Global shortage of hops threatens beer production

We are a nation of beer drinkers. After water, milk and coffee, beer is the most popular beverage. Canadians spent more than $6.4 billion on beer in 2003, according to Statistics Canada.
And while the best-selling brands enjoy beer brewed by larger companies like Molson and Labatt, many enjoy beer crafted by smaller breweries like the dozens that are part of the Ontario Craft Breweries.
But there is trouble on the horizon for beer lovers in general and smaller brew lovers in particular.
Across the world there is a shortage of hops, a key ingredient in the brewing process and, to lesser extent, the same is true with malt and barley.
The problem stems from years of huge supply and relatively small demand. As the supply stayed high, many farmers reduced acreage or dropped out of the trade altogether. Because hops are used only in beer production, hops were not an option in an ever-diversifying world. Add to that a few bad harvests over the years and there’s a serious problem.
The supply reduced over the years and now it has reached a tipping point.
As demand continues to rise in this part of the world, and explodes in countries like India and China, the current supply is simply no longer adequate.
And while many will face hard times with a low demand it will not be the large breweries and flagship brands that will suffer. It is the smaller brews that will be hurt.
It is the craft breweries and the ‘24s for 24s’ that may not be able to pay the inflated prices for their key ingredients or at least have to raise prices.
The price increase may not be large at first, but things will get worse before they get better for small brewers.
It will simply take years before enough hops are in the fields and cultivated before the supply comes back up to speed.
So until then, raise your glasses, ye drinkers of hoppy microbrews. Support the little guys so that they can weather the storm on the horizon and continue to provide us with that alcoholic drink we Canadians love so much.