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Why EU hemp growers are actively expanding not only in the field of production of drug-free cannabinoids


Butt of buіvlі, warmed Thermo Hemp

The most complete and efficient use of all parts of the plant leads to a significant reduction in the cost of final products, as well as the diversification of cash flows from cultivation, processing, as well as sales of hemp raw materials or groups of goods made from it.

One of Europe’s largest hemp producers and processors has doubled its potential for hemp raw materials in the EU construction sector by acquiring a manufacturer of heat-insulating materials in Germany and opening its own production unit for environmentally friendly building materials.


Hemp Flax production facilities located in the village of Oude Pekela, located in the Dutch province of Groningen 

The Dutch company HempFlax acquired the German manufacturer of natural insulation materials Thermo Natur GmbH, thereby strengthening its position in the EU construction sector. As part of the contracts, the Bavarian company was renamed to HempFlax Building Solutions and the company's facilities are reconfigured to produce thermal insulation materials of the Thermo Hemp brand. 

The acquisition of a German manufacturer of heat-insulating materials reflects the strategy of the Dutch hemp growers' leadership to diversify their portfolio of products made from hemp raw materials. In particular, HempFlax CEO Mark Reinders said that the acquisition of the German company underlines his desire to become less dependent on income from the sale of products based on the therapeutic properties of cannabinoids and on work aimed at further diversification of the company's existing product portfolio. In particular, Mr. Rainders emphasized that “We want to continue investing in business areas outside of cannabidiol. The company's staff has always closely monitored the combination of revenue streams in the field of industrial hemp breeding in order not to show particular sensitivity to volatility in certain areas of hemp business. ” 

Slightly less than half of HempFlax's total revenue is currently accounted for by the drug-related cannabinoid business. About 20% of the company's revenue comes from the zoo business, and another 15% comes from industrial products, such as biocomposite materials, as well as hemp fiber products.

Hemp hemp insulation is a niche market. According to HempFlax specialists, it makes up less than 0.5% of the 3.3 million tons of insulation materials used every year in the construction industry. However, the long-term potential of this sector of modern hemp breeding, especially in Europe, which cannot be ignored, is clearly visible. 

According to Mr. Reinders, “The market volume for insulation, repair and reconstruction of buildings and structures using hemp building materials is clearly larger than the creation of new buildings and structures. Our acquisition of a German manufacturer of insulation materials takes place at the right time of the economic crisis, as hemp enterprises can become the engine of economic recovery, as was already demonstrated by our company in 2008. "

Another reason for the activity of Dutch hemp breeders in the building materials market

According to the plans of the EU leadership, by 2050 the economies of the European Union countries should become climate neutral. In this regard, 27 countries of the EU member states initiated this year a “New Plan of Action for the Circular Economy 

for a cleaner and more competitive Europe. ” This document acts as a roadmap for minimizing the consumption of resources and energy, preserving valuable resources in the economy and reducing production methods involving waste generation.

The construction industry, which accounts for about 50% of all resources associated with the use of fossil materials, as well as more than 35% of all waste generated in the EU, is one of the key sectors covered by the initiatives outlined in the Plan. In particular, the above-mentioned EU document indicates the need to create and implement a strategy for promoting sustainable construction practices throughout the entire life cycle of buildings. To this end, the European Commission has proposed toughening the requirements for public procurement and expanding the scope of EU legislation in matters related to ecodesign and energy labeling.

According to EU hemp industry experts, the biological characteristics of the line of products obtained from hemp trusts (fiber, bonfire, hemp dust) provide them with great potential to meet the priorities outlined in the Plan specifically in the construction sector of the modern economy. In particular, building materials based on the biological properties of hemp have exceptional thermal characteristics that provide the opportunity to reduce energy consumption while carbon sequestration. Those. hemp has the potential to decarburize the construction sector, while creating innovative and sustainable value chains. Including, therefore, the use of hemp-based building materials should be stimulated in both the public and private sectors of the modern economy, and business owners and consumers should benefit from their use.

Commentary by the Ukrainian Technical Hemp Association

According to the commercial director of Hemp Bio Group (HBG - capacities for the primary processing of hemp trusts located on a mobile platform) Elena Mineeva “in the Ukrainian market there is a shortage of high-quality hemp construction materials. The hempfire produced by our company was bought up on the eve of the construction season and several of my friends are offended by the fact that I can’t sell them a high-quality prepared hempfire, which is simply not available at the enterprise at the moment (according to the concluded agreements, it is taken from production facilities almost in real time). -line). The conclusion about the lack of a sufficient supply of quality building materials made on the basis of the exclusive properties of hemp plants can be made based on our negotiations with representatives of the construction business, with which HBG managers have to constantly communicate. They claim that owners of private households have a great interest primarily in hemp-based building materials, with which it is possible to insulate or reconstruct already constructed buildings. There is interest in the construction of buildings and structures from hemp, but so far only a few of our partners have an integrated approach to this issue and have experience in the implementation of a full cycle of construction work (from the foundation to the roof) using hemp building materials. Most construction crews are able to carry out local tasks and claim that they can perform a full range of construction works efficiently using hemp construction materials, probably too early. ” 

Certain aspects of the national market using building materials and technologies based on the biological characteristics of hemp were considered in the framework of the round table “Hemp raw materials - technologies for its use in construction, production of biocomposite materials and furniture”, held as part of the “Hemp University”.

The philosophy of one of the leaders of the European hemp market is extremely interesting, the basis of which is the diversification of areas of profit in the framework of various projects of the hemp industry, the basis of which is the most efficient use of all components of the hemp plant (grain, root, stem, leaves and inflorescences). The leadership of the Dutch company adheres to the same principles of modern hemp breeding that are practiced in China and North America - the most complete and efficient use of all parts of the plant, which leads to a significant reduction in the cost of final products, as well as diversification of cash flows from growing, processing, also sales of hemp raw materials, or groups of goods made from it.

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