Hemp Marketplace Home›Forums›Archive›Economics›Two Industry Directions?
Tagged: commodities, Cooperatives, labs, Processing
What do you think?
Talking to a cannabis trader, he’s telling me that the industry in a few short years will be like corn, where there’s not much profit, which is where it’s going already. Good news for consumers on CBD pricing but farmers will lose their value and end up at the short end of the corporate stick. So what I want to know is why can’t there be a minimum price for farmers so that they get a fair trade? Could that be established by cooperatives who will make sure prices will cover healthcare, insurance, etc?
The other issue is regional hubs for analytics and processing. Which way will it go? On the one hand you have large low-cost mail-in facilities where farmers send their samples overnight and get results in a few days. Then that lab business economy is not local but goes to some big corporate warehouse in Nevada. The other option would be regional hubs where the price is still reasonable but the business stays local, more jobs opportunities and the turnaround is faster, less issues with bottlenecks.
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