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.
18
SABI | APRIL / MAY 2017