Signs of a fall in the US hemp market
In 2020, the total volume of hemp crops fell by more than half compared to 2019. According to USDA official records, there has been a decrease in planted area from 55,442 hectares (137,000 acres) in 2019 to 18,211 hectares (45,000 acres) in 2020. This significant decrease in planted area follows 4 consecutive years of more than doubling annually.
On the pages of the specialized electronic edition of Ukrainian cannabis growers, “ The reasons for the fall in prices for CBD raw materials in the USA ” have already been described . It seems that American farmers are fleeing the hemp market after the desire to satisfy exaggerated demand for cannabidiol led to a significant drop in the price of the aforementioned cannabinoid in 2020 due to a significant overproduction of the “leaves and flowers” of the hemp plant.
According to a number of analytical and consulting companies in the United States, in 2020 there was a noticeable reduction in both the acreage and investments in the processing capacity of "green mass" of hemp. At the same time, it is noted that the licensed areas of crops in the United States decreased by more than 30% compared to 2019, and the decrease in the volume of cultivation in premises and greenhouses was about 64%. It is noted that in 2020 a much smaller part of the crop of various components of the plant will go to the production of drug-free cannabinoids, and most will be used for the production of fiber and seeds.
Cannabis crops in the USA
It should be borne in mind that a significant number of US agricultural producers, who in 2019 grew the plant to obtain leaves and inflorescences in order to obtain drug-free cannabinoids, still cannot sell the grown products for a number of reasons. In addition, several signs are noted at once, indicating that not only the supply of cannabinoid raw materials is decreasing, but also the demand for goods rich in non-drug cannabinoids is not increasing. A number of analysts in the American hemp market estimate that in 2020 CBD sales will be much lower than previously predicted estimates amid the consequences of the closure of retail stores specializing in CBD products due to the pandemic, growing unemployment in the United States, and the inaction of the FDA. the country's Food and Drug Administration to establish a regulatory framework that regulates the legality of the use of products that contain cannabinoids throughout the United States.
Certain US market analysts predict that US CBD product sales will reach $ 4.7 billion in 2020, just 14% more than this market was in 2019. The above market for cannabinoid-rich products in the US is well below the previous forecast , which reached a value of $ 8 billion. Among other things, the US consulting companies have significantly reduced the forecast for the market volume of CBD products for 2023 from $ 20 billion to $ 12.4 billion.
Commentary of experts of the Association "Ukrainian technical hemp"
Eight months ago, cannabis growing was the fastest growing industry in US agriculture. In 2020, the total volume of hemp crops fell by more than half compared to 2019. According to USDA official records, there has been a decrease in planted area from 55,442 hectares (137,000 acres) in 2019 to 18,211 hectares (45,000 acres) in 2020. This significant decrease in planted area follows 4 consecutive years of more than doubling annually.
What caused the crisis of overproduction cannabinoid raw materials, not only in the US but also in other economically developed countries, as well as mechanisms to exit from the current situation on the global market cannabinoid products will be explained during the 5th year students learning " Hemp University ", which will take place in the second decade September at the National University of Bioresources and Nature Management of Ukraine .