The origins of the hops shortage are linked to an oversupply a decade ago of the agent that provides flavors in beer that range from fruity to woody, said Paul Gatza, director of the Brewers Association.
The glut sent prices plunging and caused farmers to plant fewer acres to hops. That included hops growers in Washington, Oregon and Idaho, the states that produce the commercial supply of US hops.
At the same time, excess hops were converted to an extract to allow long-term storage and a supply that only now is being depleted despite the fact that production went below usage five years ago.
Bad weather in Europe, an increase in the price of barley and a decrease in hops production in the U.S. has lead to a price increase of 20 percent for the most widely grown varieties, to 80 percent for specialty hops.
Hops farmers in the Pacific Northwest are scrambling to boost acreage by an estimated 8,000 acres, an increase of 26 percent. It will take several years before the additional acreage can be harvested.
Contracts with the large brewers, and the buying power of foreign dollars have created a further demand on domestic hops, leaving craft brewers scrambling to secure hops.
Craft breweries make up 4.0 percent of US beer production by volume, but account for 1,406 of 1,449 breweries nationwide.
Some brewers are looking at other bittering agents as a substitue. Ginger is an easy to obtain, safe ingredient. Yarrow and woodworm have both been used by modern brewers with some success. rosemary is also a bittering herb - food safe, obviously.
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