On December 7, the first New York hemp auction The Cannabis Auction Exchange will be held at Aloft Hotel. Cannabis varieties and products with a high concentration of CBD will be sold under the hammer.
At the auction, it will be possible to buy large quantities of hemp products
The organizers of the event compiled a list of goods that will be presented at the auction:
- about 9 tons of marijuana;
- blocks of plant materials weighing 45 tons each;
- 1-kilogram cannabidiol concentrates;
- distillates with CBD of 1 liter;
- cigarettes with marijuana;
- CBD oil.
During the auction, farmers will have the opportunity to meet with the management of the processing plants and discuss the terms of cooperation. Consumers, in turn, will be able to purchase hemp products at a price below the market.
Stanley Wolfson, director of The Cannabis Auction Exchange, said: “We are holding the first hemp auction in New York. Given the reaction of potential customers, we believe that there will be a lot of guests. Our auction will be the third in the United States. However, New York differs from all other American cities that have a high population density. Therefore, sellers will have access to a large liquid market. ”
American hemp growers need support
In 2018, the Farming Act entered into force in the United States, legalizing cannabis technical strains (up to 0.3% THC ) and the substances contained in them (in particular CBD). In 2019, the area of registered hemp crops reached 206,390 hectares. For comparison: in Russia, a plant was sown on 10,200 hectares (according to Rosstat). In practice, the area of American hemp farmland was 93,000 hectares, and only 50,000 hectares were harvested.
According to Wolfson, many growers have nowhere to sell raw materials due to the lack of developed infrastructure and business ties. The industry is in its infancy, in connection with this, farmers need support from the state and business. Stanley says the auction will be a platform for monetizing cannabis and forging new commercial alliances.
The future of the cannabis industry in Russia and the USA
The Ministry of Agriculture of the Russian Federation predicts an increase in the area of technical hemp sown to 20,000 hectares by 2025. According to experts of the department, over the same period, the yield will increase by 21% (from 7 to 8.5 centners per hectare), and the production of hemp fiber will increase by almost seven times (from 1,400 to 10,000 tons per year).
The American analytical company BDS Analytics made a forecast for the development of the market for technical hemp in the United States. Experts suggest that by 2024 cannabis turnover will increase from 1.8 to 20 billion dollars. Thus, the area under crops and the weight of finished products should grow by about 11 times.