Industrial hemp the global boom final june 2019.pptx

Industrial Hemp the Green
Gold Global Boom
Opportunities for economic Prosperity &
Challenges for Pakistan
By Dr Hk Syed Arshad Raza

Summary
► Pakistan’s Northern areas offer a unique
prospective opportunity of economic
uplift by cultivation & value addition of
industrial hemp “THE GREEN GOLD”,
Its thriving market size was estimated
at USD 3.9 billion globally in 2018,
expanding at a CAGR of 14.0%,
expected to reach USD 10.6 billion
by 2025.
http://www.ahlabspk.com/IHP/

Impact on industries and economy
► Will Revolutionize various industries & sectors as Agriculture, Textiles,
Pharmaceutical, Nutraceutical, Food & Nutrition, Building & construction,
Automobiles, with positive impact on reducing CO2 emissions & environment.
(Biomass for carbon sequestration).
► Restores, Revolutionize and improve performance of troubled textile
sector.
► Production is 3 X than cotton & Marginal water requirements.
► Negligible pesticide requirements compared to cotton, Natural habitat of dry
and cold mountainous climate of northern areas.
► Can generate US$ 1 Bn worth of revenue & 100000 jobs in just 1 - 2 years.
► Biomass for carbon sequestration 70 ton dry weight per hectare & 1 Ha of
hemp absorbs about 2.5 tons of CO2 ,.

Hemp agro-economy per acre
Hemp product Price US $ Output / acre Cost USD/ acre Profit USD/acre Crop
duration
Grain/seed (Irrig) 0.8-0.1/kg 700 kg-1000 kg $574 500– 600 USD. 120
Fiber only (Irrig) 75- 125 /T 5-6 T $574 600-700 120
Fiber / seed (Irrig) 100/T,0.8/kg 0.75-1.5 T/ 500-900 Kg $574 600-700 120
CBD (Irrig) 10000 /kg 2500 lb $8500 10000 120
Grain/seed (Rain Fed) 0.5-0.8/lb 400kg- 500 kg $409 400-500 120
Fiber only (Rain Fed) 75- 125 /ton 4.6 – 6.9 T $409 500-600 120
Fiber & seed (Rain Fed) 0.8/lb,100/Ton 2.2-3.3 T/500-900 $409 500-600 120
CBD (Rain Fed) 10000 /kg 1100 kg $8500 10000 120

Global Market size 2018(2018)
Region with Date
legalized
Retail Sales
Revenue USD
Area cultivation Key Products
China ( Since 2010) $1.2 Bn 400000 Acres Textiles
United States ( Since 2018) $1 Bn 75000 Acres CBD
EU ( Since 2010) $980 Mn 111197 Acres Fibre Products
South & Central America $220 Mn - CBD
Canada ( Since 1998) $339.6 Mn 140000 Acres CBD- Seed
Total Global Market 3.9 Bn

Hemp cultivation Comparison
Name of item Yield product/acre
Price
USD/ kg
Profit / Rs
acre
Yield
Biomass
Ton /
Acre
Key Products
Hemp for seed
● 1000 kg OR
● 300 Litres Oil &
● 700 Kg hemp flour
$ 1/kg
$ 5/ L
$ 1/kg
70,000
225,000
105,000
31 Seed,
Seed oil & Protein
flour
Hemp for fibre ● 1-5 Ton Bast Fibre
● 5- 25 Ton Hurd fibre
1-2/kg 100,000 31 fibre
Hemp CBD 1100 kg 100000 1,000,000 31 Flower
Corn 2400 kg 0.2/kg 50,000

► Cannabis and hemp who is who?
The plants and plant parts of the Cannabis
plant, ie the leaves and flowering heads of
which do not contain more than 0.3 % w/w
Psychoactive THC (tetrahydro- cannabinol the
Psychoactive ingredient) is called hemp. So
hemp not produce “High” as it happens with
Marijuana (Bhang) and NO Psychoactive (THC)
effects, is a non-narcotic & can not be used for
with a variety of commercial, industrial &
medicinal uses. Hence it is not regulated as
Marijuana globally.
Hemp is NOT BHANG OR MARIJUANA.
Hemp V/s Marijuana correcting the Confusion

► Cannabis and hemp who is
who? Final conclusion!
Hemp has no Psychoactive
effects & non-narcotic plant.
Hemp can not be used for
addiction purpose.
Hemp only has commercial,
industrial and medicinal
uses.

► Cannabis and hemp who is
who? Final conclusion
So as we support &
Promote Hemp
legalization, cultivation
& value addition, we do
not support cultivation
and Use of Marijuana
(Bhang).

Hemp is a multi-purpose crop yielding
► Seeds( protein & oil)
► Fibers ( textiles and other products)
► Bio-active chemicals for a number of
uses and markets.
Hemp a multipurpose crop with many valuable
products

Industrial hemp value chain products

Viable hemp value chain “the key” to success
VIABLE HEMP VALUE-CHAIN is the key to meet increasing
demand for various products that can be made such as..
► Decorticated hemp fiber.
► hemp fiber based fabrics.
► Hemp seeds (seeds/seed oil for human & Poultry consumption).
► Cannabidiol (CBD) oil.
► Hempcrete. ( Hemp based Bricks)
► Hemp based Bio-plastic.
► Hemp based Paper products.
► Phytoremediation.
► Biodiesel and alcohol.

► The first step towards any high-value hemp
product is decortication.
► Is removal of tough woody interior (the hurd
material), from the softer, fibrous exterior
(Bast Fiber) of the stalk.
► Decortication generates both hurd as well as
bast materials (Bast Fiber). Each is useful,
but with different applications.
Decorticated hemp fiber the first step.

Potential
uses of
Hemp
Value added products from hemp

• Strong, Durable, Quick-drying & Thermo-active.
• Antistatic, Antibacterial & UV protective.
• Perfect for all kinds of clothing such as uniforms,
underwear but also for towels, bed-clothing etc.
• Ideal for manufacturing of ropes and tents etc.
http://www.ahlabspk.com/Hemp/
► The excellent properties of industrial hemp is expected
to bring about revolutionary changes in uniforms for
soldiers in the future. Considering the unique properties
of hemp, it can be processed into a variety of military
apparel and high-end apparel materials.
Hemp Fabric to revolutionize military uniforms

Hemp VS cotton

Comparison Hemp V/S cotton
Item Hemp Cotton
Water resources for Cultivation Needed 2,719 Liters/kg fiber Needed 10,000 Liters Liters/kg fiber
Yield per acre kg 400-500 kg 323 kg
Fiber strength 3-6 times than cotton Medium
Durability Highly durable Low durability
Pesticide Not required or negligible Very high requirements
Impact on Environment Improves soil fertility Destroy soil & spoils water resource
Crops effect on Soil Improves fertility Destroy soil by pesticide
Cultivation soil needed Pakistan Across all areas Highly specific in irrigated fertile soils
Fertilizer application Low to moderate High application
Weed management Very Low or negligible Highly intensive


► Seed: Source for hemp oil or hemp protein.
► Seed: Contains all eight essential amino acids.
► Seed Oil: Highly valued for skincare.
► Seed Oil: High % of unsaturated fatty acids(80%).
► Seed Oil:Perfect omega 6 to omega 3(3:1) Ratio.
► Seed cake: Valuable feed material.
Hemp seeds (seeds and seed oil for human
consumption).
Hemp seed and seed oil has a rising demand across
the globe with canada as the leading supplier.

Hemp derieved Cannabidiol (CBD) oil
Hemp CBD oil (cannabidiol ) is the most
fastest growing medicinal/ food /
nutraceutical product around the globe with
china leading and USA following the supply
chain. The global CBD market was worth
USD 1.04 billion in 2018 and is forecasted to
reach USD 16.32 billion by 2026, growing at
a CAGR of 27.7% during the forecast period
(2018-2026). Source Global newswire
https://www.globenewswire.com/news-release/2019/05/06/1817668/0/en/Cannabidiol-CBD-Market-To-Reach-USD-16-32-B
illion-By-2026-Reports-And-Data.html

Hemp derieved Cannabidiol (CBD) oil benefits

Global hemp CBD oil Market

Hemp hurd are by product of fibre processing ( Aprx 5 Ton
/acre) and hemp pellets have been tested and proved by the
third party institution as having 0.3% ash and 18000 KJ kg-1 ( in
the case of wood pellets 17000 KJ kg-1) is generated when
Hemp Pellets are burned.
Hemp hurd Pellets for burning & heating.
Hemp Hurd biomass is Eco Friendly, emits less sulphur
compounds than the burning of oil fuel or coal, which has a
positive impact on the environment.
Hemp briquettes are characterized by faster loss of mass
during combustion, compared with briquettes made of
wood chips due to faster heat release from hemp briquettes

Hempcrete or Hemplime is bio-composite material,
a mixture of hemp hurds (shives) and lime used as a
material for construction and insulation
Hemp Fibre based “Hempcrete”.
Ecofriendly
Fireproof
Breathable
Excellent Acoustic & Thermal insulation.

Hemp based “Bio-plastic”.
Hemp is poised to
become an immense
new source of
sustainable
industrial Bio
plastics.

Hemp makes a premium candidate for
phytoremediation due to high biomass,
long roots and a short life cycle. Hemp
also has a high capability to absorb and
accumulate heavy metals (HMs) lead
(Pb), nickel (Ni), cadmium (Cd), zinc
(Zn), and chromium.
Phtyoremediation by Hemp

Global hemp industry Overview

Hemp global market

Hemp in EU

Hemp crops in EU for fiber production.

Applications of EU Hemp Fibre 2013 crop.

Hemp in USA

Hemp in USA ……

Hemp products: Decorticated fiber.

China the world's industrial hemp
powerhouse Thanks to government
support and a long tradition,
China has quietly become a superpower
in the plant's production and research.
Hemp in China ……
http://www.ahlabspk.com/Hemp/

► In 2017, Chinese hemp sales totaled $1.1 billion (USD), approaching
1/3 of the $3.1 billion global market, with sales forecasted to grow to
$1.5 billion (up 36%) by 2020
► In 2017, textiles accounted for about 3/4 of China's overall sales of
$823 million (USD).
► Hemp-derived CBD accounted for Chinese sales of $53 million (USD) in
2017 but is forecasted to more than quadruple (by 4.3x, to $228
million) by 2020.
► Demand for CBD products in both Japan and South Korea – countries
with high relative spending for wellness and cosmetics – could further
catalyze demand for China's hemp-derived CBD.

►China Commands Over One-Third of
the Total Global Hemp Market For
farmers, the crop is green gold –
brings in more than 10,000 yuan
(US$1,500) per hectare, compared to
just a few thousand yuan for more
common crops like corn.
Hemp china ……..

Hemp china ……..

Fiber removal from stems in china

Pre-Processing for fiber

Dew retting in fields (Removal of fiber)

Processing for fiber China

Processing for fiber in China ……

Fiber from hemp China continued…

Value added products hemp fiber China

Value added products Hemp clothing China

Hurds left over from hemp China

Value added products from hemp in china

Hemp cultivation is now legal in Uttarakhand
Uttarakhand in India has become
the first state in India to have
issued a legal license for
the commercial cultivation of
industrial hemp THC
Below 0.3%.

Hemp cultivation in Turkey
Turkey is rapidly expanding hemp
production across the country.
Already hemp is legalised in
areas such as Amasya, Antalya,
Bartın, Burdur, Çorum, İzmir,
Karabük, Kastamonu, Kayseri, Kütahya,
Malatya, Ordu, Rize, Samsun, Sinop,
Tokat, Uşak, Yozgat and Zonguldak.

Opportunities
► Natural habitat and suitable area for cultivation especially in
northern rainfed areas of Pakistan.
► Well developed cotton sector can benefit from alternate fiber
source.
► Low water requirement compared to cotton.
Challenges.
► Lack of knowledge & understanding of crop and its value added products.
► Issues related to confusion related to Marijuana.
Opportunities & challenges for Pakistan

Educate Cultivate Value add Promote
I. Benefits
• Varietal
• Environmental
• Medicinal
• Food
• Industrial
2. Varietal
Selection for
• Environmental
• Medicinal
• Fibre
• Food etc
3. Process for
• Medicinal
• Fibre
• Food etc
3. Products
• Medicinal
• Clothing
• Hempcrete.
• Bio-plastic
• Paper
• Food etc
The way forward….

Educate &
Promote
• Medicinal benefits (Low THC & High CBD ), Food benefits (seed proteins and seed
oils) Industrial benefits (fiber and other benefits) & Environmental benefits.
Regulate &
legalize
• Non psychoactive (low THC < .3 %) hemp cultivation license by Govt.
• Regulation by THC determination of seed on farm testing by regulatory bodies.
Cultivation
• Trial cultivation licensing.
• Selection of cultivation varieties.
• Assistance in cultivation to farmers.
Value Add
• Pilot plant installation for fiber, food and medicinal products processing.
• Marketing Assistance and prmotion
The way forward….

Thank you
For enquiries & assistance
Web:www.ahlabspk.com
Email:ahlabspk@gmail.com
ihp@ahlabspk.com

Industrial hemp the global boom final june 2019.pptx

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Industrial hemp the global boom final june 2019.pptx