Why is the rapid development of the hemp fiber processing sector predetermined in the USA?
On the eve of the 2021 sowing campaign, there is a keen interest of representatives of American seed companies precisely in the purchase of seed material of Ukrainian technical hemp varieties, which have a high fiber content. This trend also suggests that, within the framework of contracts concluded with hemp raw materials processors, US agricultural companies are looking for seed material with certain properties that will be in demand on the market as early as July-September of this year.
The trend is emerging, according to which 2021 is a pivotal year for the rapidly emerging hemp fiber processing industry in the United States. Where do these conclusions come from and how the development of this sector of American cannabis growing can be interesting for the Ukrainian market, let's try to understand this material.
Investments in the processing of hemp straw / trusts and obtaining end products with high added value in this particular segment of modern cannabis growing are more capital intensive than in the sector of manufacturing food, cosmetics and even pharmaceuticals. The equipment that uses hemp raw materials in the above areas of modern farming is standard. You don't need any special investment in order to get the final hemp product with high added value.
This is not the case for efficient operations in the fiber processing sector. Traditional equipment used for processing flax or cotton is not suitable for processing hemp straw / trusts. Therefore, the financial threshold for entering this business is much higher. This is due to the fact that in order to provide expensive equipment with the necessary raw materials, a significant amount of it is needed, respectively, rather large cultivation areas, which implies the presence of a certain infrastructure at least around the primary processing facilities. In addition, the market should not only be solvent, but also ready for the fact that rather expensive products will appear on it, which have properties inherent only to them.
US fiber production
It is in 2021 that most of the above factors emerge, which predetermines the rapid development of this US cannabis sector. These factors include the following key trends in the American market:
- during 2019-2020, significant investments were made in the creation of production facilities in the United States, which specialize in the processing of hemp straw / trusts and should begin their work in 2021;
- land resources have been consolidated around the already formed production sites, on which it is planned to cultivate hemp raw materials, which will later be sent for processing at primary / deep processing facilities;
- in the United States, there is a keen interest on the part of representatives of the economic sector in "decarbonization of the economy" - overhaul of the infrastructure of the American energy system in the direction of carbon neutrality. This is one of the reasons why it is the industrial planting of technical hemp that comes to the fore in discussions related to ensuring the potential of the "green economy" with renewable energy sources;
- the most severe crisis of overproduction of leaves and inflorescences of cannabis makes cannabis growers, as well as investors in this sector of the US economy, to transfer their financial resources to the less profitable, but with huge potential, hemp straw processing sector / trusts and obtaining a consistently high added value;
- the tendency to substitute imported cotton for national raw materials;
- the observed trend of consumers in economically developed countries of the world for the use of natural fiber for the manufacture of clothing or footwear;
- the financial viability of US residents who are ready to purchase more expensive, but high-quality products with pronounced therapeutic properties.
Commentary of the specialists of the Association "Ukrainian technical hemp"
On the eve of the sowing campaign in 2021, there is a keen interest of representatives of American seed companies precisely in the purchase of seed material of technical hemp varieties of Ukrainian selection, which have a high fiber content. This trend also suggests that, within the framework of contracts concluded with hemp raw materials processors, US agricultural companies are looking for seed material with certain properties that will be in demand on the market as early as July-September of this year.
American experts are actively interested in national developments in the use of therapeutic hemp fibers. Considering the significant volumes of previously unused hemp fiber of plants that were grown in order to obtain therapeutically active elements, they are interested in the possibility of manufacturing tissues with healing / healing properties inherent in nature itself, which are based on the presence of drug-free cannabinoids in the final products.
During the round table " Problems and prospects of using therapeutically active elements of hemp as a basis for nutraceuticals, medicinal cosmetics, animal feed or other products with medicinal plant properties ", which will be held within the framework of the " Hemp University ", several presentations will be demonstrated by listeners of stream 6 national developments in this matter.