Why cost will be a key factor in the medical cannabis market

During test trials in Europe of Swiss cannabis varieties (legally grown without plant protection, the amount of THC in which does not exceed 1%), the therapeutic hemp varieties bred in Ukraine (THC does not exceed 0.08%) were more effective for the treatment of oncological, neurodegenerative, autoimmune, as well as other serious diseases including chronic ones.

On the pages of the profile electronic publication of Ukrainian hemp breeders, several times the attention of our readers was focused on the achievements of hemp breeders from Canada , the Russian Federation, France , and Ukraine on the creation of therapeutic hemp varieties of a therapeutic orientation. In this publication, American hemp market experts in a book published in 2019 conclude that in the future only those companies will remain on the market that will place their main stake on minimizing the cost of the grown product. Undoubtedly, those companies will win the price wars on the international hemp market that will make the main bet precisely on the creation of the cheapest varieties with significant therapeutic effect.

In the economically developed countries of the world, where the legal cultivation of psychoactive hemp is regulated by law, a significant number of producers prefer to compete in the quality of the grown products despite the fact that consumers prefer those companies that are able to reliably supply cannabis at a low price.

According to a book released in 2019 that analyzes the business facts related to the medical use of hemp, about half of American companies specializing in the cultivation of hemp with therapeutic properties try to “focus on the positive differences in their products precisely the high quality of the flowers (leaves) and inflorescences) which contain the maximum number of cannabinoids. 

What are American cannabis producers focusing on so far?

At the same time, the book concludes that after saturation of the hemp market and accordingly increased competition, most likely the consumer will prefer products that will be of high quality, but as cheap as possible. In particular, in the market of extracts, consumers give preference to highly effective and inexpensive concentrates, which primarily creates a demand for inexpensive hemp raw materials. 

This, as well as a number of other signs indicate that in the end, hemp producers, apart from the largest and most effective ones, who left high-quality products as one of the non-main segments of their business, will be forced out of the hemp market, unable to withstand price competition. For example, large retailers will be able to sell hemp products at much lower prices than small producers.

The above factors create for companies legally cultivating a psychoactive hemp fork in the market, when one of the prerequisites for expanding their business is the creation of low-cost, highly effective therapeutic cannabis varieties, on the other hand, the need to invest significant resources related to breeding and seed production aimed at breeding new varieties and the maintenance of those that have already positively established themselves in the market.

Commentary of the Ukrainian Technical Hemp Association

An analysis of the trends in the hemp market in North America once again confirms the prospect of introducing into the market new varieties of technical hemp with a therapeutic focus on Ukrainian breeding. The therapeutic cannabis varieties created in our country for industrial use, in which the amount of tetrahydrocannabinol does not exceed the levels established by the current legislation in 0.08%, and the number of other biologically active substances with significant medicinal properties, are much cheaper than foreign hydrides cultivated in closed rooms or greenhouses. Therefore, cosmetics, biologically active / fodder additives, food products and products for pets made on the basis of precisely the leaves and inflorescences of technical hemp of the therapeutic focus of Ukrainian selection are so relevant for the domestic and international markets. It can already be said that during test trials in Europe of Swiss cannabis varieties (legally grown without plant protection, the number of THC in which does not exceed 1%), therapeutic hemp varieties bred in Ukraine (THC does not exceed 0.08%) proved to be more effective for the treatment of cancer, neurodegenerative, autoimmune, as well as other serious diseases including chronic ones.