The German Hops Growers Association believes that as many as five percent of breweries and hop growers in Germany could close before the end of this year due to insufficient harvests and the energy crisis. This was reported by the DPA agency, reports DEA News.
“Even this year, between 4 and 5 percent of businesses could close,” said Adolf Schapfl, president of the association.
As Schapfl explained, this region was adversely affected by the bad harvest, the rise in hops prices, as well as the rise in electricity, gas and fertilizer prices in connection with the events in Ukraine.
He believes the crisis will most affect small breweries and hop growers.
According to him, 2022 was a very bad year and overall hops producers were unable to make a profit of €134 million due to poor harvests and increased production prices.
The agency states that the total annual income of the producers was previously around 300 million euros per year.
Former German magazine Spiegel WroteFor many Germans, the new year will begin with a sharp rise in electricity prices, he said.