Why in Canada the number of permits for the cultivation of technical hemp of a therapeutic orientation is growing

As a growing number of Canadian manufacturers of medical cannabis are curtailing expensive projects related to cultivating plants in greenhouse complexes or premises, more than ever, hemp growers in the country are preparing to implement cheaper “ outdoors ” projects . A huge number of leaves and inflorescences of technical hemp of a therapeutic orientation of lower quality than products grown in greenhouses or indoors will appear on the wholesale market this fall.

The experts of the Hemp Consulting information and analytical platform, on the pages of the profile electronic publication of Ukrainian hemp breeders, back in 2016, noted the main tenets of the hemp market , which predetermined "The feasibility of using technical hemp for pharmacological purposes in Canada ." Considering the fact that the “ Maple Leaf Country ” is currently at the forefront of the main trends in the modern hemp market , most likely the trend described in this material will be relevant for European hemp breeders already in 2021.

Over the past few months, the number of permits issued by the Ministry of Health Canada in the cultivation of varieties of hemp , have significant therapeutic potential " open field " increased by more than 25% . 

The positive dynamics of manufacturers of hemp raw materials grown “on the open ground” used for medical purposes , indicates a continued growth in the sector of inexpensive and large-scale market of technical hemp with a therapeutic focus on Canada . There are several reasons for this kind of market reversal :

- manufacturers of legal psychoactive hemp have stopped a significant number of projects aimed at building greenhouse complexes both in Canada and in all regions of the world ;

- the cultivation of technical hemp of a therapeutic orientation “ on the open ground ” has similar potential with the legal cultivation of psychoactive hemp in greenhouses or indoors, at an incomparably lower cost ;

- the amount of drug-free cannabinoids and the quality of raw materials produced “ on the open ground ” is comparable to similar products grown in greenhouses or indoors;

- given the tendency of large-scale consumers of hemp raw materials ( food manufacturers , cosmetic or pharmaceutical products , products for zoobusiness ) to purchase the leaves and inflorescence plants that meet environmental requirements, cultivation of organic hemp , having significant therapeutic properties more advantageous to carry out " open field ";

- Given the problems with raising capital , large manufacturers of hemp raw materials are trying to drastically reduce operating costs , so they focus on a cheaper and faster payback method of cultivating hemp plants - cultivation " on the open ground ." On average, greenhouse projects designed for the cultivation of medical hemp on an industrial scale cost $ 170-200 million ( construction , purchase and adjustment of special equipment , costs for heating, ventilation, air conditioning, etc.);

The Canadian Ministry of Health has stated that as of January 2020, license holders for the cultivation of medical hemp plan to grow this crop “ on the open ground ” on an area of ​​more than 240 hectares, which is 33% more than 180 hectares of land grown in greenhouses either indoors.

Commentary experts of the Association "Ukrainian industrial hemp"

In February 2020, the Canadian Department of Health approved 33 applications for the cultivation of therapeutic hemp in the open field , which is about twice the number of commercial areas for growing “ outdoors ” compared to the previous summer (there were 17). As of March 31, the number of permits for the cultivation of hemp plants , with significant therapeutic potential, grown " outdoors ", issued by the Ministry of Health of Canada , increased again to 42 , representing 27% increase in just a few months.

The above 42 permits for growing  plants with significant therapeutic properties  " outdoors " include:

• 27 standard growing licenses ;

• 13 licenses for microcultivation (limited to a planted area of ​​200 square meters);

• 2 licenses for nursery nurseries .

It should be noted that in late March, officials of the Ministry said that in line for the issuance of licenses for the cultivation of cannabis has considerable therapeutic potential is 121 standard application and 51 accepted for consideration a document on microculture. 

We focus on the following important detail - such major Canadian hemp companies as “Aurora Cannabis” and “Canopy Growth” also plan to actively grow hemp plant with significant therapeutic potential “ on the open ground ” in 2020 . In particular, Canopy Growth representatives announced plans to increase the production of cheaper hemp products grown “ outdoors ” immediately after the closure of several production sites where hemp raw materials were cultivated indoors or in greenhouse complexes. In turn, specialists of “Aurora Cannabis” after stopping their expansion in Denmark , as well as in the province of Alberta ( Canada ), say that they are going to expand the cultivated area “ on the open ground ”, since they traditionally use cultivation of medical hemp in this way for research , the creation of new plant varieties , as well as developments in its cultivation and processing .

The dynamics of licenses granted by the Ministry of Health of Canada for the cultivation of “on the open ground” hemp plant with significant therapeutic properties suggests a trend that is clearly emerging . As a growing number of Canadian manufacturers of medical cannabis are curtailing expensive projects related to cultivating plants in greenhouse complexes or premises, more than ever in 2020, hemp growers in the country are preparing to implement cheaper “ outdoors ” projects . A huge number of leaves and inflorescences of technical hemp of a therapeutic orientation of lower quality than products grown in greenhouses or indoors will appear on the wholesale market this fall.  Now let's try to conclude how relevant the registration in Ukraine of the first grade of technical hemp of a therapeutic orientation has become .