The international Hemp import / export business while young, is poised to BOOM in the United States. In this article, we address what is currently happening in hemp import / export, and how we expect the market to mature over time.
At the present date, importation of Hemp products consists mostly of CBD isolate for two important reasons. The first reason is CBD isolate is a price dense product. When considering the S&H costs of moving a product, something of substantial size like biomass comes with logistical challenges. While biomass is generally is worth .10 – .20 cents per gram, CBD isolate market price is around $7.5/ gram, 50x more price dense per volume.
The second reason why CBD isolate is a
Currently the Exportation of CBD is mostly in the form of flower quality Hemp, aka smokable hemp. Markets like Switzerland, where they have legalized low THC Cannabis, Hemp is being used as an alternative to smoking tobacco based cigarettes. Great work Switzerland! Trade routes to get flower quality hemp out of the USA are tricky because not all ports are friendly to the material. Earlier in the hemp season we did see the export of CBD Isolate into other countries, but due to the shortage of raw materials in the USA, we have seen CBD isolate exportation fall.
In the future, I believe that there will be two main markets for exportation, CBD isolate and CBD distillate due to the high value density of CBD. This is because the USA is poised to become an agricultural power in Hemp, and industrialization will create an opportunity for the USA to become a world wide hub for CBD. While flower quality Hemp will still be a export, the size of this market will be substantially smaller.
When looking at future imports, we will still see low price point CBD isolate entering our market, likely from China. I think the European markets importing CBD isolate into the states will start to fade due to price competition. The crude CBD oil importation business will continue to develop, and thrive, originating from countries who have a lower cost of labor can manufacture hemp at prices that cannot be matched by first world countries.
Import / export of Hemp and CBD is a complicated process that should not be taken lightly. Before engaging in this business, be sure to get legal advice to navigate national and international law. With Hemp and CBD not being legal in all countries, your trade routes can impact the legality of your product. Be diligent in your ventures, we need all of you to lead the future of this industry.
Thanks for reading,
Michael Gordon
CEO
kush.com
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