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CBD Archives - Hemp Market Report

Julie AitchesonJulie AitchesonFebruary 20, 2020
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5min00

Amidst concerns on the federal and state levels about violations of FDA regulations regarding CBD products, efforts are being made to allocate more money in the upcoming fiscal year to further define and more stringently enforce CBD laws. President Trump’s proposed budget for fiscal year 2021, should he gain re-election and have the opportunity to present it to Congress, allocates an additional $5 million to the Food and Drug Administration specifically for further regulation and law enforcement pertaining to cannabis and cannabis-derived products. This is the first time that CBD has been mentioned in a federal budget proposal, which suggests that hemp and CBD may be buzzwords cropping up in Presidential debate topics alongside marijuana  leading up to the election.

So where would it leave the future of CBD regulation if Trump is ousted from the White House? Democratic Presidential frontrunners Bernie Sanders and Elizabeth Warren both support legalization of cannabis, with Sanders proposing to legalize within 100 days of his election to office. A historically outspoken proponent of the war on drugs, Joe Biden is sticking to a half-measure platform with a focus on decriminalization, allowing states to regulate hemp for themselves. Michael Bloomberg supports putting legalization in the hands of individual states, though he is personally opposed to legalization. Pete Buttigieg takes the side of veterans with PTSD who often use cannabis and its derivatives to deal with the aftermath of military service, advocating for the decriminalization of all controlled substances. 

As  hemp has yet to be a talking point for presidential candidates, overshadowed as it is by the larger topic of marijuana as a flashpoint for racial justice issues (as criminalization disproportionately affects people of color), what Americans can expect from future budgetary support should a Democrat win office is unclear. What is clear is that the time for comprehensive, consistent regulations and enforcement of cannabis laws on the part of the FDA is long overdue.

 During his January 2020 testimony before the Subcommittee on Health, Committee on Energy and Commerce, and the U.S. House of Representatives, Douglas C. Throckmorton, Deputy Director for Regulatory Programs at the FDA, highlighted the current illegality (per the Food, Drug, & Cosmetic Act)  of interstate commerce of food with CBD additives. He also described in some detail concerns with current CBD marketing tactics that put consumers at risk, such as those products that claim to treat cancer or Alzheimer’s. Throckmorton also identified some particular concerns related to the potential negative health impacts of CBD use, such as liver damage, problematic drug interactions, male reproductive toxicity, and various ill side effects. 

While studies of these impacts are still ongoing and inconclusive, the FDA is clearly intent on taking them, and the future of CBD in the U.S. market, seriously. Whether the President-elect of the United States, whoever he or she may be, manages to pass a budget that supports the FDA in its mission to ensure public safety in regards to CBD is, in many respects, for voters to decide.


Julie AitchesonJulie AitchesonFebruary 19, 2020
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6min00

Even though the FDA has expressed its displeasure at adding CBD to food, that hasn’t stopped hamburger chains from tossing in some cannabidiol to enhance their burgers. The trend was started last year when on April 20th   of 2019 (yep, that’s 4/20), Carl’s Jr. became the first fast-food chain to sell a CBD burger at one of its franchises in Denver, Colorado. The ambitiously named “Rocky Mountain High: Cheeseburger Delight” was composed of two beef patties, pickled jalapenos, pepper jack cheese, fries, and a Santa Fe sauce infused with 5mg of CBD. And the price? $4.20, of course.

The “Rocky Mountain High”, which was only available for one day, was more of a concept test than a menu change, and given that the location sold more than 100 of them within the first hour and ran out entirely by 4 pm, it was one that the CBD burger passed with flying colors. 

That has sparked Colorado-based Illegal Burger to offer what it calls its biggest differentiator, “its exclusive line of CBD products.” The chain is using the idea of CBD burgers as a way to entice new franchisees. On its website, it states, “As an Illegal Burger franchise owner, you will: Be part of the first CBD restaurant franchise in the U.S.” The company backs its decision by saying, “Cannabinoid, or CBD, is attributed to many health benefits. Recently, the FDA approved of its use to treat two forms of childhood epilepsy, and consumers report it positively impacting anxiety, sleep disorders, and even chronic pain.”

The CBD burger was good for business and, according to reporting by Mike Adams at Forbes.com, even healthier for consumers than a dose of CBD all by itself. Adams cites a study that dosed two separate groups of participants with CBD. One group was placed under fasting conditions (no breakfast), while the other group was fed a high-fat meal. Those who partook of the high-fat meal before consuming a dose of CBD appeared to have a higher absorption rate (as demonstrated by a higher concentration of CBD in their systems) than their fasting counterparts.

So will Carl’s Jr. and Illegal Burgers along with the absorption rate study lead more fast food restaurant chains to jump on the CBD bandwagon in the months and years to come? To a large extent, this depends on how far the FDA goes in doubling down on restrictions prohibiting the addition of CBD to foods and dietary supplements in interstate commerce. Food safety officials in Maine, New York City, Ohio, North Carolina, South Carolina, Florida, and Georgia have all banned the addition of CBD to food.

An April 2019, an  Inverse article on the Carl’s Jr. CBD burger reveals that the Federal Food, Drug, and Cosmetic Act prohibiting any active substance in a pharmaceutical (which, thanks to the advent of  FDA-approved anti-seizure medication Epidiolex, CBD is) from being added to food products further empowers regulators to crack down on the issue. Yet despite the fact that these laws are clearly worded with little room for interpretation, their enforcement still appears to be discretionary, as both the FDA and hemp companies scramble to definitively ensure that the CBD available to the public is pure, potent, and safe.

While private chefs and smaller-scale restaurants are still tempting fate (and upping their prices) to bring CBD and cannabis to the dining public, higher-profile establishments are taking the precautionary principle until federal regulations and law enforcement sort themselves out. Still, given that a National Restaurant Association survey identified CBD and cannabis-infused foods as the top restaurant trend in 2019, there’s still a chance that American consumers might be seeing some “special sauce” on offer at their local drive-thru. 


Tee CorleyTee CorleyFebruary 18, 2020
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6min00

With the legalization of hemp, new opportunities arise for sustainability-focused contractors. Hemp could be poised to disrupt the industry of conventional building materials.

In 2018, the Trump Administration passed the latest iteration of the Farm Bill, effectively removing hemp from the federal List of Controlled Substances. With the stipulation that it cannot contain more than 0.3% THC, hemp turned from a stigmatized shrub into a blossoming cash crop.

Two U.S. companies, one in Idaho and the other in Kentucky, have stepped up the challenge. Using American hemp farmers and factories based in the U.S., Hempitecture and HempWood are championing the future of sustainability in building materials. 

How Is Hemp Being Used in Construction?

While hemp has been used as a building material in Europe for more than 30 years, it’s only beginning to gain ground in the U.S.

American entrepreneurs are turning hemp fibers into wood, concrete, and insulation. There are no limits on the scope of this growing green industry. Manufacturers intend to deliver materials to residential, commercial, and industrial builders.

Greg Wilson, the founder of HempWood, has developed a wood-substitute that is 20% denser than oak and grown 100 times faster.

“[HempWood] utilizes bio-mimicry to transform hemp fibers and protein-based bonding agents into a viable substitute for anything solid oak can be used for,” Wilson states on his website.

Wilson, who opened the first HempWood factory in Murray, Kentucky in the fall of last year, claims HempWood can replace any timber function. HempWood can even be cut, sanded, and stained. With a special focus on replacing hardwoods for flooring, cabinets, and furniture, Wilson plans to oust deforestation using the versatility of hemp.

Hempcrete, on the other hand, has its limitations when compared to its conventional predecessor. Best used for insulation, hempcrete blocks need to be used with a load-bearing timber frame. 

However, hemp insulation is still a viable alternative to concrete and fiberglass. Made by mixing hemp shivs with lime and water, hempcrete is breathable, non-toxic, and eco-friendly. In fact, hemp insulation has the same R-value as fiberglass at around 3.7 per inch. Naturally, insect-repellant hemp fiber absorbs moisture, reducing mold and deterring termites.

Hempitecture, an Idaho-based construction firm, has already helped construct three buildings using hempcrete, with impressive results.

Hemp, Health & Safety

Hemp homes could mean better, safer air for the occupants. By eliminating the number of toxins in the air due to concrete dust and harmful binding agents, hemp enthusiasts hope to have residents breathing easier.

Hemp takes no pesticides to grow and uses minimal fertilizer. In manufacturing, HempWood uses a soy-based binding agent instead of synthetic chemical binders.

Hempitecture’s HempWool insulation is made of 100% natural raw materials. That’s 92% hemp fiber and 8% polyester.

As for the environment? Hemp actually absorbs carbon dioxide. From growing to manufacturing, Hempitecture and HempWood make a point to be zero waste and carbon negative.

Could Hemp Building Materials Disrupt the Industry?

As Wilson puts it, “…A more sustainable way of living is no longer a luxury, but a requirement.”

With a close eye on the climate, both political and environmental, Wilson believes disruption is imminent.

However, more research needs to be done. For example, there is no standard for hemp building materials, making it difficult to regulate and certify.

And in its current state, hemp building materials may be prohibitively expensive for the average American.

Russ Martin, former mayor of Asheville, North Carolina, built his 3,400 square foot home partly using imported hemp-based materials in 2009. The cost? $133 per square foot, compared to the average $84 per square foot in the same year.

Wilson is currently striving to keep HempWood competitively priced with hardwoods like oak, stating that softwoods like pine and poplar are out of reach.


Julie AitchesonJulie AitchesonFebruary 14, 2020
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4min00

It’s no secret that advertising channels including Facebook, Instagram, Snapchat, Amazon, and Google do not allow brands to promote any form of ingestible hemp or marijuana, forcing companies to find other ways to advertise and generate interest in their offerings. What is often mysterious to those most impacted by these restrictions, such as hemp start-ups, is why some brands seem to slip through mysterious loopholes while others find themselves banned.

Facebook has done some waffling on the issue, allowing some ads for topical hemp that direct to landing pages featuring ingestible forms of CBD. Facebook claims “sole discretion” in determining what constitutes advertising or paid promotion of ingestible hemp, leading many businesses to have their accounts deleted without fully understanding why. The action is typically a result of a violation of Facebook’s “Community Standards”, which forbid paid distribution of ads related to CBD (which Facebook classifies similarly to drugs or alcohol). There are instances, as was the case with Cannaramic promoter Felicia Palmer (profiled by The Verge), whose ad account was disabled entirely even though she was not paying for distribution of her posts about CBD.

Instagram, owned by Facebook, is reportedly somewhat more lax. Users are not penalized as often when advertising CBD products for internal use. With Instagram and Twitter, there is still a risk of having an account permanently shut down if there is an attempt to sell products. According to a Digiday article published in June 2019, Google has begun experimenting with allowing ads for topical products as long as they don’t explicitly state that they contain CBD. Users still complain that some ads clearly promoting ingestibles get featured while others do not, to which Google Support’s primary response seems to be “we can’t check all ads all the time”. If a company chooses to run a Google AdWords advertisement promoting CBD and gets caught, it runs the risk of being prevented from future advertisements whether they are related to CBD or not.

Advertisers are finding ways to circumvent these systems with the help of various marketing experts. Focusing social media posts on education (i.e. “content marketing”) is one such strategy, as is being careful not to use words that are commonly flagged. Ecommerce platform BigCommerce suggests focusing on SEO (search engine optimization), or even hiring an SEO expert. A professional can ensure that keywords (which would be considered marketing and advertising materials in the event of an FDA or FTC investigation)  do not go against FDA or FTC guidelines such as those pertaining to health and medical claims.

Events, sponsorships, cross-promotion, storytelling (e.g. Charlotte’s Web’s epilepsy narrative), e-newsletters, local and national TV ads, and influencer endorsements are also strategies that the industry’s marketing professionals recommend. They encourage hemp entrepreneurs not to be forestalled by the limitations of social marketing. Despite the fact that, according to eMarketer, Facebook and Google accounted for 57 percent of the U.S. digital ad market as of 2018, emphasizing quality, verifiability, and price point can help producers come out ahead.


StaffStaffFebruary 12, 2020
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3min00

GenCanna Global USA, Inc. filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Kentucky. The filing will allow GenCanna to continue to operate its business without interruption to customers, vendors, partners, and employees while working through a reorganization plan that could include the refinancing of the company’s existing indebtedness, or an alternative restructuring transaction such as a sale.

GenCanna has obtained approximately $10 million in post-petition debtor-in-possession (DIP) financing from its senior lender, which, subject to Court approval, will provide the company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process.

CEO Matty Mangone-Miranda said, “We are taking this action in order to position our business for success in a highly dynamic and rapidly evolving industry. While this is certainly not the outcome we desired, the bankruptcy process gives us the ability to move forward in a way that allows us to best continue operations and serve customers as we work through our reorganization, resolve an outstanding legal dispute involving our Western Kentucky facility, navigate an uncertain regulatory environment and adjust our annual operating costs to better match the landscape.

Through this restructuring, we plan to address certain structural issues that we could not fix on our own. We are grateful for the continued support of our existing senior lender, who recognizes the strength of our brand, and we will continue to work tirelessly on behalf of our employees, farmers, and vendor partners.”

GenCanna was founded in 2014, as an inaugural member of the Kentucky Department of Agriculture’s Industrial Hemp Pilot Program, the company is a longstanding industry pioneer. GenCanna is a founding board member of the U.S. Hemp Roundtable. Launched in early 2017, the U.S. Hemp Roundtable is a coalition of over 70 hemp companies – representing every link of the product chain, from seed to sale – and all of the industry’s major national grassroots organizations. The US Hemp Roundtable has secured the passage of bi-partisan legislation in the U.S. Congress that established hemp federally as an agricultural commodity, permanently removing it from regulation as a controlled substance.

 


Julie AitchesonJulie AitchesonFebruary 10, 2020
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5min00

As more consumers turn to medicinal herbs for their wellness needs or simply to keep current with trendy boho culture, CBD is proving a ubiquitous addition to the scene.  Everyone from CBD industry giants like Charlotte’s Web to boutique brands with witchy cred like Sacred Smoke Herbals is marketing soothing CBD smokes without the addictive chemicals of conventional tobacco products in the form of pre-rolled CBD joints, and consumers are lining up, and lighting up, in response. 

In its forecast of leading trends in 2020, Canna Trading Company featured CBD pre-rolls as a way to consume CBD in its most bioavailable form. (Bioavailability refers to the amount of a consumed substance that actually becomes available for uptake in the body.) When smoked, CBD enters the body through two pathways, the mouth and also the lungs, which deliver CBD directly to the bloodstream. 

Jacob Eppinger, writing for online platform Odyssey, differentiates between CBD pre-rolls, which look exactly like a joint made with THC-rich cannabis, and CBD cigarettes, which are also experiencing a popularity surge. CBD cigarette manufacturers such as Wild Hemp offer smokable CBD without the visual stigma of smoking a joint. CBD manufacturers are eager to cater to the segment of the population that wants to inhale its CBD incognito, without exhaling that signature funky-smelling cloud of smoke. Vendors like Hemp86 have developed smokable CBD products without the funk, and are ranked among the most popular brands on the market. 

Smoking herbs in order to benefit from their medicinal properties is not a new concept. People have long used herbal cigarettes containing such lung-supportive herbs as mullein and coltsfoot, either blended with tobacco or on their own as a way of cutting back on tobacco or making a smoking habit “healthier”. Other relaxing herbs like damiana, lavender, mugwort, and now CBD, are smoked for their non-psychoactive “chill out” effect. 

Pre-rolls provide a cheap, easy way for CBD novices to dip a toe into the cannabidiol world without a huge initial investment. It is possible to buy high-quality hemp flower (which contains the highest potency of CBD) by the gram at a fraction of the cost of oil, though the health benefits appear anything but comparable. Mathew Gold, a staff attorney for the Federal Trade Commission, warns that “simply being free of additives—or, in the case of herbal cigarettes, nicotine, doesn’t make them safer. Any kind of cigarette you smoke has tar and carbon monoxide, which have very real health hazards associated with them.” 

Despite this fact, sales of hemp pre-rolls remain strong. In an article for Hemp Industry Daily, Brightfield Group analyst Bethany Gomez estimates that the smokable hemp market has grown 250 percent since 2017. By 2018, 41 percent of CBD users of the 5,000 surveyed had entirely replaced tobacco with CBD. It remains to be seen whether the pre-roll trend will burn itself out in 2020 or become a new fixture in the CBD consumer’s daily routine, but for now, smokable CBD is sparking plenty of interest.


Tee CorleyTee CorleyFebruary 7, 2020
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5min00

Company: Prismatic Plants

Products: Good Day & Good Night Adaptogenic CBD Tinctures

Price: $70 each; $135 when purchased together

What Makes This Product Unique: Prismatic Plants’ mission is to combine traditional herbal medicine with the blossoming hemp market, a goal that’s both intuitive and unique. By calling on master herbalists and doctors of chemistry, Prismatic Plants has crafted their two signature CBD tinctures: Good Day and Good Night CBD and essential oil blends.

Unlike CBD tinctures that serve a single function throughout the day, Good Day and Good Night are designed to be used in conjunction.

Good Day incorporates 19mg of full spectrum hemp extract with a blend of organic schisandra berry, bacopa leaf, Asian ginseng root, rhodiola root, and holy basil leaf essential oils. The herbs in this blend are traditionally used to limit stress while boosting energy and focus. In addition to 10mg of CBD, this tincture contains 0.3mg of CBDa, which is thought to block stressors and reduce inflammation and pain.

Good Night uses 17mg of full spectrum hemp extract alongside organic reishi fruiting body, oatstraw, ashwagandha root, valerian root, California poppy, and skullcap. This herbal blend is designed to relax the mind and unwind the body. Along with 10mg of CBD, Good Night contains 0.3mg of CBN, a cannabinoid thought to induce sleep.

Review: We sampled Prismatic Plants’ thoughtfully formulated Good Day and Good Night tinctures. Stored in dark amber glass bottles, the logo and ingredients labels are printed in white directly onto the bottle. The text is well designed and easy to read, giving this company a professional first impression.

We appreciated how upfront Prismatic Plants is with their ingredients list. All ingredients are listed clearly so there’s no question about what you’re getting. In fact, if you want more depth, you can visit their website to get a full readout of each ingredient with scientific research articles posted as evidence.

Prismatic Plants also takes the utmost care when sourcing their herbs. All herbs are organically and sustainably sourced. With so many questionable tinctures on the market, we found the quality of this research and effort refreshing.

Both of these oils are carried in hemp oil, but lack the strong hemp flavor. Because they contain a mixture of organic herbs, both tinctures are more aromatic and floral than your run of the mill CBD oil.

However, both tinctures have a bit of a bite. Good Day, in particular, was slightly bitter, tasting like raw basil. Good Night has a gentler flavor reminiscent of wildflowers with earthy undertones. They taste like condensed herbal tea. Neither flavor lingered for longer than 10 minutes, however. The taste may simply be a testament to the strength of the all natural, organic ingredients.

We took 1ml (1 dropperful) of Good Day around noon and felt its effects within minutes. Any stress or anxiety seemed to be washed away. We were left with a calm and peaceful state of mind, and a higher awareness of the sights and sounds in the moment. Because Good Day is designed to increase energy, we didn’t get that sleepy feeling that sometimes comes with CBD products.

At bedtime, we took 1ml (1 dropperful) of Good Night. As a mild relaxant and stress reliever, we found the effects of this combination effective. Good Night relaxed us into a sound sleep with no groggy feeling in the morning.

Overall, Prismatic Plants impressed us with their thorough research and creative combination of ingredients. The look and feel of the product is professional and sleek. Our only critique is the potent flavor, which isn’t long lasting.


StaffStaffFebruary 6, 2020
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4min00

The South Carolina Department of Agriculture (SCDA) said that it will begin accepting applications for hemp farming, handling and processing permits for the 2020 growing season starting Feb. 1, 2020. Now in its third year, South Carolina’s hemp farming program has grown from 20 farmers in 2018 to 114 permitted farmers and 43 processors at the end of the 2019 season.

In 2020, there is no cap on the number of permits SCDA can issue, and no cap on hemp acreage. SCDA will no longer allow “responsible parties” growing under another farmer’s permit, meaning each person who wishes to farm hemp must apply for a permit.

Requests To Change Federal Rules

SCDA’s Hugh Weathers is asking the U.S. Department of Agriculture to revise its national regulatory framework for hemp to better set up South Carolina’s Hemp Farming Program for success. USDA released its interim final rule on hemp on Oct. 31, 2019, and the South Carolina Department of Agriculture is in the process of writing a state plan that complies with the federal rule.

The SCDA has voiced several concerns about testing requirements in the federal rule and has formally submitted comments to U.S. Secretary of Agriculture Sonny Perdue asking that they are reconsidered. For example, the federal rule mandates that all hemp fields be sampled by SCDA-designated staff and tested by a DEA-registered laboratory within 15 days prior to harvest, a window SCDA feels is too narrow. Farmers are at the mercy of weather conditions, while laboratories are likely to experience back-ups during harvest season, and SCDA has not been given any funding to administer this testing.

“We believe that several provisions in the interim final rule lack the flexibility necessary for our farmers to be profitable and for SCDA to be able to implement a successful hemp program,” Weathers wrote.

Farmer Applications

Requirements to receive a hemp farming permit include:

  • Proof of South Carolina residency
  • Criminal background check
  • $100 nonrefundable application fee and $1,000 permit fee
  • GPS coordinates of all locations on which hemp will be grown
  • Attending an SCDA orientation and signing a Hemp Farming Agreement prior to possessing any hemp, including clones and seeds

SCDA will also license hemp processors and, for the first time this year, hemp handlers, a category that includes transporters, seed dealers, laboratories, and others who handle hemp. Separate permitting fees, facility requirements, validation inspections and certificate of occupancy are required.

Farming applications will be accepted Feb. 1, 2020, through March 31, 2020, while processing and handling applications will become available Feb. 1 and will remain open through the year. Applications will be available on the SCDA website, agriculture.sc.gov/hemp, starting Feb. 1.


StaffStaffFebruary 5, 2020
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3min00

A new industry report from Nielsen (NYSE: NLSN) and cannabis data provider Headset has highlighted the impact of hemp-based cannabidiol (CBD) on the U.S. pet care market. According to the 2020 Pet Industry Green Paper by Nielsen and Headset, hemp-based CBD pet products will represent 3-5% of all hemp CBD sales within the U.S. by 2025. In fact, joint projections show that the pet sector may yield one of the highest conversion rates within the consumer packaged goods (CPG) industry (37%).

“Understanding the dynamics at play in the cannabis space and their impact on the pet industry is critical,” said Maria Lange, Vice President of Strategic Initiatives at Nielsen. “Despite open questions around regulations, hemp-CBD is exploding in the pet space. With Nielsen’s and Headset’s Pet Industry Green Paper, companies will gain a better understanding of the nuanced cannabis sector, its buyers, marketed packaging claims and the rapidly evolving product landscape to capitalize on emerging trends and opportunities.”

The report made the following key points:

  • 74% of CBD buyers have pets.
  • Pet products have logged over $9.4 million in sales at regulated adult-use cannabis retailers in CaliforniaColoradoNevada, and Washington combined (Q1 2018 through Q3 2019).
  • The average price per pound for CBD dog treats is 2x the average dog treat.
  • To date, 24% of pet owners use hemp-CBD either for themselves, their pet(s), or for both.
  • Nearly 26% of U.S. adults with dogs are using hemp-CBD products. Half already use hemp-CBD for their dog, while the other half only uses it for themselves.

“The perceived positive effects of cannabis and CBD have created new markets, reinvigorated traditional CPG categories and also fueled legalization efforts. It’s no surprise that cannabis and CBD are becoming a popular way to treat pets naturally, driving another exciting market category for cannabis while energizing the pet industry,” said Cy Scott, Founder and CEO of Headset. “Headset is proud to work with Nielsen on this report to help brands and retailers understand this market and better serve consumers – and their four-legged friends.”


StaffStaffJanuary 30, 2020
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4min00

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was
taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

Even the assessed price for high-CBG biomass experienced a 27% downturn. Reports from our network indicate that large volumes of biomass remain unsold, suggesting that further price erosion is possible. Additionally this month, numerous price contributors stated that sales of extracts, specifically distillate, have been sluggish. Very few spot cash purchases are being made and inventories held by producers and processors who are taking splits or tolling fees are growing.”

His exhaustive report determined the following results:

  • The glut of CBD biomass persisted in January. Numerous members of our Price Contributor Network reported few spot cash transactions, while large volumes remain unsold. The aggregate price for all transaction volumes declined 31% month-over-month, while the assessed price for large transactions (1 million pounds +) sank by 53%.
  • Sales of CBD extracts, particularly distillates, were also reported to be sluggish in January. Cash transactions are also rare, while inventories of producers and processors taking splits and tolling fees are growing. The assessed price for Crude CBD oil sank by 25% compared to December 2019, and the aggregate price for various types of distillates was down 17%.
  • As farmers prepare for the 2020 growing season, prices for clones and feminized seeds of CBD cultivars saw increases this month after several months of declines. However, prices for such items remain down compared to those documented at the end of October, when the USDA released new production regulations with an effectively stricter THC limit. Farmers are concerned that available CBD cultivars could be non-compliant with the new rules, while some seed producers scaled up significantly from last year.
  • Available data shows relatively low planting and harvest rates compared to the amount of acreage licensed for hemp production in 2019, yet growers still generated enough CBD biomass to swamp existing processing capacity and tank prices. Wisconsin officials stated registered growers reported that only 6% of their crops had been sold by the end of 2019, on average. With production looking as if it will increase in 2020, processing capacity and demand appear as if they will have to expand significantly to absorb it.

 



About Us

The Hemp Market Report will target news from the fast growing worlds of cannabidiol (CBD) and hemp. As a sister site to the Green Market Report, HMR will cover financial stories, but also take a look at lifestyle news as well. The Hemp Market Report will also publish sponsored content as we seek to expand our content offerings.


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