Hops
South Africa ’ s hop industry to get a massive R610 million boost
Export potential in George to be unlocked
The global business combination of SABMiller and Anheuser-Busch InBev ( AB InBev ) is set to unlock South Africa ’ s agricultural export potential with plans to grow South African hop production and become a net exporter by 2021 .
AB InBev Africa ’ s agricultural development vision for South Africa is to increase hops produced by around 150 tonnes to over 1 000 tonnes per year , of which more than 250 tonnes will be for the export market .
The AB InBev Hops Network workshop , held with global brewers and innovation teams , will took place recently in George , one of only four locations in the Southern Hemisphere where hops have been successfully cultivated since 1935 . The aim of the Hops Network is to introduce the South African varieties to the AB InBev craft industry and innovation department .
“ We hope they will be equally as excited about these locallybred varieties as we are , and want to use them in their beers globally ,” said Willy Buholzer , AB InBev hops director .
In the last five years , SABHF has launched three new aroma and flavour hop varieties , namely Southern Aroma , African Queen and Southern Passion , and has increased these to 24 hectares under cultivation for crop 2017 . “ We are hoping to expand this to about 100 hectares which will take the overall industry to about 500 hectares as demand grows ,” said Lauren Steytler , GM of SAB ’ s Hops Farms .
As part of AB InBev ’ s public interest commitments the company has undertaken to invest R610-million into strengthening the South African agricultural landscape . “ We will support small-holder farmers by financing 800 new emerging farmers and 20 new commercial farmers to produce hops , barley and maize , with strategic intent to create 2 600 additional jobs in the agricultural supply chain .
In support of its public interest commitments , SAB is increasing investments in research and development , offering incentivised pricing structures and preferential loans for emerging famers , as well as long-term contracts of up to 10 years to purchase their hops . The commitment will also support other enterprise development initiatives including farmer training and business incubation and the localisation of agricultural inputs into the production of beer .
Through a fund and loan from SABHF , a 20 hectare hop farm was purchased , which will be managed by a black woman entrepreneur . Through delivery of key performance indicators and once the loan has been repaid , the farm will be 100 % owned by the entrepreneur .
“ Jobs and inclusive growth are central concerns to the local economy . AB InBev is excited about the growth opportunities and role that South Africa will play in the business , as we continue to make important contributions to the economy and society ,” said Rogers .
Committed
With 424 hectares of hops growing in the Southern Cape , South African Breweries Hops Farm ( SABHF ) and contracted private growers currently harvest less than one percent of the world ’ s total produce - up to 855 tonnes each year . Of this , around 735 tonnes is for SAB and local craft industry and 120 tonnes is exported into Africa , primarily for SAB beers .
AB InBev has committed to continue supplying hops and malt to the craft industry , currently supplying the local market with more than 20 tonnes of hops annually .
Enhance agriculture
“ AB InBev will use our global experience to help enhance agriculture and enterprise development in South Africa , building on SAB ’ s current programs to promote black entrepreneurs and enterprise development , with a particular focus on agriculture and agroprocessing ,” said John Rogers , AB InBev Africa director of raw material procurement and agricultural development .
Hops are a labour-intensive crop which is costly to set up and grow but SAB has plans to aid emerging farmers across these barriers to entry .
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SABI | APRIL / MAY 2017