With 140,000 acres of land cultivated with industrial hemp, Canada has been recognized for being one of the biggest exporters of hemp materials in the world, and this excites several CBD makers.
Most of the country’s production yield hemp seeds. From these, hemp-based products are then manufactured with added value such as hemp food ingredients. Farmers are encouraged to plant hemp on the back of contracts that aim to provide fixed and attractive prices for the commodity. In 2017, contract farm prices averaged $0.76 to $0.85 per pound.
Amid the massive production, the Canadian players may be faced with the challenge of striking a balance between supply and demand to place hemp with a competitive price in the market. A possibly viable solution for the country is to get more aggressive in its outbound shipments to nations where hemp is largely needed, especially those where hemp is prohibited from being cultivated.
However, Canada may soon realize that the supply it is yielding may still be less than ample to serve the rapidly growing demand for hemp across the world, especially in the United States where a certain company is gearing to serve an expanding market.
Florida-based PotNetwork Holdings, Inc. (OTCMKTS:POTN), a revolutionizer in the CBD industry, said that it is eyeing to expand its product offering by entering new and underdeveloped sectors and verticals. These areas include the pet supply industry, wellness centers, health food channels, and fitness centers.
Recognizing the legislative steps to ease the rules that have encumbered the previously misrepresented industry, PotNetwork said it is confident of maintaining its position as a market leader even as the rules allow the spawning of other cannabis business players.
This confidence can be tied to CBD’s recent financial performance. The company recently announced a sales jump of over $6.3 million in the three months ending in March. This is equivalent to a 283 percent surge from the comparable period last year.
Meanwhile, the company also recorded a $2 million sales revenues for the month of April alone, compared with the $1 million achieved in the same month last year.
PotNetwork said it will strive to hold that dominance, amid the possible rise of more market players, by “acting swiftly” and “advancing towards expansion into new regional markets in the U.S., as well as Canada and Europe.”
“Domestically, recent strategies include direct sales to brick and mortar retailers through the mobilization of a corporate fleet of inventory stocked vans in major U.S. metro markets directly servicing retailers, with products that are locally stocked and warehoused,” it added.
Although several market players out there may demand more hemp shipments, even bigger in volume than that required by PotNetwork, the said company’s commitment to stay in the industry and its eyed developments for its operations will help sustain the demand of the U.S. as a whole. This, in turn, may help Canada resolve its hemp glut not only today but also in the years to come.
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