4 m. Large-lobed dark green leaves are strongly cut. There is also a variegated form of the species that prefers bright light and loses its characteristic color of leaves from a long stay in the shade.

Both types of culture are suitable for decorating plots. However, if hop cones are planned to be used as raw materials for beer wort, it is recommended to pay attention to well-known breeding varieties, bred specifically for this purpose, and their more budgetary counterparts.

The processing of the planting area is carried out at the end of autumn. Separate pits or common trenches 55–60 cm deep are dug along the perimeter of the selected area. The manure is mixed with fertile soil, laid in the pits and sprinkled with a layer of earth. After compaction of the nutrient mixture, the pit should be half full.

Landing

The best time to plant hops in a permanent location is mid-spring. Young seedlings, cuttings cut from 3–8-year-old vines, and rhizome pieces can be used as planting material.

• Planting material is placed in prepared pits (trenches).
• The voids are filled with soil. The soil around the seedlings or cuttings must be compacted. The rhizomes are completely covered with an earthen layer.
• The landing site is watered abundantly with warm, settled water.

If the hop plant is located in an open space, at the end of planting work, a reliable support must be provided for each plant.

Care features

Hops develop rapidly, practically not needing care. However, in the first 2-3 years of growth, he still needs several basic procedures:

• The soil under the plantings is periodically loosened, removing weeds and breaking the shriveled earth crust. Good aeration is one of the most important conditions for the correct development of a young root system.
• Being a moisture-loving crop, hops are very fond of abundant watering. The constant moderate moisture content of the soil contributes to the active growth of green mass, which provides the decorative appearance of the plant. However, overflow should be avoided: waterlogging of the soil negatively affects the condition of the roots.
• Young hops are fed every 15-20 days complex fertilizers and organic infusions. It is not recommended to be overly zealous with the supply of food: an excessive concentration of useful trace elements leads to a decrease in the disease resistance of the culture.
• Pests rarely visit hop crops. Sometimes the vines become the object of attack by leaf-gnawing insects, which are easy to ward off by spraying the plant with an infusion of tobacco dust or bitter wormwood.
• If yellow-brown spots appear on the surface of the leaves, and on the underside of the plates are covered with a gray-white bloom, then most likely the hops are infected with powdery mildew. In this case, the damaged leaves are cut off, and the entire aerial part of the plant is sprayed with a solution of fungicides.
• In the fall, when the foliage withers, Japanese hops are dug up and disposed of. In its common relative, only shrunken shoots are cut off. Perennial hop rhizomes successfully overwinter in the ground, and in spring, plant growth resumes.

It is important to remember that as the hop grows, it begins to oppress the neighboring plantings - fruit trees and shrubs, ornamental and vegetable crops. So that the site does not resemble impassable jungle, the development of vines must be controlled by systematically eliminating unnecessary specimens.

Reproduction

To expand the plantings, perennial hops are propagated by dividing the rhizomes, which is carried out in the spring, with the beginning of the growth of new shoots. Root cuttings are cut with a sharp shovel right in the ground, without digging up the mother bush. For planting, segments of rhizomes 12-14 cm long with 2-3 pairs of eyes are used. In a permanent place, the material is planted immediately after cutting or stored until planting, digging into wet sand or moss. Japanese hops are propagated by sowing seeds to a permanent place of growth. Also, for planting, you can use young shoots that have grown by self-sowing from the seeds of the last season.

Collecting cones

Hop cones are harvested when they reach technical ripeness. The color of the ready-to-pick fruit changes from bright green to greenish-golden. The bump itself, having lost its airiness and looseness, becomes elastic and dense. At this stage, the hops have a bright, specific aroma exuded by the lupulin glands.

Collecting cones is a long and laborious process. They are removed from the lash one by one, starting with the largest specimens. The cones intended for the preparation of beer wort are dried at a temperature of + 55–60 ° C. In addition, dried hops can be added to bread, confectionery and soft drinks. It is very useful to stuff small pads and mattresses with bumps. Thanks to the sedative properties of hops, these beddings have a soothing and relaxing effect.

Hops in landscape design

Luxurious dense green hops, decorated with golden cones, are fertile material for the work of a landscape designer. Thickets of common perennial hops are a spectacular backdrop for brightly flowering summer crops. The Japanese look goes well with climbing roses. Thanks to their fast growth, hop vines reliably braid any support in a short period of time. This quality allows you to use culture to create the most daring and fantastic plant compositions.

If hops too actively fill the site and cannot be removed mechanically, gardeners have to resort to radical methods:

• Unwanted hop plantings are treated with special chemicals. However, this method is advisable to use if the hop area is not planned to be used for planting other crops.

Hops (Humulus L.) belongs to the hemp family (Cannabinaceae L.). The hop genus is divided into three types: ordinary hops (H. lupulus L.), heart hops (H. cordifolius Mig) and Japanese hops (ff. Japonicus Sieg. Et Zuss). Common hops are of the greatest production value.

Hops are grown for the brewing industry. In addition, it is used in medicine, pharmaceutical, perfumery and cosmetic, canning and bakery industries. Hop stalks also produce fiber, which is around 15%.

Common hop is a perennial, dioecious plant with a liana-like twisted stem. The underground part is perennial, the stem is annual, dying off in late autumn.

Hop plants have vegetative organs - root, stem, leaves and generative - flowers, fruits, seeds. The organs of plants, depending on the growing conditions, are able to change. In particular, underground shoots form rhizomes, from which 10-12 highly branched skeletal roots grow, which are divided into thinner ones, with a dense network of small roots. Small roots and rhizomes form a well-developed root system, which penetrates into the soil to a depth of about 4 m and spreads out to 3 m. The bulk of the roots is located in the upper (about 1 m) soil layer.

The main hop rhizome is a perennial underground shoot with buds. Its greatest growth is observed in the 4th year, and it is during this period that more buds are formed on it, which later germinate and form a large number of shoots. When cultivating hops, the number of shoots is reduced annually, forming the main rhizome, removing excess shoots.

Branched stems, green or red, long (about 10 m or more), up to 13 mm thick, herbaceous, covered with hairs. Sweet hook-like thorns are mixed along the edges of the stem, with the help of which the hops are firmly held on to the supports. Such thorns are also found on lateral shoots, petioles and on each side of the leaves.

The leaves are simple. Their heart shape is similar. The largest leaves are in the middle of the plant, in the lower and upper ones are smaller. The top side of the leaf is dark green, the bottom is lighter, and has glands that contain resins and essential oil. The number of leaves before flowering is about 400, and during the harvest period - 600.

Inflorescences. Female inflorescences are cones containing 20-60 small flowers. The flowers are composed of five petals and five stamens.

Male plants do not form cones and have no practical value, so they are removed.

The fruit is a small brown nut.

Hop seeds are small. The mass of 1000 hop seeds is 2-4 g.

Hop growing technology

Hops are grown in flat areas with a slight slope (up to 5 °) to the south, southwest and southeast.

Hops are placed on tracts (hops) with an area of ​​20-30 hectares, which are divided into separate plantations (squares). A hop plant is placed near a forest, forest belt or garden to protect the hop from the winds. If there is a need to plant a hop in an open area, then it is planted in advance (2-3 years) with protective stripes (2-3 rows) of fast-growing trees at a distance of 20 m from the edges of the plantation.

Hops are laid on sod, weak and medium podzolic soils, gray and dark gray forest soils, and the groundwater level is not higher than 1.5 - 1.8 m from the soil surface. Heavy and light sandy and boggy soils are of little use for it. The groundwater level on plantations in the summer should not be higher than 1.5 - 1.8 m.

The areas allotted for hop-farms are divided into squares of 2 - 2.5 hectares, between which roads with a width of 3 - 4 m are left. On each hectare of the hop-grove, 145-150 pillars with a height of 8-9 m are buried for the arrangement of trellises. At the tops of the pillars, a galvanized wire is pulled, from which wire supports are pulled to each hop bush with fixation with pegs 50-60 cm high at a distance of 40 cm from the bushes.

Soil cultivation when growing hops

After laying the hop plant, after grain and leguminous crops, stubble plowing is carried out, after 2-3 weeks, about half of the norm of organic and phosphorus-potash mineral fertilizers is applied and plantation plowing of the soil to a depth of 45 cm begins.After 3-4 weeks, the remaining fertilizers are applied and the plot is plowed to a depth of 25 cm. The general rate of organic fertilizers is 50-60 t / ha, mineral fertilizers 7-8 c / ha (P90K90). After tilled crops, the soil is not plowed, but processed only with plows. There is another way of preparing the soil for planting hops, in which, instead of plantation, deep plowing by 30 - 35 cm is used.In the fall, on fertilized and fertilized areas, they dig holes with machines BM-204, BKGO-67, BKGM-66-2, measuring 60x60x60 cm, placing them in rows according to schemes 2.1x1m, 2.1x1.6m, 2.5x1m. At the beginning of spring field work, the pits are filled with a fertile topsoil mixed with 5-7 kg of humus or compost and one-year-old hop seedlings grown in a nursery or cuttings are planted. Planting depth 8 - 10 cm from the soil surface.

Hop crop care

Seedlings of hop seedlings appear in 7-10 days, cuttings - in 10-15 days. During this time, a crust may form on the soil surface, which is destroyed by loosening the row spacings. When about 75% of the seedlings appear on the surface of the soil, the condition of the plantation is checked and the seedlings of hops or cuttings that have not sprouted are replaced with spare ones.

After the germination of hops at a plant height of 50-60 cm, the stem is put on a support and the row spacing is loosened with cultivators simultaneously with harrowing to a depth of 10-12 cm.

During the growing season on hop plantations of the first year of life, 4-5 plowing of row spacings and one hilling of plants with a plow-baking powder PRVM-Z are carried out. In the second year of the hop's life, in the early spring, the ridges are plowed and raked, and the lateral rhizomes and underground stems of the last year are cut on the queens. The height of the cutting of the stems depends on the state of the plants: on highly developed plants they are cut off completely, on underdeveloped ones - above the first second pair of eyes. They also carry out mechanized pruning of queens using the PKH-1 device on a baking plow.

Severely damaged or dead plants are uprooted and new cuttings or seedlings of hops from the nursery are planted in their place. For 1 hectare, the density of productive stems of plantations should be 14-16 thousand. Cut stems and other remains are removed from the plantation and destroyed.

After cutting the hops, herbicides are applied and the soil is loosened in the aisles. For the destruction of weeds, such herbicides are used as 50% citrine (3.5 - 5 kg / ha), 50% dual (2.5 l / ha), 48% bazagran (2.1 l / ha), etc.

To accelerate the ripening of the cones, the plant is sprayed with a 40% solution of ammonium nitrate at a shoot height of 70 - 80 cm. After that, the first feeding of the hops with a full mineral fertilizer is carried out (45 kg / ha of nitrogen, phosphorus and potassium). 6-7 days after spraying, the stems are put on props - two stems on two props near each bush. The excess is cut out and taken out from the hop-farm.

At a plant height of 3 - 4 m, they are bent up with simultaneous application of phosphorus-potassium fertilizers at a dose of 30 - 45 kg / ha d. young shoots that appear on the surface of the soil, and pinch - pinch lateral branches at a height of up to 2 m from the surface of the soil, mince - cut off the top of the stems above the trellis.

To destroy alfalfa weevil and fleas, plants are sprayed with chlorophos (0.3 - 0.5% solution of 0.3 - 0.5 liters per hop bush). With the appearance of mite cobwebs on the plants, hops aphids are treated with 40% phosphamide (1.5 - 6 l / ha), 25% Anti (1.5 - 6 l / ha) or biopreparations bitoxibacillin (2-4 kg / ha). Against diseases, hops are sprayed with 80% polycarbacin (4-8 kg / ha), 80% cineb (4-8 kg / ha) or 80% cuprozan (4-8 kg / ha), 25% ridomil (1 - 1.5 kg / ha), etc. Zinc sulfate (3 kg / ha) is used against viral diseases.

Hop harvesting

Hops are harvested manually or with hop harvesting machines (4x-4L or HMP-1, 6) when the cones become dense, have a specific aroma, gray color and golden-green or lemon-yellow color of the lupulin glands. At this time, hop cones contain the maximum amount of alpha acids, essential oil, polyphenols. In the main hop-growing regions, harvesting ends before September 15-29. Delay in harvesting degrades the quality of the buds as a result of the rash of lupulin grains. Freshly harvested hop cones, which contain up to 80% water, at the post-harvest processing points are first subjected to 12-14 hours of active ventilation with heated air (up to 30 ° C), due to which their humidity is reduced by 25-30%. After ventilation, the hop cones are dried in drying chambers of special dryers (PCB-750K) with heated air to 40 - 50 ° C with a moisture content of 9 - 10%. The dried cones are unloaded from the dryers in an attached dry and dark storage room. To do this, they are scattered on a wooden flooring, first with a layer of 70 - 80 cm with a gradual increase to 1.5-2 m. After curing, all cones in a 1.5 - 2-meter layer are evenly moistened due to atmospheric moisture to a moisture content of 11-13%. If the atmospheric air is not humid enough, then when curing, the cones are slightly moistened with finely sprayed cold water or steam generators are used with steam under the hop layer. To preserve valuable substances in the cones, they are subjected to sulfitation - in a special drying chamber with sulfur gas of set fire to sulfur. Cured raw hops are packed in polyethylene or jute bags and sent to hop receiving points or hop factories for final bringing it to the required marketable conditions in accordance with the standard.

In the fall, after collecting hop cones and browning and drying the stems with leaves, the hops are cut, removed from the wire and taken out of the hops for burning. Plantations are thoroughly cleaned of plant residues, manure or compost (40 - 50 t / ha) and phosphorus-potassium mineral fertilizers(4-4 c / ha of superphosphate, 2-3 c / ha of 40% potassium salt or 1.5 c / ha of potassium chloride).

Hops belong to the hemp family.

There are three types of hops in nature:

• Ordinary.
• Heart-like.
• Japanese.

Common hops are used in the production. In another way, it is also called khmil, khmelitsa or gorkach. It has sedative properties on a par with passion flower and motherwort.

Everyone knows that hops are used in the brewing industry, but these are not all areas of its use. It is widely used in medicine, pharmaceuticals, cosmetology, perfumery, bakeries and canning. The hop stalks are 15% fiber, which is suitable for making rope, burlap, yarn and paper.

Characteristic features of hops:

• The maximum length of a single hop stalk is 5-7 meters; it is a climbing plant covered with hooked thorns.
• Females give dense cones, which consist of 20-60 flowers, and male inflorescences are leafless panicles, light pollen from them is transferred to a distance of up to 3 km.
• The life cycle of a plant lasts up to 20 years, in rare cases more. The plant is widespread in the European part of the CIS, Eastern and Western Siberia, in the Caucasus.
• You can grow it at home in any part of the planet, hops feel good in dusty areas of the city, it is completely unpretentious.

The collected hop cones can be used for food purposes. They are rich in vitamins B1, B2, B6, PP, they contain valerian and hop killing acids, flavonoids, ash, hormones, essential oils, lupulin, the alkaloid humulin and a large amount of macro- and microelements.

The leaves and stems contain a large amount of vitamin C.

Hops are added to preparations to effect:

• Anti-inflammatory.
• Pain reliever.
• Anticonvulsant.
• Bactericidal.
• Antiulcer.
• Anti-allergic.
• Hyposensitizing.
• Capillary strengthening.

Hops are used to improve the functioning of the digestive and cardiovascular systems. Hop infusion is effective for insomnia, nervous excitement, oncology, diathesis, gastritis, ulcers, cholecystitis, nephritis, cystitis, atherosclerosis and hypertension.

It is forbidden to take hop-containing products to pregnant women, as the plant is poisonous.

Hops love moist fertile soil. Under natural conditions, it grows in oak-ash forests, hiding behind bushes and in ravines. The soil should be rich in humus.

Do not be afraid to grow hops in the city near busy highways, this will not affect the quality of the hops.

Basic conditions for growing hops on the balcony:

• Large pot (since hops have large roots).
• Installation of a support around which the shoots will curl.
• Regular watering every 3 weeks.
• Annual shoot pruning.

In the fall, yellowed cones are pruned and dried. Then they can be used to make medical and cosmetic recipes.

If you need a large number of plants for your own needs or for sale, the question arises: how to grow hops over a large area:

• For planting, you need to find a sunny place, good drainage must be provided on the site. A support for growth is installed near almost every plant. The ideal location is the south side of the house. In addition, hops are highly decorative.
• The soil should be loose, with a pH of 6.5-8. A layer of sand can be laid out to a depth of 30 cm. Each hole is made at a distance of more than 1 meter from one another. Compost or soil for seedlings is laid out at the bottom of the hole.
• The rhizome, that is, a creeping underground stem, deepens by 5-10 centimeters in a horizontal position, the roots look down. Now the earth can be tamped, and the hole can be covered with hay, and watered abundantly.
• The upper part of the plant dies off every winter, and the perennial part, the rhizome, develops underground. Hop roots are capable of withstanding severe winters.
• When the first shoots appear, they need to be cut off after two weeks. Only the strongest shoots remain, in the amount of 3 pieces. Tying is done when an individual hop vine has grown to 40 cm.
• Hops grow very quickly; in good spring weather, the shoot can lengthen by 15 cm.

During the period of active growth, it is desirable to introduce a large amount of nitrogen. This is not a mandatory procedure, compost will be enough for normal development, however, nitrogen will save the plant if the leaves suddenly turn yellow or shrink.

The plant is watered frequently, but the water should not stagnate. It is advisable that the water does not fall on the leaves.

To make the cones ripen faster, the plant is sprayed with a 40% solution of ammonium nitrate. If an alfalfa weevil or fleas appear, then the shoots are treated with chlorophos. 40% phosphamide will help get rid of the spider mite, 80% polycarbacin or 80% cineb, 80% cuprozan will cope with other diseases. Viruses can be killed with zinc sulfate.

Common hops reproduce in several ways:

• By dividing the bush.
• By dividing the rhizome.
• Cuttings.
• Layers.
• Seeds.

Seed propagation is used less often, but this method is suitable if you need to sow a large area.

To propagate hops vegetatively, you need to wait for spring, while the shoots have not yet begun to grow, dig up the rhizome and cut it into several parts. As a result, you will get several cuttings. Each should clearly show full-fledged kidneys.

In the first year, the cuttings are already ready for independent development, so it is up to the gardener to grow them in the garden or plant them in a permanent place.

Seed propagation is also simple:

• It is better to grow seedlings at home by sowing seeds in bowls.
• When seedlings appear, they require the same care as for any indoor plants.
• Then the sprouts are transferred to the ground and grown.
• Only in the second year will the seedlings begin to grow rapidly, in the first year they will reach small sizes.
• When propagating by seeds, there is a risk of getting a large number of males.
• Because of this, the seedlings are planted close to each other, and when the fruiting period begins, the males are isolated.

In order for the plant to develop well, 3 kg of rotted manure is laid in the planting pit.

Amateur gardeners grow several individuals, but if there is a need to plant an entire plantation, then it is important to observe the distance between rows and bushes. It will be 1 meter between hops, and 3 meters between rows.

The first cones can be harvested already in the first year if the hops were obtained by vegetative propagation, but the yield will be small. Full-fledged buds will grow in the second year. But plants that have grown from seeds will give the first fruits only after 4 years.

Cones can be harvested from mid-August to mid-September.

Cones at this point should be at the initial stage of ripening, so do not delay. It is even better to calculate the period when there will be a few days left before the buds ripen. This can be determined by the color, it will be greenish yellow. If the color is bright green, then the buds are not yet ripe, if there is a brown tint, then they are overripe. There is no point in collecting cones with protruding scales, since there are few seeds and lupulin in them.

The cone is torn off along with the pedicels, if the cone is without a leg, then during the drying process it will crumble.

It is not difficult to grow hops, it does not require special conditions and knowledge. hops can be used in various fields: medicine, cooking, cosmetology.

More information can be found in the video.

The local alternative to mass beer offered by independent brewers has brought them success and is changing the global market. Beer is becoming more diversified, multinational companies are forced to accept new rules of the game and shift their focus to young and rapidly growing markets. All these processes led to an increase in the demand for aroma and bitter hops, and then to an expansion of plantings on two continents. However, now there is a trend in the world to reduce alcohol consumption, and today it seems that even a special beer may soon be enough. In this regard, some problems have already arisen in the dynamic American hop market. EU hop producers are more careful, they are in no hurry to overtake consumption and are more confident in the future, judging by the length of contracts.

World "Beer Market 3.0" and its demand for hops

Beer consumption in the largest markets (USA, EU, China, Brazil, Russia, Japan) has already passed the saturation point, and so far one should not expect a serious revival from them. International companies compensated for the lost volumes through M&A and expansion into emerging markets. But " side effect»Monopolization has become the standardization and simplification of the taste of beer, especially in emerging markets. In addition to lean production technologies, large companies used less and less traditional expensive components - malt and hops.

One could even call a turning point - this was 2007, when, due to a poor harvest, world prices of both malting barley and hops began to rise rapidly. For hops in 2008, they reached a local peak. An acute problem with raw materials forced brewers to optimize their consumption by various methods, and multinational companies have been the most successful in this. But despite the fact that agricultural producers soon eliminated the deficit and prices fell, the consumption of malting barley and hops declined, not returning to the previous level. On the other hand, purchases of unmalted grain, enzymes and maltose syrup increased. However, the fashion for light beer, which quickly gained popularity in the USA and Europe, also affected here.

It is characteristic that it was during this period that the process of consolidation of the world beer market stopped. A boom in craft brewing began in the USA; in Eastern Europe, medium-sized regional breweries with an original concept of "live" beer were able to offer an alternative to Euro-agers. Formally, in terms of quality, mass brands remained impeccable, but it just so happened that consumers began to switch to local brands of independent breweries. This evolution of beer lovers' preferences and the stage that lasted until about 2016 can be called "Beer Market 2.0".

Local brewers have higher specific consumption of malt and hops in beer production. Therefore, although regional brewers were significantly inferior to transnational brewers in market share, their growth made it possible to stabilize the situation on the hop market. Following the revival of demand, at first cautiously, then the supply of hops began to grow more and more dynamically, which was associated with an increase in planting area and the spread of new varieties.

However, due to the change in consumer behavior among the new generation, the growth in sales of alternative sorts was also limited (let's call this new reality - "Beer Market 3.0"), although a couple of years ago it seemed that it would not be stopped.

In the United States, craft beer sales have become a single digit, and drinkers are increasingly abandoning the stereotype that craft is heavily hopped beer. In Eastern Europe, regional brewers, having taken almost everything they could from multinational companies, themselves began to feel stagnation or even a decline in beer sales. Asian markets are rapidly evolving, but the needs of the bulk of consumers regarding the taste of beer are still very modest.

But the loss of the market by transnational companies has led to the fact that they are increasingly making attempts to play on the same field with local producers. This mimicry forces an increase in the specific consumption of malt and hops. In addition, the consumption of raw materials becomes high due to the growth in the share of premium brands and the launch of new marginal varieties - denser and hopped. This trend is visible in the largest markets in Eastern Europe and Asia.

Let's summarize the first result. In the short term, the need for hops will be determined by:

1) the potential of the craft movement in the United States and beyond (in the near future, the growth of the segment may occur at the expense of the EU countries);

2) branding and technological policy of transnational companies - will they more actively fight for consumer loyalty due to the complication of the beer taste;

3) the rate of premiumization of emerging markets, primarily in Asia, which will mainly depend on the growth of economies and the weight of the middle class in the consumption of FMCG.

World hop production

The two world centers for hop production are located in the EU and the USA. The main cultivation areas can be localized in rather limited areas. For example, the Hallertau Valley in Germany and the town of Zatec in the Czech Republic are less than 300 km apart. About 3/4 of European hops are grown in these two areas. Similarly, in the United States - about 3/4 of the total harvest falls on the Yakima Valley (the vicinity of the river and city of the same name). Once China intended to become the third center for hop growing, but now it is significantly lagging behind the EU and the USA in terms of volumes, and its share in world hop production is small.

Summer must be humid enough for a good hop harvest. Therefore, the limited growing regions make the situation in the global hop market dependent on weather conditions and other risks (for example, a fire in the USA in 2006). But we can also talk about specialization in types and varieties of hops both in individual companies and in general - in the geography of cultivation.

About half of the European growers' plantings are bitter hop varieties, the rest is aroma varieties. American hop growers, who sell almost half of their production to craft brewers, have a noticeably higher share of aromatic varieties - about 80% of the total hop area.

Hop production is also characterized by significant inertia. It is connected with the fact that hops are a perennial plant that gives a full harvest only in the third year, requiring significant investments for new plantings and maintaining the existing farm. Therefore, how hop growers see the medium-term prospects of their business can be judged by the change in planting areas.

So far, optimism has prevailed. Based on data from the International Hop Growers' Convention (IHGC), global hop production in 2017 is characterized by a phase of rapid acreage growth. The growth cycle began in 2013 and was followed by a four-year recession. These fluctuations are fully related to the fundamental changes in demand on the part of brewers, which we described above.

International Hop Growers' Convention

The International Hop Growers' Convention (IHGC), headquartered in Brussels, protects the interests of hop growers in its member countries. In particular, the IHGC is responsible for collecting statistical information on a regular basis - data and estimates of hop planting areas and yields. This information is used for marketing purposes and for planting planning. The assessment is carried out on the basis of data from the International Economic Commission IHGC collected at conferences. The conferences usually take place three times a year (in April, August and November) in various cities around the world. The current conference was held in Prague on November 10, 2017, the next one will be held in May 2018 in Paris. The final report presents figures for 19 key countries that provide almost 100% of the world's hop production, which allows us to talk about global dynamics.

Hop cultivation areas in 2017 increased, according to preliminary data, by 5.7%, to 57,839 hectares, which means maintaining high growth rates. Compared to the “bottom” of 2013, when the global cycle of recovery of the area of ​​hop gardens began, they grew by 26.7%. It can also be seen that global acreage has almost reached the 2008 record level.

The volume of world hop production in 19 key countries, taking into account the November consensus data of the IHGC and national industry organizations, will grow by 6% and will amount to about 116 thousand tons. It is possible that this volume will remain a record figure for the foreseeable future. Alpha acid production will increase by 4% to 11 thousand tons.

World hop trade

Due to their high cost and ease of transportation, hops have long become a global commodity, which is often sold far from the place of production. The volume of annual world trade since 2000 has fluctuated between 34-48 million tons, accounting for 20-28% of the global harvest.

It is worth considering here that the main regions of hop growing are located optimally in terms of the geography of its consumption. And since the countries with the largest hop production volumes are also the largest beer producers, the volume of foreign trade is not that great. In addition, part of the hops is processed into extracts or sold not for the needs of the brewing industry. These product categories usually come under separate HS codes.

The dynamics of world trade, in general, coincides with the fluctuations in the production of hop products, taking into account the previously formed stocks of producers and consumers. After a bad harvest, prices rise and trade volumes decline, and then brewers use stocks or cut back on hops. This was the case, for example, in 2003-2006. and 2010-2013 Conversely, the hop trade peaked in 2008 and 2016.

IN last years supply volumes increased due to the increase in hop production. In 2016, the volume of world trade increased by ...% and reached ... thousand tons. In monetary terms, the growth amounted to ...%, to $ ... mln.

Based on natural and monetary indicators, the average customs value of hops increased by ...%, reaching $ ... per kg. But here it should be borne in mind that a significant part of the hops moves between affiliated divisions of companies, often - of one company. In addition, deliveries are often made under futures contracts. Therefore, the customs value of a unit of goods is not equivalent to its real and current market price. However, fluctuations in prices partly reflect the market situation - it can be seen that in 2016, increased demand for hops remained.

The structure of hop exports by leading countries is quite simple. ... the world supply of hops is provided by Germany. Approximately one fifth is accounted for by the USA, about ...% of hops are exported by the Czech Republic, less than ...% - by Great Britain and Slovenia, each. The rest of the countries do not stand out for noticeable volumes of supplies, and if they are exported abroad, then most often previously imported hops, based on logistic or trade considerations.

It is much more difficult to determine the composition of the key hop buyers. There are no clear leaders among the importers of hops, but we can list a group of countries that are constantly in the top ten. Despite the abundance of its own raw materials, Germany and the USA usually remain the largest buyers of imported hops, which can be easily explained by the variety of local beer tastes, large volumes of hop consumption, as well as the established specialization of Germany in bitter hop varieties, and the USA in aromatic varieties. The same can be said for the UK.

In addition, the top ten buyers invariably include countries where local hop-growing is underdeveloped and the volume of beer production is large. In 2016, Russia took the fourth position among the importers of hops. Also, Italy and two Asian leaders - China and Japan - are buying invariably large volumes of hops (it is likely that Vietnam and India will also gain weight over time).

The listed 7 largest buying countries stand out in a special scale against the background of many other markets and consume about ... all imported hops.

USA: that's enough

About ten years ago, a craft boom began in the United States, one of the drivers of which was heavily hopped beers. Soon, fundamental changes began in the hop market as well, which we will briefly discuss.

The rapid growth in the number of craft breweries and the increase in their turnover occurred in parallel with the increase in hop consumption. This provided a powerful synergistic impetus for hop production.

According to polls by The Brewers Association, the specific hop consumption in beer production has steadily and rapidly increased since 2009, both on average in craft beer production and by individual breweries. A noticeable jump (for craft producers as a whole from 0.95 to 1.12 pounds per barrel) took place in 2009, when the shortage of raw materials was just beginning to be eliminated. Enthusiastic brewers were still struggling with hops, while IPAs were rapidly gaining popularity. Then, during 2010-2016. hop consumption per unit volume increased by an average of 6% per year.

Hop growers reacted quickly to the craft boom by expanding plantings of aroma varieties. But due to the crisis of overproduction, the general reduction in the area of ​​cultivation of hops of different varieties by inertia continued until 2011. The recovery in demand was initially imperceptible, but very soon turned into a long-term growth trend. In 2014, after a local jump in craft beer consumption, a new cycle of rapid space expansion began. At the same time, from 2009 to 2017, the 80/20 ratio of bitter and aromatic hop varieties mirrored in favor of aroma.

If we compare the data of The Brewers Association with the dynamics of hop production, then we can say that until 2014 it grew in the United States only thanks to craft brewers, and later - also thanks to them. Hop consumption by craft breweries during 2007-2016 increased 5 times and reached 33 million pounds (an increase in metric terms is 14,969 tons). During this time, the share of craft brewers in hop purchases increased from 10 to 38%.

According to November IHGC data, 2017 was an unprecedented year of harvest and broke all historical records. Hop production increased by 20% to 48,067 tonnes and alpha acids by 28% to 5,114 tonnes. Thus, in 2017, the United States again became the first in the ranking of countries producing hops and alpha-acid, overtaking Germany.

However, it will be difficult and hardly advisable for the United States to maintain its leadership. One would expect the demand for hops to grow as the craft beer market demands more raw materials. Only the previous double-digit growth rates recorded by The Brewers Association have already become moderate or even replaced by stagnation.

In November 2017, The Brewers Association published its forecast for craft beer sales in the United States on CNBC. By the end of the year, an increase in natural volumes is expected by about 5-6%, i.e. at the level of 2016. The market share of craft brewers will grow slightly and reach 12%. According to IRI Worldwide, the volume of craft beer sales in January-November increased by 3.6%.

True, the numbers depend on the base and methodology, i.e. on who counts as a craft brewer and how to count. For example, the “historical” data of The Brewers Association presented on the website, with a breakdown of craft beer production by segment, shows that by the end of 2016 the growth was not 6%, but 1%. At the same time, the data reflect the two-speed nature of the development of craft beer production, depending on the size of the business.

In a sharp increase in volumes for 2009-2014. the main contribution was made by large craft breweries at the regional and national level. However, in 2015, their output rates also sharply slowed down, and in 2016, for the first time in their long history, they decreased (-6%). In particular, four of the five largest craft breweries (D.G. Yuengling & Sons, Boston Beer Company, Sierra Nevada and Gambrinus Company) reported declining sales.

2017 is also unlikely to be positive for the segment leaders. There is little public information so far, but, for example, the Boston Beer Company has already reported a 6% reduction in sales for 3 quarters of 2017. It is known that sales of Sierra Nevada and a number of other companies decreased in dollar terms.

One of the main reasons for what is happening lies on the surface - after all, sales continue to increase microbreweries focused on their city or small area. In 2016, their output volumes increased by 26%, and will grow by a double-digit percentage in 2017. Many commentators and experts of the US beer market conclude that, unlike local brands of microbreweries, brands with wide distribution over time outgrow the perception of sophisticated beer lovers as craft beer.

Increased competition, albeit indirect, between craft brewers of various sizes is a sign of a mature market that will no longer grow rapidly. But hop plantings expanded on the basis of optimistic predictions of maintaining double-digit growth. In 2017, hop acreage and production continued to increase in all three major states - Washington, Oregon, and Ohio, according to USDA data. In total - by 6.4%, up to 54,135 acres, or up to 21,908 hectares. Approximately the same data is provided by the IHGC throughout the country - an increase of 7.1%, to 22,959 hectares. The pace is slightly slower than in 2016, but still high.

Now, due to the long cycle and inertia of hop production, market participants are talking about a likely surplus in the coming years. For the first time about the danger of overproduction back in the summer of 2016, Ann George, CEO of Hop Growers of America, announced. She urged market participants to exercise caution when negotiating contracts in order to maintain the balance of the hop market. It seems that her fears have become reality.

Thus, according to the USDA, hop stocks (including processing into extracts and pellets) increased by 15.3% by September 2017, to 98 million pounds. At the same time, the brewers continued to reduce the volume of hops in their warehouses (from 38 to 36 million pounds). That is, the current stocks grew at the expense of dealers and hop producers.

Some brewers continued to use existing hop stocks due to falling sales. Others are no longer optimistic about their future growth. And still others are sure that they will be provided with hops in 2018 or will buy it in addition on the spot market.

Those brewers who, remembering the hop deficit in 2010-2011, and succumbing to the euphoria of the rapid growth of the craft market, entered into long-term contracts that now seem impracticable, found themselves in the most difficult situation.

But this is only part of the problem for hop growers and traders. The main difference from the situation a decade ago is that today the bulk of hop sales are in aroma varieties with a relatively short shelf life. Additional complications are created by the changing tastes of craft beer lovers. Some hop varieties have gone out of fashion or are in surplus, and prices on the spot market have become significantly lower than contracted. The brewers were tempted to give up contracts for at least those varieties that they no longer need.

Contracted hop share in USA as% of crop in year N

Share of contracted hops in the United States as a percentage of the harvest per yearN

Source: International Hop Growers' Convention

The increase in risks for hop producers is also indicated by official data - a sharp decrease in the length of contracts recorded by the IHGC in 2017. If in 2016 almost 100% of the harvest was sold for the third year ahead, then in 2017, taking into account previous obligations, the share of such contracts decreased to 65%.

Small trading companies have already started to experience financial difficulties. For example, in August 2017, 47Hops, which specialized in the sale of hops, announced the start of bankruptcy proceedings and restructuring of obligations. 47Hops tried to reorient some of its supplies to export, but the problems in the home market turned out to be too serious.

It's worth quoting 47Hops President Douglas McKinnon uncut here as he explains his decision to partners:

« The growth of the craft beer market in the US has slowed from 18% pa in 2014 to the current level of 5-6% pa. Unfortunately, over the past few years, optimistic brewers have contracted more hops than they need in light of these slowing growth rates. We, in turn, entered into contracts with suppliers to fulfill our obligations under contracts with brewers. Judging by the late payment for hops by brewers, it seems that most of these hops are simply not needed in today's market. 47Hops made attempts to change its agreements with several major suppliers. Unfortunately, some of them were unwilling or unable to change their contracts in line with the falling demand in the market.

Over the past year, a significant number of brewers with whom 47Hops have contracts have delayed shipping payments for their hops. Some hop contracts are one year overdue. Some brewers stopped answering calls and emails altogether. We understand that this is most likely the result of falling sales and cash flow problems at their factories, rather than their malicious intent. However, at 47Hops, this led to the accumulation of two things: 1) the purchased stock of aroma hops in warehouses and 2) debt as a result of the purchase of this stock.

Delayed or no late payment for contractual hops increases the risk and financial burden on an already risky business. Because 47Hops is a family business, this leaves our cost structure so vulnerable that profits from once lucrative contracts cannot cover the costs. Uncertainty as to whether our brewer clients would be able to pay for and take delivery of futures contracts created a state of affairs that only had to be dealt with by decisive action. Thus, we took preventive steps without waiting for the situation to irreversibly damage the company and drive it into a corner..»

However, the redistribution of sales in favor of microbreweries could support moderate growth in the hop market.

The Brewers Association divides craft beer producers into two groups - brewers with high hop consumption and medium consumption. The first group, with a specific consumption of 1.5 lbs of hops per barrel, includes all restaurant and microbreweries, most of the breweries that were acquired by large companies (Goose Island, 10 Barrel, Elysian, St Archer, etc.), as well as some regional breweries. The second group, with a consumption of 0.43 pounds of hops per barrel, includes mainly regional companies, many of which have reduced sales and share in the craft segment (D.G. Yuengling & Sons, Boston Beer Company, Minhas, etc.).

We also see that US hop consumption could be supported by supergiant AB InBev, which has strengthened the premium segment of its brand portfolio by purchasing 10 craft breweries over the past year.

At the same time, the company is showing noticeable activity not only in the USA, but also in the global hop market. In particular, in a 2016 report, AB InBev speaks of cooperation with farmers in the province of Rio Negro (Argentina) who cultivate hops for the company. And in the summer of 2017, American craft brewers reported that they could no longer purchase raw materials from South Africa. After AB InBev acquired SABMiller, the company gained control over the South African hop crop. And now the harvest is directed to the needs of AB InBev. Perhaps, in this way, the company is simply seeking to diversify its supplies so that it is less dependent on weather conditions and large suppliers of hops in the event of fluctuations in demand and prices.

Germany: plans vs weather

The development of the German hop market may seem like a restrained quest for balance against the backdrop of a rollercoaster in the United States. This, of course, is due to the wide geography of sales and the more predictable beer market in Western Europe. The pattern of changes in hop acreage in Germany and the United States is generally similar, but the rates of decline and growth differ sharply.

The current situation in Germany can be described as a moderate increase in acreage, which cautiously follows an increase in demand for hops. The cycle of increase began in 2013 (replacing the three-year reduction period) and has continued since then fairly evenly, without leaps. According to the IHGC, acreage increased by another 5% in 2017, to 19,543 hectares, exceeding the 2008 high.

Another significant difference between Germany and the United States is the greater orientation of European brewers towards classic tastes. Therefore, in Germany, the share of bitter varieties is twice as high as in the United States, at 42%. And therefore, the market situation can also be assessed by the conditionally impersonal volume of alpha-acid production.

Historically, the main region for growing German hops is the Hallertau Valley, located in the north of Bavaria. Hallertau is considered the largest unfragmented hop-growing region in the world. In the total hop yield, its weight is about 85%. Other large hop crops are located in eastern Germany in the vicinity of the Elbe and Saale rivers (7% of the national harvest). The southernmost plantings are located on the border with Switzerland in the vicinity of the town of Tettnang, where mainly aromatic hops are grown (5%). There are also small plantings in the vicinity of the Bavarian town of Spalt (2%).

Localization makes national hop production highly dependent on weather fluctuations in northern Bavaria. In 2017, despite an increase in hops harvested in the vicinity of Tettnang, Elbe-Saale and Spalt, the decline in the Hallertau Valley proved to be decisive for the negative bottom line.

In the period 2013-2017. both bitter and aromatic hop cultivars were growing in Germany. However, if the average growth of bitter varieties during this period was 1.8% per year, then for aromatic varieties it was 3.9%. This was also a consequence of the growing popularity of craft and unusual beer. Although the growth rates have leveled off over the past couple of years.

Finally, the third significant difference from the United States is that German hop producers are more export-oriented than domestic. Most of the German hops are bought by multinational companies. For example, with a gross hop harvest of 42.8 tonnes in 2016, Germany exported 22.8 tonnes of finished hop products. But the share of exports could be 60% of the output, if we take into account the deeper processing of exported hop products. The wide geography of German hop supplies smooths out local fluctuations in demand and makes the business sustainable.

The producers' caution in managing the planting area and the constant balancing between supply and demand make the market sensitive to unpredictable external factors. First of all, to the weather, which has led to sharp fluctuations in hop yields in recent years. Hops are very sensitive to drought in June-July, and globally, the climate seems to be getting hotter. Poor harvests in 2013 and 2015 led to depletion of stocks, hop shortages and higher prices. The negative effect was partially mitigated by the harvest years of 2014 and 2016.

However, constant fluctuations in volumes have made it commonplace to conclude futures contracts for hops for even 5-10 years and narrow the spot market. The proportion of contracted German hops, as well as the length of the contracts, according to the IHGC, today remain quite large. In 2017, more than 90% of the crop was sold 4 years in advance. However, the ratio of contracted and freely traded hops fluctuates depending on the yield and the alpha acid content. For example, in a poor harvest in 2015, the share of contracted hops was 105% of the grown volume, and with a surplus in 2016 - 78%.

Contracted hop share in Germany as% of crop in year N

Share of contracted hops in Germany as a percentage of the harvest per yearN

In 2017, the market can be called balanced and the curve of the share of futures, according to the November IHGC data, is located between the curves of a poor 2015 and a fruitful 2016.

It is possible that the share of contracts would not have been so high, but 2017 turned out to be a nervous year for hop growers and hop buyers. At the August IHGC conference in Yakima, a pessimistic forecast was published regarding the volume of hop harvest in the EU in 2017. There have indeed been many reasons for concern this season.

President of the German Hop Producers Association (DHWV) Johann Pichlmeier complained that late frosts occurred in April that damaged the shoots, July was dry, in addition, the hops were planted with hail and attacked the spider mite (it reproduces especially actively in the heat). If the drought had lasted another week or two, the harvest would have been very poor, but rains in late July and August saved him. A series of such news probably aroused fears among brewers to be left without hops.

Johann Pichlmeier said that since the contracting rate of the 2017 crop is high, there is a high probability that the spot prices for the remaining hops will rise, unless the harvest exceeds forecasts. And by November, when the situation became clearer, the current market prices for hops, especially for bitter varieties, did indeed rise.

On the one hand, the fears did not materialize - the 2017 harvest turned out to be relatively good, as belated rains saved it. According to DHWV data in November, German hop growers managed to harvest 41,556 tons of raw material, which is only 3% less than a decent harvest in 2016.

On the other hand, due to dry weather, the alpha-acid content was significantly below normal, although it fluctuated by region. The volume of alpha-acid produced according to the results of the November IHGC conference in Prague was approximately estimated at 4200 tons, which is 12% less than in 2016.

According to DHWV chairman Peter Hintermeier, due to fluctuations in hop yields in different regions of Germany and low alpha acid content, brewers will still have to purchase some of the raw materials on the spot market, since not all hop producers will be able to fulfill the terms of the alpha acid contract in full. volume. Therefore, Peter Hintermeyer believes that 2018 will be a challenging year for brewers.

Czech Republic: classic monohmel

Speaking of Czech hops, they most often mean the aromatic variety Saaz (the name in Russian is Zatecky early crimson or in Czech - Žatecký poloraný červeňák). This is not surprising, since its share, as a rule, exceeds 80% of the total hop yield. This situation has developed historically, since until 1996 in the Czech Republic there was a restriction on the cultivation of other varieties.

Saaz is mainly grown in the vicinity of the city of the same name Zatec (Czech Žatec, German Saaz), which is located in the northwest of the largest region of the country - Bohemia. The alpha-acid content in atec hops is low by definition (2.5-4.5%).

Like German producers, Czech hop growers export the bulk of their production. And as in Germany, the supply volumes are kept at about the same level, regardless of whether the harvest was good or not. For example, in 2015, which was a disastrous year for hop growers, 3,742 tons were shipped abroad and very little hop remained on the domestic market, and in 2016, a record-breaking year, 3,906 tons. Obviously, compliance with the terms of delivery allows a relatively long shelf life for aromatic granulated hops (2 years at normal and up to 5 years at low temperatures).

Contracted hop share in Czech Republic as% of crop in year N

Share of contracted hops in the Czech Republic, as a percentage of the harvest per yearN

It is also worth noting the unprecedentedly high level of contracting of the hop harvest. According to IHGC estimates, deals have become longer and longer and since 2014 the harvest has been completely sold out on futures contracts for three years in advance (2017 was no exception). However, in the 4th and 5th years ahead, most of the harvest, as a rule, already belongs to someone.

This is due to the fact that for Czech hop growers the main buyers have long been large companies that invariably use the Saaz variety in the production of famous brands in the classic style. The largest batches of Czech hops are supplied to Germany, China, Japan, Russia and Belgium (in decreasing order of volume). These 5 countries accounted for 81% of exports in 2016.

In 2013 in the Czech Republic, a long cycle of reduction of hop planted areas ended and growth began at an average rate of 3.6% per year. In 2017, the area planted with hops in the Czech Republic increased by 3.5%, to 4,945 hectares. This expansion was almost entirely due to the Saaz cultivar, which added 125 hectares out of a total additional area of ​​170 hectares.

According to the Central Institute for Supervising and Testing in Agriculture (CISTA or ÚKZÚZ), in 2017 the weather varied markedly during the growing season and depending on the region. The Olomouc Region (in the fields of Tršycko) received the least amount of precipitation, while in stěc Region and the vicinity of atec, precipitation helped to improve the harvest at the end of the season.

If the share of late hybrid varieties (such as Kazbek, Saaz Late) were higher, they could slightly soften the negative dynamics. But since the early Saaz variety dominates, its yield decreased by 13.5% to 4,287 tons. The Czech hop crop as a whole decreased by 11.9% to 6,797 tons. Therefore, the share of Saaz in 2017 in the total volume was temporarily reduced to 63%.

Despite the double-digit decline in volumes, CISTA is not dramatizing the situation. Since the harvest has decreased only against the background of record indicators in 2016, then, in general, hop producers are satisfied. This year's harvest is still above average and is likely to be completely sold out.

Germany remains the undisputed leader in the Russian hop market, but for the last two years Czech suppliers have been building on their success here. Their expansion and the growing popularity of US hops were both drivers of supply growth in 2016, despite the previous modest harvest in the EU, and a factor of relative stability in 2017. In this regard, in 2017, the ratio of varieties continued to shift towards aroma, and the supply of Magnum hops and a number of other bitter varieties decreased. However, the import of granulated bitter hops is partially replaced by extracts, primarily from large beer producers. Total alpha acid shipments, according to our estimate, decreased by about 5% and returned to the 2015 level. The Barth Haas Group continues to dominate the hop market, and HVG has also increased its weight. At the same time, deliveries of Morris Hanbury were significantly reduced in 2017.

What and how influenced the domestic market

Russia's demand for hops is almost entirely covered by imports, the volumes of which are constantly fluctuating. Due to uneven import dynamics, short-term changes may not reflect changes in demand. Estimates should be given only for long time intervals. For example, we can talk about a serious decline in supplies after 2008, which was caused by crop failures, price rallies and a reduction in beer consumption. We can also talk about the subsequent rapid (but partial) recovery of hop consumption.

Another leap and correction took place over the past three years. But the dynamics will look smoother if we take 2014 outside the brackets, when the ruble devalued and imports of any goods sank. Then we can talk about stabilization and that, probably, the volumes of supplies are included in the fluctuation corridor of 3000 - 3500 tons per year and will not grow or decrease significantly.

According to the information portal Marketing1.ru, in the first three quarters of 2017, the import of hops in cones and pellets decreased by 5%. As a rule, the bulk of hops enter the market in the period from March to July, however, one can expect that the results for the whole year will turn out to be slightly better due to the relatively low base at the end of 2016. In addition, the preliminary results of 2017 should be assessed taking into account the rather complex structure of consumption of hop products:

• In recent years, a trend has emerged to gradually replace hop pellets with liquid extracts. This change primarily affects bitter varieties, although the structure of aroma hop sales is also becoming more complex. Therefore, a reduction in the supply of hop pellets does not in itself mean less demand for hop products. We will consider importing extracts below.
• Also, in recent years, there has been a fairly rapid decline in the supply of bitter hop varieties both in absolute terms and in their share in the total volume. Conversely, the absolute volumes of aromatic varieties grew, which became especially noticeable in 2017.
• The dynamics of hop purchases varied depending on the yield and price fluctuations in the growing regions. In 2017, Russian brewers could use up stocks of German and Czech hops with a long shelf life, contracted and / or imported in previous years. Conversely, the supply of aroma varieties increased, which was due to both the surplus in the US market and the popularity of German and Czech aroma hops.
• The sharp increase in the supply of pelleted hops and extracts in 2016 was not supported by the recovery in beer consumption due to the ban on large PET packaging. This is another reason why brewers may have been less active in stockpiling in 2017, spending the previous year's surplus. Although already from August 2017 we can talk about stabilization and even a transition to a slow growth in beer production.
• Although the Russian hop market is 90% formed by imports, sharp fluctuations in production in the Chuvash Republic still affect the balance of hop trade. This is exactly what happened in 2017, when the yield was noticeably higher than the previous season.

Pellet hop import structure

Geographically, we can say that Russian brewers are guided by German and Czech suppliers, while hops from the United States have only begun to gain popularity in recent years. Hop import geography in 2016 and the reporting period 2017 has changed somewhat.

Germany, although it is the main supplier of hops, did not have a significant impact on the market dynamics in 2016-2017. According to Marketing1.ru, import from Of Germany did not fluctuate very much - in 2016 it decreased slightly, and in 2017 it grew by about the same amount. These fluctuations can be easily explained by a poor harvest in 2015 and a good one in 2016.

But Czech Republic due to the strong growth in supplies, it was not only a growth driver in 2016, but also ensured relative stability in 2017. As we have already said, Czech hop producers manage to withstand the volume of foreign contracts, regardless of fluctuations in the current yield.

The decline in supplies from Great Britain in 2017. Deliveries from USA... Also note the reduction in imports from Slovenia which lasts the second year

Approximately…% of import supplies of pelleted hops are provided by three market leaders - Barth Haas Group, Hopsteiner and HVG, which directly or with the participation of trading partners import almost the entire volume of bitter hops into Russia and are the largest suppliers of aroma varieties.

The undisputed leader is the company BarthHaasGroup, which gradually increased its share in recent years and today controls about ...% of the market. Hopsteiner since 2015, it has been reducing the supply volumes and the share in the total sales volume (about ...% in 2017). However, this decrease was offset by an increase in the supply of hop extracts (see below). As a result, the second position in the list of leaders in the pelleted hop market today is occupied by the company HVG with a share of about ...%. Share Morris hanbury in 2017, it significantly decreased (which is associated with the decline in imports of British hops), although, perhaps, these are temporary “fluctuations”. The rest of the producers control ... sales of imported hop pellets, supplying aromatized varieties in the bulk.

Buyers of hop pellets can be divided into three groups: trading companies (including representative offices of hop producers), federal breweries and many regional breweries. In this structure of hop purchases, there have recently been changes in the shares of participants.

Approximately ... pelleted hops are traded by traders, and this share is quite stable, except for a temporary increase in 2015. At the same time, the share of regional breweries in 2016-2017. grew by about ..., to ...%, which can be explained by the increase in the volume of direct import, without the participation of Russian intermediaries.

Among large brewing companies, the main direct buyers of hops are Carlsberg Group and…, and… also acquires noticeable volumes. At the same time ... buys more and more hops, and ... on the contrary, since 2016, it has been rapidly reducing the volume of direct imports due to the replacement of granulated hops with extracts.

The structure of supplies to trading, logistics companies, as well as representatives of hop growers was constantly changing, as well as the shares of these companies. Taking the logistic firms out of the brackets, the largest buyer of hop pellets in 2017 is the company “ Grainrus», Which works in close cooperation with the German ..., purchasing from her about ...% of the hops sold. A relatively small amount of atec hop was also supplied by Grainrus from the Czech ... and from the USA.

Major suppliers of German raw materials from the leading three manufacturers are the companies “ Russian hops" and " Braumaster". In fact, on an exclusive basis, performing a representative function ..., the companies work “ Stelmos" and " Hopsteiner Rus”, And the latter begins to play a key role. Also among the major suppliers it is worth highlighting the company “ Helios (Almek)", Which largely focuses on hops from ... (but also sells hops ...) and the Russian representative office Doehler(hops ...).

Alpha and Aroma

During 2014-2017 the share of aromatic varieties in the total imports of hop pellets increased. If we take into account the supply of hops with unknown characteristics, then in 2014 the share of aromatic hops (plus aromatic hops with a high alpha acid content) was 58%, in 2016 -…%, and in the first three quarters of 2017 it amounted to…%.

In total, for 9 months of 2017, supplies of aromatic hop varieties increased by…% and supplies of bitter varieties decreased by…, according to Marketing1.ru data.

Bitter hops are almost completely imported to Russia from Germany, the share of other countries is decreasing, and in 2017 it was less than ...%. On the other hand, the structure of aromatic hop supply is constantly changing, and Germany is not so completely dominant. German hops were the main contributors to the sharp increase in the 2015 category and influenced its increase in 2017. American aroma hops grew significantly in volume between 2016 and 2017. Aromatic hop deliveries from the Czech Republic in 2014-2017 were fairly stable.

Most of the decline in share bitter hops this was influenced by the reduction in supplies of the main grade - Magnum (...% for the period under review in 2017). For a long time it was a leader in the structure of Russian imports, but now it has moved to the second position, giving way to an aromatic variety. The reduction in the supply of varieties ..., ... and ... was even more dramatic. Only the import volumes of hops ... remained at about the same level, which looks good against the background of the entire category. However, the tendency to substitute Magnum for a variety ... was formed a long time ago, and it was ... that was the main driver of growth in the supply of bitter hops in previous years.

Top three varieties aroma hops has been gaining weight rapidly since 2014 and has been relatively stable in 9M2017. German Hallertau Tradition became the leader in hop supplies (displacing bitter Magnum), although the volume remained practically unchanged relative to 9M2016 (-…%). Also, imports of Saaz hops were virtually at the same level due to the termination of supplies from Great Britain (- ...%). At the same time, the variety ... slightly increased the volume and share, which was mainly supplied from Germany (+ ...%). Note that during 2014-2016. the supply of these varieties has grown steadily and rapidly. On the contrary, the variety ... which was once popular, has become a clear outsider. Also in 9M2017 the supply of hops fell…. The overall growth of the aromatic hop category was provided by many varieties, since, unlike bitter hops, the structure of their supply is less consolidated with a wider assortment. Particularly high was the contribution of the German varieties Spalter Select,…,…,… and the bitter-aromatic Northern Brewer.

It should be noted that aroma hops, due to the nature of their use, are often supplied in small batches and privately, especially when it comes to craft brewers. It is unlikely that these volumes are very large, but it is impossible to estimate them, and the real volumes of imports of aromatic hops are higher than the formal ones.

Deliveries bitter varieties of hop pellets are quite consolidated - the three leading companies account for about ...% of imports. Moreover, we can talk about a tendency to increase their weight and oust other suppliers from the market.

Almost ... imports of bitter hops account for Barth Haas Group... The company increased its deliveries at an impressive pace until 2016, increasingly establishing itself as the market leader. Based on the data for 9M2017, we can expect that by the end of the year, supplies will return to the level of 2015, but this can be considered a good result. Import volumes of the company Hopsteiner began to decline in 2015 and continued throughout the period under review. Company HVG increased the supply of bitter hops in 2016 and moved up to the second position in the category. In 9M2017, its deliveries decreased less than that of other large market participants, and its share increased to ...%, according to our estimates.

Sales aromatic varieties hops (as well as bitter-aromatic ones) are consolidated to a lesser extent and there are no monopolists here. Here, on the contrary, the tendency to expand the number of market participants, as well as the assortment, is obvious. We can say that this process today stabilizes the hop market.

Despite the overall increase in imports, only two of the major market players continue to increase their supplies. Most influenced by Barth Haas Group, which is increasingly becoming the leader in the aroma hop segment. According to our estimates, the company controlled about ... supplies until 2017, increasing them in line with average growth rates, but by the end of 2017 its share will noticeably grow. At the same time, the company Hopsteiner for the second year already, it continues to reduce the volume of supplies. The sharpest reduction in volumes and share of supplies in 2017 was noted by the company Morris hanbury... The third place was taken by the company HVG, which methodically and continuously increases its presence and may, according to the updated results of 2017 or in the near future, take the second place in the list of suppliers of aroma hops.

In general, the multidirectional dynamics led to a reduction in the share of 4 market leaders in 2017 in the aroma and dual categories. Most of the small companies with volumes of 30 - 100 tons increased their supplies. While one of the more prominent second-tier suppliers is the company 47 Hops from the United States, which has filed for bankruptcy (see above). A number of suppliers of Czech hops have made significant progress: MM-Invest, Arix, Chmelarstvi - cooperative Zatec (Bohemia Hop) and Czech Commerce Company.

Hop extracts

Against the background of a decrease in the supply of hop pellets, in 2016 the supply of hop extracts increased sharply. There are objective prerequisites for the gradual replacement of some hop products with others.

First of all, it is because of the price. For example, in 2016, one of the market leaders imported several batches of 1-3 tons of extract from Magnum hops, its cost was ... dollars per kilogram with an alpha acid concentration of 45%. At the same time, 4 tons of pelleted Magnum hops with 13.6% alpha-acid concentration cost about… dollars per kilogram. That is, the alpha acid, which was contained in the concentrate, cost $ ..., and in granulated hops - $ ... per kilogram.

In addition to the increasing availability of extracts, their attractiveness is growing due to the ease and duration of storage. For example, in 2017, extracts were supplied to Russia, including those produced from hops of the 2012 harvest. Here we note that the main volume of imports is still fresh extracts produced in 2016, and the cost of “old” extracts was lower. One way or another, long shelf life allows brewers to efficiently manage and form stocks during periods of low raw material prices.

Finally, even craft brewers are increasingly moving away from the stereotypes that hop extracts are used exclusively in mass production in order to simplify and reduce the cost of the process. The iso-alpha acid form provides technological advantages in the production of beer. But a fashion is also emerging for extracts with a high content of beta acids, which are used instead of granules of aromatic hops.

In the first 3 quarters of 2017, the import of extracts to Russia decreased by ...%, which can be considered a very good result given the high base of the previous year. As with hop pellets, the bulk of the extracts are usually supplied between March and July. Therefore, according to the preliminary results of 2017, it can be assumed that the import of extracts is about ... tons.

The structure of the supply of extracts, depending on the content of iso-alpha acids, was constantly changing. In 2014, about ... extracts were supplied with a high alpha-acid content (40-62%). In 2016, the share of aromatic extracts and extracts with ...% alpha-acid content increased significantly, while the volume of high concentration extracts (...%) remained unchanged. According to our preliminary estimates, in 2017 the share of extracts with an alpha-acid content of more than ...% will noticeably increase, and the share of ... extracts will slightly decrease.

The key supplier of extracts with a share of about ...% remains Barth Haas Group... However, the growth of volumes in 2016 and their preservation in 2017 were largely achieved due to the increase in supplies by the company Hopsteiner... Today the company's share can be estimated at about ...% of the total volume. The weight of other suppliers of hop extracts is constantly fluctuating, but among them only the German HVG and the American Kalsec stand out. In addition, Yakima Chief, the largest hop producer in the United States, may be included in the list of key extract suppliers.

Since the main component of imported extracts is alpha-acid (more often iso-alpha acid), then for a correct assessment of the import of extracts it is necessary to compare its volume. The volume fraction of alpha-acid varies markedly depending on the supplier and the type of extract, usually ranging from 30-60%. According to our estimates, in 2017, the supply of alpha-acid in extracts did not decrease, but increased slightly. By the end of the year, their estimated volume is about ... tons.

As in the previous estimate, Barth Haas Group clearly dominates in terms of alpha-acid imports, but the company's share since 2015 has not exceeded ...%. At the same time, the importance of Hopsteiner has grown significantly and today the company accounts for about ... supplies of alpha-acid in the form of extracts. Also, in terms of alpha acid, the weight of HVG and Kalsec will be higher.

In the structure of imports of hop extracts, there is a large share of direct purchases of brewing companies. Until 2016, approximately the same volumes of extracts were supplied to Carlsberg and Efes, and together they provided half of the import. But in 2016, Carlsberg sharply reduced direct purchases of hop pellets and increased extracts, now its share is about a third of the total. Also in 2017, the aggregate share of many small buyers increased significantly.

When recalculating the volume of direct purchases of extracts into conditional alpha-acid, the share of Carlsberg and… will be lower, but at the same time… will be included in the list of noticeable buyers-brewers.

Own production: still a little

Industrial hop growing on the territory of the USSR began to develop in the 30s of the twentieth century, when plantations were first laid on pole trellises. By the time of the collapse of the USSR, the demand of Russian brewers for hops was completely covered by production in Russia and Ukraine (some of the Ukrainian hops were even exported). The main Russian hop-producing region is the Chuvash Republic (95% of the total crop), small plantings have survived in the Altai Territory and the Republic of Mari El.

Hop-growing in Chuvashia began to develop intensively in 1922, providing its products to almost all Russian breweries. This went on until the turning point of 1993, when 3,200 tons of dry hops were harvested from 2,700 hectares of hops in the republic. But just this year, according to hop growers, Russian brewers began to massively purchase imported hop products, which is why the harvested crop remained unclaimed. Starting next year, a protracted decline in hop production began in Chuvashia. The main reason for the crisis was the fact that the Republic at that time practically did not produce pelleted hops and extracts, but sold pressed dry hop cones with a short shelf life.

Subsequently, the consolidation of the beer market in the hands of international companies led to an almost complete transition to standard varieties of imported hops. The lowest point was reached in 2010, when the hop area was only 242 hectares, and due to bad weather, only 23 tons of hops were harvested that year.

Today the situation has improved markedly. Manufacturers purchased equipment for processing hops, and the cultivation area increased. The recovery of the industry was facilitated by the relatively low cost of Russian hops after the devaluation of the ruble, subsidies for harvested hops and the general course towards import substitution.

The most widespread plantings of three varieties of hops are aromatic "Moscow Early" (with an alpha-acid content of 3-5%) and "Istrinsky" (4-4.5%), as well as the bitter-aromatic "Podvyaznoy" (5-8.7%) ...

In total, 5 farms are engaged in the cultivation of hops in the Chuvash Republic. According to the reporting the largest manufacturer JSC "Chuvashkhmelprom", in 2016 its revenue increased by 68%, to 45.5 million rubles. In the same year, a new powerful hop granulation line was put into operation.

The main factors that influenced the volume of hop production in the Chuvash Republic in recent years were the weather, the introduction of effective agricultural technologies and the growth of areas.

A record year for the Chuvash Republic was 2015, when farms of all categories with a yield of 18.1 c / ha harvested 418.8 tons of hops (the total crop in Russia was 438.4 tons at that time).

2016 was a bad year due to lack of moisture and high temperatures during the growing season. The yield then amounted to 13.9 kg / ha, and the gross yield was 324 tons. The area occupied by hop cultivation was 309 hectares, 27.5 hectares of new hops were planted.

As of 2017, at the time of preparing the article, Chuvashstat has not yet published official data. But according to the Ministry of Agriculture of the Chechen Republic, the hop yield was not bad - 16.5 c / ha. Taking into account the areas laid down earlier, the gross harvest in the Republic could reach 400 tons. In general, in Russia, the harvest could reach 430 tons, according to our estimates.

Based on our estimate of the volume of gross hop harvest and the trade balance, the share of Russian manufacturers on the domestic market has been hovering around the 10% mark since 2011, but is likely to grow in the future. At the same time, due to the specialization in the production of aromatic varieties, today there is no talk of significant volumes of production of Russian alpha-acid. Its approximate volume is 17 tons per year.

Alpha acid volumes

The accuracy of calculating the volume of the alpha-acid market is complicated by the fact that at the same time, granulated hops of the harvest of different years are imported to Russia. Since the alpha acid content in it fluctuates depending on weather conditions, we used for our calculations the average values ​​regulated for specific varieties, multiplying them by the volume of supply.

We determined the market volume as a result of the trade balance, in which we summed up the estimated volume of alpha acid in imported granulated hops, imported hop extracts and Russian-made hops minus exports. At the same time, we did not take into account carry-over stocks that could have been generated by Russian trading companies.

The main market fluctuations were associated with the dynamics of the supply of hop pellets. As mentioned above, after recovering growth in 2015 and growth in advance in 2016, imports declined in 2017. At the same time, the supply of hops with a high content of alpha acid in 2016 almost did not increase. Total imports increased due to aromatic varieties and, to a small extent, dual-use varieties. Therefore, today the average alpha-acid content of imported pellets (and pressed) hops is lower than it was a few years ago.

For this reason, the estimated supply of alpha-acid in pelleted hops in 2016 amounted to ... a ton with an increase of only ...%. At the end of 2017, the decline in alpha-acid supplies is approximately ...%, to ... tons.

We also noted that in recent years there has been a replacement of imported hop pellets with extracts. In 2016, the official supply of alpha-acid in extracts increased by ...% to ... tons. In 2017, the volume of imports of extracts decreased (based on the data for the first three quarters) by ..., but the share of extracts with a high alpha-acid content increased. As a result, the volumes of supplies of alpha-acid in extracts probably increased by ...%, to about ... tons.

In connection with the increase in the yield of hops in the Chuvash Republic, the volumes of alpha-acid production obviously also increased. According to our estimate, after a decline in volumes by ...% in 2016, in 2017 they increased by ...% to ... tons.

Although the export of hops from Russia (previously imported) is growing, it is still too small to significantly affect the trade balance. In 2017, the volume of exports in the form of alpha-acid can be estimated at ... tons.

Thus, the multidirectional dynamics of imports of hops in pellets and extracts determined the results of 2017. According to our preliminary estimates, the total volume of alpha-acid supplied to Russian companies decreased by ...% to ... tons. In other words, it has returned to roughly the 2015 level after growing slightly in 2016.

The materials of the article were prepared using statistics of import supplies provided by Marketing1.ru (http://marketing1.ru/), as well as data from national statistical services and industry unions:

The section on the global hop market used dataInternationalHopGrowers'Convention,FoodandAgricultureOrganizationoftheUnitedNations, as well as analytical reports from the Barth Haas Group.

The following data was also used: in the chapter on the US hop market -TheBrewersAssociation andUnitedStatesDepartmentofAgriculture (NationalAgriculturalStatisticsService); in the chapter on hop production in Germany -DeutscheHopfenwirtschaftsverband; in the chapter on hop production in the Czech Republic - Ústředníkontrolníazkušební ústavzemědě lský; in the chapter on hop production in Russia - the Ministry of Agriculture of the Chuvash Republic and Chuvashstat.

Market volume data and their interpretation, if the source of information is not indicated, is our estimate, which is based on calculations and existing trends.

We do not claim that the information provided is completely correct, although it is based on information obtained from reliable sources. You should not rely solely on the content of the article to the detriment of conducting your own analysis.

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