The craft brewing industry heavily relies on hops as a key ingredient in beer production. Traditionally, the majority of hops have been sourced from the western United States, but the increasing challenges of climate change and water scarcity have made it imperative for brewers to diversify their supply chains.
To mitigate the effects of changing environmental conditions, it is important for brewers to adopt supply chain diversification from a sustainability and resilience perspective. One measure that can help brewers stay ahead of changing environmental conditions includes expanding hop sourcing options. The benefits of this include reducing risks associated with climate change and water scarcity.
The article aims to shed light on the importance of supply chain diversification in the craft brewing industry and encourage brewers to adopt sustainable sourcing practices.
Background On Hop Sourcing In The Brewing Industry
Hops farming is a global industry with major production taking place in Europe, the United States, and New Zealand. The most common hop varieties in these areas are grown in specific regions, with each region having its own unique microclimate and soil conditions that determine the flavor and aroma profiles of the hops grown there.
The western United States, specifically Washington, Oregon, and Idaho, is the dominant source of hops for brewers around the US, accounting for about 98 percent of hops produced. This region has, historically, been well suited to hops production, though this is shifting due to climate change.
Challenges Faced By Hop Farmers In The Western Us
Presently, the western United States is facing water scarcity challenges affecting the hops industry.
The region has experienced a prolonged drought as well as growing demand for water from other industries, such as mining and urban development, which has put pressure on the water resources available for farming.
The situation is expected to worsen in the coming years, which will impact the ability of farmers to meet the increasing demand for hops.
How Can Brewers Mitigate The Challenges Facing Hops Production In Western Us?
Climate change is causing extreme weather events that are putting many of the world’s water sources at risk. This is especially true for western hops growers, who rely on mountain snowpack and surface water sources to irrigate their fields. The US government has shown a willingness to drastically cut farmers’ access to surface water in areas affected by drought, such as Arizona and Colorado. Similar cuts could be imposed on western farmers should the drought persist.
To mitigate this situation, brewers need to diversify their supply chains and source hops from regions with more available water. By doing so, they can reduce their dependence on a single source, increase their resilience to climate change, and ensure that they have enough resources to keep producing great beer.
How Do Brewers Stand To Benefit From Supply Chain Diversification
Supply chain diversification can be extremely advantageous for beer manufacturers, in terms of sustainability and productivity. Here are some of the major advantages brewers get from diversifying their supply chain:
Reduced Dependence On A Single Source Of Hops
One of the main benefits of supply chain diversification for brewers is reduced dependence on a single source of hops. By sourcing hops from multiple locations, brewers can mitigate the risk of supply chain disruptions, which can occur due to various factors such as crop failures, weather conditions, and political implications. With a diversified supply chain, brewers can obtain the hops they need, even if there is a shortage in the west.
Increased Sustainability
Supply chain diversification is not only good for brewers’ profits, but also has positive effects on sustainability. For instance, when they source hops from places with more accessible water supplies, they’re able to minimize the amount of water used and work towards reducing their environmental footprint.
The arid climate in western US has made water conservation a priority for western communities. While water conservation requires us all to work together, these communities have been quick to point out that agriculture uses a large amount of the available water, 80% in some areas. Shifting hops production away from water scarce regions is the only sustainable solution. Brewers can make a tremendous contribution in this respect by sourcing theirs hops from regions with greater water availability, like the midwest.
Increased Flexibility In The Face Of Changes In The Hops Market
Supply chain diversification also provides brewers with increased flexibility in the face of changes in the hops market. Diversifying their sources enables brewers to respond quickly to changes in demand and pricing, giving them a competitive advantage over those who rely solely on one source for their hops.
Additionally, brewers can benefit from cost savings associated with having multiple sources. With more options available, brewers can find the best pricing and quality for their needs.
Ability To Access Unique Hop Varieties And Flavors
Finally, supply chain diversification allows brewers to access unique hops varieties and flavors that may not be available in their traditional source of hops. This allows them to create new and innovative beer styles and appeal to a wider range of customers. Brewers can also take advantage of seasonal differences in hops quality and availability, allowing them to produce high-quality beers year-round through diversifying hop sources and farming.
Take Away
Supply chain diversification is a crucial step that brewers can take to improve their operations, reduce dependence on a single source of hops, and increase their sustainability. Brewers can access unique hop varieties and flavors, have increased flexibility in the face of changes in the hops market, and reduce their impact on the environment by sourcing from regions with more available water.
The brewing industry, like all industries, must adopt sustainable practices to guarantee themselves long-term success. By diversifying their supply chain, brewers can contribute to a more sustainable future, both for their business and for the environment.