Hop growers are under pressure, association says.
Stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.
2. inactive; not developing or progressing. hop prices combined with higher yields will force hop growers to change the way they do business, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Douglas MacKinnon, executive director of the Hop Growers of America. "U.S. hop growers are fighting the battle of their lives," MacKinnon says. "In the past year, it has become painfully apparent in the hop industry that something must change. Hop growers must re-evaluate the way they do business if they are to stay in business."
Hop prices have remained flat since the early 1980s, preventing many hop growers from investing in their farms. Despite this, MacKinnon notes, the U.S. was the number one producer of hops in the world in 1999, producing 31% of the world's supply on 24% of the world's hop acreage.
"American hop Noun 1. American hop - native American plant sometimes confused with the European hop
hops, hop - twining perennials having cordate leaves and flowers arranged in conelike spikes; the dried flowers of this plant are used in brewing to add growers produce their hops independently, and that is also how they have traditionally sold their hops, with contracts extending up to five years into the future," MacKinnon says. "This method provided the grower with some predictability in a turbulent world hop market. In the past decade, the industry has moved toward more short-term and spot market dealing. Recent changes have shifted risk away from hop buyers to the dealers and growers. Whether through greed, fear or a need for some semblance of stability, hop farmers have been selling their hops at prices below their cost of production. For the past five years, the Years, The
the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]
See : Time hop market has truly been a buyer's paradise."
MacKinnon says the result has been a slow drain on the hop industry, with little profit margin left for farmers to reinvest re·in·vest
tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests
To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in their farms. He says that if prices do not increase, it will mean increased difficulties for the U.S. hop growing industry. "Some options being considered to support the price of hops are production controls, reserve pools and minimum recommended prices," MacKinnon says, "but good old teamwork might be the best solution. Unfortunately, however, the simplest solution may be the hardest to achieve. As long as hop growers continue to subsidize sub·si·dize
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es
1. To assist or support with a subsidy.
2. To secure the assistance of by granting a subsidy. the beer industry at their own expense, there is no reason for the price of hops to increase...If hop growers simply maintain the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. , they may soon be packing up the family farm and looking around for other professions."