Back in 2010, there were high hopes in Colorado that locally grown hops, the plant that gives beer a bitter or citrusy flavor, would help feed the then booming craft beer market. In just six years, the industry sprouted from almost nothing to 200 acres, according to the trade association
Inside the chilled storage room at the 22nd largest craft brewery in the country â Odell Brewing Company in Fort Collins, Colorado â brewer and agronomist Scott Dorsch pulled down a large box with the words âwhole leaf hopsâ printed on the front. He ripped open the silver packaging to reveal a mound of flattened, dried green hops, crisp and airy like dried leaves.
Colorado. Thatâs because a large company like Odell requires a more reliable source. When they have bought local hops in past, itâs only to make a seasonal, limited-distribution beer.
âWe would buy more hops than what Colorado could produce,â he said.
Hops may not have panned out to be the major crop that some farmers had bet on. And Dorsch said the green rush all began with one well-known company.
âIf it hadnât been for Coors I donât think there would have been 200 acres of hops growing in Colorado,â he said. âI think that people would have given up a long time ago.â
Going big
With the largest single brewery facility in the world, the Coors Brewing Company operates out of Golden, Colorado. A company they own, called AC Golden, wanted to jumpstart the local hop industry for their beer, âColorado Native,â which uses only local ingredients.
Starting in 2010, AC Golden officials said they paid farmers a premium price for their crop in an effort to help get them established. Farmers reported being paid up to $15 a pound, far above the going market price at the time of around $4.
Thereâs a high startup cost to growing hops. The vines require trellises, which cost anywhere from $10,000 to $20,000 an acre to install.
Ron Yovich, was one of about a dozen farmers growing hops for Coors. Like most, he was a small first-time farmer and that premium price allowed him to purchase expensive harvesting equipment from Europe.
âAt that point, (Coors) had a significant role in basically keeping us afloat for the first few years,â he said.
The premium price allowed Yovich, as well as other farmers interviewed for this story, to make a return on the investments. But it wouldnât last.
The slowdown
Between 2010 and 2015, the market for craft beer was booming (see graphic below).
In 2016, it started slowing down as wine and spirits took a larger share of the market, according to Bart Watson, an economist with the Brewers Association, a national trade association. He said while the craft beer market is still growing, itâs just less so because consumers have far more options.
âThereâs a lot of competitiveness out there. Itâs hard to get on, in shelvesets and get tap handles,â he said.
This is in part, he said, why the hop industry in Colorado still hasnât reached the scale that Coors and some farmers had bet on.
âWe may see the hop industry scale back in places like Colorado simply because they were building for a future that was bigger than what weâve actually seen,â he said.
The Pacific Northwest is the nationâs major supplier of hops, especially Washingtonâs Yakima Valley, which produces more than 39,000 aces, or 71 percent of the nationâs hops. Idaho and Oregon are the next largest and together three these states pushed the U.S. to its
Coloradoâs crop acreage is 7th in the country, and hasnât grown since 2016. And small hop industries in Indiana, Illinois, Nebraska and Iowa have seen little to no growth in the last few years. Only Michigan and New York have remained competitive at a time when experts say the specialty .
Finding a new market ⊠or crop
Demand for local hops may lie with microbreweries, which are still doing well despite the outlook for the rest of the craft beer market.
Thatâs where Yovich has placed his bets. He no longer grows for Coors, nor does he have to worry about finding a reliable buyer. Instead, he and his wife opened Mountain Cowboy Brewing Company in Frederick, Colorado, and most of his crop is used to make his beer.
âYou know the old adage, donât put all your eggs in one basket, [thatâs] the way it is,â he said.
Other hop farmers have left the industry altogether. Mark Riley owns several acres and grew for Coors starting in 2012, but says this year the company lowered their price to about $5.50 a pound. He said he could have kept things going, but the drop in price â along with the cost of labor and arrival of powdery mildew on his plants â told him it was time to throw in the towel.
âYou know when you tell people, oh, youâve lost your price, theyâre like âOh, that huge corporation, screwing the little guy,â and thatâs not how it was,â he said.
He says from the Coors communicated from the beginning that the high prices wouldnât last. The idea was that growers would eventually find more buyers elsewhere.
Riley recalled one year when he approached more than 100 local brewers to buy his hops, but managed to sell only a fraction at a reduced price. When it came to marketing he said, âwe donât have that skill set.â
âWe were trying to sell to other brewers around the state, you know we thought a lot more might be interested in a Colorado product,â he said.
For their part, AC Golden officials said they had to strike a balance between supporting farmers and being financially solvent. By their estimates, they overpaid farmers by about $3 million over the course of eight years, which they consider an investment in the local industry.
Other farmers who were interviewed are still growing and selling to Coors.
Rileyâs ripped up his hop plants and moved on to something else that many farmers are hoping will become the next big crop in Colorado â and maybe across the United States: industrial hemp.
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