All commercial grade hop growers are governed by New Zealand Hops Ltd. New Zealand Hops Ltd is a

grower-owned cooperative based in Nelson, New Zealand. Co-ordination of the industry was facilitated 

with the inception of the New Zealand Hop Marketing Board in 1939 (New Zealand Hops Limited, 

2015). The company has supported a professional plant-breeding programme since the 1950s and, in 

1986, became the first country in the world to commercially produce seedless hops in response to 

international brewers' demands (New Zealand Hops Limited, 2015).  The New Zealand hop industry 

consists of 26 growers, producing around 800 tonnes of hops on approximately (from 275 tonnes on 

160 hectares in 1986) 389 hectares, based entirely in the Nelson/Motueka district (Aitken, Kerr, & 

Nixon, 2009). Production of hops has increased significantly since the early-1980s, increasing from 281 

tonnes to 833 tonnes in 1996 (New Zealand Government, 2011). Currently, around 85 percent of the 

total crop is exported, compared to 48% in 1985 (New Zealand Government, 2011). Approximately 48% 

of New Zealand exports (by value) are sold to US buyers, with a further 40% being split among 

Germany, UK and Japan (Aitken, Kerr, & Nixon, 2009).

 

The hop industry is expanding rapidly and showing no signs of slowing down, 739,620 kilograms of 

hops were harvested in New Zealand in 2015 (New Zealand Hops Limited, 2015). From this harvest, 

approximately 95% was sold prior to harvest, and with an industry prediction that the entire crop 

would be sold prior to harvesting in 2016 (New Zealand Hops Limited, 2015). The percentage of hops 

grown that are exported is increasing by around 0.15% every year (New Zealand Government, 2011). 

The ability for New Zealand craft breweries to purchase small quantities of New Zealand hops is 

becoming increasingly difficult due to the increasing price points set by international buyers that are 

unrealistic for New Zealand competitors.

 

The solution to this problem involves craft breweries investing in the New Zealand hop industry. With 

the international market continuing to expand and international buyers proving their loyalty through 

seven yearly contracts with hop growers, it is recommended that breweries purchase land in the 

Nelson area to establish brewery-owned hop farms. The hops will be harvested and sold to 

international buyers, increasing exports, allowing New Zealand brewers to have access to hops, and generating a profit for the breweries.