Ontario District

The 2016 AGM Crop Report highlights significant challenges faced by the hop industry, particularly due to severe weather conditions impacting Slovenian crops. Despite high alpha production not meeting long-term averages, the global harvest of hops is estimated at approximately 108 million kilograms. The report notes a decline in world beer production for two consecutive years, with expectations of further declines in 2016, although the craft beer trend is driving increased hop dosage and consumption. The report indicates that hop inventories have reached a minimum worldwide, with strong demand for all varieties despite good crop volumes. The supply situation is expected to remain tense for the next year, leading to elevated spot market prices and contract quotations. The report concludes with a positive outlook for hop acreage growth in response to strong demand signals, emphasizing the resilience of the industry amidst challenges.