From our latest Hemp Heroes, this topic was brought up. What do others think are some necessary steps this industry needs to take in order to really take off?
Here are just a few points to get started:
Supply chain capacity
Massive growth to expansion of production caused by 2018 Farm Bill
Almost 500% increase in US cultivation, which was not matched by processing capacity expansion either by oil or fiber and textile markets.
Filling the middle phase of supply chain and increasing processing capacity.
Lots of information asymmetry between buyers and sellers. Growers don’t know what they’re getting for their product in a given market.
Massive price disparities, pricing ecosystem demands stabilization.
This is a “hyper fragmented market”, buyers are disconnected and experience a 50-70% variance in most pricing.
Need to see stabilization in pricing ecosystem
Can’t negotiate deals or set future contracts
Broader cannabis ecosystem
Federal gov’t needs to make it easier for cannabis businesses to secure banking services,
Raised capital, difficult to find capital, unused capital,
Many investors will be unwilling to jump in until the money market stabilizes
Regulatory clarity from the FDA
Full FDA Approval is mandatory