Industry: Hops
Gross value of production |
$2.4 million |
Number of growers |
14 |
Number employed |
20 |
Seasonal Employment |
230 |
Current annual production |
600 tonnes |
1. Description of Product:
The primary product is the hop cone or flower, which contains yellow lupulin, from which the active ingredient, an alpha acid, is extracted. This ingredient is used for the production of beer. The hops are pelleted at several sites in the region.
2. Location of the Industry:
There are currently 14 growers in the industry, three in the Myrtleford region, nine around Myrrhee and one in the King Valley. The total acreage is 300ha. Three quarters of these growers have an alternative source of income. This is the only region in Victoria where hops are produced.
3. Employment and Labour Requirements:
a. Number of Producers:
14 in region.
b. Number Regularly Employed:
20 full time.
c. Harvest Requirements:
Stringing (September-October) 40 people
Training (November-December) 30 people
Harvesting (March) 160 people
4. Annual Production:
600 tonnes of pellets.
The Victorian production (all grown in North East) is twice as large as the Tasmanian production.
5. Value of Product:
$4/kg for pellets, hence gross value of 600 tonnes is $2.4 million.
6. Production Trends Over the Next Five Years:
a. Projected:
There is no expectation of growth in this industry. Pressure of cost price squeeze (there has been a loss of 3 growers over past 3 years) combined with aging of some growers may result in a further 2-3 growers exiting the industry within 5 years. It is unlikely that new growers would be attracted to hop growing because it is a very capital intensive industry.
Extracted from the Bright Report
