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Новости/Аналитика

Selected trends in the US cannabinoid market

31.08.2020

Reduction of areas for greenhouses (greenhouses) reached 64%, and in open ground - 30%. The order of numbers confirms the assertion of industry experts, who reported at the beginning of the year, that many farmers adhere to a position not to expand their business, and some are completely leaving this sector of the economy.

At the end of the second quarter of 2020, analysts of the American hemp market received the latest relevant data on the state of licensed crops in all states, which gives an idea not only about the quality and quantity of the crop compared to the previous year, but also about the prospects for the development of the domestic market. Official data indicate that almost 162 yews were used for hemp sowing. hectares of areas for open ground and a little more than 0.5 yew. ha in greenhouse complexes.

Change in Crop Areas in 2020 Compared to 2019 (by State)

 "on the ground"

in greenhouses 

AL - Alabama; CA - California; CO - Colorado; KY - Kentucky; MI - Michigan; MIN - Minnesota; MT - Montana; NC - North Carolina; NM - New Mexico; NV - Nevada; OK - Oklahoma; OR - Oregon; TN - Tennessee; VT - Vermont; DE - Delaware; IN - Indiana; MA - Massachusetts

It should be noted that not all licensed areas for growing cannabis are sown by growers. It was noticed that only last year, at least half of the farmers who expressed a desire to issue permits granting the right for legal cultivation of the plant carried out sowing of hemp. This trend is also relevant for 2020. 

Comparing the area under hemp crops with 2019, we can say that there has been a significant decrease in their area for such a short period of time. In particular, the reduction in areas for greenhouses (greenhouses) reached 64%, and in open ground - 30%. The order of numbers confirms the assertion of industry experts, who reported at the beginning of the year, that many farmers adhere to a position not to expand their business, and some are completely leaving this sector of the economy. This is evidenced by the data on the farms that issued permits for the cultivation of hemp this year. So in 2020 a little more than 18 yew were issued. licensees for the cultivation of hemp, while in 2019 this figure was 1.5 yew. more, which shows a decline in interest among manufacturers in the industry by 8%. There has been not only a decrease in the area under crops due to a decrease in cultivation in each individual farm, but there has also been a suspension of the activities of individual companies that cannot partially or completely realize last year's harvest. 

The most difficult and unpredictable today is for those enterprises that succumbed to the popular trend of increasing demand for hemp products, which, moreover, is not always relevant, sowed significant volumes of hemp without understanding where the harvest will be sold and cannot find profitable options throughout the year realization of the harvest. Taking into account the current conditions, many market analysts form an opinion about the continuation of trends associated with the overproduction of hemp products in the market of certain segments, at least for a short period of time. This situation applies to almost all regions of the United States. So, for example, according to the Florida Department of Agriculture, from 6.5 yew. hectares registered in 2020 by producers, in fact, cultivated about 2 yew. ha. The intended purpose of the future crop is about 70% is used as raw material for medical purposes and only less than a third is used in other areas of modern hemp growing, primarily to provide the food industry with highly liquid raw materials. 

Commentary of experts of the Association "Ukrainian technical hemp"

In a number of economically developed European and North American countries, the 2019 cannabis crop for the production of drugs rich in cannabinoids remains mostly in warehouses, which significantly reduces the demand for the 2020 crop that is already on the market. At the same time, many companies prefer to deal with fresher raw materials for the production of extracts and biological products, since fresh raw materials increase the "production yield" of the necessary components from the total processing mass. Based on the foregoing, it is fashionable to assume that the medical hemp processing market this year may fall by 15% compared to the same period last season. At the same time, one should not particularly hope that the downward trend in the market for hemp raw materials will consistently lead to a decrease in consumer prices for finished products. A quality product is unlikely to decrease in price, and the consumer will not feel significant positive changes for his wallet. 

Обучение в рамках "Конопляного Университета"
13.10.2020

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