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What they plan to do in the USA to develop the market for the processing and sale of the fibrous part of hemp

14/10/2021 | hempmarket
heading_title

In 10 years, converting just 5% of the country's agricultural land to cultivate the traditional hemp plant would result in 10-12 million acres of industrial hemp. In order to process such a volume of the harvest of the fibrous part of the plant using modern technologies, more than 500 production facilities for its primary processing will be required throughout the country.

In the article “ By 2030, hemp production will dominate in the United States with the aim of obtaining seeds and fiber”The editors of the specialized electronic edition of national cannabis growers have already focused on the fact that the sector of modern cannabis growing, exploiting the therapeutic potential of the plant for an extremely short time, will be significantly reduced, and in terms of market volume, grain and fibrous part of the plant will take the first place, the area of ​​crops under which will occupy the lion's share of cultivated industrial hemp crops in the United States. In connection with the above, the analysis carried out by our colleagues from the United States about how promising the market for growing and processing the fibrous part of the hemp plant is for the North American continent will be doubly interesting.

According to a number of analysts on the American hemp market, the market for growing and processing hemp grains and the fibrous part of the plant will rapidly develop in the next few years. At the same time, the market for the therapeutic properties of the hemp plant, having reached its peak of growth, will stabilize and will no longer show the dynamics of intensive growth, as has been observed over the past few years.

At the same time, despite high hopes and optimistic forecasts for the fiber portion of the hemp industry, there is a wide range of challenges that agricultural producers and processors need to overcome in order for hemp fiber to become an economically and environmentally sustainable part of the United States economy.

                                                                                                                  How big can the hemp fiber sector eventually become?

In the USA, the potential of fiber, fire and hemp dust, which is obtained from the primary processing of the plant, is already well known. In particular, in mid-September, the National Hemp Association (NHA) of the United States, in a report prepared by it, emphasized that with sufficient education and investment, hemp could become another crop rotation crop for American farmers. In addition, in a press statement, NHA Executive Director Erica Stark, who led the study, stated that “In 10 years, converting just 5% of the country's agricultural land for industrial hemp crops used in traditional crop rotation will result in 10-12 million acres of industrial crops. hemp. In order to process such a volume of the harvest of the fibrous part of the plant using modern technologies, more than 500 production facilities will be required throughout the country for its primary processing. "

                                                                                                            What needs to be done to expand the hemp fiber market in the USA

Industry analysts, as well as representatives from consulting companies, suggest that businesses that are going to work with the fibrous part of the hemp plant face several obstacles that need to be addressed to develop a viable market. These include:
• growing hemp fiber on a scale sufficient for production needs;
• development of an adequate supply chain;
• development of new specific varieties of hemp required specifically for the production of the fibrous part of the plant;
• recognition of hemp fiber as a useful and cost-effective alternative or complement to traditional materials, especially in construction.

“If you talk to industry experts, you can hear the opinion that they see very strong long-term potential for the production of hemp fiber, and the plant itself is a viable crop for the US market,” - says Craig Schluttenhofer, Associate Professor in the Department of Agriculture of Natural Products ...

                                                                                                The volume of production and processing of hemp fiber should expand significantly

According to Schluttenhoffer, one of the biggest challenges for the market is the sheer number of hemp fiber factories that will be required to create a successful new industry. “This will overwhelm the market for cannabis flowers in terms of volumes grown,” he says. “While cannabis leaves and flowers can make a profit per acre, in fiber production you really need at least five acres with good yields to break even. You are looking at large scale agricultural production with fields of 50, 100, 200 acres to capitalize on the prices you are going to get for hemp fiber. "

And after harvest, says the assistant professor of organic farming, even a small cannabis processing plant will need hemp fiber from thousands of acres to stay economically afloat. Then there is the problem of having a buyer for all of the recycled hemp fiber. “If you don't have a buyer to sell it to, it doesn't make sense to install a decorticator and try to start the business,” says Schluttenhofer. “In order to achieve success, you need to seek the help of professionals, together with whom you can make every effort for competent planning. And after all this, individual companies will face a number of problems associated with the need to build the entire supply chain ”.

Commentary of the specialists of the Association "Ukrainian technical hemp"

The problem of the market for the fibrous part of the hemp plant is characterized very simply - “the primacy of the hen and the egg”. This problem is encountered in absolutely all countries where the market for the fibrous part of the hemp plant is “launched”. To the credit of US cannabis growers, the scale of their implementation of projects for the processing of hemp fiber is impressive, and initially it is necessary to note the complexity of the approach of business structures specializing in these issues in the most economically developed country in the world.

Organized within the framework of the " Hemp University " a specialized round table " Ukraine's place in the modern market for products from the fibrous part of hemp ", which will be attended by representatives of all national enterprises specializing in the primary and deep processing of the fibrous part of the hemp plant, as well as the cost is also organized in order to prepare the relevant documents based on its results. Prepared letters to the state structures responsible for making changes to the current legislation are necessary in order to remove archaic norms from the existing by-laws and create conditions for the development of a segment of modern cannabis growing in the country, specializing in the cultivation of the fibrous part of the plant, as well as its processing and obtaining final products. with deep added value.