COVID-19 Provides Opportunities For Hemp Fiber 

 February 22, 2021

By  Stratis Hemp

  • Home
  • /
  • News
  • /
  • COVID-19 Provides Opportunities For Hemp Fiber

2021 could be a breakout year for hemp in more ways than one.

We've discussed numerous times about the excellent potential for Washington, under the new Biden administration, to finally pass legislation to legalize cannabis. Bipartisan support is growing. It is just a matter of when, not if, it will happen.

We've reported on the growing public demand to address climate change, failing infrastructure, and other issues that hemp is perfectly positioned to address.

Now, industry insiders are seeing more doors opening as COVID-19 strains relationships between buyers and sellers of traditional feedstocks.

In the May 2020 issue of PanXchange’s benchmarks and analysis report, the company identified the most advanced and mature end-use markets for true hemp, including biocomposites, cottonized textiles and hemp paper. These products’ common feedstocks include petro-based raw materials, like polypropylene and polyester, and natural feedstocks, like cotton, coarse wool and wood chips.

The price of petroleum-based products fell in 2020, but the more interesting and arguably tangible opportunities for hemp concern its ability to substitute natural fiber products. Increasing concerns regarding the biodegradability of synthetic fibers coupled with a growing emphasis on reducing plastic-based materials’ usage are expected to support significant growth in the natural fiber market for the foreseeable future.

In the natural fibers category, cotton is still king. For all intents and purposes, it serves as a floor for all prices in this category. After reaching a ten-year high of $2.29 USD per pound in 2011, U.S. cotton prices reached a ten-year low of $0.63 USD per pound in April 2020, according to the International Monetary Fund (IMF), an organization of 190 countries that oversees the international monetary system and trade. This volatility has driven cotton farmers, especially those in the Texas panhandle, to consider hemp as an alternative crop, PanXchange has found.

While all this is good news for hemp producers, there is still reason to be cautious. The industry is still hamstrung by lack of processing capacity. If production ramps up too quickly without adequate processing facilities in close proximity to crops, we could see a repeat of what happened in the cannabinoid market where oversupply drastically impacted  short- and long-term profitability.

You can read more here.

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}