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Новости/Аналитика

Global trends in the medical cannabis growing market

02.04.2021

The significant oversupply of unsold stocks of legal psychoactive cannabis has affected prices and forced many growers to scale back or withdraw from the market. 

On the pages of the specialized electronic edition of Ukrainian cannabis growers, the question has been raised more than once that the sector of using therapeutically active elements of the hemp plant has its own especially and is definitely not unlimited. Considering the activity of various structures in lobbying for amendments to the current legislation, one of the leitmotifs of which is to regulate the possibilities for cultivating hemp plants in greenhouses or indoors, the editors of the specialized electronic edition of Ukrainian hemp growers turned to the specialists of the information and analytical platform Hemp Consulting for an explanation of the question of whether how appropriate it is to focus on this particular sector of modern cannabis production. According to Hemp Consulting specialists, there is no need to invent anything, you just need to analyze the data of government agencies of Canada, which is the leader in the market for growing hemp plants in greenhouses and premises, and carefully read the statements of the companies leading in this market. You do not need to have significant skills in order to understand that over time this segment of modern cannabis farming will remain exclusively for growing plants in which there will be an increased content of psychoactive substances, and companies that specialize in the creation of breeding material are also interested. In order to support the conclusions drawn 5 years ago, we present the information prepared by the Hemp Consulting employees without any changes or abbreviations from the editorial office.

48North Cannabis is ending outdoor cannabis cultivation due to oversupply in Canada. In particular, this fact speaks of a significant surplus of hemp raw materials on the country's market. The 48North Cannabis company was one of the first in 2019 to present to the market a “revolutionary technology” for growing large areas of a hemp plant, further used for medical purposes in the open field, in order to minimize the cost of producing hemp raw materials intended for further extraction of therapeutically active elements of the plant. ...

A press release issued by the company in late March indicated that the decision to stop growing legal psychoactive cannabis outdoors was seen as “an important step on the company's path to profitability. The decision was made in connection with a huge oversupply in the market. " In addition, the company is forced to cut its staff by about 20% in order to save on fixed operating costs.

Commentary of the specialists of the Association "Ukrainian technical hemp"

By early 2020, licensed areas for outdoor marijuana cultivation in Canada had already exceeded licensed areas for legal indoor cultivation of psychoactive cannabis. According to Health Canada, licensed Canadian medical cannabis growers had nearly three times as much acreage outdoors by August 2020 as they did indoors, as some large growers significantly reduced their greenhouse and indoor plant cultivation capacity already in 2020. ... Approximately the same indoor / outdoor 1: 3 ratio remained unchanged as of November 2020, when Health Canada showed that there are approximately 209 hectares (22.5 million square feet) of licensed marijuana growing in the country. indoor versus 619 hectares (66.6 million square feet) dedicated to growing medical cannabis at outdoor production sites.

A significant oversupply of unsold stocks of legal psychoactive cannabis has affected prices and forced many growers to scale back or withdraw from the market. For example, Canopy Growth announced at the end of 2020 that it was phasing out outdoor cultivation across Canada and was also significantly reducing indoor production.

During the round table “ Problems and prospects of the use of therapeutically active elements of hemp as a basis for nutraceuticals, medicinal cosmetics, animal feed or other products with healing properties of a plant ” held for the listeners of the 6th stream of “ Hemp University ”, attention will be focused on the need to implement the concept previously proposed by the Association "Ukrainian Technical Hemp" regarding the feasibility of improving the current regulatory framework in order to regulate the possibility of using therapeutically active elements of hemp for industrial purposes, grown primarily in the open field.

In connection with the outbreak of COVID 19 and the quarantine announced in connection with this in Kiev, training will be conducted using a secure and fully virtualized Cisco WebEx Meetings web conferencing solution. A link will be sent to the registered listeners by e-mail to participate in the event remotely.

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