The latest BarthHaas crop report indicates Europe is expected to have a short hop crop due to weather conditions impacting the region, while an average crop is expected in the U.S.

The August crop report states that the official crop estimate for Germany is 18 per cent lower than average and down 20.4 per cent in comparison to last year, which yielded 47.862 tonnes.

Hop Products Australia said in a crop update this morning that lack of rainfall and above-average temperatures can be attributed to the numbers.

“The effects of drought are much greater in Europe compared to other growing regions around the world, as growers are prevented from irrigating their crop by law.”

Early maturing varieties such as Hallertau Mittelfrüh, Hallertau Tradition, Northern Brewer and Perle are affected and will yield poorly however, expected rainfall is “giving hope” for later maturing varieties.

Other European countries have seen similar conditions, according to the report, with the Czech Republic estimated to record 4.700 tonnes this year in contrast to last year’s record crop of 8.306 tonnes.

“What all of this means for the markets is very hard to gauge,” the BarthHaas report read.

‘’There is certainly supply from previous crops that will help to mitigate the shortfall, but these inventories are not necessarily of the varieties that are most needed.

“Many brewers are reporting very good beer production volumes for the first half of 2022 as the on-premise business is back in full swing.

“Some have even exceeded their output levels of the first six months of 2019. Therefore, demand is mostly strong across the globe.”

HPA said that strong supply from previous years will mitigate the expected shortfall but cooperation is required from brewers.

“Above average supply from previous crop years will help mitigate the expected shortfall and go some way towards satisfying demand.

“This will require cooperation and flexibility from brewers regarding crop year and varieties, but also presents a good opportunity to correct any over-contracted forward positions.

“Spot market pricing will vary in light of a short crop 2022, with forward pricing expected to increase in response to growers facing cost pressures greater than general inflation.”

Earlier this year, BarthHaas reported the 2021-2022 growing year saw a worldwide increase in hop cultivation, production and alpha production. Meanwhile, world beer production also increased in 2021 by a margin of 4 per cent to 1.86 billion hL, but failed to return to pre-pandemic levels seen in 2019 (1.91 billion hL).