Position of Saaz hops in the world market
Ing. Jaroslav Kareš, President of International Hop Industry Cooperation (IHIC)
Saaz hops determined the prices and development of the market. The town of Saaz was the world centre not only of hop cultivation but also of hop trading.
During 19th century a need arose to mark the origin to prevent the interchange of hops. The system of checks of purity of varieties, regions of cultivation, years of harvest and another parameters remained in an adjusted form till these days.
20th century was not so positive for Saaz hops. Especially the two world wars and the economic depression in the 1930's meant great losses. After WW II the situation stabilised, however new blows came in the midst of the last decade of this century. Decline in prices, decline in sales and therefore reduction of acreage are closely connected to the developments in the world-wide market in hops at this time.
World-wide one can see the influence of a long-term imbalance between supply and demand for hops. Acreage of hop areas world- wide is in decline since 1992 and in 1998 it decreased by 12% compared to 1997 and of that aroma varieties decreased even by 20%. Reduction in acreage was seen even in the countries with the largest hop production, i.e. USA and Germany, however in the USA it was more significant. Number of hop growers' existences are threatened, and there is also a real threat that in some countries hop cultivation will cease completely. The solution is not only an acreage reduction, but it is also necessary to limit the alpha acid production, where accumulated world stocks of alpha are still growing. This situation was caused by varietal conversion, where still more alpha yielding varieties are grown primarily In the USA and Germany, and the yield is not only measured by tons but mainly by alpha production per ha.
All countries where hops are grown have their sales problems. Most affected were some aroma varieties in Germany, Czech Republic, Slovakia, Poland and several other countries.
It is necessary to mention also that within last few years some significant changes in technologies in brewing have been made. Unfortunately the importance of aroma substances has slightly diminished, the alpha acid content is preferred today. Large part of hops is traded on price per kg of alpha, a minimum of half of global beer production is brewed only from extracts and hopping rate is decreasing. This seems to be a long-term trend.
Relatively fast globalisation of the brewing and hop industries is taking place. 25 largest breweries in the world produce 56% of the total world production and there is further concentration of breweries coming. With regards to the domestic market, the basic situation is similar and reflects fully the world trend.
Consequences of this globalisation are also similar to the world trend, only for some exceptions this means a unification of beer taste, a decrease of bitterness, limiting the aroma hops use. Economical situation is pushing the breweries to maximum savings including the purchase of raw materials.
Total world beer production has slightly increased but it is necessary to take into account that in highly developed countries the production and consumption is stagnant or declining and brewing capacities are not fully used. Increase can be seen in some less developed countries where the production of beer is adjusted to local economic situation. Therefore beers over there are brewed mostly from cheap raw materials.
All of the above mentioned trends in the world brewing industry have a large influence on the use of Saaz hops. However in no case does it mean denying its qualities. It is necessary to take into account the fact that current situation with these particular hops cannot be understood as final. Its existence cannot be sustained only by tradition.
Winning a recognition in such large groups will demand not only an attractive price but also the fulfilment of always growing requirements on quality with the stress on alpha, and some other characteristics such as leaf content, colour and so on. Last but not least it is necessary to take a close look at harvesting of hops putting a stress on preserving the form of hop cones and all other following processes. Good storing, speed and quality of processing, packing and other services, which can affect the preservation of brewing substances are all extremely important. Price plays a significant role and is closely connected to a production intensity. There is certainly lot to be improved in this area.
Effort of hop growers, breeders, researchers, processors and traders can be taken as a guarantee that the development in this area will not stop. Interest taken by large domestic and foreign breweries is a sign of assurance that Saaz hops is not only a legend but a product which has its firm place in the world brewing industry.
