CELEX: 51990PC0140
Language: en
Date: 1990-04-23
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN, IN RESPECT OF HOPS, THE AMOUNT OF AID TO PRODUCERS FOR THE 1989 HARVEST

COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(90) 1A0 f i n a l
                                        Brussels, 23 A p r i l 1990
      f fi^Pf   WPHM TTffi f ? ™ * ™ ™ * TO TTTK COUlfCIL
            on the production and marketing of hops
                           1989 Harvest
                         Proposal for a
                    COUNCIL REGULATION (EEC)
        laying down, in respect of hops, the aaount of
             aid to producers for the 1989 harvest
                  (presented by the Commission)
 ---pagebreak---                                        - 2 -
                              Commission Report on the
                          production and marketing of hops
                                  - 1989 Harvest -
       SUMMARY
0.     Introduction                                          3
1.     Features of the world market for hops
1.1.   Product Ion structures                                3
1.2.   Market and price formation                            4
1.3.   World trade                                           6
2.     1989 Harvest
2.1.   World situation
2.1.1. Production                                            6
2.1.2. Market trends                                         7
2.1.3. Stocks                                                8
2.2.   Commun ity                                            9
2.2.1. Product ion                                          10
2.2.2. Sa les and pr ices                                   11
2.2.3. Foreign trade                                        13
2.2.4. Returns                                              14
2.2.5. Product ion costs                                    16
3.     Outlook                                             .17
4.     The Commun i ty hop market                            19
5.     Current problems and developments affecting the hop
        sector in the Community
5.1.   Aid for varietal conversion                          20
5.2.    International trade and plant health
        legislation                                         23
6.      Cone I us i ons                                        25
 ---pagebreak---                                      3 -
0.   Introduction
     Article 11 of Regulation (EEC) No 1696/71 requires the Commission to
     present to the Council an annual report on the production and marketing
     of hops.   The purpose of this report Is to provide Information on trends
      in production, prices and demand.
     This report, which is the 19th Annual Report presented by the
     Commission, outlines the main events in the 1989 harvest year.
      In quantitative terms the 1989 harvest was significantly up on the
     record low of the previous year; it was, nevertheless, below the average
     of many years past.    1989 was the third year In succession of poor
     Community harvests.    The average per hectare returns achieved by
     producers were, however, slightly up on the previous year.      At a time of
      falling prices, this was attributable solely to higher harvest volumes.
      The Commission proposes that hop producers should once more be granted
      aid to supplement their incomes.
 1.   Featu'es of the world market for hops
 1.1  Production structures
      Hop production is heavily concentrated   in certain geographic areas.
      Hops are grown in relatively few countries and then only in one specific
      region or at most in a few adjacent regions.    This is partly due to
      natural conditions and partly to the traditional skills of a specific
      section of the agricultural population.    The greatest concentrations of
      hop-growing areas in the world are the Hallertau district    in the Federal
      Republic of Germany and the Yakima Valley in the United States of
      America.   Significant quantities of hops are also grown in the USSR and
      China as well as in certain East European Countries.    With some 1 100 ha
      currently under hops, Australia is one of the smaller hop producers, but
       it could become more important in the future, thanks to Its favourable
      natural conditions, which mean there is little need to use plant
      protection products.
 ---pagebreak---                                       _ 4 -
         In 1989, 79% of the world harvest was grown by the countries belonging
        to the International Hop Growers' Convention (IHGC).^ 1 ^  The four
         largest producer countries (Federal Republic of Germany, USA, USSR and
        Czechoslovakia) accounted for more than two-thirds of last year's
        harvest.
1.2.    Market and price formation
        Because of their huge size, the German and American markets play a
         dominant role in determining the level of world market prices.   On the
         demand side, the breweries are practically the only buyers of hops.   The
         volume of beer production largely determines the demand for hops.
         However, technical progress means that the quantity of hops used to
         manufacture a specific volume of beer is constantly being reduced.   In
         addition, changes in the varietal composition of beer are tending to
         reduce the amount of hops needed for the various types of beer.
         Essentially, hops are traded either as aromatic varieties or as bitter
         varieties.   The price of bitter varieties is largely determined by their
         alpha acid content, whereas the price of aromatic varieties depends on
         the aromatic qualities of the hops concerned and the prestige enjoyed by
         the area where they were grown.
         The extent to which a poor harvest may cause supply shortages and
         resultant price hikes is largely dependant on the volume of stocks held.
         The manufacture of hop products, such as hop powder and pellets, means
          that hops may be stored for longer periods of time and fluctuations in
         production ironed out.   This has contributed significantly to smoothing
         out short and medium term price movements and reducing their negative
          impact on suppI ies.
 (1) The following are members of the IHGC: the Member States of the EEC (with
     the exception of Ireland and Portugal), USA, Australia, Czechoslovakia, GDR,
     Poland, Hungary and Bulgaria.
 ---pagebreak---                               - 5 -
However, sometimes very considerable price fluctuations continue to
occur, although the cycles, each of which ends with a sharp movement In
prices, have become significantly longer.    This may be explained by the
existence of a storage cycle, which overlaps the production cycle and
means that changes In the supply situation over a relatively long period
of time are only partially reflected In price changes.     In a surplus
supply situation, quantities in excess of current demand are removed
from the market and placed in storage, whereas when supplies are short
stocks are released from storage.    Since no reliable Information Is
available on either the actual level of stocks held by the breweries or
the rate at which they are depleted in the course of the year, hop
producers are unable to assess what percentage of demand is covered by
current production and what percentage by the run-down of stocks and
cannot therefore determine their production strategy accordingly.     Where
a poor harvest coincides with low stocks, extreme price fluctuations are
unavoidable.
Trade interests play an essential role in the marketing of hops.     The
amounts produced by individual producers, in particular in the Member
 States of the Community are too small for there to be any possibility of
 direct sales to breweries.   Trading companies therefore assume the
essential role of amalgamating supplies and distributing them in
 accordance with demand.   The hop trade, which is dominated both within
 the Community and worldwide by a small number of firms, also controls
 the processing of hops.   Furthermore, hops are also exchanged between
 breweries as a result of stockpile adjustments.    However, the quantities
 involved in such movements are small and play only a very minor role in
 relation to overall trade.
 Both in the Community and in the United States the bulk of production is
 sold under forward contracts generally covering a period of several
 years.   The forward contract system has largely proved its worth since
  it prevents any extreme divergence of supply and demand.
 ---pagebreak---                                        - 6 -
1.3.    World Trade
        There is a lively International trade In hops, born mainly from the fact
        that, geographically speaking, hop production is concentrated in a few
        countries, whereas beer is manufactured In almost every country In the
        world.    There is also considerable trade between the hop-growing
        countries, since each of the latter specializes in particular varieties
        or groups of varieties.     For example, the United States exports large
        quantities of bitter hops, but is a major importer of aromatic hops.      A
         further Impetus is given to international trade by the Increasing
         importance of hop derivatives (extracts, powders and pellets) and the
         regional concentration of the capacities needed to manufacture such
         products.
         An estimated 50% of the annual harvest is traded between countries.     The
         Community is a major exporter of aromatic hops, In particular to the
         United States and Japan.    On the other hand, it imports large quantities
         of both bitter and aromatic hops, chiefly from Eastern Europe, much of
         which leaves the Community again after processing into hop products.
         1989 harvest
 2.1.    Wor id si tuat ion
 2.1.1.  Product ion
          In 1989 the world area under hops totalled some 90 500 ha (see Annex
         Table 1 ) , about 29% of which lay within the Community.
 ---pagebreak---                                        - 7 -
       The renewed upturn in the area under hops that began In 1987 was
       maintained In 1989.     As compared with 1988, the world area under hops
       expanded by 460 ha (0.5%), a smaller Increase than the previous year,
       which saw a 3% growth on the area under hops in 1987.     As In 1988, the
       United States again accounted for the bulk (more than 250 ha) of this
        increase.   However, the growth In the area under hops in the United
       States was significantly less than that of the two previous years.
       Following the downturn in the area under hops that persisted until 1986,
       American growers have now expanded their hop-growing area by almost 40%
        in three years.
       The world hop harvest in 1989 Is estimated at some 2 365 000 zentners (1
       zentner - 50 kg), which is slightly down on the 1988 harvest.     Given
        that the 1988 harvest was already comparatively low, this was a
       disappointing result.     Of the major producers, the United States (up
       8.7%) and the Federal Republic of Germany (up 8.0%) achieved the
       greatest growth In the quantities harvested.     On the other hand, the
        harvest in Yugoslavia and, in particular, in Czechoslovakia were well
        down on the previous year.
        A'. 6.3%, the average alpha acid content was up on the previous year and,
        despite the somewhat lower harvest, alpha acid production is estimated
        at 7 436 t.    This means, however, that available supplies of alpha acid
        from normal annual production fall short of the estimated demand from
        brewers.
2.1.2.  Market trends
        Once it became clear that the relatively low harvest figures of 1988
        would not be bettered in 1989, a price hike was generally expected.
        This seemed all the more justifiable In light of the substantial rundown
        of stocks.    Prices on the German spot market accordingly rose over the
        marketing year, but did not increase as much as growers had hoped.     In
        addition, the market had been largely cleared by the time the price rise
         took effect, which meant that growers saw very little increase in their
         returns.
 ---pagebreak---                                        - 8 -
          The situation on the American market was rather more positive.    Contract
          prices on the American market firmed further, resulting In a high rate
          of contract sales and in a continuing, slight upward trend In prices.
          The conjunction of several favourable circumstances for American growers
          - including a successful varietal policy and the low external value of
          the US dollar - has led to an enormous increase in supplies over the
          past three years and bids fair for a further expansion of the US hop
          market In coming years.   The sharp growth In US exports, accompanied by
          falling imports, is evidence that American growers will be stepping up
          the competition for market share with Community producers.
   2.1.3. Stocks
          The fact that the world market for the 1989 market has been largely
          cleared out for most varieties, whilst at the same time there is still a
          certain demand, clearly shows that further pressure will be exerted on
           the stocks held by the brewery industry, which had already been run down
           considerably following the low 1988 harvest.   This would suggest that
           the barren stockpiles that had built up since 1982 may now have been
           reduced to an extent that makes it possible to break into the new
           harvest, but will prevent brewers   from reacting to the coming harvest
           by deliberately delaying purchases for speculative reasons.
           The stocks held in the USA declined last year to some 23 470 t
           (situation at 1 September 1989) and thus to their lowest level since
           1982.  Community brewers held stocks of some 16 000 t at the same date.
2)
 ---pagebreak---                                         - 9 -
2.2.      Community
          Seven Member States currently produce hops. 6 871 growers farm a total
          area of 26 218 ha, with each holding having on average 3.8 ha under hops
          (see Table 1 ) . Production structures vary considerably from Member
          S'ate to Member State.    In the United Kingdom, 252 hop producers farm
          more than 3 700 ha (14.9 ha/holding), whereas each Spanish producer
          firms an average of only 0.7 ha.
Table 1 : structure of production
                                                 Hop area            Hop area
                            Holdings            total (ha)         per holding
                                                                        (ha)
   F.R. Germany                 4.298              19.938                  4,6
   France                          183                 529                 2,9
  Belgium                          124                 402                 3,2
   United Kingdom                  252              3.743                 14,9
   I re land                         2                  21                10,5
   Spa in                        1 .972              1 .443                0,7
   PortugaI                         40                 142                 3,6
   E.E.C.                        6.871             26.218                  3,8
 ---pagebreak---                                     - 10 -
2.2.1 Production
      The area under hops in the Community In 1989 was 26 218 ha (see Annex,
      Table 1.)   This represents only a very slight change as compared with
      the previous year.    The expansion of hop-growing areas In Germany
      continued, although the pace of expansion has slowed considerably with
      only 156 ha newly put to hops.    Apart from France, where there was an
      increase of 40 ha in the area under hops, there was a downward trend in
      the other Member States. At 811 739 zentners, the total 1989 harvest was
      significantly up on the extremely low 1988 harvest (+7.7%), but still
      fell short by some 100 000 zentners of the average for the past decade.
      Certain Member States saw greatly increased yields as compared with
      1988, particularly Spain where, despite a decline In the area under
      hops, the quantities harvested were up 40%.     Portuguese hop growers, who
      faced harvest failure last year, recovered to obtain almost average
      yields.   The quantities harvested in the Federal Republic of Germany
      were significantly higher than in 1988, but could have been some 20 000
      zentners higher had not parts of the Hallertau district experienced
      severe hail damage.    The least satisfactory result was that obtained in
      Britain, where a persistent drought during the growing season and heavy
       infestation meant that the harvest fell short of even the record low set
       in 1988.
       In a situation where the overall area under hops remains stable, the
       increase in the quantities harvested is of course attributable to higher
       per hectare yield.   At 31.0 zentners per hectare, the average yield
       throughout the Community was somewhat higher than in the two previous
       years, but still fell short of the long-term average.
       The quantities of alpha acid per hectare in 1989 were significantly up
       on the previous year at 92.6 kg.    This is, however, solely attributable
       to the increased yield per hectare.    The Community average alpha acid
       content of 6.0% was on a par with the sub-average 1988 level.     None of
       the Member States attained very high alpha acid values.     Indeed, the
       average alpha acid content in France fell to only 3.7% as a result,
       however, of the large expansion in the area planted with the
       StrisseIsta 11 variety of aromatic hops.
 ---pagebreak---                                     - 11 -
2.2.2. Sales and Prices
       The spot market grew in both relative and absolute terms as a result of
       the harvest being up on the previous year.    170 472 zentners, I.e. 21%
       of the 1989 harvest, were sold on the spot market (see Annex, Table 9 ) .
       This was more than 40% up on 1988.    Nevertheless, the spot market was
       rapidly cleared out.   At the beginning of 1990, only 1 389 zentners of
       hops remained unsold, more than half of which was in the United Kingdom.
       Price trends were greatly at odds with the rapid market clearance and
       with the relatively low quantity harvested.    Average prices on both the
       contract market and, in particular, the spot market were significantly
       down on the previous year.   The average price achieved by Community
       producers for bitter hops on the contract market was ECU 151.10/ztr
       (down 3.2% on the previous year) and ECU 177.00/ztr for aromatic hops
       (-2.9%) (see Annex, Table 9 ) . Spot prices for bitter hops reached an
       average of ECU 111.09/ztr, down 7.2% on last year's level.    The fall in
       spot prices for aromatic hops, which fetched ECU 159.54/ztr, was even
       steeper (-19.0%).
       Leaving aside the slight price rise on the French and Portuguese
       contract market, prices fell in all Member States, and were particularly
       depressed on the spot market.    The greatest drop was experienced in the
       United Kingdom (down 28.9%).    This reflected, inter alia, the low
       quality of British hops, which had been heavily attacked by parasites.
       The economic impact of the sharp fall in spot prices in Belgium (-20.1%)
       was all the more acute in view of the fact that, unlike other Member
       States, the bulk of the harvest is sold on the spot market.    By far and
       away the lowest spot market prices were in Spain, where an average of
        ECU 80.24/ztr was recorded.   Owing to the exceptionally fine harvest in
        Spain, relatively large quantities of hops reached the spot market for
        the first time in 1989, obviously catching the hop trade by surprise.
 ---pagebreak---                                         12 -
         In addition, most Community hop growers were affected by falling prices
        on the contract market. The pressure on prices, derived Inter alia from
        the scale of production capacity, is also becoming apparent on the
        forward market. Prices are lower the further forward the contract.
        There is a trend on the part of customers to reduce their contract
        exposure.    This may be taken as evidence that the breweries foresee
         selling pressure in the future and reckon that they will be able to
        obtain cheaper supplies on the spot market.
Table 2 :    Average prices for selected hop varieties in the Federal Republic of
             Germany, 1982-1994
                                                       PrIces In ECU/ztr
                 Year    Hal 1er-  Tettnan- Hers-        Northern  Brewer's
                         tauer     ger       brucker     Brewer    Gold
Spot market
                 1982        74,94   104,85      52,81       85,43     46,60
                 1983       125,27   198,84      67,61     104,19      69,20
                  1984      111,21   161,06      78,24       69,93     43,10
                  1985      194,96   207,53     126,20     102,72      45,70
                  1986      129,26   138,17      94,94       62,88     24,45
                  1987      220,35   228,09    209,15        76,55     54,50
                 1988      227,86    230,82    216,85      142,73      93,18
                  1989      218,54   231,25     173,65     127,48      88,09
Contract market
     m            1982      167,15   202,31     160,76     143,68    134,74
                  1983      178,16   212,72     166,23     151,12    142,37
                  1984      181,88   218,52     164,87     154,13     144,78
                  1985      191,60   288,92     168,96     161,41     147,58
                  1986      196,39   226,33     170,17     171,77     144,62
                  1987      195,37    220,11    169,38     169,80     137,94
                  1988      200,33    223,20    170,68     168,54     126,64
                  1989      199,91    220,66    168,57     160,09     116,89
Forward contracts
                  1990      167,72    222,78    160,94      160,94    114,35
                  1991      157,55    221,93    154,59      141,88     99,53
                  1992      156,28    220,66    152,05      141,88    101,65
                  1993      151,62    220,66    150,35      138,49     97,41
                  1994      151,20    220,66    149,93      137,65     97,34
 (1) The prices shown are the average prices specified in contracts signed
     in previous years for the relevant harvest.
 ---pagebreak---                                      - 13 -
       The behaviour of major Japanese breweries was also responsible, along
       with the Initially very cautious prices offered by the trade, for the
       unsatisfactory price trend for producers in 1989.    The Japanese
       breweries - apparently owing to excess coverage In hop purchases -
       postponed until next year the delivery of some 25 000 ztr of hops that
       were supposed to have been delivered this year.    News of this reached
       the market Just as certain varieties were beginning to become scarce,
       thereby preventing prices from picking up more strongly.
2.2.3. Foreign trade
       As regards the Community's foreign trade in hop and hop products, there
       was a sizable increase in imports, while exports were generally
        sluggish.   In the period September 1988 to August 1989 20 341 t
        expressed as hop cones were exported to non-member countries and 14 344
        t imported into the Community from non-EEC countries (see Annex, Table
        7a). Net exports amounted to 5 997 t.   This was 24% down on the previous
        year's figure.
        The Community's main suppliers are Czechoslovakia (4 535 t) and the USA
        (3 949 t) (see Annex, Table 7b). However, the USA is also one of the
        major export markets for Community produced hops.   The largest single
        market in 1989 was Japan, which purchased 4 755 t of hops, largely in
        the form of pel lets.
        Hops from Eastern Europe and China are generally purchased in the form
        of hop cones and are, to a large extent, re-exported after processing.
        On the other hand, most of the hops (expressed in terms of hop cone
        equivalent) that reach the Community from the USA are already processed
        and are largely intended for use in the Member States.
 ---pagebreak---                                     - 14 -
2.2.4. Returns
       Community hop growers obtained an average return of ECU 5 136 per
       hectare in 1989, up 1.4% on the previous year, a level that was,
       however, far from satisfactory for producers (see Table 3 ) . Overall,
       the increase In average per hectare returns was the result solely of
       higher harvests rather than of a favourable price trend.
       If one looks at variety groups, improved returns were obtained only for
       bitter varieties (up 3.2%).   On the other hand, per hectare returns for
       aromatic and other varieties were down 0.4% and 2.2% respectively on the
       previous year.   The increased returns for bitter varieties resulted
       primarily from the firming of prices for the Northern Brewer variety,
       the most widely grown bitter variety in the Community.    Per hectare
       yields for the Brewer's Gold variety, however, were down 10%.
       The trend in returns varied greatly from one Member State to another.
       Spanish producers, whose returns in 1989 were up 41%, can look back on
       an exceptionally good harvest.   On the other hand, the sharp increase of
       76.6% obtained in Portugal as compared with the previous year only
        represents a return to more normal levels of return.
        In Belgium, the fact that the bulk of production is sold on the spot
       market had extremely negative consequencej.    Owing to the low prevailing
        prices on the Belgian spot market, average returns per hectare were the
        lowest in the Community at ECU 3 395.   This is 8.5% down on the previous
        year .
        French growers, who obtained very good returns in 1988, suffered a
        reverse in 1989 attributable mainly to the low yields of the
        StrIsseIspaIt variety.  The unfavourable price trend in the United
        Kingdom further aggravated the impact of poor yields on the financial
        resuits obtained there, leading to returns that were 8.5% down on those
        of the previous year.
 ---pagebreak---                                              - 15 -
Table 3 : Return on areas In full production, In ECU/ha         C)
  By varlety group
                      1984     1985       1986     1987        1988    1989    1989/88(%)
  Hops
  - Aromat ic        5.972    6.151      5.402    5.428       5.586   5.562     - 0,4
  - Bitter           5.967    5.073      4.410    4.727       4.491   4.633     + 3,2
  Others             4.735    4.118      3.462    4.439       4.196   4.093     - 2,1
  By country
                      1984     1985       1986      1987       1988    1989    1989/88(%)
  Germany            5.377    5.786      5.201    5.353       5.238   5.307      + 1,3
   France            3.894    4.858      4.688    4.674       6.170   5.572      - 9,7
  Be I g i urn       3.094    2.934      2.189    4.199       4.368   3.995      - 8,5
   United Kingdom    8.961    5.294      4.292    4.695       5.001   4.577      - 8,5
   Ireland           8.078    5.547      1.651    4.918       5.943   5.283     - 11,1
   Spain                                 3.506    3.122       3.173   4.473     + 41 ,0
   Portugal                              5.231    4.763       2.452   4.329     + 76,6
   By country and by variety group 1989 ^2^
                              Aromatic             Bitter            Others
   Germany                  5.591  (1,1)        4.859   (1,0)       4.387  (- 3,0)
   France                   6.033  (-15,2)      4.240  ( - 1,2)     2.186  (- 24,4)
   Belgium                  5.498  (-14,7)      3.263  (- 7,8)      3.490 (2,3)
   United Kingdom           5.230  (- 7,6)      4.177  (- 9,8)      2.937  (- 11,6)
   I re I and               3.960  (-24,1)      5.741  (- 7,3)
   Spa in                   1.686  (43,7)       4.478   (40,7)
   PortugaI                                     4.329   (76,6)
  (1) Areas newly planted in 1989 and 1988 were assumed to give 40% and 65%
       respectively of the return from areas in full production.
  (2) The figures in brackets show the percentage change from 1988.
 ---pagebreak---                                       - 16 -
   2.2.5 Product ion costs
         When existing methods of production are maintained for the cultivation
         of agricultural land, cultivation costs per unit area tend to rise in
         line with Inflation over the course of time.   This is true of the
         majority of the areas under hops In the Community.   In the period 1988
         to 1989, the average Increase in production costs per hectare was 5.7%
         (see Table 4 ) . The greatest increase in costs (21.1%) was absorbed by
         growers in the United Kingdom, where expenditure on plant protection
         products following heavy Infestation figured heavily in the accounts for
         1989.   A quick glance at the average level of costs Is enough to show
         that producer costs stand in a very poor relationship to returns.   With
         the exception of Spain and Portugal, the costs of producing one hectare
         of hops in the Member States were considerably higher than the returns
         obtained.   On average in the Community, cultivation costs reached
         ECU 6 827 per hectare and were thus 25% higher than the average return
         per hectare.
         The fact that hop growers are prepared to carry on producing at prices
         that are so far from covering their costs Is attributable solely to the
         fact that fixed production costs are largely ignored and only a very
         modest return is looked for on the work done by growers themselves.    In
         many cases, it is only when capital expenditure on replacement of assets
         becomes necessary that growers recognize that neither the capital write-
         offs nor the interest charges on their equity are met by their returns.
         This revelation is often closely linked to a decision to quit
         product ion.
3)
 ---pagebreak---                                        - 17 -
Table 4: Production costs per hectare (In ECU)
                               1988               1989           1989/1988   (%)
  F.R. Germany                  7.133              7.402                   3,8
  France                        7.067              6.638                -6,1
  Be I g i um                   8.979              9.313                   3,7
  United Kingdom                3.801              4.604                 21,1
   Ireland                      6.055              5.746                -5,1
  Spain                         3.835              4.312                 12,4
  Portugal                      3.801              4.146                   9,1
  E.E.C.                        6.460              6.827                   5.7
3.       Out iook
         Given that worldwide beer production is only rising slightly and that, in
         any case, consistent technological advances and the changing pattern of
         the types of beer consumed mean that any increase in beer production will
         be reflected in a proportionately lower increase in the demand for hops,
          it is clear that trading will be determined in the first instance by the
         volume of suppIies.
         Over the past three years, the worldwide area under hops has grown by
         almost 5 000 ha and has now reached a capacity level that could, given
          favorable natural conditions for yields, lead to considerable surplus
         problems within a short period of time.    1982 clearly showed that even a
          record harvest was enough to depress the world market for almost a
         decade.   Given this situation, it is promising to note that no further
          significant increase in the worldwide area under hops is planned for 1990
          (see Annex, Table 1). There is little inducement in the Member States of
          the Community, given poor producer prices, to expand the area under hops.
          Efforts are directed rather more to a move away from traditional bitter
          varieties towards more marketable varieties.
 ---pagebreak---                                - 18 -
On the other hand, plans are afoot In the USA to further expand the area
under hops by some 270 ha.    This Is likely to be accompanied by a further
conversion to aromatic and super-alpha varieties.
So great is the price pressure exerted by super-alpha varieties over
traditional bitter varieties that varietal conversion is set to continue
worldwide.    The present trend on the contract market shows that whilst a
market will continue to exist for high-quality bitter hops, such as In
particular the Northern Brewer variety, this does not exclude the
necessity to adjust production capacities downwards.
 In addition to the splitting of the world market into one market segment
for aromatic hops and another for bitter hops, an increasing distinction
 Is drawn In International trade between hops that are suitable for sale
on the American market and those that may not be Imported into the USA as
a result of plant health rules.    Hops that are produced outside the
 United States for the US market but that cannot be disposed of in the
 United States owing to plant protection product residues are a drag on
 the rest of the world market and can disrupt the market considerably.
 The overall outlook for 1990 is for the market to stay on an even keel.
 The area under aromatic hops has grown to such an extent In recent years
 that there should be no shortage of supplies if the harvest is normal.
 The level of supplies of bitter hops, which are less likely to be under
 contract than aromatic hops, has a greater bearing on the average price
  level during the current marketing year.   Increased supplies of
 super-alpha hops will also continue to bite into the market share of the
 traditional bitter varieties, in particular Brewer's Gold.
 Following three successive poor harvests and the resultant run-down of
 stocks, it would appear justified to assume that after several years of
 depressed prices upward movements are again likely.    To what extent this
 will lead to any far-reaching improvement in the pattern of prices on the
 contract market remains to be seen.    In light of the scale of existing
 production capacities, there can be no talk of any imminent recovery of
 the world market for hops.
 ---pagebreak---                                  - 19 -
4. The Community hop market
   The common organization of the market in hops was established In 1971 on
   the basis of Regulation (EEC) No 1696/71.   The aim was to Improve product
   quality and to safeguard the livelihood of hop growers.    Since a
   deliberate decision was taken when setting up the market organization not
   to make any special arrangements for external trade or to introduce an
    intervention system, the Community hop sector is to a large extent
   subject to world market forces.
   The essential aspects of the basic Regulation which were dealt with In
   greater detail by subsequent, more specific Council or Commission
   regulations, are the marketing of hops under a certification procedure
   and on the basis of forward contracts, the recognition and promotion of
   producer groups and trade with non-member countries.    In addition, there
    is provision for aid to be granted in respect of Community produced hops.
   The Community has two main financial responsibilities in this sector.
    Firstly, regular recourse is had to the possibility of granting producers
    per hectare aid in the event of poor yields.   In 1988 per hectare aid was
    granted at the rate of ECU 330 for aromatic varieties and at a rate of
    ECU 390 for bitter varieties and for other varieties.   Secondly, a
    special aid is payable under Regulation (EEC) No 2997/87 to encourage
    growers to convert to varieties more suited to market requirements.
 ---pagebreak---                                     - 20 -
5.   Current problems and developments affecting the hop sector in the
     Commun Ity
5.1. Aid for varietal conversion
     The persistent Imbalance over many years between supply and demand for
     most bitter varieties and the resultant problems faced by hop growers in
     certain regions of the Community obliged the Council to adopt special
     measures for the hop sector In 1987.
     Regulation (EEC) No 2997/87 Introduced a special aid amounting to
     ECU 2 500/ha, subject to a maximum area of 800 ha Member State, to be
     granted to recognized producer groups that undertook to implement a
     conversion plan from bitter hop varieties to aromatic and super-alpha
     varieties.    In June 1989 the Council adopted Regulation (EEC) No 1809/89
     amending Regulation (EEC) No 2989/87 with the aim of extending the range
     of producers who qualify for the varietal conversion programme.    The new
     criteria now allow producers In the entire Community, and not only in
     specific areas as originally provided for, to take up the special aid.
     The provision that producer groups could only participate in the
      programme if the total area under hops cultivated by them did not
      increase in the period from 1986 to 1988 was also repealed.   The
      extension of the duration of the programme from the original date of 31
      December 1990 to the end of 1992 gives producer groups a greater margin
      of manoeuvre for the implementation of the conversion plans.
      The take-up of Community varietal conversion programme amongst hop
      growers has been great. Six of the seven hop producing Member States have
      submitted varietal conversion programmes, some of which have already been
      revised on technical grounds or because of changes in the conditions for
      a i d (see Tab le 5 ) .
 ---pagebreak---                                     - 21 -
Table 5       Varietal conversion programmes submitted by the Member States
              under Regulation (EEC) No 2997/87
                                                 To be converted to
     Member       Or iglnal
     States        type of           Aromatic         Bitter,         Total
                   varlety                          Super-alpha
                                                        ha
                 Aromat ic                   56            369             425
   U.K.          Bitter                      74            256             330
                 Others                      10             22               32
                 Total                     140             647             787
                 Aromat ic
   FRANCE        Bitter                    125              45             170
                 Others
                 Total                     125              45             170
                 Aromat ic
   GERMANY       Bitter              15+522*-567          233*      15+785*-800
                 Others
                 Total               15+522*-567          233*      15+785*-800
                 Aromat ic                    8             10               18
   BELGIUM       Bitter
                 Others                      54             83              137
                 Total                       62             93              155
                 Aromat ic
   SPAIN         Bitter                       6            101              107
                 Others
                 Total                        6            101              107
                 Aromat ic
   PORTUGAL      Bitter                       -            166              166
                 Others
                 Total                        -            166              166
                 Aromat ic                   64            379              433
                 r  • •
                                            772            801           1 .573
 1
                                             64             83              169
                 Total                      900          1 .285          2.185
                  Approved so far
                  (1.4.1990)                348          1 .052          1 .400
 * The figures marked with an asterisk relate to areas which the Commission has
   not yet approved for conversion.
 ---pagebreak---                               - 22 -
The programmes submitted by the individual Member States provide
primarily for the uprooting of the traditional bitter varieties Brewer's
Gold and Northern Brewer, which have Increasingly been losing ground on
the world market to the American super-alpha varieties.
To date, the largest varietal conversion programme approved by the
Commission was that for the United Kingdom, which covers an area of
787 ha.   The aid from the Community is primarily intended to replace a
part of the traditional aromatic varieties (which are subject to wilt
disease) by super-alpha varieties.   The Target variety accounts for the
bulk of the area In question with over 500 ha being converted to this
var iety.
Most of the areas covered by the conversion programme in Spain are being
 replanted with hops with a high bitter principle content.    The hops
 concerned are a selected clone of the H-3 Leones variety, which is
 expected to be of super-alpha quality.   The Community varietal conversion
 programme has provided an incentive to undertake a land consolidation
 project in the area concerned, aimed at resolving the problems of
 fragmentation and improving access and irrigation.    In parallel with
 this, national measures are underway aimed at eradicating viruses and
 modernizing hop machinery.
 The Federal Republic of Germany has now submitted an amended varietal
 conversion programme, which takes up the full entitlement to the special
 aid (800 ha). The extent of the eligible area is, however, far from
 sufficient to satisfy the wish for financial support on the part of all
 those growers who would be willing to undertake conversion schemes in
 what is the largest hop-producing Member State.
 The Commission has approved a programme for Portugal aimed at converting
 the entire hop-growing area by 1992.   The traditionally grown bitter
 variety Brewer's Gold is being replaced by the American super-alpha
 varieties Eroica, Galena and Nugget, which are expected to give a much
 higher alpha-acid yield per hectare.
 ---pagebreak---                                    - 23 -
     France has now revised the scope of Its varietal conversion programme
     downwards.   Moreover, contrary to the Initial Intention, the bulk of the
     land will now be converted to aromatic varieties; only a third is
     scheduled for conversion to super-alpha varieties.
     Last year Belgium upped the area of land to be converted, which now
     amounts to some 37% of the total area under hops.
5.2. International trade and plant health legislation
     A substantial proportion of Community hop production has always had to be
     sold on the world market.   The major market segments for this trade are
     the USA and Japan.   Exports to the USA were seriously threatened when, in
     1986, the American authorities began applying restrictive provisions on
     plant protection products to hop Imports.
     As production techniques now stand, the use of plant protection products
      is unavoidable in most producer countries.  However, those plant
     protection products whose residues are tolerated in the USA do not
     generally correspond to the products authorized for use in the exporting
     countries.   The scope for using plant protection treatments for hops that
     meet US standards is therefore limited in many producer countries and
     also entails significantly higher costs.
       The action of the American authorities created a significant obstacle to
       trade for the major exporting countries, the existence of which poses a
       permanent threat of widespread disruption of the world market.. Of the
       Community Member States this particularly affects the Federal Republic
       of Germany which has exported over 90 000 tr of hops to the USA in
       recent years.  Only a few of the plant protection products approved for
       use on hops meet the American standards.  The US-approved products are
       not aiways sufficiently effective and their exclusive use would, in
       addition to increasing costs sharply, also bring a risk of lower yields.
       Efforts have been made over the past few years to harmonize plant
       protection rules in the hop-producing countries.  This has been done, on
       the one hand, within the framework of the International Hop Growers'
       Convention (IHGC) and, on the other hand, at a bilateral level, in
       particular between the Federal Republic of Germany and the USA.
 ---pagebreak---                                   - 24 -
    However, given the sensitivity that the subject of plant protection
    arouses in the public mind, in particular in countries that have
    stringent rules on the use of such products, there are few signs of any
    Inclination on the part of the countries concerned to abandon the
    positions they hold for the sake of harmonization.
    This means that the US market will remain virtually closed to a
    significant proportion of Community production.     However, the longer
    uncertainty surrounds the trading of hops between the Community and the
    USA, the greater the risk that the Community may lose its share of this
    traditional export market for good.     The strategy of the major American
    breweries is manifestly to reduce their dependence on European hop
     imports.   This means that they will be looking particularly to domestic
    production.    American hop growers are being encouraged by attractive
     forward contract prices to replace part of the volume of hops imported
     from their own production.    The steadily growing area under aromatic
     hops in the USA is clear evidence that growers are reacting to this
     demand-led trend in the hoped-for manner.
     The Community's position in negotiations with the USA on plant
     protection rules is complicated by the fact that the Community has
     neither common rules or maximum permissible limits for residues nor
     uniform, Community-wide approval procedures for plant protection
     products.   Both areas remain largely a matter of national competence.
     Given this unsatisfactory situation, which also has an adverse effect on
      intra-Community trade, the Commission has been active for some years in
     attempts to establish common rules.    Proposals have been sent to the
     Council on both accounts, namely on how to tackle residues and on the
     procedures for authorizing plant protection products.
(4)
 ---pagebreak---                              - 25 -
Conelus Ions
in view of the above analysis of the present state and future prospects
of the Community and world hop market, the Commission proposes that an
income aid be granted to growers In respect of the 1989 harvest.   The
objectives of this aid are as follows:
1.   To provide limited support for growers' incomes, which have
     continued to suffer as a result of the unsatisfactory price levels
     Average returns per hectare, whihe have been falling sharply in
     recent years, showed only a slight increase.   Although yields are
     higher than the year before this did not result in a significant
      Increase In growers' returns due a fall in prices.  At the same
     time costs of production increased.   However, in order not to
     encourage an expansion in hop acreage the amount of aid must remain
     at a controlled level.
2.   To take account of the differences in the returns obtained from the
     various groups of varieties
     The considerable gap in returns from aromatic varieties, on the one
     hand, and the returns from bitter varieties, on the other, has been
     narrowed down slightly by a decrease of 0.4 % for aromatic
      varieties and an increase of 3.2 % for bitter.  Returns from other
      varieties have fallen once more.  However, there remains a
      considerable difference in the level of returns from the individual
      var ietaI groups.
      Since the primary objective of the aid is to provide income support
      for hop growers, it would be unjustifiable to discontinue the
      present system whereby the level of aid is differentiated according
      to the types of variety grown.
 ---pagebreak---                              - 26 -
3. Not to place varietal group "others" at a disadvantage
   This group consists mainly of relatively new varieties.       The
   development and commercial adoption of such varieties are in the
    Interest of the Community's hop industry and should therefore
   receive support.     This would seem to justify increasing the aid for
   such varieties taking into consideration the decrease in returns
   from this varietal group and the increase in costs of production.
   The Commission proposes the following rates of aid:
   Variety group                                Aid (ECU/ha)
   Aromat i c var i et i es                             340
   Bitter varieties                                  390
   Other varieties                                   400
   This proposal would mean a slight increase in the average rate of
   aid compared with that for 1988 and would bring it up to 363
   ECU/ha.   Average income, including aid, from the areas in full
   production would therefore amount to ECU 5.498 ECU/ha (1988: 5.423
   ECU/ha; 1987: 5.429 ECU/ha).
   The figures for the various types of variety are as follows:
                                 Income in ECU/ha, including aid
                                 1989     1988     1987      1986
    Aromatic varieties          5.902     5.916    5.758     5.712
    Bitter varieties            5.023     4.881    5.097     4.800
   Other varieties              4.493     4.586    4.809     3.852
    The cost of this proposal to the EAGGF Guarantee Section would be
    ECU 9.5 million (i.e. ECU 11.0 million once the dual rate
    coefficient has been applied), as compared with ECU 9.4 million for
    the harvest.
 ---pagebreak--- Table 1: AREA UNDER HOPS, PRODUCTION OF HOPS, ALPHA ACID AND BEER BY PRODUCER COUNTRIES 1989
            T
            1     :      11     :    11a  .      lib        Ill    :   IV  :    V         VI   : VII    :    VIII    :    IX    :    X    :
        Country   : Area        : Area    : Area      : Production : Yield :Product. : Percent : Yield  : Beer prod. : Forecast : Area    :
                  : ha          : ha      : ha        :    Ztr     : t/ha  : Alpha T : Alpha   : alpha  :    m/hl    : Area     : Change  :
                  : 1989        : ( + /-)   : (+/-)   :                                          kg/ha  : (Barth)    :    ha    :    ha   :
                                 1989-88  : 1989-80   :    1989      1989  :  1989   : 1989    : 1989   :    1989    :   1990   : 1990-89 :
  F. R. G .       : 19 938 :         156 : 1 984 :        638  782 : 1,60  :  1 812 :     5,7  :   90,9 :      93,2  :  19 950  :      12 :
  France          :       529 :       40 : - 228 :         15  260 : 1,44        28 :     3,7  :   54,0 :      20,9  :     550  :      21 :
  Belg i urn      :       402 :    -   16 : - 421 :        12  456 : 1,55  :      36 .    5,7  :   88,7 :      14,0  :     420  :      18 :
  United Kingdom  : 3 743 : - 135 :- 1 975 :               94  388 : 1,26  :    385 :     8,2  :  103,0 :      60,1  :   3 715  :   - 28  :
  Spain           : 1 443 : - 56 : - 409 «                 45  392 : 1,57  :    175 :     7.7  :  121,3 :      27,2  :   1 440  :    - 3
  Portugal        :        142 :     - 8 :       - 50 .     4  949 : 1,74  :      17 :    6,9  :  120,3 :       6,8  :     150  :       8
  Ireland                   21 :          :      - 54 :        512 : 1,19  :       2 :    8.8  :  105,2 :       5,4  :       18 :    - 3
                                     ±°
  EEC-12          : :>h 218 :      - 19    :- 1 153 :     811 739  : 1,55  :  2 455  ;    6,0  :   92,6 :     269,8  :  26 243  :      25 :
  U.S.A           : M y«l :          257 : -1 021         538  200 : 1,93  :  2 386 :     8,9  :  170,7 :     231,5  :  14 250  :    269  :
  Australia       :   1 113 :        - 2 :       - 42 :    49  460 : 2,22  :    247 :    10,0  :  222,3 :      18,7  :   1 113  :       0 :
                      l
  Yugos 1 :iv ia  :     , :'(J4 :     16 :         49 :    83  000 : 1 ,30 :    280 :     6,7  :   87,4 :      12,0  :   3 204  :       0 :
  Czeehos1ovakia  : 1 1 'iSO :          0 :       850 .   245  460 : 1,03  :    442 :     3.6  :   37.0 :      23,0  :  11 950  :       0 :
  G.l).l<         : :> 240 : - 80 :                84 :    60  000 : 1,34  :    200 :     6.7  :   89.3 :      24,8  :   2 100  : - 140   :
  Poland          : 2 Ml : - 13 : - 102 •                  49  000 : 1,03       129 :     5,3  :   54.4 :      12,4  :   2 410  :      38 :
  Hungary         :       441 : - 54 : - 115 .             12  000 : 1,36  :      36 :    6,0  :   82.1 :       9,4  :     410  : - 31    :
  Bulgaria        :       930 :         0 : - 650 :        15  600 : 0,82  :      46 :    6,0  :   48,9 :       7,0  :     950  :       0 :
 Total IHGC(-EEC) : 36 251 :         124  : - 947 : 1 052 720 : 1.45       :  3 766  :    7,2  :  103,9 :     338,8  :  36 387  :    136  :
 Total IHGC(+EEC) : 62 469 :       -105   : - 2 100 : 1 864 459 : 1,49     :  6 221  :    6,7  :   99,6 :     608,6  :  62 630  :    161  :
  Japan           :       935 :    - 45 :      -  226 :    38  780 : 2,07  :    100 :     5,2  :  107,0 :      61,0  :     950  :      15 :
  USSR            : 15 000 :            0 :    1  000 :   200  000 : 0,67  :    300 :     3,0  :   20,0 :      56,0  :  15 000  :       0 :
  Romania         : 2 600 :          400 •     1  600 .    32  000 : 0,57        70 :     4,4  :   25,0 :      13,0  :   2 600  :       0 :
  China           : 5 000 :             0 :    2  000 :   140  000 : 1,40       420 :     6,0  :   84,0 :      60,0  :   5 000  :       0 :
  North Korea     : 2 000 :             0 :    1  500 :    24  000 : 0,60        70 :     5,8  :   35,0 :       1,0  :   2 000  :       0 :
  Others          : 2 500 :             0 :       331 .    66  000 : 1,32  :    255 :     7,7  :  102,0 :     302,4  :   2 500  :       0 :
  World total     : 90 504 :         460  :    4 105 . 2 365 239 : 1,30    :  7 436  :    6,3  :   82,2 :   1 102,0  :  90 680  :    176  :
 ---pagebreak---                                              n
Table la: AREA UNDER HOPS, PRODUCTION OF HOPS, ALPHA ACID AND BEER BY PRODUCER COUNTRIES
           1988
:          I      : II     :      III     :     IV :   V    :    VI : VII        :    VIII      :
:      Country    : Area   : Production   : Yield : Product.: Percent : Yield    : Beer prod.   :
                     ha         Ztr       : t/ha : Alpha t : Alpha : Alpha       : m/hl         :
                    1988   :                                              kg/ha  : (Barth)      :
                                1988      : 1988 : 1988 : 1988 : 1988            :    1988      :
:  F.R.G.           19 782 -    591 591 :    1,50 : 1 597 :       5.4  : 80.7 -         92,7 :
: France               489 :      15 823 :   1,62 :      36 :     4.5  : 72.8 .          19,5 :
:  Belgium        :    418        12 036 :   1,44 :      45 :     7,4  : 106,5 •         14,0 :
:  United Kingdom    3 878        98 308     1,27       395       8,0  • 101,4          60,3 :
: Spain           : 1 499 :       32 486     1,08       158       9,7  . 105,1           27,0 :
:  Portugal             150 :       3 087    1,03        11       7,2      74,1            5,5 :
:  Ireland               21 :         557    1,30 :       2       8,3     107,6            5,4 :
: EEC-12          : 26 237 :     753 888     1,44   : 2 244       6,0      85,5        265,1    :
:  U.S.A.         : 13 724 :     494  939    1,80   : 2 202  :     8,9    160,5        230,0    :
: Australia          1 115 :      47  200    2,12   :   236  :   10,0     211,7          19,5   :
: Yugoslavia         3 188 :      96  000    1,51   :   304  :     6,3     95,3   :       11,0   :
:  Czechoslivakia 11 950 :       307  400    1,29   :   615       4,0      51,4   :       22,7   :
:  G.D.R.            2 320 :      63  139    1,36   :   227  :     7,2     97,7   :       25,0   :
: Poland             2 385 :       57 000    1,19   :   127  :     4,5  . 53,8    :       12,3   :
: Hungary               495 :      12 756    1,29   :    33  :     5,1  . 65,7    :         9,5  :
:Total IHGC(-EEC) 35 177 : 1 078 434 : 1,53         : 3 744  :     6,9  : 106,4   :     330,0    :
:Total IHGC(+EEC) • 61 414 : 1 832 322 1,49         : 5 988  :     6,5  : 97,5    :     595,1    :
: Japan           :     980 :      37 000  :  1,89  :   111  :     6,0  : 113,3   :       53,5   :
: USSR            : 15 000 :     200  000  :  0,67  :   300  :     3,0  : 20,0    :       50,0   :
: Romania         : 2 200 :        32 000  :  0,73  :    67  :     4,2  : 30,5    :       10,0   :
: Bulgaria        :     950 :      15 710  :  1,83  :    43  :     5,5  : 45,2    :         7,0  :
: China           : 5 000 :      150  000  :  1,50  :   488  :     6,5  : 97,5    :       55,0   :
: Others          : 4 500 :      140  000  :  1,56  :   395  :     5,5  : 85,6    :     279,4    :
: World total     : 90 044 : 2 407 032 : 1,34       : 7 382 :      6,1  :   82,0  :   1 050,0    :
 ---pagebreak---                                                «
Table lb: AREA UNDER HOPS, PRODUCTION OF HOPS, ALPHA ACID AND BEER BY PRODUCER
           COUNTRIES 1987
:          I      : II       :       III    :     IV :    V    :    VI : VII       :   VIII     :
:      Country    : Area     : Production   : Yield : Product.: Percent : Yield    :Beer prod.  :
                      ha     :    Ztr       : t/ha : Alpha t : Alpha : Alpha       : m/hl       :
                     1987    :                                              kg/ha  : (Barth)    :
                                   1987     : 1987 : 1987 : 1987 : 1987            :   1987     :
:  F.R.G.         : 19 310 :     620   736  :  1,61  :  2 123  :   6,84  :  109,94 :     92.8   :
:  France         :     559 :      14  204  :  1,27  :      47 :   6,66  :   84,08 :     19.9   :
:  Belgium        :     436 .      14  942  :  1,71  :      78 :  10,40  :  178,90 :     14,0   :
:  United Kingdom : 3 945 -      103   476  :  1,32  :    475  :   9,19  :  121,45 :     59,9   :
:  Spain          : I 578          36  978  :  1,17  «    140  :   7,58  :   88,72 :     25,8   :
:  Portugal       :     160         6  430  :  2,01  :      21 :   6,49  :  131,25 :       5,0  :
:  Ireland        :       34           826  -  1,20  :       4 :   9,66  :  117,65 .       5,4  :
: EEC-12          : 26 022       797 592 • 1,53         2 888      7,24 : 111,12 :      262,6   :
:  U.S.A.         : 11 453       454   033     1,98 .   2 520 . 11,10 : 220,02 :        229,3   :
: Australia       :      764       37  980     2,49       184      9,80 « 240,84 :        18,8  :
:  Yugoslavia     : 3 197        108   300 , 1,70         298      5,50      93,21 :      11,8  :
:  Czechoslivakia ' 11 900       238   350     1,00       465      3,90      39,06        22,8  :
:  G.D.R.             2 360        71  500     1,51       307      8,60     130,27        25,0  :
: Poland              2 445        52  058     1,06       103 :     5,29     42,13        11,6  :
:  Hungary        :      515       13  311 .1,29            31 :    4,60 : 59,22           9,5  :
:Total IHGC(-EEC): 32 634        975 532 . 1,49       : 3 908   :   8,01  : 119,75      328,8 :
:Total IHGC(+EEC). 58 656 : 1 773 125 : 1,51          : 6 796   :   7,66  : 115,93 :     591,4 :
: Japan                  996  :     36  340  :  1,82  :     98  :   5,39  : 98,40 :       53,5   :
: USSR               15 000   :   220   000  :  0,73  :    385  :   3,50  : 25,67 :       50,0   :
: Romania          : 2 200    :     34  000  :  0,77  :     76  :   4,49  : 34,55 :        10,0  :
: Bulgaria               950  :     14  020  :  0,74  :     42  :   5,97  : 39,89 :         7,0  :
: China            : 5 200    :   200   000  :  1,92  :    750  :   7,50  : 144,42 :       50,0  :
: Others           : 4 273    :    89   012  :  1,04  :    267  :   6,00  : 62,49 :      282,3   :
: World total      : 87 275 : 2 366 497 : 1,36        : 8 414 :     7,11  :   96,45 :  1 044,2 :
 ---pagebreak---                                                   1°
Table le: AREA UNDER HOPS, PRODUCTION OF HOPS, ALPHA ACID AND BEER BY PRODUCER
           COUNTRIES 1986
:          I      ; II        :    III       :     IV :    V     :    VI  : VII     :   VIII     :
:      Country    : Area      :Production    : Yield : Product.: Percent : Yield    :Beer prod.  :
                      ha      :   Ztr        : t/ha : Alpha t : Alpha     : Alpha   : m/hl       :
                     1986     :                                              kg/ha  : (Barth)    :
                                  1986       : 1986 : 1986 : 1986         : 1986    :   1986     :
:  F.R.G.         : 19 649 :      679   772 :   1,73  :  1 985   :  5,84  :  101,04 :    94,10   :
:  France         :      599 :     21   730 :   1,81  :      45  :  4,18  :  75,76  :    20,66   :
:  Belgium        :     577 :      20   327 :   1,76  :      59  :  5,84  :  102,86 :    11,08   :
:  United Kingdom : 4 232 :       101   416 :   1,20  :    376   :  7,42  :  88,85  :    59,17   :
:  Spain          : 1 616 :        40   08 7 :  1,24  :    140   :  6,98  :  86,57  :    24,13   :
:  Portugal       :      163 .       6  589     2,02  :      20  :  6,00     121,24 :      3,95  :
:  Ireland        :        34           286     0,42  '        1 :  5,45     22,73  :      5,46  :
: EEC-12             26 871 -     870 207       1,62     2 627 :    6,04     97,75 :    261,60   :
:  U.S.A.            10 091       444 684       2,20     2 157 -    9,70     213,75 -   230,55   :
:  Australia             755       37 700       2,50       111      9,40     234,70       18,72  :
:  Yugoslavia         3 271        91 200       1,39       261      5,86     81,63        10,50  :
:  Czechoslivakia    11 950       210 000       0,88   :    441     4,20     36,90        22,78  :
:  G.D.R.             2 370         76 200 . 1,61      :    255     6,69   • 107,59       24,30  :
:  Poland             2 433        54 000 : 1,11       :    143   : 5,29   : 58,73        11,38  :
:  Hungary               512 :      12 833 : 1,25      :     40   : 6,16   : 77,15 :        9,22  :
:Total IHGC & EEC    58 253 : 1 796 824 : 1,54         : 6 106    :  6,80  : 104,82 :    589,05   :
:  Japan           : 1 052 :        37   680  :  1,79  :    101   :  5,39  :  96,47  :    49,98 :
:  USSR            : 15 300 :      214  000   :  0,70  :    375   :  3,50  :  24,48  :    55,00 :
:  Romania         : 1 800 :        34   000  :  0,94  :      76  :  4,49  :  42,37  :     11,00 :
:  Bulgaria        :      967 :      14  400  :  0,74  :      43  :  5,97  :  44,47  :      9,00 :
:  China           : 5 190 :       200   000  :  1,93  :    600   :  6,00  :  85,71  :    40,00 :
:  Others          : 3 137 :         75  551  :  1,20  :    227   :  6,00  :  72,25  :     26,19 :
: World total      : 85 699 : 2 372 455 : 1,38 :          7 528 :    6,35  : 86,04   : 1 015,31   :
 ---pagebreak---                                                  3<
Table Id: AREA UNDER HOPS, PRODUCTION OF HOPS, ALPHA ACID AND BEER BY PRODUCER
           COUNTRIES 1985
:          I      :    II    :     III      :     IV :     V     :     VI   : VII      :   VIII     :
:      Country    : Area     : Production   :  Yield :  Product.:   Percent : Yield    :Beer prod.  :
                      ha     :    Ztr          t/ha : Alpha t : Alpha       : Alpha    : m/hl       :
                     1985    :                                                 kg/ha   : (Barth)    :
                                  1985      : 1985 : 1985 : 1985            : 1985     :   1985     :
:  F.R.G.         : 19 598 :      713  939  :  1,82  :   1 985   : 5,31     : 96,69 :       93,29 :
:  France         :     655 :      25  145  :  1,92  :       58  : 4,60     : 88,31 :        20,80 :
:  Belgium        :      701 :     22  820  :  1,63  :       68  : 6,00     : 97,65 :        14,50 :
:  United Kingdom : 4 749 .       129  935  :  1,37  .     514   : 7,91     : 108,23 :      62,50 :
:  Ireland        :       45 :       1  041 :  1,17  .         5 : 8,87     : 103,75 :        5,51 :
:  Greece         :        0 .            0 :                        0,00   :     0,00 :      2,97 :
: EEC-10          : 25 748        892 880 : 1,73         2 540 :     5,69   :   98,65 :    129,68 :
:  U.S.A          : 11 533        450  989  : 1,96       1 781 '     7,90   : 154,43 .     226,83   :
:  Australia      :      757       37  703  : 2,49          169 :    8,98   : 223,65 •       18.50  :
:  Yugoslavia         3 354       103  440  : 1,54          286      5,53       85,27        10.51  :
:  Spain              2 003        64  963     1,62         211      6.49   : 105,30         23,35  :
:  Czechoslovakia 11 950          225  560  - 1,07         447       3.50   : 37,41          22,35  :
: G.D.R.              2 420        67  920     1,40         231      6,80       95,45        25,00  :
:  Poland             2 503        54  940     1,10         155      5,62       61,73        10,80  :
:  Hungary               518        12 313     1,19          33      5,36       63,71         8,77  :
: Total IHGC & EEC 60 786       1 940 708      1,60   :   5 853      6,03    :   96,28 :    475,80   :
:  Japan              1 052         37 680     1,79         101   :   5,39   :   96,45       47,46  :
:  USSR            : 15 300 :      212 000   :  0,69  :     371   :   3,50   :   24,25  :     60,00  :
: Romania*         : 1 800          34 000   :  0,94  :      76   :   4,49   :   42,37  :     11,50  :
:  Bulgaria        :     962 :       13 197  :  0,69  :       42  :   6,37   :   43,66  :      5,50  :
:  China           : 3 500 :       100 000   :  1,43  :     300   :   6,00   :   85,71  :     32,00  :
:  Others          : 3 300 :        82 140   :  1,24  :     246   :   6,00   :   74,67  :   350,12   :
: World total      : 85 700 : 2 419 725 : 1,40 :          6 990 :     5,78   :   80,62 :    982,37   :
(*) No change compared with 1984.
 ---pagebreak---   DC VI-E-4                                                        Tabla 2:MOPS: Araa Cultivated, by mambar «tat* and varlaty group - 1981, 1986 thru 1989
  06/03/90
                               Total                                            Arana                                                      Blttar                              Othara
                                1987                      1989        1988       1987      1986     1981                1989      1988      1967      1986                      1987
 D    ha     19938     19782     19310    19649   19190    13736        12165      11316    11001     10616               6896      7236      7602      8223   6192  391  381      390   42S  382
       1        103       103       100      102     100     129           114        106      103       100                 84        66       92       100    100  102   99      102   111  100
      P                                                        69X          61%        59%      56%       S5X                3SX       37X      39%       42%    43X   2X   2X        2X   2X   2X
      X          rex                                          93%           85%        84%      83%       77X                63X      63%       63X       63%    sex  81X  72X      7»    73X  7SX
 f    ha        $28       489       SS9     699      760     403          345        312      241       194                 118      139       24S       358    466    8    4         2    1    6
       1         «9        64         73      91     100     207           177       160       124      100                  25       29        $2        78    100  133   $6       33    16  100
      P                                                        76X          71X        56%      34X       26X                22%       28%      44X       SIX    61X   2X   TX       OX    OX   IX
      X                                                3X       3%           2X         »        2X        IX                 IX        1%        »        3%     3X   2X   IX       OX    OX   TX
 8    ha       402       418       436      S78     646      134           129       127      107       1S9                2SS       274       292                    14   16       17    23   39
       1         47        49        SI       68    100       64            81         79       67      100                  39       42        45        69    100   as   41       43    68  100
      P                                                       33%           31X        29%      19X       19X                63X      68%       67X       78%    77X   3%   4X       4X    4X   SX
      X                                                         IX           1X         IX       IX        IX                 2%        2X        2X       3X     4%   3%   3X       3X    4X   ex
 UK   ha      3742      3876      3945     4232    5803                  1605       1739     1836      2644               2194      2142      2076      2263   2676       131      128   133   83
       1         64        66        67       72    100       SI            $6        61        64      100                  76       74        72        76    100       1S7      164   160  100
      P                                                       39%           4IX       44X       43%       49%                S9X      ssx       S3X       S3X    SOX
                                                                                                                                                                       »    »        3X    3X   TX
      X                                                       10%           11X        13X      14%       2IX                20%      19X       17X       17X    20X       2SX      24X   23%  16X
                                                                                                                                                                      17X
 IN. ha                                               76        6            S          6                 12                 16       16        29        29     63                        1
      1                                             100       SO            41         50       SO      100                  26       25        46        46    100
      P                                                       29X           24X        17X      17X       16X                76%      76X       63X       83%    84X   OX   OX       OX    3X
     X                      OX                                  ox           OX         OX       OX        OX                 OX        OX       OX        OX     OX   OX   ox       OX    OX
EST ha        1443      1499      1578    1616    2003          3            6          9        9         6              1440      1491      1669      1606   1998
      1         72         74        78      60     100       37          100        112      112       100                  72       74        76        80    100
     P                                                          OX           IX         IX       IX        OX              100X       9SX       99X      100X   100%   OX   ox       OX         OX
P
     X
     ha        142       ISO       160      163     176
                                                                OX           ox         OX       OX        ox                13X
                                                                                                                           142
                                                                                                                                      13X
                                                                                                                                     150
                                                                                                                                                13X
                                                                                                                                               160
                                                                                                                                                          12X
                                                                                                                                                         163
                                                                                                                                                                 14X
                                                                                                                                                                176
                                                                                                                                                                       ox   ox       OX         OX
                                                                                                                                                                                                   £
      1         7»        64        69       91     100                                                                      79       64        69        91    100
     P                                                         ox            0%         0%       0%        ox              100%      100%      100%      100%   100X   ox                  OX
     X                                                         ox            0%         0%       0%        ox                 IX        IX       IX        IX     1X   ox                  OX
EEC ha      26218     26237     26023    26873   2885S    14739        14258      13511    13199     13833               10999               11975     13092  14612       632      637   662  S10
      1         M         90        90       93     100     106           103         97       95       100                  75       76        62        90    100   94  104      106   114  100
      P                                                       sex          S4X        52%      49%       4SX                42X       44X       46X       49X    SOX   2X   2%       2X    2%   2X
     X         100X      100%      100X                     100%          100%       100%     100%      100%               100%      100%      100X      100%   100X 100% 100X     100X  100% 10OX
  ha:hactar*t
   1iIndex (baa* 1981-100)
   P:poreantag« of total area
   X:p*re*ntag* of total EEC production
 ---pagebreak--- Table 3: BALANCE OF PRODUCTION    AROMATIC AND BITTER VARIETIES (ZENTNERS) 1984 - 1989
                               1384                   1985                  19J6.                  1987                                        1319
                        Aroma . :   Bitter     Aroma    :  Bitter    Aroma     :  Bitter    Aroma    : Bitter     Aroma    :  Bitter    Aroma       Bitter
    .R.G.               350 698     359 624    372 235     340 267   348 803      330 969   316 962     291 819   345 537     234 957   388 216     238 906
  France                  1 802      20 621      5 744      19 594     6 681       15 049     7 408       6 787    10 803       4 957    11 117       3 981
  Belgium                 4 484      24 182      4 076      18 743     3 790       16 538     3 722      10 705     4 013       7 516     4 818       7 198
  United Kingdom         64 876      93 124     55 015      74 746    45 053       56 363    43 430      57 387    41 972      53 578    37 401      55 167
  Ireland                                                                                         90        736       101         456         94        419
  Spain                     176      56 718        200      64 763       120       39 967       105      36 873         56     32 430         30     45 361
  Portugal                                                                                                6 430                 3 087                 4 949
  EEC                                                                                       371 717     410 737   402 482     336 981   441 676     351 032
                                                                                                                                                            v-0
  U.S.A.                 97 604     111 935     95 472     355 517    86 464      358 220    75 675     378 358   143 160     351 779   191 770     346 435
  Australia                  80      52 212          45     37 658         50      37 650       480      37 500                47 200     2 260      47 200
  Yugoslavia            1?0 180                103 440                91 200                108 300                96 000                64 600      18 400
  C2echos1ovaki<i       216 8M4                255 560               210 000                238 350               307 400               245 460
  (.,.DR.                 S 0/0      58 030      5 440      62 480     4 020       72 180     2 156      69 354     2 121      61 018       700      59 300
  Poland                 53 500       1 400     53 260       1 680    51 600        2 400    48 158       3 900    53 100       3 900    44 800       4 200
  Hungary                 3 690       7 900      3 540       8 773     3 394        9 439     3 156      10 155     2 259      10 497     1 560      10 434
  China                                                    100 000                100 000               200 000               150 000
                                    100 000                                                                                                         140 000
  USSR                  200 000                212 000               214 000                220 000               200 000               200 000
  Others                                                                                      1 500                 2 500                 8 700
                                    164 691                169 477                168 505               141 000               124 600               167 700
  TOTAL               1 122 354              1 166 027             1 065 175              1 069 492             1 209 022             1 201 526
                                  1 350 137              1 253 698              1 207 280             1 251 004             1 085 975             1 144 701
 ---pagebreak---                                               H
Table h: ESTIMATED FORWARD SALES 1990 - 1994
:      Country                      Estimated forward sales (zentners)
                            1990    :    1991          1992     :    1993     1994    :
:  F.R.G.                  530 000       420 000       350 000 '     250 000  150 000 :
:  France                   14 570        13 350        13 850        13 275
:  Belgium                   2 800         1  800 '
:  United Kingdom           87 000        63 000        42 000        15 000    3 000 :
:  Spain                    42 100        43 100        40 000        40 000
:  Ireland                     250           100           100
: EEC                      676 720       541 350       445 950       318 275  153 000 :
:  U.S.A.                  403 700       322 000       227 400   :     42 400
: Australia                 40 000        34 600        29 700        24 700
:  Yugoslavia               45 400        20 500        19 000        14 700    8 900 :
:  Czechoslovakia          225 000       200 000        75 000        50 000   50 000 :
:  G.D.R.                   60 000        50 000
:  Poland                   47 500        47 500        45 000        43 500   41 000 :
:  Hungary                  12 000        12 000
: TOTAL IHGC             1 510 320     1 227 950       842 050   :   493 575  252 900 :
Source : IHGC March 1990
 ---pagebreak--- TABLE 5 : HOPS: WORLD PRODUCTION 1971 - 1989
: YEAR       : AREA    : PRODUCTION    : = PROD     : YIELD : ALPHA  : % ALPHA :  ALPHA : BEER      CONTRACT : SPOT    : AVE.
                HA     :     ZTR       : TONNES     : T/HA  : TONNES :            KG/HA : PROD.   : PRICE    : PRICE   :PRICE
                                                                                          million : FRG      : FRG     : USA
                                                                                           hi     :DM/Ztr    :DM/Ztr   : $/Lb
 :   u>/i    : 75  042 :   1  921 000  :   96 050   : 1,28  :  5 377 :  5,60   : 71,65  :     658 :     353  :    622  :  0,66
 :   1972    : 78  015 :   2  103 440  :  105 172   : 1,35  :  6 174 :  5,87   : 79.14  :     689 :     332  :    372  :  0,71
:    1973    : 81  247 :   2  366 020  :  118 301   : 1,46  :  7 468 :  6,31   : 91,92  :     731 :     331  :    207     0,76
:    1974    : 82  083 :   2  223 520  :  111 176   : 1.35  :  6 627 :  5,96   : 80,74  :     771 :     331  :    235  :  0,80
:    1975    : 80  527 :   2  270 040  :  113 502   : 1,41  :  7 230 :  6,37   : 89,78  :     802 :     331  :    221  :  0,83
:    1976    : 78  206 :   2  135 200  :  106 760   : 1,37  :  6 137 :  5,75   : 78,47  :     826 :     327  :    264  :  0,85
:    1977    : 79  262 :   2  355 920  :  117 796   : 1,49  :  7 066 :  6,00   : 89.15  :     848 :     319  :    128     0,90
:    1978    : 80  230 :   2  200 173  :  110 009   : 1.37  :  6 374 :  5,79   : 79,45  :     875 :     297  :    290  :  0,90
•    1979    : 81  224 :   2  3V; H48  :  117 992   : 1,45  :  7 348 :  6,23   : 90.4 7 :     911 :     324  :    533  :  0,98
    1.980   :  86  348 :   2  378 772  :  118 939   : 1.38  :  7 046 :  5,92   : 81,60        936 :     341  :  1 400     1,51
    1981    :  92  434 :   2 652  833  :  1 .J2 642  : 1,43 :  7 997 :  6,03   : 86,52  :     954 :     377  :    606  :  1,51
 : 1982      : 95  532 :   2  966 785  :  148 339   : 1,55  :  8 805 :  5,94     92,17  :     970       390       167     1,74
 • ",9K3     . 92  688 :   2  651 851  :  132 593   : 1,43  :  7 543 :  5,69   : 81,38  :     970 :     405  :    210  :  1,93
      984   :  88  701 :   2 472  791  :  123 640   : 1.39  :  8 165 :  6,60   : 92.05  :     970 :     409  :    191  :  2,15
' 3"S-       : 86  700 :   2 419  725  :  120 986   : 1.40  :  6 990 :  5,78   : 80,62  :     982 :     401  :    245     1,98
   ..! *)i\h : 85  699 :   2  372 455  :  118 622   : ] ,38  : 7 528 :  6,35   : 86,04  :     990 :     410  :    151  :  1,74
: 198/ : 87        274 :   2  366 497  :  118 324   : 1.36  :  8 414 :  7,11   : 96,45  :  1 044  :     405  :    301  :  1,56
: 1988 - 90        044 :   2 407  032  :  120 352   : 1,34  :  7 382 :  6,10   : 81,98  :  1 050  :     398  :    378  :  1,51
: '989 : 90        504 :   2  365 239  :  118 262   : 1,30  :  7 436 :  6,29   : 82.16  :  1 090  :     387  :    326  :  1,60
AVERAGE        84 829      2 36 7 849     118 392      1,39    7 216    6,09     84,81        898       361       360     1,32
INEEX '89          120            123          123      101      138     112       114        165       109         52     307
(1971 = 1C)0)
INDEX '89          104            100          100       96       98      97        93         98       111         67     134
( 1079 = 1(>0)
Source : EEC/I IUiC/Cornnu-r.: ia! and various sources.
 ---pagebreak--- IablQ.6: WORLD BLEP PRODUCTION                 19/7        I4«9   (! OOO hi)
                                        1977          1978          1979         1980       1981       1982       1983      1984     1985         1986         1987           1988           1989
                                      94  347      91   656       91    643 :   92  342 :  93 721    94   826   94  983   92  583 :  93  303 :  94   100  :   92  744  : 92     639    :   93  016  :
    ' iVANCF                          22  771      22    395      22    405 :   21  684 ;  21 695    22   331   21  803   20  673 :  20  297 :  20   655  :   19  894  : 19     500    :   20  926  :
: ViALY                                 7 300         7 962         8   899 :    8  569 :   9  021    10  153   10  111     9 143 :  10  317 :  11   082  :   11   122 : 11     191    :    10 383  :
• 'tTHERLMDS                          13  9/0       14  651       15    388 .   15  684 :  16 639     16  180    17 327   17  049 :  17  531 :  17   988     17   547  :    17  600    :    18 800  :
. r.i : CIU^                          13  H19       13  .'I9r,    13    681 :   14  291 :  13  811   14   629   14  225    14 311 :  13  931 :  13   715     13   990  :    13  988    :    14 000  :
   i ., UMBOURG                           695           68'1 :           712 :      729 :      778        751       651       634 :      738 :       732  :       662  :        635    :       617  :
   ';ViT£P KINGDOM                    65  2 3/     i)6  41b       67    4 16:   64  830 :  61  721   58   149   60  324   60  105 :  59  655 :  59   166     59   897  : 60     280    :   60  140  :
• IRELAND                               5 662        5   844        6   039      6  000 :   5  835     5  638     5 464     5 423 :   5  537 :    5  456  :    5  369  :     5  401    :     5 400  :
   DENMARK                             8  534        8  094 :       8    125 :   8  169 :   8  185     8  468     8 734     8 499 :   7  924 :    7  500  :    8  200  :     8  359    :     8 600  :
   GREECE                               1 800         1 990 :       2   482 :    2  500 :   2  800     2  850     2 800     3 000 :   2  970 :    3  150       3  200  :      3 700    :     3 900  :
: PORTUGAL                                                                                                                                        3  945       4  977  :     5  519    :     6 810  :
•• Oi'AIN                             18 600        18 653        19 712 : 20 027 : 20 924           21 499     22 082    21 832 : 23 353 : 24       126  : 25    000  : 27     000    :   27  200  :
• iOTAL. E E C ( C B M C ) ( 1)      231 13b      2 33 086 : 2 36 790 : 234 798 : 234 206           233 975    236 422   231 420 : 232 203 : 235     664  : 263   993  :
 '-T TAV EEC ( B A R T H ) ( 1 )     232 297      233 424 : 237 078 . 238 040 : 237 337             235 928    238 266   233 222 : 235 963 : 261     615  : 262   602  : 265    100 : 269 792 :
                                                                                                                                                          • o on o n ^ •  «)<)Q 1 A "» .  o oi cnn  •
                                     200  165     2 10 13 5 : 215 809 : 227         746 : 228 950   228   050  230  331  226  490 : 226 825 : 230    545  : 229 297    : 229 307 : 231         bOU  :
   . i N,''"A                         20  389      20 386         20 540 : 20       669 : 21 014     23   667   22  599   23  012 .  22 126 : 22     815  : 23 114     : 23 114 : 23           837  :
      Vv/IL                           23  000      26 530         28 000 : 29       500 : 29 500     29   500   29  000   28  350 . 30 250 : 43      760     47 500    : 47 800 : 55           000  :
   M                                                              24 649 :
    r.yico                            21  045      21 994                       26  019 : 20 321     27   583   23  611   25  082 : 27 392 : 29      287  : 31 537     : 32 421 : 38           677  :
   v. :N^UEI.A                          7 500        9 300        10 000 :      12  500 :  12 000    12   000   11  769    11 820 :  10 300 :    11  200     12 100    :    13 000 : 11        000  :
     :.I)MB!A                         10  123       10 c)64       11 354 .      12  300 ;  12 000    13   438    11 760    14 500 :  15 800 :   16   600     17 600    :    16 513 :        18 000  :
    '•'•.''• AMERlcA                 30 3 469     3 1 9 999 : .13 1 69 1 : 351      540 : 356 899   358   468  352  579  353  427 : 358 452 : 354    207  : 361 148    : 399 000 : 4 1 2       000  :
                                      65  000      65 000 :        70    000    65  000 : 65   000   68 000     66  100   66  100 : 60   000 : 55    000  :   50  000  : 50     000    :    56 000  :
   ..U'M'iNIA                           7 910        8 ISO          8    300     8  500 :  11  500    1 1 500    11 500    11 500 :  11  500 :  11   000  :   10  000  : 10     000    :    13 000  :
                                        5 200        b 160          5   500      5  400 :   5  400     6 000      6 000     5 500 :   5  500 :    9  000  :     7 000  :      7  000         7 000  :
• LHiiT.AC-. />
                                      12  069       1 1 378       11    12 7 . 11   185 . 11   300    10 300    10  076     9 961 : 10   801 :  11   380      11  644  :    12  257    .    12 380  :
   ' OL>\NU
                                      22  000      2 3 000        23    000 ; 24    000 : 24   000   25 000     25  500   26  000 : 25   000 : 24    300     25   000  : 24     400    :    24 800  :
   G D.R.
                                      22  500      2 2 1)58       23    610 : 23    393 : 23   934   24 921     24  956   23  780 : 22   354 : 22    783     22   228  : 22     670    :    23 000  :
   i.JhCHOSLOVAKIA
                                        7 003        7 244          7   500      7  800 :   7  800     7 825      7 812     7 912 :   8  772 :    9  222  :    9  500  :     9  480    :     9 388  :
: HUNGARY
                                        3 500        3 000          2   30 7 :   2  365 :   2  400     2 400      2 400     2 600 :   2  600 :    4  047       3  600  :      3 320    :     3 400  :
• CUBA
                                     145  182     II4 990        151    344 . 147   643 : 151  334  155 946    154  344  153  353 : 146  527 : 146   732  : 138   972  : 139    127    :  148  986  :
   TOTAL COMECON
                                                                                                                                                          •   il  ion       19 ncA •
:    YUGOSLAVIA                        9  5HM       10  "105      M     2 54 •  11  712 •  I2   000  13    402   12  378   13 600 :  10  505 :  10   500      1i  /yu  .    1 £  U3*t   .   1L  UUU
   SOUTH AFRICA                        6  000        6  0 00        6   800      8  500 :  10  245    12  000   12  000    13 000 :  13  500 :  14   500      18  000  :    16  093    :    21 000  :
   MTGFRI..'                            3 315        '1 890         6    710 :   7  850 :   8  000   10   380    10 000     9 000 :   9  250 :    6  840       7  000  :      7 300    :     7 000  :
      '•PAtf                          41  242      44   300       44    758  •  45  138 :  46 480    47   335   49  323   46  689 :  47  461 :  49   980 :    53  500  :    57  498    :   61  000  :
   • .lUNA                              1  750       4   UOO        6   460  :   8  920 :  II  380   13   840   16  300   22  133 :  32  000 :  40   000     50   000  :    55  000    :   60  000  :
: AUl.fKALlA                          19  51 1      '9  511       19    678  .  19  433 :  20  170   19   682   19  350   18  949 :  18  503 :  18   170     18   765  :    19  500    :    18 700  :
   OTHER                              67 415       69 507         75 260 :      77 529 :   79 514    81   508   83 464    85 026 :   86 860 : 113    373 : 122 386 :        85 928 :        91 540  :
•   iUTA. WORLD                      848 369      «75 2 79 : 9 10 74 5 : 936 332 : 954 283          969   988  970  086  970 231 : 982 374 : 1 015    917 :1 044    163: 1 056 600: 1 102        000:
• 4 CHANGE         P.A.              2.74         •1,17        : 4,05          2,81     : 1 ,92     1 ,65      0,01      0,01     : 1,25     : 1 ,03      : 2,78       : 1,19          : 4,30       :
        ".•>3I:J and Portugal included         "it I.EC total f < Otii I9H6.
                 EEC •.UH*:.',.. iriN: JIJH. BAKIH <•: JIJHN         I.   BHI:
 ---pagebreak---                                               rt
Table 7a:   EEC external trade in hops and hop products
              September 1988 - August 1989
                      Cones              Powders            Extracts   Total equivalent(1)
(x 1000 kg)                                                                 Hop cones
                Extra      Total  Extra       Total  Extra      Total    Extra       Total
F.R.G.
- Import     7 946       8 986      338      1 205       94       231    8 641     11 120
- Export     4 952       6 539   8 563      12 868   1 439      2 281   19 408     31 118
- Net       -2 988      -2 447   8 225      11 663   1 345      2 050   10 767     19 998
France
- Import        28           48        5        737      47       247       198       . 723
- Export       319         551       60         215       0          8      385         816
- Net          291         503       55       -522      -47      -239       187       -907
Belgium/Luxembourg
- Import     1 017       1 579      607      1 145       55         99    1 877      3 185
- Export         3         298         2        534      22       173        82      1 491
- Net       -1 014     -1 281      -605       -611      -33         74  -1 795      -1 694
United Kingdom
- Import       700       1 121      345      1 360      103        361    1 440      3 881
- Export        16         444      100      1 126       57        102      326      2 040
- Net         -684        -677     -245       -234      -46       •259   •1 114     -1 841
Ireland
- Import                     73     198         603     111        139      606      1 223
- Export                     28       15         18      29         29      118         145
- Net                      -45     -183       -585      -82       -110     -488     •1 074
Italy
- Import                     12      43         656                 75       52         996
- Export                      0        0          1                  0        0            1
- Net                       -12     -43        -655                -75      -52        -995
Denmark
- Import                     77       20        521                 64       36         874
- Export                      0        0          0                  0        0            0
- Net                       •77     -20        •521                -64      -36        -8 74
Netherlands
- Import                     40       15        201     361        511    1 280      2 045
- Export                      0        0         19       0        129        0         472
- Net                       -40      -15       -182    -361       -382   •1 280     -1 573
 ---pagebreak---                                             3»
                    Cones              Powders          Extracts  Total equivalent(l)
(x 1000 kg)                                                           Hop cones
               Extra    Total     Extra     Total Extra     Total   Extra     Total
Spain
- Import       20       571         57       257     32        88     195     1 162
- Export        0         0         20         28     0         0      22         31
- Net         -20      -571        -37      -229    -32       -88    -173    -1 131
Portugal
- Import                  0         11         94     2       116      19        509
- Export                147          0          0     0         0       0        147
- Net                   147        -11       -94     -2      -116     -19       -362
Total EC (2)
- Import    9 710    12 507     1 639      6 796    809     1 941  14 344    26 776
- Export    5 290     8 007     8 760     14 809    547     2 722  20 341    33 824
- Net      -4 420    -4 500     7 121      8 013    738       781   5 997     7 048
(1) 100 kg pellets = 110 kg cones
    100 kg extracts = 350 kg cones
(2) Without Greece
Source : EEC NIMEXE
 ---pagebreak--- Table 7b:  EEC external trade
              September 1988 - August 1989
                      Cones             Powders           Extracts   Total equivalent(1 )
(x 1000 kg)                                                              Hop cones
                Extra     Total   Extra       Total Extra     Total    Extra      Total
Total EC (2)
- Import     9 710     12 507    1 639       6 796    809     1 941   14 344    26 776
- Export     5 290      8 007    8 760     14 809     547     2 722   20 341    33 824
- Net      -4 420      -4 500    7 121       8 013    738       781    5 997      7 048
U.S.A.
- Import                1 004                  222              770               3 943
- Export                4 246                  211                 5              4 496
- Net                   3 242                  -11             -765                 553
C.S.S.R.
- Import                4 126                  372                                4 535
- Export                     0                   0                                    0
- Net                  -4 126                 -371                               -4 535
U.S.S.R.
- Import                  720                    0                 0                720
- Export                    75                 191              142                 782
- Net                    -645                  191              142                  62
Yugoslavia
- Import                2 496                  170                 2              2 690
- Export                    10                  62               27                 173
- Net                  -2 486                 -108               25              -2 517
China
- Import                  597                    0                                  597
- Export                     0                  17                                   20
- Net                    -597                   17                                 -577
Japan
- Import                     0                  80                 0                 88
- Export                  710                3 311              115               4 755
- Net                     710               -3 231              115               4 667
(1) 100 kg pellets = 110 kg cones
    100 kg extracts = 350 kg cones
(2) Without Greece
Source : EEC NIMEXE
 ---pagebreak--- Table 8: HOPS SOLD WITHOUT AND UNDER CONTRACT AND AVERAGE PRICES WITHOUT CONTRACT AND UNDER CONTRACT
            1977 - L989
                          Without contract     Under contract     % under contract    Without contract   Under contract
                           (1)   50 kg              50 kg                                  ECU/50 kg        ECU/50 kg
   A. EEC 1977 - 1989
      1977                     32 7 04 3           623 643              66               46,45             118,76
      1978                     166  036            686 210              81              106,29             111,73
      1979                     150  109            745 308              83              182,12             118,30
      1980                      67  385            723 983              91              469,00             133,00
      1981                     154  754            768 155              83              225,63             162,78
      1982                     363  795            763 131              68               65,18             176,93
      1983                     ?° 3 54 9           744 142              77               91,85             183,13
      1984                     195  4 78           728 662              79               69,61             189,92
      1985                     17i  339            718 124              81               92,33             173,19
      1986                     202  218            667 937              77               62,72             169,93
      1987                     161  850            634 361              80              123,41             168,19
      1988                     119  035            632 255              84              158,55             169,82
      1989                     169  083            641 429              79              134,58             164,39
   B. EEC 1989                                                                          88           89    88       89
      F.R.G.                   144  335            494 447              77             160,09     138,07 168,57    164,00
      France                     1  997             13 177              87             140,79     123,69 173,07    176,47
      Belgium                    9  342              2 700              22             148,21     118,41 130,06    129,17
      United Kingdom            10  388             83 274              89             151,05     116,74 187,75    177,33
      Ireland                       121                391              76                        228,72 229,21    219,48
      Spain                      2 900              42 491              94                         80,24 146,37    146,32
      Portugal                                       4 949             100                               119,14    124,22
(1) Unsold quantities are not included
 ---pagebreak---  DG VI-E-*                                                                                                  Tabla 9: Member  State Returns - Hops 1989
 13/03/90
                                                                                                     6           7         B          9        9*         10       11         12         13           14           IS           18
                                S U R F A C E     ARE*           ! N    H E C T A R E S                                   PRODUCTION                    RETURNS (ECU)      RETURNS   AVERAGE PRICE (ECU/iOkg) RETURNS PER HECTARE (ECU)
                                                                                                 Production    Yield   Contract     Spot    Not «old
       Vtrltty       Orlg      Total     Nsw 1989    Nay, 1988      Pr* 1968 Fui) prod'n           (50kg)    (SOkg/ha) (SOkg)      (50kg)    (SOkg)    Contract    Spot     Total                    Spot     Total plantad Full Prod'n
 Br ami1ng         UK   EEC      41 .00      4.50           0. 70       35.80            38.06          703      17.14       701                         112431          0   112431       160.46                      2742         2954
 Chtllonger        B             11 .83      5 69            ' $2         4.62             7.88         286     24.00                   288                    0    41760      41750                   144.97         3526         6296
                   UK           469.10      29.20         22.20        407.70          433.81        12976      28.26     12776         201             2211688     31326   2242916       173.11       156.09         4865         (170
                        EEC     470.93      34.89         23.72       412.32           441.69        13264      28.17     12776         489             2211686     73078   22846(7       173.11       149.53         4861         6173
Fine Alssele       ESP EEC        3.00                                   3.00             3.00           30     10.12         30                            5087         0      5087      186.(0                      1666         1866
 Fugglos           UK           420.10                     12.70      403.10           413.06         9066      21.63       8486        433             1790669     70310   1866306       211.03       162.44         44(5         4671
                   IRL            S.S2                                    5.62            5.52           94      16.16        77         16                18035      3824     21659      233.44       233.44         3960         39(0
                        EEC     425.«2       4.30          12.70      406.62           416.60         9180      21 .57      8664        449             1606904     74134   1910168       211.23       166.03         4488         4563
 Goldlngs          UK EEC       416.00       6.00           8.20      401.60           409.53        11951      26.73     10460        1160             2413600    204041   2679791       230.(6       177.36         6442         6544
 Hallortauar       D           1420.00      34.00         42.00      1344.00          1364.90        37537      26.40     32409        6126             6473962   1121667   7695666       199.91       218.64         6349         6486
                   6            101.41       6.70           7.95        88.76           94.61         3956      39.00       1000       2916              144967    407868    568429       144.(7       139.(7         6507         6(03
                        EEC    1621.41      40.70         49.96      1430.76          1479.51        41493      27.27     33409        6044             6616948   1629654   8164098       1(6.12       1(0.16         6360         6611
 Herabrucker       0           7041.00     646.00       611.00       6684.00          8499.55       219295      31.20    183732      36663             30968468   6170963  37139420       1(6.(7       173.66         6276         (714
                   B              8.33       4.36           0.47          1 .46           3.54         126      20.00                   126                    0    18266      16266                   144.(7         2666         6163
                        EEC    7047.33     650.36       611.47       6665.46          6603.09       219421      31 .14   183732      35689             30966468   6169216  37157686       168.66       173.42         6273         6714
Hulltr            0     EEC     592.00       1 .00          2.00      589.00           690.70        16211      27.40     11661        4360             1914070    629973   2444043       161.37       121.(6         4126         4138
Perle             D     EEC    2438.00     187.00        294.00      1957 00          2222.90        65385      35.00     57033      28352              6962368   3717696  126799(4       167.13       131.26         6201         5704
Progress          UK EEC         44.00       2.40           2.60        39.00           41.66         1009      22.94        983         46              167712       7206   194(16       1(4.((       166.64         4430         46(0
Sin               B     EEC       4.20                                   4.20             4.20         107      26.00                   107                    0    22169      22169                   207.10         6276         8276
Spilt             0             239.00       8.00         23.00       206.00           226.15         4770      20.00       4629        241      203     994693     66166   1060769       219.81       232.(4         4366         4(46
                  B               6.86       0.08                        5.26             6.62         203      35.00                            203           0         a         0                                     0            0
                        EEC     244.65       6.08                     213.28           231.77         4973      20.31       4629        241      406     763433     41649    8767(3                    173.(6         3677         377(
Star                    EEC       4.30                                   4.30             4.30         138      32.00                     7      131           0      1016     20006                   144.(7         4662         4662 -c
Strlsselspalt           EEC     402.59                                298.52           360.61        11117      27.61     10541         641       36    2006667    102876   2116368                    190.19         6254         (033
Sunshln»                EEC       0.90                                   0.90             0.90           24     26.67                    16        9           0      1896      3032                   126.31         3366         3368
Tettnangor              EEC     996.00      32.00         36.00       926.00           963.60        25016      26.10     22666        2462             4963613    667020   6660633       220.((       231.26         6673         (7(1
VrtSV                   EEC      87.20       2.60           2.70        81 .90          64.70         1662      16.94       1683         89              307821      6909    314730       1(3.27       117.10         3605         371(
                  0          12726.00                 1010.00       10906.00         11667.70       388216      30.52    312120      76096       203  642969(3   121(33(6  664603(6       173.((       169.(4         6222         66(1
      TOTAL       F             402.59                    41 .83      298.52           360.61        11117      27.61     10541         641       36    20058(7    102(76   2116368       190.29       190.19         6264         (033
                  B             133.92                    10.4$       106.62           120.1$         4618      36.96       1000      3444       374     144967    491066    660610       144.(7       142.((         4(33         54(6
     A R 0 M A    UK          1468.30                     49.10      1370.20          1421 .72       37401      25.47     34(68        1(04      629    7023(22    321688   7436124       200.((       168.95         6064         (230
                  IRL             $.52                      0.00         5 $2             5. 52          94     16.96         77         16        0       18036     3624      21858      233.44       233.44         3(60         39(0
                  ESP             3.00                      0 00          3.00            3.00           30     10.10         30          0        0        50(7         0      6067      166.(0                      1(66         1666
                             14739.33                 i 1 1         12691 36        13788 69       441676       29.96                82001      1141  63494840   13062840  76899407       177.00       159.(4         6204         66(2
      Conversion rates are as follows (1 ECU»      )-0M       ?.361:,PES       155.786;FF       69787;IRP 0.6S(76S;ESC    192.002;UKL 0.706726;BF
      Returns for unsold quantities ars calculated at 65% c' tpoi
 ---pagebreak---  DC VI-E-4                                                                                              Table 9: Member     State Returns - Hops 1989
 13/03/90
                                 1                                                                                                              9a       10         11        12          13           14            18           16
                               S U               A R E A     IN      H E C T A R E S                                    PRODUCTION                     RETURNS   (ECU)     RETURNS    AVERAGE PRICE (ECU/50kg) RETURNS PER HECTARE (ECU)
                                                                                            Production     Yield     Contract      Spot      Not «old
      Variety       Orlg      Total    New 1989     New   1988  Pre 1968 Full     Prod'n      (SOkg)     (SOkg/ha)    (SOkg)      (SOkg)      (60kg)  Contract      Spot    Total                     Spot      Total planted Full Prod'n
 Brewer's Gold                1621.00                             1605.00         1813.65        76687       42.10      54414       22273              6360923     1961586  6322506        116.89         86.09         4(70          4688
                                65.17                                65 17          65.17          3076      47.23        2284         811              273686       56366   328(72        IK.77          66.25          6046         (048
                                26.52                                28,52          26.52          1084      38.00          100        944                  6284     56648     69418         82.84        (2.13          2434         2434
                               142.00                               142.00         142.00         4949       34.65        4949                          614727           0   614727        124.22                       4328         4329
                       EEC    2056.69                            2040.69          2049.34       85798       41.72       61747       24028              7257522     2076620  9336697        117.84         ((.38         4540         4566
 H-3 Lsones       ESP EEC      660.00                              877.50          879.13       32174       36.56       29274         2900             4049440      232707  4262147        138.33         80.24         4866         4671
 H-7 Lsones       ESP EEC      660.00                              560.00          560.00        13188       23.56       13188                         2162843           0  2162B43        164.01                       3862         3862
Northdown        B                0.00                                               0.00                                                                      0         0          0
                 UK            446.10                              400.20          423.59        11914      26.71       11546           170            2060003       4(441  21(6677        177.((       2(0.01          4634         (0(1
                  IRL           11.46                                11.46          11 .46          316     27.62          211          105               47991      23916     71(07       227.((       227.((          6276         (276
                               467.66     26.80         20.10      411.66          435.06        12229      26.73       11757          276             2097994       73367  2223629        176.48       266.38          4860         6112
Northern Brewer 0             5013.00     46.00         53.00    4914.00          4966.86      162219       32.40      120682       41537             1932(306     (2(83(8 24(24701        1(0.0(       127.48          4(12         4(68
                  F             25.36                                25.38          26.36           494      19.46         161         333                21954      447(6     86719       136.40       134.46          2(26         2(2(
                  B            198.74                               184.35         192.74         6427      27.00         1600       3827               196498      4233(3   (1(8(1        122.19       110.(3          3114         3211
                 UK             24.50                                24.50          24.50           743     30.30          743                            73519          0          0        ((.((                          0            0
                  IRL             3.63                                3.63           3.53            73     20.55            73                           16(01          0     16(01       2K.20                        4604         4(04
                              6265.16     49.66         63.64    5151.76          5213.00      166965       32.09      123268       46697             19636177     (7(3(43 25399720        159.31       12(.13          4624         4(72
 Target           B             13.36      7.27          2.26         3.86           8.24           376     28.00                      376                     0     4(721     4(721                    124.24          3468         ((72
                 UK           1457.40    167.50        176.90    1121 .00         1300.29       36572       25.09       30206        6366              4650230      631662  (2(1(12        153.((        ((.23          3(24         40(2
                  IRL             0.98                                0              0.96            31     31 . 2 7         31                             3876         0       3876      126.49                       3966         3(66
                 F              12.30                    6.22                        6.07           199      17.78         117           82               14713      11628     26340       126.62       141.71          2141         3266
                              1484.07                  187.38                     1317.57       37178       25.05       30364        8624              4668618      6(0030  83(8848        163.61       101.12          3(11         4087
                                13.66                    4. 10                       •> 6 4         311     22.00                      311                     0     36644     36(44                    124.2(          2786         8060
                               268.20                    3.70                      261 31         5936      22.31         4310       1628               764240      1(12(2   (66832        177.31       117.(0          3(90         36(7
                                15.12                    7.77                        7.99           210     13.63                      210                     0     29992     29992                    142.77          19(4         37(4
                               295.16                   16.57                      276.93         6459      21.88         4310       2149               764240      2(9929  1024169        177.31       120.((          3470         3((6
                 0           6834.00      53.00         82.00    6719.00         6760.50       236906       34.96      176096       (3(10           0 25(90229     7266961 32(47210        146.72       113.73          4(21         4868
                 F             117.97     10.78         13.99        93.20         106.61         3981      33.90         2662       1437           0   3102(4      141768   462023        121.06        99.(9          3(32         4240
                 B             264.51     19. 10        16.90      216.51          237.14         7196      28.28         1700       (456          40   2037(2      6673(7   7736(4        118.(7       103.99          3040         3263
   B I T T E R   UK          2194.20     189.30        202 70    1602.20         2009.66        55167       25.14       46806        (1(4         1(7  7537992      872415  (3(4021        1(1.06       10(.((          3626         4177
                 IRL            15.97      0.00          0.00        15.97          15.97           419     26.21          314         106          0     (77(7      23916     (1(83       216.04       227.((          6741         6741
                 ESP         1440.00       0 .00         2 SO    1437.50          1439.13       45361       31 .60      42461        2(00           0  (2122(3      232707  6444990        146.31        (0.24          4476         4478
                 P             142.00      0.00          0.00      142.00          142.00         4949      34.66        4949             0         0   (14727           0   (14727        124.22                       4328         432(
                            10996.65                  296.09    10426.38        10731 .01      351032       31 .92     288939       (1674         237 40(37034    9096186  49718319        151.10       111.0(          4620         4(33
1.   Conversion rates are as follows (1 ECU.     ( D M     2.361i ; PES    1S5.766;FF    7.69787;IRP 0.65(76SiESC       192.002;UKL    0.706728|BF
2.   Returns for unsold quantities are calculated at 65% of spot.
 ---pagebreak--- DC VI-E-4                                                                                              Table 9: Member  State Returns - Hops  1989
13/03/90
                                1                                                                                                         9a         10         11        12          13            14            16            16
                              S u                                                                                    PRODUCTION                     RETURNS  (ECU)      RETURNS   AVERAGE  PRICE (ECU/60kg) RETURNS PER HECTARE (ECU)
                                                                                           roduct lor>    field   Contract     Spot    Not sold
     Variety       0r1g               New  '989    New  <988   (Ms  '966 Full   Prod'       (SOkg)      (SOkg/ha)  (50kg)     (50kg)    (60kg)     Contract     Spot     Total                     Spot     Total  planted Full  Prod'n
Kent                  EEC        0.12                               0 1?           0.12                    40.00                     5                     0        726       725                    144             6040          6040
Omega                 EEC       59.10                              50.60          S6.25        127S        21 .57      1017       256                129764      14760    144628       127.(3          67            2446          2(K
Orion                 EEC     136.00                             120.00          129.66        499 7       36.70       3097      1900                489811     217270    677081       146.((        114             4979          (222
Record                        242.00                             234.00          237.20        6663        27.50       4134      2629                640622     291342    (321(4       166.01        116             3652          3(30
                                13.32                              13.32          13.32         426        32.00                  426                      0     46676     4(878                     107             3444          3444
                      EEC     255.32                             247.32          250.62        7089        27.77       4134      2868                640622     337218    (7(040       155.01        114             3(31          3(04
Zenith                EEC       17.40                              17.40          17.40         $37        58.56        483         84                75587        30(6    76644       188.(0          ((            4(20          4(20
Others                           8.10      1 . 10                   2 65           $.92          162       24.96         74         19                  9238       2326    12939       128.62        121             16(7          2186
                                 0.68      0.66                     0.00           0.23            9       16.00                     9                     0       1118      1118                    124             11»           4620
                                 3.70                               3 50           3.63            8       20.00          0          8                     0        838       638         0.00       104              22(           230
                                12.38                                              9 78         179        14.44         74         36        11        9238       4278    14659       125.62        IK              1200          1619
                 D            378.00                   13 00     354 00          366.6$       11660        30.85       7231      4428          0    1100633     608612   1608246       162.21        114             42(7           387
                 F               6.10                   «36         2.6$           $ 92         162        12.85         74         18        11        9238       2325    12939       126.62        121             15(7           188
                 B              14.02                                             13.67         440        31.36          0       440          0           0     47718      477K                     106             3404           4(0
  O T H E R S    UK             60.20                   S 20                      76 28        1820        22.69       1600       320          0     205362      18662    224003       136.(3          66            27(3           (37
                              460.32                   22 55                     462 72       14082        29.20       6804      8208         11    1318223     (77300   1693906       148.36        110             3(43           0(3
                 D          19936.00    672.00      1086.00    17981.00        19035.06      638782        32.06    4(4447     144336        203 810678(6     1((2((66 10101(843       184.00        138             (0(7           307
                 F            626.66      74.17        60.17     394.37          463.13       16260        28.79     13177       19(7         4(    2326368     248(70   2(80330       176.47        123             4(61           (72
                 B            402.46      36.63        27.36     338.57          370.96       12486        30.96       2700      (342        414     346748    110(174   1461(93       128.17        118             3662           ((( -£
                                                                                                                                                                                                                                        v
                 UK          3742.70    241.80       267.00     3243.90         3607.67       94388        26.22     (3274      10386        72( 14767266      12127(5 1(0(4148        177.33        116             4268           877  -*
                 IRL            21.48      0.00         0.00       21 49          21 .49        612        23.64        3(1       121          0      88602      2773(    113(42       2K.48         226             (2(3           2(3
                 ESP         1443.00       0.00         2.50    1440 SO         1442.13       46392        31 .46    424(1       2(00          0    6217340     232707   (4(0047       148.32         60             4470           473
                 P            142.00       0.00         0 00     142 00          142.00        4949        34.85       4949          0         0     614727           0   (14727       124.22                        4329           328
                            26218.30   1224 46      1432 02    23561 63        24962.42      811736        30.97    641429     169083      1388 105447098     22756333 126311631       164.38                        4(94           13(
     Conversion rates are as follows (1 ECU»     ):DM     2.3(11;PES     I8S.788;FF    7.69787;IRP 0.85676S;ESC      K2.002;UKL 0.706728;BF
     Rsturns for unsold quantities are calculated at 65% of spot
 ---pagebreak---  Figure 1              C u l t i v a t e d Area (World v EEC v USA)
           Ha (000's)
      120
      100
       80
       60                                                               -ÎN.
       40
       20
              * -
        0L-
              80     81         82        83  84     85   86   87 88 89
                                                Year
                                        EEC       World . -*- USA
'81 EEC-10, '86 EEC-12
 ---pagebreak--- Figure 2
                           Hop p r o d u c t i o n . (World v EEC v USA)
           Z e n t n e r s (Mio)
                           M
               ¥
        2V
        1  I-
               •1/          >!/  _     ^/
               "^\ " ~      ^v" " ~ " "TTC——
                                                   *                  -#   *
        0L                              ±                     J     I  I  L
              80           81         82      83  84      85 86    87 88 89
                                                     Year
                                             EEC  -+- World   "*- USA
'81 EEC-10, '86 EEC-12
 ---pagebreak--- Figure 3
                    C u l t i v a t e d S u r f a c e Area (EEC)
                                  Varietal Groups
         (000's)
                 Total      HHl Aroma                 Bitter     Others
 ---pagebreak--- KgE§_JL
                     Hop P r i c e D e v e l o p m e n t
                           EEC Average
       ECU/50 kg
   600
   500
   400
   300                                                            -x.
   200
   100
     0             L
         80    81 82   83       84    85        86       87 88 89
                                  Year
                       Contract            No Contract
 ---pagebreak--- k\ ---pagebreak--- F5gLEÊ__6
                                           E x t e r n a l Trade
                                     Cone Hop Equivalent
            Tonnes (OOO's)
        30
        25
        20
        15 h- *
        10 h          >==^te=H^
         5h
                                         j
         0    —.i..
               80      81       82      83        84       85   86    87    88 89
                                                    Year
                        -~-"   Exports       "+~     Imports   "*~ Net Exports
Available figures only unt.il August 89
 ---pagebreak---                                                      5"
                                           Explanatory           Memorandum
It is p r o p o s e d that on the b a s i s of the a t t a c h e d R e p o r t of the
C o m m i s s i o n on t h e p r o d u c t i o n and m a r k e t i n g of h o p s for the 1 9 8 9
h a r v e s t the C o u n c i l a d o p t the a t t a c h e d R e g u l a t i o n s e t t i n g aid to             hop
p r o d u c e r s for the 1 9 8 9 h a r v e s t at the f o l l o w i n g l e v e l s :
- aromatIc hops                  340   ecu/hectare,
- b i t ter h o p s :            390   ecu/hectare,
- other h o p s :                400   ecu/hectare.
T h i s w o u l d m e a n a s l i g h t i n c r e a s e In the a v e r a g e level of a i d on iast
y e a r . H o p g r o w e r s ' r e t u r n s r o s e by 1.4 % c o m p a r e d w i t h the p r e v i o u s
h a r v e s t ; h o w e v e r , t h i s f a v o u r a b l e d e v e l o p m e n t w a s m o r e t h a n o f f s e t by
an i n c r e a s e In p r o d u c t i o n c o s t s w h i c h s o a r e d by 5.7 % o n a v e r a g e . T h e
p r o p o s e d r a i s i n g of the aid Is t h e r e f o r e J u s t i f i a b l e .
R e t u r n s f r o m a r o m a t i c h o p s w e r e s l i g h t l y lower (-0.4 % ) t h a n iast
y e a r . G i v e n the i n c r e a s e in c o s t s and the fact that the C o m m u n i t y is
s u p p o r t i n g c o n v e r s i o n t o w a r d s t h e s e v a r i e t i e s the level of aid s h o u l d
be r a i s e d by 10 e c u b r i n g i n g the a m o u n t of aid per h e c t a r e up to 3 4 0
ecu .
Returns          f r o m b i t t e r h o p s s h o w e d an i n c r o u ' e of 3.2 % c o m p a r e d w i t h
 that of         the p r e v i o u s y e a r . S i n c e the a b s o l u t e level of r e t u r n s per
 hectare          is s t i l l too low for t h i s v a r i e t a l g r o u p the s a m e a m o u n t of
 aid per         h e c t a r e as set for the 1 9 8 8 h a r v e s t s h o u l d be m a i n t a i n e d .
 V a r i é t é s of the g r o u p ' o t h e r s " w e r e yet a g a i n hit by a d e c r e a s e in
 r e t u r n s (-2.1 % ) w h i c h w i d e n e d the e x i s t i n g g a p in level of r e t u r n s
 per h e c t a r e b e t w e e n t h i s v a r i e t a l g r o u p and a r o m a t i c as w e i ! as
 D i t t e r h o p s . It *s t h e r e f o r e p r o p o s e d to r a ; s e the aid by 10 e c u to
 4 0 0 e c u per h e c t a r e
 There       w i I i be no        impact    on s m a l l     and m e d i u m     enterprises.
 The cost of the p r o p o s a l to the                    E A G G *•" . G u a r a n t e e Section,     is
 est m a t e d at M m i l l i o n e c u
 ---pagebreak---                                      9
                                  Proposal for a
                       COUNCIL REGULATION (EEC) No      /
                                  of
                 laying down, in respect of hops, the amount of
                      aid to producers for the 1989 harvest
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and
in particular Article 43 thereof,
Having regard to Council Regulation (EEC) No 1696/71 of 26 July 1971 on the
common organization of the market in hops (1), as last amended by Regulation
(EEC) No 3998/87 (2), and in particular Article 12 (7) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliamant (3),
Whereas Article 12 of Regulation (EEC) No 1696/71 provides that aid may be
granted to hop producers to enable them to achieve a fair income; whereas the
amount of this aid is fixed per hectare and differs according to varieties»
taking into account the average return on the areas in full production
compared with the average returns tor previous harvests, the current position
of the market and trends in costs*;
Whereas an examination of the results of the 1989 harvest shows the need to
fix aid for groups of varieties oi   hops cultivated in the Community;
HAS ADOPTED THIS REGULATION:
(1) OJ No L 175, 4.8.1971, p. 1.
(2) OJ No L 377, 31.12.1985, p. 40.
(3) OJ No C
 ---pagebreak---                                    a
                                    Article 1
1.  For the 1989 harvest, aid shall be granted to the producers of hops
    cultivated in the Community for the groups of varieties set out in the
    Annex.
2.  The amount of the aid shall be as set out in the Annex.
                                    Article 2
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,                                For the Council
                                                 The President
 ---pagebreak---                      S3
                    A N N E X
Aid granted to hop producers for the 1989 harvest
    Group of varieties      :    Aid amount
                            :      (ECU/ha)
          Aromatic          :       340
          Bitter            :       390
          Others            :      400
 ---pagebreak---                                                       54
                                                                      (PCUL/EN/1073)
    FINANCIAL                       STATEMENT
                                                                      DATE: 26 March 1990
1. BUDGET HEADING: 181                                                APPROPRIATIONS: ECU 13 ml 11 ion
2. TITLE: Proposal for a Council Regulation (EEC) laying down In respect of hops the amount of aid to
           to producers for the 1989 harvest
3. LEGAL BASIS: Article 43 of the EEC Treaty
4. AIMS OF PROJECT: To fix aid to producers for certain groups of hops varieties in the 1989 harvest
                                   Period of 12 months   Current Financial Year    Following Financial Year
5. FINANCIAL IMPLICATIONS                                         1990                        1991
5.0 EXPENDITURE
    - CHARGED TO THE EC BUDGET         ECU 11 million         ECU 11 mi 11 ion                 p.m.
       (INTERVENTIONS)
5.1 REVENUE
     - OWN RESOURCES OF THE EC
       (LEVIES/CUSTOMS DUTIES)
     - NATIONAL
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION: Aromatic varieties: 14 740 ha x ECU 340/ha - ECU 5,0 mi 11 ion
                            Bitter varieties:    11 000 ha x ECU 390/ha - ECU 4,3 mi Iiion
                            Other var let les.      480 ha x ECU 400/ha - ECU 0,2 mi 11 ion
                                                 26 220 ha                 ECU 9,5 mi 11 ion (A)
                            ECU 9,5 (A) x 1,155 (DR) - ECU 11 mi iI ion (B)
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?
 6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                       YES
OBSERVATIONS:
 ---pagebreak---                                          is
                                                                     ISSN 0254-1475
                                                              COM (90) 140 final
                                                      DOCUMENTS
EN                                                                              03
                                Catalogue number : CB-CO-90-165-EN-C
                                                             ISBN 92-77-59486-1
Office for Official Publications of the European Communities
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