China has always been one of the mega players in the International Cannabis Market. However recently it has been pushing aside all competition with its new projects and investments in the Hemp industry. With the current developments and changes that have been occurring locally, its Hemp Industry is blooming more than ever before.
One of the leading corporations in the Chinese hemp industry, Shineco, is in collaboration with Xingshan People’s Government of Hegang City (in Heilongjiang Province) to improve the hemp market locally. They want to invest in the market by selling vertically integrated enterprises that will enhance the supply chain of the hemp industry as a whole.
That means that Shineco wants to gain more control of the local supply and integrate back into the industry. This investment is to benefit local farmers, processors, and endpoint retailers who supply finished goods. This will help form a network between different aspects of the supply chain.
China and CBD Developments
This is vastly economically beneficial and will achieve the main goal, which is to ‘form a neighborhood market network and to obtain a larger scale industrial economy.’ In addition to that, Shenico also announced that they had completed the seeding of their very first field of hemp. The field consists of 89 acres of land, which currently sits in the Heilongjiang province.
Yuying Zhang, the chairman, and CEO of Shineco commented on the prospects of his company and how it will have a large-scale impact on the Hemp industry in China. The Heilongjiang province has favorable soil, water, and climatic conditions that make it ideal for Shineco’s recent plantations. He stated, “Our strategy is to cultivate this land working with specialized higher CBD content material seeds and work to create higher good quality CBD items.”
Zhang further clarified the plan to establish a full-scale CBD international park. This international park will be used for CBD extraction mainly. He stated that this would ultimately boost high-quality industrial hemp project.
This, in the long run, means that there will be at least 3 to 5000 acres of cultivatable land. This allows the entry of new players in the market for both short-term and long-term investments. The industrial park will also help with investigating, researching, and developing more variety of hemp.
It will establish in collaboration with China’s academy of science, that will provide a study center and a workstation to develop more new technology in Hemp cultivation. Moreover, The city of Hegang will be graciously partnering to sponsor the project.
CBD Industrial Park
The whole project will cost all parties an estimate of a whopping estimate of $22 Million. The Park is to produce at least 30 tons of CBD extract per annum. This will boost the production levels of China greatly!
Zhang also commented that the park would prove to be beneficial for multiple Industries in the game. It will be fully equipped to supply 2000 tons of industrial hemp fiber. This fiber is increasingly being used in the linen, textile, and flooring industry and will also make these materials easily available in the market.
In addition to that, it will also supply hemp seed oil, which is an organic ingredient for the Pharmaceutical industry. Overall, officials expect to cultivate around 4000 to 6000 tons of hemp leaves from this site. These leaves have medicinal properties and can help boost secondary production processes.
What’s next for China and the CBD Industry?
China grows nearly half of the world’s legal hemp production. This will not just help other industries thrive but will also boost industrial hemp production in the country at an even more massive scale. China has strategically cashed in on the cannabis boom. Recently the government has increased licensing of cannabis companies to produce and cultivate their cannabinoids.
<blockquote>With an increased number of fields in Heilongjiang and Yunnan province, this opens the gateway for many hemp companies to invest in the industry alongside the government support.</blockquote>
Recreational and generic use of cannabis is still illegal in China. It has still managed to gain a monopoly in this green gold. It grows and cultivates export quality Hemp that countries all over the world. That has made sure to mark China’s footsteps in the Hemp Business. In addition to that, it is also specializing in importing finished products and different varieties of hemp oil, seeds, and fiber.