Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Trouble Brewing: Hops Shortage
By Jane Wells
(CNBC) Higher food prices have Americans crying in their beer.
Beer prices may have them crying, too.
Craft beers continue to take market share from traditional beer giants, though they still having only about 15 percent of the overall market. These smaller companies which make batches of flavorful beer have seen demand grow so much, they're running up against a shortage of hops, the flower which flavors beer. Prices for some varieties of hops, especially those used in IPAs, are double what they were just a few years ago.
"Right now, hops are probably at the highest they've been in ten years, and we're at a place where growers can finally afford to make expansions and really grow their businesses," said Blake Crosby, a fifth generation hops farmer in Woodburn, Oregon. Crosby is managing director at Crosby Hop Farms, which has doubled its plantings to 300 acres and seen prices go from about $4 a pound to between $7 and $10. He's investing millions to expand his cold storage units and bring in a machine which turns hops into dried pellets for more efficient use. Crosby used to sell to only two or three large traditional American breweries. Now he has 600 customers, mostly craft brewers. "We're kinda busting at the seams."