Industrial hemp is a budding industry that has cultivated much success in China. Until recently, it’s estimated that China was responsible for nearly half of the planet’s hemp supply averaging around $1.2 billion USD a year. When the United States President Donald Trump signed the 2018 Farm Bill, industrial hemp was removed from the Controlled Substance Act in the United States.
This opened new doors for the U.S. to become a significant competitor in the global hemp sector. Information about hemp and all the potential benefits it holds is circulating the internet daily. Consumers are learning about amino acids, essential vitamins, minerals, and phytocannabinoids that this plant contains.
China has budded into a global superpower in the green sector of the hemp industry. These days they’re not alone though as Spain, Switzerland, Portugal, Korea, Thailand, Egypt, Ukraine, and various states in the U.S. are now influencing the global hemp trade. However, China is seeing exponential growth in its hemp industry.
Stocking Up On Green
Stocks have been surging all year long, and some are beginning to wonder when a slowdown will be in sight. Shineco saw a gain of 28% equaling an 11 times surge in volume when news of their agreement with Xingshan People’s Government of Hegang City to construct an industrial hemp planting base in the Heilongjiang Province.
An 82-acre harvest is expected from this agreement in 2019. Meanwhile, both parties are collaborating on the development of a 3,295-acre cultivation site. The CEO of Shineco, Yuying Zhang estimates annual production of CBD extract to be around 30 tons. Zhang also expects approximately 4,000 tons of hemp leaves, 500 tons of industrial hemp seed oil, and 2,000 tons of industrial hemp from the base.
Hemp plantations in China are flourishing with some calling hemp, “green gold.” Some reports suggest farmers receive about 50,000 yuan or $7,400 per hectare of hemp vs. only half of this for crops such as corn.
Hanma Investment Group was the first recipient of a license to extract CBD in China. Hanma is now teaming up with the People’s Liberation Army to develop a CBD product aimed at relieving PTSD which shows just how far China is progressing when it comes to embracing everything hemp has to offer.
The U.S. Is Making Moves
With all of these results, the U.S. couldn’t just stand by and watch any longer. Hemp CBD could have a value of around $22 billion in the U.S. approaching 2022. The demand is soaring internationally, and people from around the world are no longer ignoring what this widely misunderstood plant has to offer.