The Union of Russian Brewers: the country may be left without hops

The Union of Russian Brewers: the country may be left without hops

The Union of Russian Brewers: the country may be left without hops
Russian foamy drink producers are sounding the alarm due to the European and US sanctions imposed on trade operations.  Given the volume of hops for the production of alcoholic products, domestic beer producers annually bought in the USA (about 7.5 thousand tons), Germany and the Czech Republic, experts predict the collapse of many large breweries in the country in the summer of 2022.

According to Kommersant, referring to a letter from the representative of the Union of Russian Brewers (URB) Daniil Briman, addressed to the head of the Ministry of Agriculture, domestic farmers need an urgent program of state support to establish hop production.  Currently, the media outlet reports, only 2% of the hops used in the production of beer are produced in Russia - all the rest is purchased from abroad.

The Russian Association of Hop Growers has calculated that an attempt to increase the production base by 2030, designed to produce 1,000 tons of hops, will require subsidies from the treasury of more than half a billion rubles annually over the next five years.
The quality of products grown in Russia is inferior to imported samples.
In 2020, almost 2 thousand tons of hops were purchased in Germany alone, while in the territory of Chuvashia, where the main plantations of the plant are concentrated, only 162.5 tons were grown last year.

The Chairman of the Board of the "URB" offers the Ministry of Agriculture to start a subsidizing program right now.  Beer excise can become a source of financing.  In the next few months, large and medium-sized companies that produce beer in Russia will still be able to use the hops purchased earlier.  However, by the summer, if nothing changes, its reserves will run out.

Experts believe that some varieties of hops will be problematic to grow in the country due to the natural and legal reasons.  Some varieties are protected by patents from private companies, others are problematic to grow in the Russian climate.
According to Briman, up to 80% of hops may well be grown in Russia.
According to URB’s calculations, brewers used to spent about $65 million per year on the purchase of hops.  Therefore, the state support of the Russian producers will be justified if about 50 hectares of land are annually given for planting hops, compensating up to 70% of the costs to farmers who decide to grow this crop.  The Ministry of Agriculture promised that the proposal of the profile association would be considered.  In addition, farmers already now have the opportunity to reimburse part of the cost of planting.

11.04.2022