BeerPulse

The USDA released its latest crop production report on Monday detailing barley and hop production.

Barley: Production is down 7% from 180 million bushels to 168 million bushels.

Implications? Boston Beer Co., for one, reported in its Q2 earnings that it was “exploring opportunities for price increases in the second half of 2011 or early 2012 as it expects significant barley cost pressures from the 2011 crop.”

Heading of the barley crop was 96 percent complete by August 7, over one week behind the 5-year average. Harvest was underway in three of the five major estimating States, with delays of 20 percentage points or more evident in all States except Idaho. With approximately 6 days suitable for fieldwork, producers in Montana and Minnesota began harvesting during the week ending August 14. Harvest advanced quickly as producers in Idaho, Minnesota, Montana, and North Dakota ramped up fieldwork during the latter half of the month to help gain ground on what has been a slower than normal crop year. By September 4, seventy-one percent of the barley crop was harvested, 10 percentage points behind the average. Overall, 65 percent of the barley crop was reported in good to excellent condition on September 4, compared with 72 percent on August 7.

Hops: Production is down 2% to 64 million pounds.

via Crop Production (September 2011) (PDF)