Growing Market for U.S. Hops in Brazil

While Brazil is the largest soybean competitor to the U.S., the South American giant is also a customer for U.S. hops, and that trade continues to increase, according to a new analysis from USDA’s Foreign Agricultural Service (FAS).
 
The U.S. exported 1,163 metric tons of hops to Brazil last year as the brewing industry there grows and expands. That’s an 85% increase from 2020, helping push the U.S. closer to Brazil’s top supplier, Germany.
 
“Although Germany continues to be the largest exporter of hops to Brazil, the United States comes in second place with 33% of the market share,” FAS says. “If we consider the high devaluation of the Brazilian ‘real’ against the dollar, which makes the product more expensive, and the difficulties faced by craft breweries in the pandemic year, it is noticeable that the Brazilian craft beer segment is solid and resilient. Therefore, hops for craft breweries continue to be a good opportunity for American exporters in the upcoming year."

EDITOR’S TAKE:

Hip, hip, hooray – exciting news for hops producers in the U.S. Exports not only put a support under domestic prices, but often help push the returns even higher. The primary question in this instance will be can supply keep up with demand. Growing hops demands a certain type of soil and climate that is not readily available in many geographic areas of the U.S. Most of the world’s production takes place above the 48^th parallel north. These facts may limit future expansion, but for the time being, let’s raise a glass or two to celebrate this new export achievement – Cheers!