COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 379 final 
Brussels, 09.09.1994 
94/0127 (CNS) 
AMENDMENT. TO THE 
REPORT FROM THE COMMISSION TO THE COUNCIL 
ON THE PRODUCTION AND MARKETING OF HOPS 
(1993 harvest) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
laying down, in respect of hops, the amount of aid to producers 
for the 1993 harvest 
(presented by the Commission pursuant to Article 189 A (2) 
of the EC-Treaty) 
I 
EXPLANATORY MEMORANDUM 
Both the text of the report and the aid amount for aromatic varieties shown 
in the Annex to the proposal for a Council Regulation need to be amended 
since new figures were submitted for France after the publication of COM(94) 
201 final. 
Amendment to the 
REPORT FROM THE COMMISSION TO THE COUNCIL 
on the production and marketing of hops (1993 harvest) 
(pursuant to Article 189a (2) of the Treaty) 
1. Sections 2.2.3 and 2.2.4 are replaced by the following text: 
"2.2.3. Sales and prices 
The average price for hops sold under contract was ECU 158.29/ztr, 
ECU 1.41/ztr down on the 1992 harvest, ranging from ECU 126.60/ztr in Spain • 
to ECU 2 01.02/ztr in France. Both these countries sold almost their entire 
production under contract (see Annex, Table 6). on the other hand, the 
average spot price for hops sold on the free market was significantly down 
on the preceding year, at ECU 65.53/ztr as opposed to ECU 168.13/ztr in 
1992, although here too prices differed markedly from one Member State to 
the next, ranging from ECU 37.24/ztr in Spain to ECU 145.7 8/ztr in the 
United Kingdom. 
Of the 1993 crop 62% was sold under contract (see Annex, Table 5). Belgium 
was well below this average at 45%. 
Highest average prices, both under contract and for spot sales, were made by 
the aromatic varieties (ECU 167.36/ztr and ECU 70.79/ztr respectively). The 
varieties fetching the highest prices were Spalt, Tettnanger and WVG. Some 
varieties grown in the United Kingdom, i.e. Fuggles, Goldings and Progress, 
also sold for prices distinctly higher than the average for the group, as 
did. Strisselspalt in France, where average contract prices were 
ECU 209.04/ztr. The variety of aromatic hops fetching the lowest price was 
undoubtedly Hersbrucker, which accounted for about 40% of the area for this 
group of varieties. 
For bitter varieties the average price for sales under contract was 
ECU 134.77/ztr and for spot sales ECU 60.53/ztr, the varieties that fetched 
the highest prices in this group being Magnum and Northdown. 
At ECU 137.34/ztr, the Community average contract price for other varieties 
was very slightly higher than the contract price for the bitter variety 
group, but spot prices were substantially lower at ECU 49.84/ztr. 
y Although the average prices in Germany were situated well below the 
Community average (for aromatic varieties) higher prices were obtained in 
other Member States, such as France and the United Kingdom. Apart from 
France and the United Kingdom spot prices were excessively low (all 
varieties taken together). 
The official figures indicate that of the 1 033 893 ztr produced in the 
Community in 1993, only 3 394 ztr (0.33%) remain unsold, whereas the IHGC 
reports 10 000 to 15 000 ztr unsold in Germany. Ireland is the only country 
to have sold its entire production under contract for an average price of 
ECU 230.33/ztr (see Table 5), followed by France, which sold 96% of its 
production under contract for an average price of ECU 201.02/ztr. 
As was to be expected with a production surplus, the market has been very 
quiet throughout the 1993/94 marketing year. Prices have been very low on 
the free market since the beginning of the marketing season in September 
1993, although with some differences according to production region and 
variety. 
The variety which has suffered most from this drastic fall in prices is 
undoubtedly the Hersbrucker aromatic variety, which was previously very 
popular with the Americans, but is now suffering from a definite slow-down 
in demand as American purchasing policy has changed to the benefit of other 
varieties such as Spalter Select and Hallertauer Tradition. Even so, the 
latter varieties have been sold on the free market at prices well below the 
Community average for aromatic varieties. While Hersbrucker has been selling 
for only DM 50/ztr on the free market, the two new aromatic varieties have 
not been fetching more than around DM 100/ztr, which is still very low. In 
this poor economic climate, it appears that pre-contracts for the coming 
years are being concluded only very hesitantly, for shorter periods, smaller 
quantities and lower prices than in previous years, since brewers know that 
they can always find hops on the free market at prices that may well remain 
low for several years, going by harvest forecasts and the fact that, 
according to some, hops are characterized by a ten-year production cycle. 
The way to increase hop prices would be to reduce the hop cultivation area 
in the world, as the Americans have proposed, and preferably to cut the area 
producing super alpha varieties, since the hops market has become a market 
for alpha products. 
2.2.4. Returns 
These were lower than in 1992. The average return per hectare in full 
production fell by 13.53% from ECU 4 858 in 1992 to ECU 4 444 in 1993. 
s 
As already mentioned in section 2.2.3, hop prices on the free market and the 
contract market were excessively low, and are the reason for still lower 
returns than in 1992, which was already considered a very bad year. 
At Community level returns were highest for the aromatic variety group 
(ECU 4 908 per ha in full production, 8.07% down on 1992). Unlike the other 
Member states, France and the United Kingdom posted increases for these 
varieties of 6.25% and 29.57% respectively. The most profitable aromatic 
varieties were, for France, strisselspalt (return of ECU 7 161/ha in full 
proHuction), and for the United Kingdom Bramling Cross (return of 
ECU 7 426/ha in full production), Challenger (ECU 7 961/ha in full 
production), Goldings (ECU 8 618/ha in full production), Fuggles 
(ECU 7 459/ha in full production) and WVG (ECU 8 238/ha in full production). 
The only aromatic variety which produced a lower return in the United 
Kingdom was Progress, for which the return of ECU 5 522/ha was nevertheless 
still above the Community average for this group. 
There was a similar drop in returns for the bitter variety group, by 7.93% 
to ECU 3 939/ha in full production. All producer Member States were 
affected, some reductions being very large (- 44.92% for Belgium), except 
France and Spain where returns increased substantially, by 9.02% and 88.07% 
respectively. In the case of France, this increase is explained by the fact 
that the yield of Brewer's Gold was very high (44.34 ztr/ha), so that 
returns per hectare in full production were markedly higher than the average 
for the group. For Nugget prices were also well up on 1992, at ECU 5 011/ha 
in full production. The reason for the increase in Spain was the excellent 
yield of the hybrid variety H3 (45.91 ztr/ha), although prices were still 
below the Community average. Average returns for other varieties, cultivated 
principally in Germany (155 ha), and to a small extent in Belgium (8.51 ha) 
and the United Kingdom (24.80 ha), fell by 9.60%, although there was strong 
growth in the United Kingdom due to the excellent yield of the Zenith 
variety. As these varieties are only cultivated on small areas, their impact 
on overall returns for producers was negligible." 
2. Tables C, 5 and 6 are replaced by the following tables: 
TABLE C 
Return on areas in full production, in ECU/HA*) c 
1987 1988 1989 1990 1991 1992 1993 1993/92 
(%) 
BY VARIETY GROUP 
Aromatic '5.428 5.586 5.562 5.663 5.854 5.339 4.908 
Bitter 4.727 4.491 4.633 5.644 5.415 4.328 3.939 
Others 4.439 4.196 4.093 5.365 3.382 3.948 3.569 -8,07% 
-8,99% 
-9.60% 
BY COUNTRY 
Germany 
France 
Belgium 
United Kingdom 
Ireland 
Spain 
Portugal 5.353 
4.674 
4.199 
4.695 
4.918 
3.122 
4.763 5.238 
6.170 
4.368 
5.001 
5.943 
3.173 
2.452 5.307 
5.572 
3.995 
4.577 
5.283 
4.473 
4.329 5.616 
7.450 
11.158 
5.615 
10.817 
4.456 
3.322 5.456 
5.512 
5.931 
7.212 
7.901 
4.441 
1.715 4.818 
6320 
6.602 
5.404 
9.055 
2.605 
1.495 4.379 
6.794 
3.317 
4.803 
7.109 
4.900 
1.203 -9.11% 
7,50% 
-49,76% 
-11.12% 
-21,49% 
88.10% 
-19.53% 
BY COUNTRY AND BY VARIETY GROUP 
Germany 
France 
Belgium 
United Kingdom 
Ireland 
Spain 
Portugal Aromatic 
1992 
5.181 
6.731 
7.095 
6.083 
2.448 1993 
4.602 
7.152 
2.809 
7.882 
1.609 1993/92 
% 
-11.18 
6.25 
-60,41 
29.57 
-34.27 Bitter 
1992 
4.317 
3.526 
6.363 
5.054 
9.055 
2.606 
1.495 1993 
4.035 
3.844 
3.505 
2.969 
7.109 
4.901 
1.203 1993/92 
% 
-6.53 
9.02 
-44.92 
-41.25 
-21.49 
88.07 
-19.53 
-Others 
1992 
3.878 
7.710 
1.701 1993 
3.597 
655 
5.305 1993/92 
% 
-7.25 
-91.50 
211.88 
*)Areas newly planted in 1993 and 1992. were assumed to give 40 % and 65 % respectively of the return on areas 
in full production. 
TABLE 5 
Hops sold without and under contract and average prices 
without and under contract 1980 - 1993 •} 
EEC 
1980-1993 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 
B. 1993 
Belgium 
Germany 
Spain 
France 
Irelande 
Portugal 
United Kingdom Production 
1 
Without 
Contract •) 
50 kg 
67.385 
154.754 
363.795 
223.549 
195.478 
173.339 
202.218 
161.850 
119.035 
169.083 
70.306 
235.415 
103.879 
390.867 
6.397 
367.023 
2.184 
777 
0 
780 
13.705 Under 
Contract 
50 kg 
723.983 
768.155 
763.131 
744.142 
728.662 
718.124 
667.937 
634.361 
632.255 
641.429 
644.352 
679.700 
622.778 
639.633 
5.195 
481.533 
39.672 
19.773 
379 
0 
93.080 Under 
Contract 
% 
2/(2+1) 
91% 
83% 
68% 
77% 
79% 
81% 
77% 
80% 
84% 
79% 
90% 
74% 
86% 
62% 
45% 
57% 
95% 
96% 
100% 
0% 
87% Average prices 
4 
Without contract 
ECU/50 kg 
469.00 
225.63 
65.18 
91.85 
69.61 
92.33 
62.72 
123.41 
158.55 
134.58 
468.82 
165.08 
168,13 
65.53 
1992 
232.90 
162.39 
224.11 
203.41 1993 
50.82 
56.62 
37.24 
101.62 
63.31 
145,78 Under contract 
ECU/50 kg 
133.00 
162.78 
176.93 
183.13 
189.92 
173.19 
169.93 
168.19 
169,82 
164.30 
166.61 
166.85 
159.71 
158.29 
1992 
168.57 
156.01 
116.16 
200.71 
239.25 1993 
145.53 
154.59 
126.60 
201.02 
230.33 
183.17 139.33 
*) Unsold quantities are not included 
Vî-E-3 TABLE 6 MEMBER STATE RETURNS - HOPS 1993 

i 
1 
i, 
1 
II 
i: II 
|| 
i 
i; TABLE 6 MEMBER STATE RETURNS - HOPS 1993 (cont'd 2) 
Group C/lll 
OTHERS 
Variety Origin 
Record D 
B 
CE 
Zenith UK CE 
Autres D 
UK 
CE 
TOTAL B t 
OTHERS UK j 
CEj SURFACE AREA IN HECTARES 
, I 
| Total 
Il-IV 
137.00 
7,51 
144.51 
3,70 
18,00 
21,10 
39.10 
155,00 
8,51 
24,60 
188,31 
j! 
GRAND D |i 23.015,00 
TOTAL H 
F j| 670,17 
I B li 409,07 
UK 
IRL J 3.328,97 
13,06 
I ESP il 1.142.00 
li P il 96,42 
CE il 28.674,69 | 
•! I II 
New 
1993 
SPF 
NP 
0,00 
0,00 
0,00 
0,00 
0,00 
20,10 
20,10 
0,00 
0.00 
20,10 
20,10 
1.539,00 
40,26 
48.07 
122,90 
1,30 
9,00 
86,50 
1.847,03 nr-T New 
1992 
SPF 
AP 
0.00 
0,00 
0,00 
0,00 
1,00 
1,00 
2,00 
1,00 
1,00 
1,00 
3,00 
1.206,00 
81.18 
51,38 
198,96 
0,00 
15,00 
9,92 
1.542,44 
i IV 
Previous 
1992 
SPF 
AP 
137,00 
7,51 
144,51 
3,70 
17.00 
0,00 
17,00 
154,00 
7.51 
3,70 
165,21 
20.270,00 
568,73 
309,62 
3.007,11 
11.76 
1.118,00 
0,00 
25.285,22! 
I ...... v 
Full 
Production 
(ll*0.4)+ 
(HI-0.65) 
• IV 
137.00 
7.51 
144.51 
3.70 
17.65 
8,69 
26.34 
154.65 
8,16 
12,39 
175,20 
21.669,50 
624,60 
362.25 
3.185,59 
12,28 
1.131,35 
41.05 
27.026.82 WDDOCTJOffTSfcg = 1 Zentner) jj RETURNS (ECU) 
' VI 
Production 
REC 
4.680 
144 
4.624 
134 
688 
20 
708 
5.368 
144 
154 
5.DOO 
848.556 
21.417 
11.705 
109.199 
379 
41.857 
780 
1.033.893 VII 
Yield 
50kg/ha 
Vl/I 
RDM 
34,16 
19,21 
33,75 
36,22 
38,22 
0.95 
37,15 
34,71 
19,25 
31,67 
34,23 
38,51 
26,08 
29,30 
33,09 
29,02 
40,78 
8.20 
37,31 Contract 
SCO 
2.581 
0 
2.581 
0 
476 
476 
3.057 
0 
0 
3.057 
481.533 
19.773 
5.195 
93.080 
379 
39.672 
0 
639.633 Spot 
HCO 
2.099 
124 
2.223 
134 
212 
212 
2.311 
212 
134 
2.657 
367.023 
777 
6.397 
13.705 
0 
2.164 
780 
390.867 •^n—p^r-^-p. -«fi» 
Not sold j Contract 
|| SCO 
V.-
(VIIMX) Il XIWIII 
i"""" 
0 
20 
20 
0 
0 
20 
20 
0 
-68 
20 
-48 
0 
867 
113 
2.414 
0 
0 
0 
3.394 —xn — Spot 
HCO 
XVIX ' XIII 
Total 
XI+XII+ 
(X#0,7)*XV 
| 372.758 102.535 475.293 
| 0 4.412 4.909 
| 372.758 106.946 480.201 
i 
0 22.560 22.560 
: 
70.768 8.105 78.872 
'000 
| 70.768 8.105 78.872 
i 
443.526 110.639 554.165 
0 4.412 4.909 
0 22.560 22.560 
443.526 137.611 581.633 
75.639.899 
4.020.150 
779.824 
12.675.214 
87.295 
5.032.296 
0 
98.434.678 19.281.997 
67.086 
325.655 
1.945.335 
0 
102.690 
49.381 
21.772.143 94.921.896 
4.157.108 
1.112.246 
15.132.287 
87.295 
5.134.987 
49.381 
120.595.199 AVER7PRICE (ECU) 
50 KG 
XIV 
Contract 
PSCO 
144,42 
0,00 
140,09 
0,00 
148,67 
144,47 
144,96 
0,00 
0,00 
137,34 
154,59 
201,02 
145,53 
139,33 
230,33 
126,60 
0,00 
158,29 XV 
Spot 
PHCO 
48,85 
35,49 
48,44 
168,36 
38,23 
37,15 
47,48 
35,56 
146,50 
49,84 
56,62 
101,62 
50,82 
145,78 
0,00 
37,24 
63,31 
65,53 RET'J.WS (ECU) 
ha 
XVI 
Total 
Planted 
XIII/I 
3.469 
654 
3.385 
6.097 
4.382 
0 
4.258 
3.586 
655 
5.305 
3.558 
4.143 
6.366 
2.791 
4.643 
6.684 
4.838 
512 
A.'cM XVII 
Full 
Production 
XIII/V 
3.469 
654 
3.385 
6.097 
4.469 
0 
4.342 
3.597 
655 j 
5.305 
3.569 
4.379 
6.794 
3.317 
4.803 
7.109 
4.900 
1.203 
4.444 
Agricultural conversion rate: 1.1.1994 (see Table 7) 
0 
/M 
Amended proposal for a 
COUNCIL REGULATION (EC) N. /94 
of 
laying down, in respect of hops, the amount of aid 
to producers for the 1993 harvest 
(pursuant to Article 189a (2) of the Treaty) 
In the Annex, the amount of aid to producers for aromatic varieties of 
ECU 378/ha is replaced by the amount of ECU 395/ha. 
1. BUDGET HEADING: 181 APPROPRIATIONS: ECU 13 million 
2. TITLE: Amendment to the proposal for a Council Regulation laying down, in respect of hops, the amount of aid 
to producers for the 199 3 harvest 
3. LEGAL BASIS: Council Regulation (EEC) No. 1696/71 (article 12 paragraph 7) 
4. AIMS OF PROJECT: To amend the aid per hectare for the group of aromatic varieties of hops for the 
1993 harvest 
5. FINANCIAL IMPLICATIONS 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
(ECU million) 
0.3 CURRENT FINANCIAL 
(94) 
(ECU million) 
p.m. FOLLOWING FINANCIAL 
(95) 
(ECU million) 
0.3 
1996 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE 1997 1998 1999 
5.2. METHOD OF CALCULATION: 
Aromatic varieties: 15 905 ha x (A) ECU (395 - 378) million x 1.207 (DR) = ECU 0.3 million 
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES 
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES 
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? 
NO 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES 
COMMENTS: 
i-**."'??7 ' "'.'*.-
-7 J 
ISSN 0254-1475 
COM(94) 379 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CX>-94-400-EN-C 
BBN92-77-SQ504-8 
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