German Hop Farmers Clear Fields as Oversupply Crashes Prices by 90%

With hop prices falling to unsustainable levels, farmers are strategically reducing cultivation to stabilize the market while Germany remains the world's largest producer.

• Hop prices in Germany have plummeted to around 1 Euro per kilo, a tenth of last year's prices and far below production costs.
• Farmers are cutting portions of their fields, particularly for aroma hop varieties like Perle and Hallertauer Tradition, to address the oversupply.
• Shifts in brewing practices favoring high alpha acid hops and declining global beer demand are key drivers of the reduced need for traditional aroma hops.
• Industry experts suggest reducing global hop cultivation by 5,000 hectares, including 1,000 to 2,000 hectares in Germany, to rebalance the market.
• Despite the crisis, Germany is expected to retain its status as the world's largest hop producer, with sufficient reserves ensuring no immediate impact on beer production.

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