hemp Archives - Green Market Report

StaffStaffNovember 16, 2020
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7min1290

Editors Note: This is a guest post.

CBD products have become incredibly popular thanks to new legislation legalizing hemp-derived products with minimal THC content. The popularity of CBD is also attributable to the number of people experiencing benefits from it; CBD is being used to alleviate anxiety, help people sleep, and give people a deeper sense of wellness and relaxation.

But what does the future hold for this industry? Is CBD just a fad, or will it continue growing in popularity? And how will innovators direct the development of this market?

Product Innovation

First, let’s take a look at the area of product innovation. Already, there is a wide range of different CBD products available for consumers to try. You can buy and smoke CBD flower, just as you can buy and smoke weed, but most people prefer a different delivery system due to concerns about smoke and lung health. 

Instead, many people are turning to full spectrum CBD oil, an extract designed to provide you with a full spectrum of different cannabinoids (except THC, of course), in a much cleaner, more efficient delivery system. We’re also seeing the development and circulation of topical forms of CBD, including creams, and CBD cartridges for vaporizers.

In the future, we’ll likely see an even wider range of products that contain CBD. Already, we’re seeing hints of what’s to come. For example, there are gummies and other edibles that contain CBD being sold by food manufacturers. There are also some restaurants offering signature dishes cooked with CBD oil. Over time, as extracts become more concentrated and new forms of CBD delivery become discovered, we’ll see an even more diverse range of options for consumers.  

Consumer Demand

Consumer demand for CBD is unlikely to let up anytime soon. After becoming legalized, there was an understandable surge in demand due to the novelty of the substance. Some experts suggested that this would be short-lived; once people got over the newness of the substance, they would move onto something else.

But the numbers suggest something different. The market for CBD in 2020 is $967.2 million, but it’s projected to grow to $5.3 billion by 2025. There are many reasons why this growth trend will likely continue.

For starters, people who try CBD and like it tend to keep buying it. They discover the benefits, and don’t want to lose them. It’s not a fad for them; it’s a source of relief. Additionally, the benefits of CBD are still being discovered; new studies are constantly emerging to suggest new benefits from the substance, or to reinforce already existing ideas about how it works.

Consumer acceptance is also likely to grow. While some people were excited to try something new when it became legalized, CBD still carries a stigma among some circles, due to its association with marijuana, which is still illegal at the federal level. In time, negative perceptions will likely decline, and more people will be willing to try this substance for their own personal benefit.

Regulation

While the 2018 Farm Bill allowed hemp-derived products to be sold legally, this isn’t the end of the line in terms of regulation. In the future, the FDA and other governmental bodies may step in to more heavily regulate the manufacture, advertisement, and sale of CBD products. This is an area of much uncertainty since it’s unclear how or when the government may intervene.

Right now, there are minimal regulations for how hemp is grown and tracked. Companies are making bold claims about the health benefits of CBD, despite much of the research being new and limited in capacity. And some products, such as extracts, are hard to control in terms of potency and consistency. Increased regulation could make it more difficult for new companies to enter the space, and could cause headaches for companies that are trying to innovate and serve more consumers.

Increased Competition

No matter what, we’re likely going to see more competition in the CBD space. The CBD market has already proven itself to be a lucrative one, and it’s only going to grow in the future. Thousands of businesses are competing to become a top name in the CBD world, and entrepreneurs are coming up with new ways to help themselves stand out from the crowd.

This will have a cascade of different effects on the market. It will introduce more novel products. It will lower prices for consumers. It will bring more attention to the industry. And it will make it harder to be a business owner in the space.

The future of CBD products is somewhat uncertain, given the potential for further regulation. However, the CBD market is consistently growing, and will likely continue to grow for the foreseeable future. New CBD products will inevitably follow that demand. 

 


StaffStaffSeptember 25, 2020
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7min14040

Editors Note: This is a guest post. 

Hemp may have phenomenal versatility, but it’s not one of the easiest plants to store long-term. Indeed, many farmers now classify hemp as a “risky crop” due to its high susceptibility to mold. Cultivators must pay extreme attention to their storage room’s climate if they want to keep their hemp buds fresh for months.

Although there’s still a lot we don’t know about proper hemp preservation, a few storage strategies have emerged in recent years. Knowing about these techniques could help farmers keep their hemp in prime condition even one year after harvesting.

Keep The Mold Out – Test & Re-Test Your Buds Before Storage 

The first step to creating a successful storage facility is to screen your buds before bringing them indoors. Expert cultivators always recommend sending multiple samples to third-party labs for thorough screenings before adding them to your storage room.

The purpose behind these preliminary tests is to prevent microscopic mold spores from entering your storage area. As we hinted in the intro, mold is the most significant threat for long-term hemp storage. You don’t want to risk exposing your storage room to mold. Even tiny mold spores could scatter onto other plants, which could create a multi-million-dollar mess.

As a bonus, COAs protect against various legal issues and could improve your brand’s credibility. Not only will these screenings show that you knew your plants were mold-free, they’ll also document traces of heavy metals, pesticides, and THC.

While you wait for lab results, cultivators recommend drying your hemp flowers in an industrial dryer and keeping them in a humidity-controlled room away from your storage facility. 

Climate Over Containers – The Importance Of Environment For Hemp Storage 

The key to successful hemp storage is quality climate control. It doesn’t matter how high-quality your storage sacks are; without proper environmental conditions, your hemp buds won’t survive the long-haul.

So, what are the ideal climate conditions for hemp? Although there’s still debate over specific levels, most agronomists agree hemp does best in a dark environment with low humidity and moderate temps. Indeed, many farmers recommend keeping moisture levels as low as 8 – 10 percent.

The reason you want to maintain this semi-arid climate is to keep moisture at bay, thus preventing mold formation. To further decrease the risk of mildew, storage facilities should also invest in reliable air circulation systems.

As for temperature, farmers have to be careful not to let their storage area get too steamy or too chilly. If your buds are exposed to too much heat, the delicate cannabinoids and terpenes could degrade quickly. On the opposite extreme, cold temps invite moisture into the room, hence a greater potential for mold. Today, most farmers agree that temps between 65 – 70°F are ideal for hemp storage.

Please note: hemp flowers bred for smoking might perform better in an environment with slightly more moisture. Some cultivators have found hemp buds stored in arid conditions create flowers that are too harsh for smoking. Cultivators should carefully experiment with slightly above-average humidity when evaluating their smokable hemp strains.

What Should I Store My Hemp In? 

Now that you’ve got your humidity and climate well-situated, it’s time to decide where to place your precious buds.

A common practice in the modern hemp storage industry is to place hemp buds in a bag known as a “super sack.” These large fabric bags often measure 35” x 35” x 53” and typically hold about 250 pounds of hemp biomass.

Although super sacks are the most popular option nowadays, plenty of farmers use large plastic bags or bins to store their hemp. Some cultivators even place their biomass in bales and add a layer of white plastic to deflect light exposure.

Do These Buds Go Bad? – Evaluating Hemp’s Longevity

No matter how well you store your hemp, it’s going to degrade over time. Even in ideal storage conditions, cannabinoids like CBD often reduce in strength by 2 percent per year. Plus, since every terpene has a slightly different boiling rate, these aromatic compounds could degrade even faster in a well-controlled facility. 

In general, farmers should store hemp biomass for no more than one year to offer their customers the highest-potency product. 

For High-Quality Hemp, Invest In Quality Controls

Just because you’ve successfully harvested your hemp doesn’t mean storage is smooth sailing. Farmers need to be as vigilant scanning their stored hemp as they were during cultivation. Be sure to establish a reliable quality control schedule to keep tabs on your facility’s humidity, climate, and lighting conditions. You should also examine your hemp buds for warning signs of disease, over-drying, or mold. All of these strategies will help preserve the potency of your hemp long after the harvesting phase.


Julie AitchesonJulie AitchesonSeptember 23, 2020
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6min11080

The West Coast wildfires may finally be slackening a bit thanks to kinder winds, merciful rain, and the heroic efforts of firefighters from Canada to Mexico, but the fight is far from over for cannabis growers whose crops went up in smoke and cannabis companies who will be struggling to stay afloat due to the diminished supply. The one-two punch of Covid-19 and the historic fires that ravaged (and in some cases are still ravaging) huge swaths of the western states may prove to be more than some businesses can withstand despite some industry leaders stepping up to lend a hand.

High winds, hurricanes, and these record-smashing fires are painting an even grimmer picture for 2020-21, particularly for states such as Oregon, one of the country’s top hemp-producing regions. Prior to the onset of the fires, Oregon farms were anticipating bumper crops. However, data from the Oregon Department of Agriculture, the National Interagency Fire Center, and Oregon’s Office of Emergency Management analyzed in a recent report by Hemp Benchmarks estimates that as of September 15, 17% of grow sites statewide were facing imminent danger from wildfires.  The latest report from Hemp Benchmarks said, “According to a September 11 update from the Oregon Department of Agriculture (ODA), 35% of the state’s 26,365 acres registered for outdoor hemp cultivation are located in the two aforementioned jurisdictions.” (Jackson and Josephine Counties, located in Oregon’s Southwestern Valleys)

Unfortunately, actual burning is not the only threat that the fires pose to the cannabis industry. Evacuations mean that plants cannot be tended, irrigated, and harvested and high winds can be just as deadly to plants as fire, as well as debris, not to mention the myriad risks to human safety. A reduction in lab availability and capacity will slow required testing turnaround while supply chain disruption in the face of increasing demand and the natural end of the cultivating season means fewer chances for growers to recoup their losses and replenish the shortfall.

But farmers, workers, and entrepreneurs need not face these challenges alone. San Diego-based Platinum Vape donated $5000 to the CalFire Benevolent Foundation, while Mondo, the brand known for its dissolving CBD powder, is giving away free jars of the stuff to firefighters, healthcare workers, and government workers. Henry’s Original in Mendocino, California is offering to store other grower’s licensed products as moving products to unlicensed areas, even in evacuation scenarios, is restricted. Given the fact that cannabis growers are ineligible for crop insurance and have far less access to bank loans, who better than the cannabis community itself to identify problems and extend solutions to help its own? With months of backbreaking recovery efforts and supply chain fluctuation ahead, one can only hope that this brand of intra-industry aid continues.

Wild weather is hardly a new threat to the agricultural sector, but the past year alone has seen a truly remarkable level of destruction wrought on crops and companies alike. A year ago in October, a catastrophic hailstorm and early freeze in Colorado caused 200,000 mature plants to be lost from one outdoor cannabis farm (Los Suenos) alone. A rogue derecho leveled 43% of Iowa’s crops in August, and Hurricane Laura walloped cannabis crops in Louisiana that same month. 

Hemp Benchmarks wrote that as of September 11, the following grow sites and cultivation areas were within fire perimeters or Level 2 or 3 evacuation zones.

Grow Sites within Fire Perimeters

  • 50 sites (1% of statewide total)
  • 103 acres (0.4%)
  • 99,976 square feet (1%)

Grow Sites within Level 3 Evacuation Zones (Leave Immediately)

  • 196 sites (4%)
  • 650 acres (2%)
  • 721,716 square feet (7%)

Grow Sites within Level 2 Evacuation Zones (Be Set – Prepare to Leave at a Moment’s Notice)

  • 576 sites (12%)
  • 2,097 acres (8%)
  • 1,142,955 square feet (12%)

 

 

 


StaffStaffSeptember 22, 2020
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7min10100

R.E. Botanicals, Inc. and the Hemp Industries Association have filed a federal lawsuit against the Drug Enforcement Administration (DEA), challenging a rule the agency implemented last month that could have far-reaching consequences for the U.S. hemp industry.

The petition filed Friday afternoon in the U.S. Court of Appeals for the District of Columbia Circuit asks the court to review an interim final rule, “Implementation of the Agriculture Improvement Act of 2018,” which was promulgated by the DEA on August 21. The lawsuit claims the rule is unlawful because it exceeds the DEA’s legal authority and violates the Agriculture Improvement Act of 2018, also known as the farm bill. The petitioners also argue that acting DEA administrator Timothy Shea, who is individually named as a respondent along with the agency, issued the interim final rule without observing procedures required by law.

RE Botanicals, Inc. is a hemp manufacturer and retailer based in South Carolina. “We are a small, woman-operated company,” said Janel Ralph, CEO of RE Botanicals. “The DEA’s new rule could put us out of business overnight.”

The DEA’s interim final rule clarifies that all hemp derivatives or extracts exceeding 0.3% THC shall remain Schedule I controlled substances. This could be interpreted to include intermediate hemp derivatives that temporarily exceed 0.3% during processing, but contain less than 0.3% in final products. As such, it improperly establishes the DEA’s authority over legal hemp activities, which is contrary to the plain language and intent of the 2018 farm bill, according to the petitioners.

“When Congress passed the 2018 farm bill, it explicitly carved hemp and its derivatives out of the Controlled Substances Act so that hemp can be regulated as an agricultural commodity,” said HIA President Rick Trojan. “The DEA’s interim final rule could create substantial barriers to the legal manufacturing of hemp-derived products, a critical component of the hemp supply chain, and devastate the entire hemp industry. Although the DEA states that is not its intention, the rule must be amended to ensure hemp remains an agricultural crop, as Congress intended.”

HIA successfully challenged DEA rulemaking in 2003, when the agency amended federal regulations to include naturally occurring THC within the definition of “synthetic THC,” thereby treating it as a Schedule I substance despite it falling outside the definition of marijuana in the Controlled Substances Act.

The petitioners are represented by leading hemp industry attorneys at Vicente Sederberg LLP, Kight Law Office PC, and Hoban Law Group, along with appellate attorneys from Yetter Coleman LLP, which has received national attention for its work against the DEA in the realm of cannabis research.

“The DEA implemented this rule without following proper rule-making procedures, such as providing the public with notice and the opportunity to comment,” said Shawn Hauser, a partner at Vicente Sederberg LLP and chair of the firm’s hemp and cannabinoids practice. “The petitioners believe legal action is necessary to protect the lawful U.S. hemp industry that Congress intended to establish when it enacted the 2018 farm bill.


StaffStaffSeptember 8, 2020
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3min4930

The USDA has decided it wants to hear from those in the industry with regards to proposed regulations now that they have gone through the 2020 growing season. The comment period for the interim final rule published on October 31, 2019, at 84 FR 58522, has been reopened. Comments must be received by October 8, 2020. The agency noted that people who were dealt with the regulatory requirements during 2020 could now comment on those requirements.

The Agriculture Marketing Service (AMS) said it received approximately 4,600 comments from stakeholders during the initial ninety-day public comment period. These comments represent the perspectives of various organizations and individuals within the stakeholder community and provided AMS additional context for decision making. AMS is reopening the public comment period for the Interim Final Rule (IFR) to encourage additional input on several topics identified by commenters during the initial ninety-day comment period. The reopening of the public comment period allows stakeholders to provide AMS with further insight gained from the 2020 hemp growing season.

Background

A domestic hemp production program was created as a result of the Agriculture Improvement Act of 2018, commonly called the Farm Bill. The U.S. Department of Agriculture (USDA) must approve plans submitted by States and Indian Tribes for the domestic production of hemp. It also established a Federal plan for producers in States or territories of Indian Tribes that do not have their own USDA-approved plan.

The program includes provisions for maintaining information on the land where hemp is produced, testing the levels of total tetrahydrocannabinol, disposing of plants not meeting necessary requirements, licensing requirements, and ensuring compliance with the requirements of the new part. As a supplement to statutory and regulatory requirements, the USDA made available additional guidance documents on sampling and laboratory testing. In addition, on February 27, 2020, USDA delayed requirements for hemp testing laboratories to obtain Drug Enforcement Administration (DEA) registration and clarified allowable cannabis disposal methods.

 


StaffStaffAugust 25, 2020
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3min10870
Hemp Benchmarks recently released its July 2020 report reviewing wholesale prices for the hemp industry. The group found that price assessments in recent months have shown stabilizing rates for numerous wholesale products that are part of the hemp-CBD supply chain. “For example, from April through this month the aggregate price for CBD Biomass and wholesale prices for smokable bulk CBD Flower have both steadied. While the downward trend in CBD product prices has largely subsided in recent months, that for CBG biomass and extracted forms of the cannabinoid has continued.”

Crop Declines

Hemp Benchmarks also found that the 2020’s licensed acreage declined by over 30% from last year, while indoor and greenhouse square footage registered for hemp cultivation is down by roughly 64% year-over-year. “These numbers bear out what we have reported earlier this year, that many farmers are taking a more conservative approach to cultivation, if not exiting the sector entirely. The just over 18,000 cultivation licenses that we have counted nationwide to this point in 2020 represents about an 8% decline compared to the over 19,500 recorded in 2019. This indicates that most growers registered smaller outdoor plots or indoor / greenhouse sites.”
The report also said that overall, the reduction in licensed acreage, entrance of a significant amount of new farmers, tough market conditions, and difficulties related to the COVID-19 pandemic suggest that total U.S. hemp production for 2020 could decline substantially year-over-year, particularly in regard to how much CBD or other cannabinoid-rich biomass is generated.
“In our June report, we analyzed data on costs to transport hemp and hemp products. We also pointed out that such costs can change based on a variety of factors. This month, hemp transportation costs were on the rise in July due to fallout from the COVID-19 pandemic.” Jon Wilcox, co-founder of hemp transportation company Fide Freight, attributes the rise in shipping costs to states across the country reopening after coronavirus-motivated shutdown orders. He stated, “It is assumed that shippers are trying to make up for lost time and … make as much money as possible due to short-term uncertainty.”
Additionally, U.S. ports are overloaded with goods that shippers are trying to move. This has resulted in bidding wars for trucks.

Debra BorchardtDebra BorchardtAugust 4, 2020
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4min7810

Arkansas-based beer distributor Premium Brands of Northwest Arkansas is adding a hemp beverage to its lineup. Premium Brands currently have distribution agreements with MillerCoors (NYSE:TAP), Corona (NYSE:STZ), Yuengling, Pabst Brewing, Boston Beer, Mike’s, Seagram’s, and Heineken USA to name a few.

Good Hemp, Inc. (OTC: GHMP) makes Good Hemp Fizz and CannaHemp beverages, which is a line of naturally flavored waters infused with 10mg of THC-free hemp extract and prebiotic fiber. The company says that unlike other hemp-infused beverages that contain CBD, its products are made with hemp seed oil which is categorized as “GRAS” (under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act, and therefore not subject to FDA review and approval).

“Hemp Infused beverages is a growing category, and we are excited to add a solid brand like Good Hemp Fizz and CannaHemp to our non-alcoholic portfolio,” said Heath Sutherlin, GM at Premium Brands. Sutherlin continued, “We look forward to working with the Good Hemp reps for a strong Labor Day rollout and building a long-term successful partnership in the territory.”

Premium Brands will distribute Good Hemp Fizz and CannaHemp throughout 11 counties in northwest Arkansas servicing approximately 900 C-stores, grocers, and liquor stores.

Beverage Market

Mazakali wrote a white paper on cannabis drinks and it stated, “Infused drinkables currently hold a market share of under 1% in the US, a figure that is far too low when compared with industry estimates for a $2.8 billion global cannabis beverage market by 2025. Advances in cannabis science along with the thirst for a healthier alternative to alcohol are but two factors behind this anticipated growth.”

The market is being flooded with hemp drinks of all sorts these days.  The hemp-infused beverage market is expected to reach $2.8B by 2025 with a CAGR of 18%.

Constellation Brands had been expected to create its own line of cannabis drinks with its investment in Canopy Growth. Its current slate of drinks includes a Houseplant-branded Grapefruit beverage with 2.5 milligrams of THC, Tweed’s Bakerstreet & Ginger and Houndstooth & Soda drinks containing 2 milligrams THC as well as a high-potency Deep Space cola with 10 milligrams of THC, the maximum under Canadian regulations.

“We are excited to add Premium Brands to our distribution network,” said Rise’ Meguiar, VP Sales and Innovation at Good Hemp. “They are a well-established distributor in NW AR, and by adding them to our network, our products will now be widely available across the northern part of the state.”

 

 


StaffStaffJune 22, 2020
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4min10200

The environmentally-safe hemp apparel line DRIHP  has chosen actress/philanthropist, Bella Thorne as an ambassador for the clothing line. Influencers Rachel Cook and model and social media personality, Jay Alvarrez have also joined as Brand Ambassadors.

Thorne said, “It’s important for me to use my voice to spread the beauty and knowledge of this world.  It was mind-blowing to find out that so many people when you discuss hemp put it in the same category as cannabis. It was crazy to watch how their minds would automatically shut down to the concept.  When Luke approached me about DRIHP, I was like, yes, yes… Let’s save the planet dude and let’s educate the world on this wonderful, amazing product, that we can make clothes out of, build houses with, eat when we are hungry, the uses for it are virtually limitless!  Hemp is the answer to saving the planet and I am stoked to be able to play a small part of that education. If you can change one person’s mind… you can help change the world.”

DRIHP was founded by a millennial entrepreneur, Luke Dandrea, who is also the founder of the hemp flower, hemp seed and hemp crop insurance company, Clone Connect.  With its multiple uses, Dandrea’s mission is to educate the consumer one product at a time on how industrial hemp is the game-changing component in the science of global warming. One of the many uses of industrial hemp is textiles, which is what DRIHP is focused on.

The fibers from the stalks of a hemp plant create eco-friendly hemp apparel and the H in DRIHP stands for Hemp. DRIHP textiles use 1/20 of the water that is required to grow and process traditional cotton fabrics. The line will carry men and women’s clothing and accessories. DRIHP is currently giving away 20,0000 breathable and stylish hemp face masks to customers that go to the website and sign up.

Thorne a long-time cannabis enthusiast is the co-founder of her own very successful cannabis and CBD brand line called Forbidden Flowers, which launched through Glass House Group in October 2019.  Understanding the history of hemp, she thought it was important to jump on board to this project to help educate her fans, etc. about the environmental benefits of hemp and clear up some of the misconceptions of placing hemp in the same category as cannabis.

 


StaffStaffApril 6, 2020
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8min40672

Editors Note: This is a guest post by Jonathan Davies of Beeco.

They are both natural plant fibers. Yet, in this article, we will see that natural doesn’t always mean eco-friendly!

On one hand, we have cotton, the king of the fashion industry. But does being the most used fiber for clothing worldwide make it the best option?

Hemp, on the other hand, doesn’t know the same popularity. But again, does that lack of use make it a bad clothing alternative? By the way, if you still see hemp as rough, stiff fabric, let these hemp hats convince you of the opposite!

In the current economy, we all know popularity doesn’t always mean the best. Low production costs, low retail prices, and good marketing are often the main ingredients of success.

But let’s take popularity out of the equation and compare both fabrics for their inherent qualities.

Actually, let’s add a third contender in that competition: organic cotton.

Which of the three fabrics is the best for the environment?

You may already have an idea of the answer, but read until the end… you will see that as it’s often the case, eco-friendly goes hand in hand with quality!

Cotton, does it deserve the throne?

Cotton has been used to make clothes for more than 7000 years. Useless to say that it’s here to stay!

It’s understandable….

Cotton is natural, biodegradable and makes a great clothing fabric as it is soft, breathable and lightweight.

However, the king of the clothing fabrics has a huge environmental issue at the growing level.

Firstly, the amount of water required to grow the cotton plant is tremendous when compared to the amount of usable cotton produced by the plant.

In fact, it takes around 2700 liters of water to grow enough cotton to make one simple t-shirt…

Then, while the manufacturing process of the cotton fabric itself doesn’t require intensive use of chemicals, it doesn’t mean those are out of the picture. Actually, chemical dyes are often used for regular cotton.

Finally, the fabric is a victim of its success.

Being the most common clothing fabric worldwide, demand is huge and cotton producers often have to rely on chemical fertilizers and pesticides to grow cotton faster in order to meet that demand.

And where do most of these fertilizers and chemicals end up? In rivers…

Considering that India is the largest producer of cotton in the world, and that the country is facing a crisis in terms of availability and quality of drinkable water, cotton fabric isn’t only creating environmental issues, but ethical concerns as well!

What about organic cotton?

Organic cotton has been created as an eco-friendly alternative to traditional cotton.

The difference?

Organic cotton producers fix the environmental issues at both the growing and manufacturing steps.

This means organic cotton is grown from non-GMO seeds and without the use of fertilizers. When it comes to pest control, insects are used instead of harmful pesticides.

Also, way less irrigation is required as a clever soil rotation system is used by the farmers in order to maintain soil fertility. In terms of numbers, this system needs around 85% less water than the traditional growing way.

Then, the bad chemicals used during the traditional cotton’s manufacturing process are replaced by environmentally-friendly alternatives such as water-based dyes.

Organic cotton also generally offers a much better textile quality than traditional cotton. The crops are not only healthier, but they are also harvested by hand, which preserves the softness of cotton much better than when harvested by machines (like it’s the case with traditional cotton).

Why don’t we replace traditional cotton with organic cotton then?

Organic cotton takes more time than traditional cotton to grow, to harvest and to manufacture. Which means that the demand for cotton couldn’t possibly be met with organic cotton.

Plus what makes traditional cotton so attractive is its low price, and organic cotton being more complex, it is also more expensive.

Hemp, marijuana’s cousin

Here comes the last contender, and let’s cut to the chase, it is our clear winner here!

Actually, hemp is considered one of the most eco-friendly clothing fabrics you can get.

And maybe this is the fabric that should be king.

Why?

As we stated in the title, hemp comes from the cannabis Sativa plant. Yes, the same plant that is used to produce marijuana and hashish. Yet, the psychoactive effects of the plant are not the reason behind that coronation. (In fact, industrial hemp has a really low concentration of THC).

Hemp is actually one of the fastest-growing plants in the world as it takes only 3 to 4 months to reach maturity. And a single hemp plant yields 220% more fiber than a cotton plant!

Moreover, it needs very little water to grow and it is naturally pest resistant. And the best? Hemp’s roots are actually beneficial to the soil as they protect it from toxins and erosion.

In three words: hemp is strong!

And your clothes will be stronger as well. Plus, that fabric is perfect for hot climates as it is very breathable and has great antibacterial properties.

So hemp grows fast, without the need for much water or chemicals and it provides much more fiber than cotton… all that while being beneficial to the soil…

Then why isn’t hemp everywhere?

We like to believe that hemp will rule the fashion industry soon. In reality, hemp’s popularity is growing as more and more brands are including the fabric in their collections.

The fabric suffered from a few drawbacks and that’s mostly the reason for its delayed popularity.

Indeed, it’s only in the 1980s that experts managed to manufacture a hemp fabric soft enough to be an alternative to cotton.

Then most people don’t differentiate industrial hemp to marijuana as a drug, and the fabric suffered from this reputation. For example, it’s only up to recently that the ban on hemp farming has been lifted in the US.

Hemp is also currently more expensive to produce than both traditional cotton and organic cotton, which doesn’t help.


Kaitlin DomangueKaitlin DomangueFebruary 26, 2020
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10min10460

It’s time for your Daily Hit of cannabis financial news for February 26th, 2020. 

On the Site

U.S. Hemp Could Benefit from the Coronavirus

As a major supplier of cut-rate hemp fiber and CBD for the world market, China has proven stiff competition for United States’ suppliers both domestically and internationally. The disruption of that supply chain by the coronavirus outbreak means that U.S. producers could finally gain an advantage in domestic and international markets.

MedMen Reports Revenue Of $44 Million, But A Net Loss Of $96 Million

MedMen Enterprises Inc.  (CSE: MMEN) (OTCQX: MMNFF) delivered its financial results for the second quarter of 2020 ending December 28, 2019. Revenue across MedMen’s operations in California, Nevada, New York, Illinois, and Florida increased to $44.1 million for the quarter, up 50% year-over-year and 11% sequentially. 

The net loss for the quarter was a staggering $96 million versus last year’s $64 million. The loss per share was ($0.09) versus last year’s ($0.23), so some improvement there.

Surviving Legalization 

Green Market report republished a story from Cannabis Law Report, diving into what has happened to the Emerald Triangle, and specifically Humboldt County, since legalization. The article is a response to the article “Cannabis Regulation: The Struggle of Small Farmers,” written by Lance Griffin. The responding article notes that legalization has been a disaster for Humboldt County, but not necessarily for their growers and shifts some of the blame of the financial crisis of Humboldt County since legalization to the Board of Supervisors and the Planning Commission, and pins the greatest responsibility of Humboldt County’s financial disaster on the “cadre of consultants, experts and advisors who took so much money for knowing only a little more than their clients.”

 

Acreage Holdings Reports 2019 Revenue Of $74 Million, Net Loss Of $195 Million

 

Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) delivered fourth-quarter revenue of $21.1 million and full-year 2019 revenue of $74.1 million, a 101% and 251% increase, respectively, compared to the same periods in 2018.

The net loss was a whopping $65 million versus last year’s $29 million for the same time period. The net loss for the full year was a staggering $195 million versus the fiscal year 2018’s loss of $32 million. 

 

Nevada Publishes List of Cannabis Test Failures

The Nevada Department of Taxation issued a Public Health and Safety Notice Advisory 2020-05 on February 21, 2020, advising consumers and patients to avoid consuming marijuana which was listed in the notice. The affected marijuana failed secondary microbial testing conducted by an independent testing laboratory. The cannabis was tested for yeast and mold, bile-tolerant gram-negative bacteria, coliforms, and Aspergillus. The products were sold at the following dispensaries: 

  • Rise (owned by GTI or Green Thumb Industries)
  • Essence
  • Thrive Cannabis Marketplace
  • MMJ America
  • Fine Cannabis Dispensary
  • Jardin Premium Cannabis Dispensary
  • Curaleaf
  • ShowGrow
  • Blum
  • Nevada Made Marijuana
  • Jenny’s Dispensary
  • Las Vegas ReLeaf
  • Sahara Wellness
  • Top-Notch Health Center
  • Deep Roots Harvest
  • Acres Cannabis
  • The Source
  • Thrive Cannabis Marketplace
  • Exhale
  • Silver Sage
  • The Grove
  • Oasis Cannabis and The Dispensary NV

Products were from various strains and the statement said that there was no reason to believe that the dispensaries or cultivators had any knowledge that the products exceeded allowable limits.

In Other News

3 Sixty Announces Interim CFO

3 Sixty, a Canadian company that works closely with the cannabis industry offering security solutions, has announced Candice Matthews as the interim CFO of the company alongside her current duties as the Director of Finance. 

“The Board and I have full confidence in Ms. Matthews’ ability to lead our finance operations in the short term, and we expect a seamless transition once the new CFO has been recruited in the near future,” said Thomas Gerstenecker, Founder and Chief Executive Officer.

Nutritional High Announces Non-Binding Letter of Intent with Calyx Brands, Inc. 

Nutritional High International Inc, a cannabis oils and edibles company has announced its non-binding letter of intent to sell a controlling interest in Calyx Brands, a cannabis distribution and logistics company based in California. Closing is expected in the second quarter of 2020. 

“Current challenges in the capital markets have been especially acute for distributors, who require working capital to grow their business,” commented Dakota Sullivan, CEO of Calyx. “We see this as an opportunity to combine our distribution reach with our new Partner’s supply chain and flower business to form a powerful, end-to-end brand.”

Harvest One Announces Sale of Non-Core Interest in Burb and Lillooet Property Totaling Proceeds of $2.3 Million

Harvest One Cannabis Inc. has announced its entry into a definitive agreement to sell its interest in Burb Cannabis Corp, a British Columbia based cannabis retailer, along with its interest in the Lillooet, British Columbia based 398-acre site, dubbed the “Lillooet Property.” Harvest One has agreed to sell its 19.9% equity stake in Burb back to the founders of Burb and has forgiven a shareholder loan with a face value of $250,000 in exchange for total cash consideration of $1,512,600. Per the Lillooet Transaction, Harvest One has entered into a contract to sell the Lillooet Property for cash consideration of $770,000. The transaction is scheduled to close on March 31, 2020.

AYR Strategies Q4 Revenue Increases to $32.3 Million 

Vertically-integrated cannabis company AYR Strategies reported a total revenue increase of 75% to $124.2 million compared to $70.9 million, and an Adjusted Gross Profit increased 78% to $63.0 million compared to $35.5 million. 

Enviva Reports Q4 Earnings 

Enviva has announced its Q4 earnings. For the fourth quarter of 2019, the company reported a net income of $0.9 million, adjusted net income of $17.2 million, and adjusted EBITDA of $53.3 million. 

For the full year of 2019, it reported a net loss of $2.9 million, an adjusted net income of $33.4 million, and adjusted EBITDA of $141.3 million. 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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