Organic Hop Market Report

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Organic Hop Market Report American Organic Hop Grower Associa on October 2014 2014 growing and harvest recap 2014 has been a big year in organic hop farming and for the AOHGA. Organic acreage con nues to grew both in the United states and Canada., with AOHGA membership increasing with growers who are new to organic hop farming or just discovering our Associa on. The AOHGA is focused on bringing awareness to the organic hop farming industry, as well as suppor ng organic hop farming through educa on and research. 2014 saw the addi on of five new grower members, bringing in new experiences and offerings for all of our grower members. In this issue, we have interviewed our growers to give a first hand account of the 2014 growing season. Please watch for our upcoming report with new member spotlight and 2015 acreage updates. Varie es Harvested by AOHGA Growers* Ahtanum Liberty Bravo Magnum Calypso Mosaic Cascade Nugget Centennial Palisade Chinook Perle Citra Simcoe Crystal Sterling El Dorado Summit Fuggle Willame e Golding Zeus Hallertau 1

Harvest Q&A 2014 AOHGA Field Day In August, our growers were invited to an American Organic Hop Grower Associa on Field Day held at Roy Farms in Moxee, Washington. Growers from around the Northwest were in a endance to discuss current issues and ideas on how to approach them in the organic hop growing industry. Many of our growers grow both organic and conven onal hops, while several are strictly organic. This mee ng of the minds allows individuals to discuss challenges and opportuni es, as well as gather feedback. Grower interac ons are vital to the success of the organic hop industry, promo ng the flow of informa on and ideas between farms. Pictured: Pat Leavy (Oregon Hop house), Jason Perrault (Perrault Farms), Michael Roy (Roy Farms), Brad Carpenter (Carpenter Ranches), Sam Turner (Lo us Ranches) and Derrick Davis (Microhops) 2

Harvest Q&A We talked to our growers about 2014 season recap, Here is what they said Summarize the 2014 growing and harvest season Rita Pelczar (Blue Ridge Hops)-It was a good season fewer pests and no disease meant we didn't need to spray anything. We also discovered that cutting back the shoots until the end of April helped concentrate our harvest( we harvest multiple times) Derrick Davis (MicroHops )-No harvest this year, intentionally. had soil issues so growth was poor. Jason Perrault (Perrault Farms)- The growing season was hotter than normal, which had an impact on plant health and crop development. Overall though, while yield was average at best, quality was excellent. Michael Roy (Roy Farms)- The 2014 growing season went rather well. Most of our yards experienced average growth with one yard experiencing below average. Pest pressure was low at the end of the season with the middle resenting some challenges. Overall quality was good to very good. Nicholas Schaut- (Big Head Hops)-2014 has been an interesting year. Cooler and wetter then normal conditions persisted throughout the growing season. Downy mildew had a significant presence in early season. Harvest commenced (strangely) one week early with all test results on cultivars hitting or exceeding the maximum thresholds for alpha and beta(s). General increases in yields. Lau Ackerman (Sierra Nevada Brewing Company)-We had a good year. Yield was up a little and quality was quite good. We had high mite pressure once again and they peaked mid summer. We were able to bring the population down and in the end we had minimal cone damage. What were some of the challenges presented with growing organic hops this year? NS-Due to the second year of below normal temperatures and above normal rain, downy mildew and the vigilance required was a challenge. Rotations of cultural practices and increased spray regime critical in keeping DM down. In Canada, we have very few registered cert.org. products available for use at this time. MR- Nitrogen mgt and aphid control followed by the cost of weeding DD-Getting poles was my main issue this year, put the entire farm back 1 year, there are no organic certifiable poles, so making my own is a risk but was the only option. We need to find a better method than wood for new infrastructure. LA-Weeds and mites continue to take up huge amounts of labor and money. I think we are still short of nutrients even though the tissue samples look decent. If I could sell Johnson Grass (my worst weed by far) I could off set the weeding costs. JP Pretty similar to every year. Early on aphid pressure was high, followed by mites later in the summer. Consistent supply of nitrogen is always a challenge with organic. RP-It was well into the season before we knew we d be able to apply for the USDA cost share program Were there any surprises growing organic hops this year? LA-Mainly seeing the mite population drop after four years of mid to late season crop loss. We monitor early, use Beneficial insects and begin to spray when they get over ran. I would say this is the second year out five that we "won" the mite battle but at great cost. We are growing more Ca Cluster that seem of much less interest to the mites. RP-The winch system which we use to lower the lines for harvest were very effective and easy to use. Well worth the time and expense to install if you are harvesting in place by hand. NS-Strong increases in organic matter in soil. Very happy with our general fertility program for all field areas. Further attention to individual cultivar requirements needed. Biodiversity within the yards are increasing with the addition of more buffer zones. Ground nesting birds present in the verges. Rotational grazing with sheep, again has proven to be beneficial in reducing weed pressures and opening the lower canopy. 3

Grower Interviews (con nued) DD-Not really, pretty new to me so I have a lot to learn about getting the soil conditions right. MR-A pleasant surprise was not seeing mite pressure spike for the third year in a row. We continue to se the soil structure change for the better. What are the main reasons you grow organic? Do you grow any other crops organically? DD-Damaging the soil is just not an option for me, I view petrol chemicals/man made compounds as poisons that cause damage while providing some "benefit". Plants will grow great without man made chemicals if we get the natural balance correct, although that means we will likely have to move away from monoculture farming and begin understanding companion and mixed planting in mass scales to keep yields high. MR-We grow organic hops because we feel it is important to meet the consumer demand as well as get back in touch with the dirt. We can learn a lot by growing our crops under organic conditions. I feel organic agriculture will continue to teach us what we need and dont't need in a conventional setting and it will play an important roll in reducing our overall environmental footprint as we swim through the gray area between conventional and organic. We grow organic blueberries and have grown organic apples. We are looking at growing organic apples again as well as organic cherries. RP-To fill a commercial niche and to leave the least environmental footprint possible. JP-Our main reason for growing organic is the that it is on one extreme of the production spectrum. Organic production forces us to be innovative with regard to the ecology of our hop yards. This innovation leads to developments that can be used to enhance our conventional farming systems, eventually making us better farmers. LA-It is the production method we believe in at the brewery. We also grow organic barley, hay, other rotational crops and the organic vegetable garden and greenhouse. NS-We grow organically because it is a key principle to our use of the land. All forages and grain crops are organic. Anything else we should know? LA-In general it has been a good year. We will be reworking much of the yard and will be testing several different varieties the coming year. RP-We grow hops primarily for the local wet hop market. For this market, being certified organic doesn't matter enough to microbrewers to pay a premium for the hops...it is more important that they be local. As a result, if we are not able to share the price of certification, maintaining it is very expensive for a small operation like ours. We have considered not getting certified but continuing with organic practices. Fortunately, it appears that the cost share program will continue for a few more years, so we plan to maintain our certified status. DD- Hop farming is expensive :) And not for the faint of heart. 4

AOHGA Grower Members B.T. Lo us Ranches, Inc. Patrick Smith 1209 Morrier Lane, Yakima, WA 98901 509.452.3931 patrick.smith@lo usranches.com Perrault Farms, Inc. Jason Perrault 11051 Lateral A Rd, Toppenish, WA 98948 509.848.2497 jason@perraul arms.com Blue Ridge Hops Rita Pelczar and John Wright 313 Laurel Branch Rd Marshall, NC 28753 301.602.0722 blueridgehops@aol.com Roy Farms Jim Boyd 401 Walters Rd, Moxee, WA 98936 509.452.3494 jim@royfarms.com Carpenter Ranches, LLC Brad Carpenter 400 Carpenter Road, Granger, WA 98932 509.854.1750 brad@carpenterranches.com Sierra Nevada Brewing Co. Lau Ackerman 1075 E 20th St, Chico, CA 95928 530.893.3520 lau@sierranevada.com The Oregon Hophouse Patrick Leavy 22675 Bu eville Rd NE, Aurora, OR 97002 503.678.6840 hophouse@centurytel.net Bighead Hops Nicholas Schaut 077074 11th Line, RR#! Meaford E ON 519.538.1026 Nicholas@bigheadhops.com Jackson Hop Nate Jackson 1201 S Kimball Ave, Caldwell, ID 83605 (208) 880-4037 idahohops@gmail.com MicroHops Derrick Davis 409 Veralane SW Evere, WA 98203 206.351.6404 profitablebysdev@gmail.com Old 4th Brewing Company and Hopyard Stephanie Jaworski Williamstown, Ontario 613.361.9333 hops@old4th.ca Plough Monday Farm Norm Vidoni 22887 W Sheffler Rd Elmira, OR 97437 541.935.0503 norm@ploughmonday.com 5

AOHGA Associate Members Ron Bri & Associates Washington State University 6

AOHGA Associate Members Doug Rose AOHGA Membership Membership in the American Organic Hop Grower Associa on is open to anyone who would like to join. Our current membership levels are: Grower Members: Cer fied organic hop growers can join as grower members. They have vo ng rights, and their annual fee is $100 per cer fied acre. Associate Members: Associate memberships are open to anyone in the industry who supports the use of organic hops in organic beer, including growers. The annual fee for associate members is $100 per year. For more informa on on membership, please contact us at info@usorganichops.com. Thank You to Our Members for Your Support! 7