July 2, 2018
The State of the Craft: Virginia Hops Enterprise Budget and Market Analysis
Presented by: Dr. Kim Morgan and Ben Garber
Though 85% of the nation's hops are produced in the Pacific Northwest, other regions of the country are expanding production acreage. Virginia’s growing interest in hops production industry is driven by the opening of the state’s 200th brewery in July 2017 (Blackwell, 2017) coupled with the interest in local ingredients by brewers and consumers alike. However, slowdowns in US craft beer sales growth numbers (Dzen, 2017), oversaturated markets (Nurin, 2018), and lack of data on production practices and costs present challenges to Virginia growers. More significantly, relatively humid, warmer Southeastern climate conditions and limited access to expensive inputs are constraining growth in Virginia hops acreage. In response to these concerns, Virginia Tech horticulturists, economists, and Cooperative Extension agent faculty collaborated to create enterprise budgets and share market diversification and promotional strategies with the industry to assist growers with accessing direct market sales opportunities. In this webinar, we will present our Virginia hops enterprise budget based on recommended best management practices for three varieties, along with revenue sensitivity analysis and net present value calculations. An overview of trends in the craft beer market will be presented alongside a competitive analysis of the industry. Promotional activities with the potential to provide branded product marketing and messaging will be shared with the audience.
The Virginia Beginning Farmer & Rancher Coalition is a state-wide and coalition-based Extension program, housed in Virginia Tech’s Department of Agricultural, Leadership, and Community Education. Funding was sponsored by the Beginning Farmer and Rancher Development Program (BFRDP) of the USDA National Institute of Food and Agriculture (NIFA) Award #2017-70011-26861, and the Southern Risk Management Education Center Grant #545015. For more information about the program, contact Katie Trozzo, Program Coordinator, at email@example.com or 540-231-4582. For other questions, contact Kim Niewolny, Program Director, at firstname.lastname@example.org.
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