1. When looking at the Hops Forecast what are 2 assumptions we can make about hop supply in general over the next 12 months? (2 points)

2. What are the factors that a responsible manager should consider when analyzing the malt/grain market? Noting the market analysis, should the manager expend considerable resources on mitigating risks in malt- or reserve these resources for more volatile markets this season and why? (4 points)

3. What actions should a responsible manager take to mitigate potential disruptions to hop supply amid current growing conditions? (3 point)

4. What major factors are affecting German hop production this season? (3 points)

Note: Give me answer from the malt report

\fUSA Crop Report: Sept 2022 Harvest has been in full swing since late August and will take us right to the end of September. The I 2022 High . Long Term High ' ' ' ' ' I 2022 LOW mg Term LOW overall yield for hop varieties grown the PaCIfIc Northwest (PNW) In 2022 looks to be average. \\\\ _ m/ We experienced a La Nina winter in 2022 in the Pacific Northwest (PNW) cooler temperatures and above average precipitation. This resulted in a high snow pack and lots of water for irrigation reservoirs. 2O \\ With this, we had a slow start to the growing season ~22 _/'\\ with the temperatures during the month of .June V \\ markedly cooler than historical averages and higher precipitation. Hop emergence was roughly 10 days behind by June 30th. July and August were 0 hot and dry months in the PNW which allowed most varieties to catch up to where plant development should be by August 20th. Yakima August Temperatures (C) 40 3O 10 PNW August Precipitation Some aroma varieties produced smaller than I August '22 Long Term Avg. average cones. Bittering varieties look to be above 1 average which will be important as German alpha varieties have really struggled. 075 There's no doubt that farm and grower costs have significantly increased and much higher than 0'5 prevailing inflation. For the first time ever, labour costs on farm reached 50% of hop growing costs. 025 Many of our varieties will be directly fed from the o - - farm right into the pellet mill and we will begin to Yakima Willamette ldaho see 2022 USA crop varieties become available in our Canadian warehouses in early November with the last varieties becoming available in December! H PS CONNECT CANADA 2022 USA Acreage Share ACREAGE SHARE Citra Mosaic . Cascade Simcoe . CTZ . Centennial Amarillo Chinook Pahto Strata El Dorado Other Citra 20% Other 27% Mosaic El Dorado 11% 2% Strata 3% Pahto Cascade 3 Chinook 8% 3% Amarillo 4%Centennial Simcoe 4% CTZ 8% 7% Citra remains the leading variety at 20% Mosaic gains another point to 11% Acreage increase for Cascade & other public hops due to increased demand after many years of drops Top 5 varieties represent 54% share of total hop acreage in the USA\fGermany Crop Report: September 2022 Growing conditions in Europe have been defined by well above average temperatures through most of the growing season and below-average precipitation. The early months of the 2022 growing season (May & June), produced relatively normal weather patterns which looked promising for the European varieties. However, in early July, the Tettnang region experienced a big hail storm that damaged many fields. And, the latter weeks of July and August produced some of the hottest weather Western Europe has seen in over 100 years. Generally, hops can withstand heat waves as long as there is sufficient irrigation in place. Due to Germany's limited water table, only 25% of the hop fields are irrigated leaving the crop at yield risk to excessive temperatures. This is a significant difference from the fields in the USA which are all irrigated. The official crop estimate for Germany is showing a yield that is 18% below what one would expect from a normal crop Deviation From Expected Growing Area EMU0). Average Elbe-Sadie 2,691 -13.3% _32l6[y0 38'103 _18.1[y0 H PS CONNECT CANADA Europe Crop Report: September 2022 The other growing regions in Europe (Czech, Slovenia & Poland) have seen similar conditions and crop expectations in 2022 are very mixed compared to the 2021 crop. After a record yielding crop in 2021, the Czech Republic is in store for a very poor crop this year. Growing Area Crop 2022 Estimate (TO). Crop 2021 (TO). Czech Republic 4,700 8,306 Slovenia 2,500 2,186 Poland 3,250 3,108 Tettnanger in late June 2022 The view after a late June hail storm in the Hallertau growing region. Certain varieties, in particular Hallertau Mittelfruh were affected quite badly. Plants should look like the picture on the left.H PS CONNECT CANADA Germany: 2022 Weather & Market Update While the German crop is estimated to be short by 18% vs a normal crop, it is down by 20% compared to Germany 2022 Precipitation crop 2021 which yielded 47,862 tonnes. Precipitation (Niederschlage) [mm] 2022 10-year average The early maturing varieties of Hallertau Mittelfruh, 60 Northern Brewer, Hallertau Tradition, and Hallertau 50 Perle are the most affected varieties and have yielded 40 poorly. Harvest will run until the first week of October 30 so there is hope that rainfall throughout the final 20 weeks of September will give later maturing varieties 10 time to recover. Week (Kalenderwoche) Early alpha acid testing indicates that alpha acid levels will also be below their long-term average making for a very tight market on EU varieties. While there is supply from previous crops that will Germany 2022 Temperature help mitigate the 2022 crop shortfall, these overall inventories aren't necessarily the varieties that are Temperature 'C (Huell/Hallertau) -10-year average -2022 Poly. (10-year average) -Poly. (2022) most needed. Overall, we believe there is enough 30 supply to satisfy our forward contracted commitments with Canadian brewers, however, for 20 those planning to purchase on the spot market it will 15 require flexibility on crop year, varieties. For best 10 results, we strongly encourage getting in touch with us to line up your 2022 crop needs. M in Members of the Hops Connect Canada team are traveling to the Hallertau region of Germany the week 11.01. 21.01. 31.01. 10.02 20.02 02.03 12.03. 22.03 01.04. 11.04. 21.04. 01.05. 11.05. 21.05, 31.05 10.06 20.06 30.06. 10.07 20.07 30.07 09.08 19.08 of September 14th to meet with growers and ensure hop quality meets the rigorous and demanding standards we deliver year in, year out for Canadian craft brewers. Watch this space. More to come!\fH PS CONNECT CANADA Canadian Crop Report: September 2022 For this crop report, we are coming to you from Sasquatch Farms in Leamington, Ontario. Harvest started on August 25th and was completed September Ist. This growing season brought us unseasonably cooler temperatures in combined with much higher rainfall. We experienced a much lower yield for the 2022 crop due to unfavourable weather. By our estimates, we finished the growing season about 14 days behind where we would like to be which brought a yield decrease of about 20%. It isn't all bad news as quality and aroma are higher and more pronounced than any crop in the past three years. Alpha acid levels are expected to be on trend for long-term averages. For those of you who are less familiar with Sasquatch, it is uniquely Canadian. Sasquatch is the first Canadian proprietary hop. It is trademarked, enjoys Plant Breeder's Rights and is grown by Sasquatch Farms. It's garnered attention and accolades for its versatility, freshness and light fruity/citrus flavour profile. To ensure the highest processing quality, Sasquatch is pelletized and packaged by our partner, Haas, at their state-of-the-art pellet plant in Yakima. Sasqutch is currently being used by over 100 Canadian brewers to create uniquely Canadian beers across the true north, strong and free. PROFILE: ANALYTICS: SASQUATCH VEGETAL . ALPHA-ACIDS: 5.5-7% SPECTRO . TOTAL OIL: FORCITRUS 0.8 ML/100 . BETA: 8.2% SWEET MENTHOL BERRY & AROMATIC CREAMEL ATTRIBUTES: FLORAL CITRUS SWEET FRUIT GREEN FRUIT CURRANT CREAM APPLE BLOSSOM, ORANGE APRICOT. CREAM. LEMON PINEAPPLE PEAR APPLE BLACKBERRY ROSE ROMATIC MENTHOL HERBAL SPICY GREEN- VEGETAL MIN FENNEL HAY, FRESH- CUT GRASS TTRIBUTES IN BOLD WERE SELECTED BY A MAJORITY OF ASSESSORS (24)