"Unplanned business": how to legally make money on hemp - theses for the video

Since 2016, several breeding companies in Ukraine have not only been actively working on the problem of creating varieties with significant therapeutic potential, but have also achieved significant positive results in this direction. In case of processing and adoption of an appropriate regulatory framework, the market for leaves and inflorescences of therapeutic hemp can be launched as early as 2021. The start for the development of the relevant interdepartmental document was officially announced during the training of the 6th stream of students of the "Hemp University".  

During the current week, representatives of three mass media addressed to the profile association of Ukrainian hemp growers at once with a request to comment on the national trends of modern hemp growing in the field of hemp fiber processing, as well as the prospects for the development of the hemp market in Ukraine. Unfortunately, the prepared plot of the "Espresso TV" channel did not display the analytical component specially for the plot prepared by our colleagues from the information and analytical platform "Hemp Consulting", therefore the conclusions of the representative of the Association "Ukrainian Technical Hemp" are not very clear and convincing for those who are not very deep in this topic. That is why, in addition to the video, with the permission of the Hemp Consulting management, we publish materials that were provided to illustrate the state of affairs in the hemp fiber processing sector in our country.

Historical aspect

Crops of industrial hemp in Ukraine

At the time of the collapse of the USSR, in order to process the hemp trust from an area of ​​more than 10 thousand hectares, more than 30 primary processing plants of hemp trusts, as well as several deep processing enterprises, were operating in Ukraine. Taking into account the energy intensity and labor intensity of Soviet technologies for primary processing, as well as significant wear and tear of equipment, back in the mid-2000s, it was concluded that it was not advisable to revive the old Soviet factories, and it was necessary to build modern production chains that could create highly liquid products from hemp fiber. 

Economic aspect

The experience of France for Ukraine at the beginning of the revival of the industry was of little use, since by 2012 industrial crops of industrial hemp practically did not exist - i.e. it was impossible to load the equipment of at least one primary processing plant. 

The dynamics of cannabis sowing in Ukraine almost completely repeats similar diagrams for Canada. They clearly show that the national market, due to its small size and underdevelopment, is extremely dependent on the situation on the external market.

Crop areas in Canada

Crop area in Ukraine 

Based on the foregoing, the experience of Germany is very clear, when at the peak of cultivation of industrial crops of industrial hemp, primary processing plants were built, which for a very short time “flew out of the market”.

Primary processing plants in Germany 

Based on the statistical indicators of economically developed EU countries, we can say that the production of textiles / knitwear / footwear occupies a very small part of the hemp fiber processing market.

Hemp fiber processing market in Europe 

A study carried out in 2020 suggests that the needs of the entire domestic market at the moment are from 20 to 100 tons (one of the 2 factories in which Hemp Consulting participated in the “launch” is able to cover these needs in a maximum of a month). 

From the foregoing, back in 2020, an extremely simple conclusion was drawn about what needs to be done in order for at least the currently operating primary processing plants to survive. These issues were discussed within the framework of a round table held by the Association "Ukrainian technical hemp" together with the Institute of Bast Crops of the National Academy of Sciences of Ukraine.

The diagrams of the development of the US hemp market, provided by our American colleagues, clearly indicate which market is the most promising in terms of invested forces and funds. That is why several breeding companies in Ukraine since 2016 have not only been actively working on the problem of creating varieties with significant therapeutic potential, but have also achieved significant positive results in this direction. If an appropriate regulatory framework is developed and adopted, the market for leaves and inflorescences of therapeutic hemp can be launched as early as 2021. The start for the development of the relevant interdepartmental document was officially announced during the training of the 6th stream of students of the "Hemp University".