The 2019 Hemp Industry Daily Forum was held at the Las Vegas Convention Center on Tuesday during the MJBizCon Week. More than 500 entrepreneurs from all sectors of the hemp supply chain attended the forum to learn strategies of advancing in the ever-growing hemp industry.
It has been a year since hemp production was legalized in the U.S, but the market for the new crop is still going through seismic shifts, which is creating a barrier for small as well as established hemp businesses.
Discussed below are five expert tips on navigating the hemp markets noted by the speakers at the Hemp Industry Daily Forum during the education and networking event.
There is potential in the hemp fiber market, but producers and processors must be willing to do the hard work of seeking and convincing buyers as well as making deals happen.
The founder and president of Southeast Hemp Fiber, which is based in Tennessee, said that textiles buyers have shown interest in domestic hemp components. However, the buyers require education and personal outreach before making any purchase.
She also said that manufacturers would have to be presented with samples as well as the knowledge that hemp can be produced on a large scale to meet their demand before they can make purchasing decisions.
The senior vice president of Nielsen, Rich Maturo, said that convincing patients to buy CBD-based pain-relieving products at $40 when they are used to paying eight dollars for a bottle of ibuprofen would be a challenge.
Maturo also said that patients would be more inclined to buy CBD-based products whose price is close to $12.
Due to the increased number of hemp producers in the market, veteran producers are forced to sell more products at low prices, which will eventually lead to lower-priced end products.
Hemp producers in the U.S. are envied globally for their CBD production. According to an attorney at the Hoban Law Group, which is based in Denver, the hemp industry could benefit from the knowledge and expertise of the more mature market in countries where fiber and seed have established markets and genetics.
Hoban advised farmers not grow hemp for CBD, which could be hot and therefore eliminate their chance of exporting the crop.
Hemp and CBD businesses looking for investors should ensure that they have a solid and robust business plan that shows their credibility.
A marijuana attorney of the Saul Ewing Arnstein & Lehr law firm based in Chicago, Adam Fayne, said that investors are very keen on compliance as they view it as a badge of honor and businesses whose compliance game is not in order would not be considered.
As much as investors want to make money, they also need to place their bet on the right horse, said Fayne.
Like any other agricultural industry, hemp requires manual laborers to harvest the crop, and since few workers are willing to work on the hemp farms, farmers should be careful about how they treat the few workers in their employ.
The co-founder and business development manager of Western States Hemp based in Fallon, Nevada said that hemp farmers should practice regenerative agricultural practices as they reduce labor and improve soil health.
Experts say hemp industry actors, such as SinglePoint Inc. (OTCQB: SING) and LiveWire Ergogenics Inc. (OTC: LVVV), know all too well about the aspects highlighted at the forum and newer players would be well advised to implement that advice.
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