The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1902-05-06
THE HOP SITUATION.
II Has Been Eight Years Since ~ IL Cents
for Contracts Was Paid.

The hop situation in this country has
reached stage of strength not equalled
for many years past this early in the
season. 1t is eight years since the
present ruling price of 1919 cents for
contract hops was paid at this season,
and that year the value of good hops on
the open market never fell below 10
cents when the product was in the bale.
1t is a self-evident fact that the hop
buyers doing business in this country
would not be free, and even anxious
buyers of the growing crop at 1917 cents
in March and April, running chances on
quality quantity and the numerous
other risks that buying a growing crop
entails, unless the situation was statisti-
cally on an exceptionally firm basis
This it undoubtedly is.
The total production of hops of the
1901 crop in this country was, in round
numbers, 2O0,0 900 bales, of which 6O,OOO
bales have been exported, which fact
alone proves that the foreign crops were
either something less than the average
size, or OF such inferior quality as to
necessitate the importation of a big
block of our own choice article. So the
available 1901 stock, deducting the ex-
ports, amounts to lac, 600 bales to supply
home consumption of not less than
100000 bales, 6O,OO0-bale shortage that
the American brewer must make up by
falling back on his reserve stock of old
hops, which, having lost much of their
strength and beer-making qualities must
be used in quantities two to three times
as great as the new stock to accomplish
the same result.
1t is thus plain that by the time the
growers are picking and curing their
1902 yield the storehouses and brewers,
will be practically clean of hops, both
Odds and l90ls, even basing the estimate
on the 1901 excise report which based
the beer production at 4O,5l7 900 barrels.
But these figures are sure to be greatly
exceeded during the present year and
fifty million production is confidently
expected. The reports for January,
February and March, 1902, cold months
when beer drinking is at low ebb-
show an increase over last years figures
for the same months of Is per cent, a
percentage that will be maintained if
not surpassed during the warm months
OF April, May, June, July and August.
Prosperity means huge consumption
OF beer, and never was the country more
prosperous than now. If fifty million
barrels are brewed that means demand
for home consumption of $4,000 bales
of hops, to which must be added the
$4,000 bales that England will take an
nually regardless of her own crops size
and quality, and 2S5, 900 bales will be
required to be raised in this country in
1902. This country cannot produce this
amount even under the most favorable
circumstances, and with just an average
crop OF 200, 900 bales, this shortage COM
bined with the shortage of reserve stock
in brewers hands, will boom prices so
that 2O-cent hops are quite within reason,
while should there be failure or marked
shortage in any of the hop-growing Sec
tons of the world the mere report of
such condition would create panic
and boom that might not stop short of
30 cents per pound.
The situation can be summed up as
being an exceptionally bright outlook
for the grower whose crop is unsold and
under his own control, for even a strong
situation such as the present market
shows, can be choked off and hops
pressed downward by the manipulation
Of interested parties should they be able
TO contract sufficient quantity of the
crop before picking time. They could
use these hops that they contract at the
comparatively low price of ~ to 1917
cents, as club to knock prices in the
head by delivering them to brewers in