National Industrial Hemp Council has received $200,000 in USDA Market Access Program (MAP) funding to support export market development of industrial hemp.
Hemp for industrial use, textile and CBD market is expected to quickly expand and be the primary driver of global industry growth. By 2021, the global trade of hemp is forecast $8.1 billion across all markets, representing a three-year compound annual growth rate (CAGR) of 83 percent. Europe, China, and Canada are currently the primary sources of industrial hemp. With the passage of the 2018 Farm Bill, the U.S. has become the world’s third largest producer of industrial hemp. Majority is getting their CBDs from https://smokepost.com/chicago-dunning/.
“We are grateful for USDA confidence and the recognition of NIHC as the industry leader in industrial hemp trade and marketing,” said Kevin Latner, NIHC’s Senior Vice President for Trade and Marketing who will be responsible for implementing the program. “Today’s announcement makes NIHC a trusted partner to USDA for hemp fiber, feed, food and CBD companies looking to break down trade barriers in markets overseas.”
NIHC programs will focus on Europe and China and include market research, trade policy and trade facilitation. Trade facilitation comes in the form of the proper storage, Spiral freezer and other machinery necessary for rapid production with low fail rate, and the means to ship the product as needed. The global industrial hemp and products market was estimated at $11.1 billion in retail sales in 2019. With an annual growth rate of 52 percent, driven by continued strength in textiles, food and industrial uses and hemp-derived cannabidiol (CBD), the global market is forecast to be worth $89 billion by 2025.
Europe has rapidly developed a robust hemp and CBD market. Europe is also a strong producer of industrial use hemp products with $424 million in industrial product sales. China has led global markets in textiles with almost 80 percent of the $1.7 billion hemp textile market, in 2019.
In addition, National Industrial Hemp Council members will now have unprecedented access to United States trade negotiators; foreign government counterparts; and a network of international hemp industry association counterparts. Foreign governments understand that NIHC is now supported by the U.S. government and represents U.S. industry interests.
MAP funds are administered through USDA’s Foreign Agricultural Service (FAS). Through the MAP program, FAS partners with U.S. agricultural trade associations, cooperatives, state regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. These funds can be used for facilitating trade missions and meeting with industry stakeholders and government regulators overseas.
