The hops market is an iffy place. On one side are growers who must predict the future and depend upon the weather. On the other are brewers in an increasingly anxious industry, pressured to keep down costs while keeping up with that ever-growing thirst for variety.
Given the lack of assurances on either side, it’s a marvel that the hops market works as well as it does.
Among the reasons it does work (usually) are
- the prevalence of multi-year contracts, helping growers to know how much to plant and in which varieties, meanwhile locking in predictable prices and assured supply for breweries;
- the work of hops merchants whose livelihood depends on keeping that supply and demand balanced;
- the flexibility of the spot market, with increasingly sophisticated tools to help brewers fill in the gaps when needs arise.