The German Hops Growers Association Warns of Possible Closures Amid Harvest Shortfalls and Energy Costs
The German Hops Growers Association warns that as many as five percent of breweries and hop growers in Germany could shut their doors before year-end due to harvest shortfalls and the ongoing energy crisis. The report comes from the DPA news agency, later cited by DEA News, highlighting mounting strain on the sector.
Association president Adolf Schapfl stated that even this year a 4 to 5 percent closure rate is possible for businesses across the industry. He pointed to a combination of poor harvests, rising hop prices, and higher costs for electricity, gas, and fertilizer driven by the broader economic disruptions linked to the conflict in Ukraine.
Schapfl stressed that smaller producers and craft-oriented breweries are likely to bear the brunt of the crisis. The squeeze on margins and the volatility of input costs threaten the viability of smaller operations that rely on steady, affordable inputs and predictable output demands.
The association notes that 2022 was already a challenging year for hop producers, with profits eroding under increased production costs and a weak harvest. Aggregate earnings fell to a level that left many growers unable to post a profit, a situation described as devastating for the sector’s health and long-term viability.
Industry data indicate that the typical annual income of hop producers hovered around 300 million euros in the past, a figure that underscores the fragility of the supply chain when harvests falter and energy prices spike. The latest projections suggest that this year could mark a further downturn in earnings across the ecosystem, from growers to manufacturers and distributors.
Analysts suggest that a sharp rise in electricity prices, alongside higher gas and fertilizer costs, could influence the pricing landscape for hops and related products at the start of the new year. Stakeholders are watching carefully as these cost pressures could reshape investment plans, cultivation decisions, and market competitiveness in the near term.
Observers remind readers that the situation is evolving and that regional differences will matter. Some regions may experience more pronounced pressure due to local harvest conditions and energy supply dynamics, while others might see better resilience through diversified suppliers and cost controls. Market participants emphasize the need for strategic responses, including price stabilization measures, efficiency upgrades, and potential shifts in planting schedules to manage risk and sustain production cycles.
In summary, the German hops sector faces a precarious outlook as harvest outcomes and energy costs converge. The coming weeks are expected to reveal how breweries and hop growers adapt to these pressures, with potential implications for pricing, inventory, and the long-term vitality of Germany’s hops industry. Attribution: Deutsche Presse-Agentur (DPA) with confirmation reported by DEA News and industry observers.