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Новости/Аналитика

Hemp breeding trends in 2020

25.02.2020

If, according to EU requirements, our country creates the same conditions with European countries for hemp business and does not provide acceptable financial instruments under national conditions for hemp breeders, Ukrainian hemp breeding, not being globally competitive, will be swept away from the market and will only be able to ensure the interests formed for this moment of multinational hemp companies.

Information and analytical platform Hemp Consulting fairly regularly for the pages of the profile electronic publication of Ukrainian hemp breeders provides a certain kind of prognostic information. For example, at the end of last year, industry experts demonstrated “ Some touches of hemp market trends in 2020 ” and made conclusions about the signals “ Recession or correction sent by the medical hemp market ”. Winter is ending and on the eve of the beginning of the autumn field work, the editors of the profile electronic publication of Ukrainian hemp breeders asked Hemp Consultingto predict what exactly will happen in the global and national hemp market. The systematic information provided by industry experts is presented below. 

The general tendency of the global and national market of modern hemp breeding is the solution of contradictions of several forces at once. On the one hand, there are companies interested in developing various sectors of the hemp industry, and on the other hand structures (state, public, religious, etc.) trying to “earn” by creating various methods, primarily administrative control. That is why in parallel with the development of individual sectors of modern hemp breeding, there is a regression in seemingly elementary issues. For example, in Ukraine this is due to the unlawful activities of individual law enforcement officials, who, for example, “push through” departmental orders, the individual wording of which directly contradicts the norms of the current legislation.

The growth of human potential working in the industry

The economic prosperity of companies operating in various sectors of the modern hemp breeding industry leads to the attraction of a well-trained human potential generated by the industry itself (training at Hemp University) and attracted from other highly profitable business sectors. For example, more than once on the pages of the profile electronic publication of Ukrainian hemp growers published data on an increase in the number of employees in the hemp industry in the USA 

 

In Ukraine, the trends associated with the growth of human potential in the industry partially repeat the global ones, however, the peculiarities of national legislation force entrepreneurs not to engage in the cultivation and processing of hemp plants or the development of new technologies or products. The bulk of Ukrainian “hemp breeders” is focused on sales of hemp products - often foreign goods located in the “gray zone of law” (for example, all categories of goods that include non-drug cannabinoids).

If all over the world there is a rapid increase in the resources (financial, intellectual, production, etc.) attracted to scientific or educational institutions for the creation of new categories of goods, technologies, training of highly specialized highly specialized professionals, then in Ukraine everywhere there is a dominance of wild unprofessionalism and amateurism and the existence of the only training site in the country, providing knowledge in the field of modern hemp breeding and issuing recognized by the state corresponding his certificate can not fundamentally affect the improvement of the situation. The lack of the necessary regulatory framework ensuring the promotion on the national market even of breakthrough technologies (Hemp Selection Center technical therapeutic hemp varieties, patenting of biologically active and feed additives with great therapeutic properties, etc.) implies the implementation of this kind of intelligent, high-tech projects outside the territory of our country and, accordingly, a “brain drain of hemp” abroad.

Focus on the digital transformation of the industry, as well as decision-making based on a huge amount of data

Digital transformation has become the greatest paradigm shift in almost all conceivable sectors of modern business. Digital technology, from music and television to the sharing of transport and e-commerce, has completely transformed traditional markets. One cannot expect anything else in the modern hemp industry. The leaders of the global hemp market everywhere use flexible digital processes, introducing the latest technology into their business structure.

The basis of this trend is the presence of significant financial resources, which, unfortunately, have not yet been observed in Ukraine. That is why national companies lose significantly in terms of manufacturability and this gap is increasing annually. For example, on the territory of our country there is the only private company that uses the appropriate equipment to control the amount of tetrahydrocannabinol in seed material and create new promising varieties rich in drug-free cannabinoids that are marketed both on the Ukrainian and international markets. And this is when a dozen seed companies are listed in the corresponding state register that sell their products in Ukraine and are forced to contact the relevant state structure on the issue of the amount of TGCs in the sold seed material. 

Regulatory change

The exponential growth dynamics of the hemp industry in the economically developed countries of the world forces government agencies to actively amend existing legislation aimed at ensuring the development of both individual sectors of modern hemp breeding and the industry as a whole.  

In our country, individual stakeholders are actively raising the issue of amending relevant laws, not focusing on the absurdity of existing by-laws that prevent the development of the industry as a whole and of individual extremely profitable hemp business sectors. For example, the changes initiated by the Ukrainian Technical Cannabis Association in PKMU 589-2009 are aimed at ensuring the possibility of unimpeded processing of straw / technical hemp trust, doubling the profitability of plant cultivation and creating a significant number of jobs in depressed agricultural regions of our country by creating conditions for the construction of plants for primary processing.

Creation of conditions for investment attractiveness of hemp business

The crisis of the largest Canadian and partially American hemp companies that erupted at the end of 2019 suggests that this business is developing as well as other business sectors with local peaks and falls. In order for the general development trend to develop in a positive direction, rather than degrading, financial resources are needed that are provided to hemp enterprises on conditions acceptable to business. While in economically developed countries all market participants are trying to create various kinds of financial instruments that facilitate the circulation of financial resources in the hemp industry of their countries, in Ukraine this area of ​​industry development is practically absent. 

Not only does the country frighten off potential investors in connection with the conduct of hostilities on its territory, so the national financial system is not focused on developing production capacities and creating ultramodern high-margin technologies, but for the most part working under conditions of "wild capitalism" able to provide financial resources on acceptable terms. The saddest thing in this situation is precisely that without acceptable financial instruments ensuring the full-blooded existence of the industry, hemp breeding in Ukraine at the moment cannot be competitive. In the event that, according to the requirements of the EU, our country creates the same conditions with the countries of Europe for hemp business and does not provide acceptable financial instruments under national conditions for hemp breeders, Ukrainian hemp breeding, being not globally competitive, will be swept from the market and can only provide interests of transnational hemp companies currently being formed.

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