Forward Contracting
We encourage brewers, both small and large, to forward contract forward for their requirements. This provides some stability in the market for all in the supply chain. In the recent past, the international hop market has overproduced hops for ten years, which has contributed to low pricing and the decline of the amount of hop farmers. We have now, however, entered an era of reduced production of hops worldwide and, as a consequence, a very limited amount of spot hops being available.
To achieve sustainable hop pricing and supply, we encourage brewers to contract a given variety forward. This allows the hop dealer to make firm forecasts to the growers who will then make the investment in time and materials to ensure that his product is available and of good quality. The large brewers will continue to drive the demand curve for any given variety. So if craft brewers favor a hop which is in decline, contracting is essential to encourage the grower to continue production. New or trend driven varieties tend to become short so contracting becomes a way of safeguarding supply. We will, of course, do our best to serve the spot buyer with any requirement he or she may have, but we cannot guarantee that supply.