In the Thai hemp industry, there are three different areas to look at. They are the Upstream, Midstream and the Markets. All of these areas have a role to play in the process.
Upstream
In order to make hemp an economic crop in Thailand, it will need to be transformed into value-added products. It can be consumed as food, beverages, or as a supplement.
A lot of interest is currently focused on hemp farming in Thailand. The hemp industry is connected to five supply chains: apparel, food, medicines, cosmetics, and supplements. These products are expected to see a steady rise in the next five years.
Hemp cultivation methods in Thailand can be varied. Some growers choose open air cultivation to harvest the fiber and seed of the hemp plants. Others opt for indoor cultivation, where the quality of the inputs and the environment are more controlled.
Currently, Thailand’s domestic market for hemp is forecast to grow to THB 15.8 billion in 5 years. This is an enormous opportunity for Thai farmers.
However, despite the growing interest, there are still some legal challenges to overcome. Hemp processors have to wait for new varieties of hemp to be bred before they can produce them. Additionally, it is important to ensure the safety of the product.
Midstream
Thai hemp is a non-narcotic product. It is processed in various ways and it has several characteristics and uses. The CBD extract is particularly useful for wellness and healthcare.
Hemp farming is becoming more popular in Thailand. There are five main supply chains: food, beverages, textiles, personal care products, and healthcare.
The Thai government is taking a positive stance towards the hemp industry. As of December 15, 2020, hemp will be removed from the controlled narcotics list.
As of January 29, 2021, hemp is legally legal in Thailand. However, the hemp industry is still in its infancy. In order for the industry to develop, manufacturers and farmers alike need to come up with new strains.
While there is a wide variety of uses for hemp, the most important is the extraction of the CBD from the plant. It has been credited to cure cancer cells and prevent common diseases.
In 2021, 5 groups of downstream consumers will consume a total of THB 600 million worth of hemp. These are: medicines and supplements, food and beverage, apparel, oil extraction, and personal care products.
Markets for the buying and selling of Thai hemp
There is a lot to know about markets for buying and selling Thai hemp. It is a relatively new industry in Thailand, and one with significant potential. For farmers, it is a promising way to diversify their income and create added value for their crops.
Hemp seeds, for instance, are rich in protein and omega-3 fatty acids. They are also used in a number of food manufacturing processes. Aside from seed, hemp is used for oil extraction. In fact, hemp oil is widely used in food and construction industries.
One of the major markets for buying and selling Thai hemp is the downstream sector. This includes food, beverages, and medicine. While the downstream sector has its share of challenges, there are a number of players in the market.
There are a number of factors that need to be considered when determining the recommended price for hemp raw materials. Moreover, the market is highly volatile.
Besides, it is important to note that there are a large number of companies involved in the hemp industry. These include several major multinationals, as well as Thai-based concerns.
Government objectives in allowing hemp production and use
Hemp is a crop that grows easily in many climates. It can also be used to make food and beverages, medicines, supplements and personal care products.
The hemp industry is still in its early stages, but it is a promising opportunity for Thai farmers. It could become a major source of income for them.
To start growing hemp, Thai farmers must meet a number of requirements. First, they must be associated with a private university or a registered community enterprise. They must also report no criminal records.
In addition, hemp growers must meet certain standards of safety and production. These include presenting plans of their buildings and processing units. Also, they must submit proof of protocols for disposing hemp waste.
The government has stated that it is aiming to establish hemp as a major commercial crop. If hemp becomes legal, it may generate significant added value for the agricultural sector.
Hemp has a wide range of applications, but is currently limited to research purposes. Nevertheless, the hemp market is growing rapidly. According to Krungsri Research, Thai hemp consumption will reach THB 600 million by 2021.