Hemp Market
The boom for hemp production is coming as Canada approves the sale of consumer and pet products containing CBD, the bulk of which will be derived from hemp.
 | Analysts predict the hemp market will be worth $1billion by 2023, but there is a general consensus that this is too conservative.The rush by manufacturers to develop CBD-infused products is on as they prepare for their legal sale by the Fall of 2019. Canada has had a licensing system for the cultivation and processing of industrial hemp for commercial purposes. That year, Health Canada issued licences to 259 farmers to grow on 6,000 acres. By 1999, that number had grown to 674 farmers and 35,000 acres. Today more than 120,000 acres is in production. Cultivators were permitted to produce hemp derivatives as long as the sprout, leaves, flowers and bracts of the plant were excluded from the production process. Only the hemp seeds could be used. |
On June 19, Bill C-45 was passed, providing the hemp industry with a variety of additional revenue streams.
Today, cultivators and processors can utilize the full plant, allowing for a new range of products.
And the race is on. Proactive manufacturers are doing their product development and seeking out strategic partners today – simply because those who are ready when the Canadian government allows CDB infused products in the Fall of 2019, will be the winners in the race for market share.
With only 120,000 acres in Canada currently dedicated to hemp production, there is a concern that a shortage of CBD oil is on the horizon and so a critical business strategy will be to lock in a reliable and steady supply of raw material.
For cultivators the math is fairly simple:
- 2.5-4 kg of oil can be produced from an acre of hemp.
- $15,000-$30,000 is the wholesale price for 1kg of CBD oil.
Cannabis Innovation Group has the production facility and the client base to extract CDB oil from hemp and seeks cultivator partners for reliable and steady supply.
We can assist with:
- Health Canada cultivation licence.
- Purchase orders for crops.
- Negotiating price.
- Establishing long-term contracts.
For more information contact us:
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Our team at Cannabis Innovation Group consists of professionals, licensed dealers, consultants, and marketing guru’s that will ensure you get the right solutions and guidance every step of the way.