Hemp, Inc.'s North Carolina Grow and Co-Op Partners Aim to Participate in Global Hemp Market Through New US-China Agriculture Deal
Las Vegas, NV - (NewMediaWire) - June 1, 2020 - Hemp, Inc. (OTC PINK: HEMP), a global leader in the industrial hemp industry with bi-coastal processing centers, including the 85,000 square foot multipurpose industrial hemp processing facility on 9 acres in Spring Hope, NC, a 55,000 square foot state of the art local processing center in White City, Oregon, a 500-acre hemp growing Veteran Village Kins Community in Golden Valley, Arizona, two model "Small Family Hemp Farms" in North Carolina and Arizona, a pre-roll blending manufacturing facility in Las Vegas, NV, and a 5,000 square-foot retail store (The King of Hemp Store(TM)) in Kingman, Arizona, announced today that it has the capacity to supply hemp to China based on a new US-China trade agreement.
The recently signed agriculture trade deal delineates that China has agreed to purchase hemp fiber from the United States. Hemp is mentioned specifically in the trade agreement, in which the Chinese government agreed to spend at least $12.5 billion more on total U.S. agricultural commodity imports than it did in 2017. The agreement refers to "true hemp" which is defined narrowly as raw materials which can be processed but not spun; it also applies to the "tow and waste of true hemp" which includes yarn waste and garnetted stock.
While getting hemp written into the trade deal is a sign of progress for the industry, some speculate that it seems unlikely that U.S. producers are prepared to take advantage of that opportunity. However, Hemp, Inc. has continued to build out its infrastructure and grow operations in North Carolina so that it can become a major hemp supplier.
Hemp, Inc. is growing 50 acres of hemp fiber that meets the requirements of the deal at their facilities in North Carolina. The company fulfilled a $1 million dollar sales agreement for its DrillWall(TM), their proprietary kenaf-hemp blend natural Loss Circulation Material (LCM) product for the oil and gas well drilling industries.
Also, during the first quarter and half of the second quarter, Hemp, Inc. surpassed $1,000,000 in sales from their super high quality, premium hemp flower, Pre-98 OG Bubba Kush. According to Hemp, Inc. CEO, Bruce Perlowin, the Company expects strong sales to continue based on the high demand for its super high quality premium hemp flower.
The Company also currently works with several industrial hemp growers around America. This has primed the company to be a major actor in supplying China with hemp as per the new agreement; not only from what the Company grows but also from sourcing raw hemp materials from its partners' grow operations which make up a nationwide network of growers.
While Asia Pacific accounted for the largest market share in 2018, there is a lot of opportunity for American hemp going forward. The global industrial hemp market size is expected to reach USD 15.26 billion by 2027, exhibiting a revenue-based CAGR of 15.8% over the forecast period, according to a new report published by Grand View Research, Inc.
"Fiber hemp is low risk and less labor intensive than hemp for CBD. We grow much of our industrial hemp in North Carolina and strongly believe we are equipped to supply hemp through our own operations and the partnerships we have across the country," said Hemp, Inc. CEO Bruce Perlowin. "The Chinese market for hemp is huge and participating as a supplier not only helps the progress and reputation of U.S. hemp but it also opens up so many more avenues of participating in the global hemp market."
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