Based on the farm in our example we have shown how the total costs in hop production are put together from expenditure and calculatory costs.
If you summarize all three areas together for this farm the following picture appears in the full costing calculation:
Costs per hectare:
Variable costs 3.651,10 € / ha
Fixed costs: 1.878,50 € / ha
Additional costs: 2.312,10 € / ha
Total costs: 7.841,70 € / ha
With an average yield of 1,800 kg / ha, the hop-grower would have to sell every kilo for about 4,36 € / kg in order to cover all his costs and actually obtain a profit which would increase his own capital.
The production of quality hops requires considerable know-how and financially puts high demands on the hop-grower. There are various ways for the farm to calculate its costs. Depending on the variety and location, the hop-grower needs earnings of between 6,000 and 8,000 euros per hectare to guarantee the production of quality hops in the long term.