Search
Search
Close this search box.

Cannabis cultivators “pessimistic” about industry, report finds

Cannabis and hemp cultivators across Europe are feeling pessimistic about the industry, according to a new report from Canxchange.

The trading platform Canxchange has released a new report including current pricing data and in-depth market analysis of the medical cannabis space.

The Q2 Benchmark Report is part of Canxchange’s strategy to encourage a more transparent and efficient market for hemp, CBD and medical cannabis. The report aims to support farmers, producers, extractors, manufacturers and other industry stakeholders by providing market insight and standardisation for a more productive market, the organisation says.

Pessimism amongst European cannabis cultivators

As part of the report, Canxchange researchers spent weeks surveying more than 100 hemp farms in Europe to gain an understanding of the current outlook for cultivation activity across the continent.

The company measured five key factors that include surfaces planted compared to the previous season, increase/decrease of production investments, stock levels, sales confidence and cultivation yields.

The survey results were analysed and translated into an index number – the Canxchange Farmers Sentiment Index (CFSI) – to gauge the health of the market and participants’ perception of the industry. 100 represents neutral confidence while extremes of 75 and 125 represent a highly pessimistic and highly optimistic perspective respectively.

This quarter, the CFSI remains below 100 at 96.5, continuing on a downward trajectory from March 2022. Although the decline in confidence is slowing, the overall sentiment remains “bearish” especially amongst bigger producers, the research team says.

For the first time since Canxchange launched the farmer sentiment index, big producers have fallen into the “pessimistic territory”. 500-1000 hectares production units scored 93 while those with more than 1000 hectares had an average CFSI of 94.3.

“Looking into the details, large operators have dramatically changed their views on the outlook of the market for 2022,” the report states. “Several factors could explain this market sentiment.”

Canxchange identified three primary factors that are causing cultivator’s pessimism, including uncertain economic conditions, the impact of high inflation on production costs and a lack of visibility for the coming months.

Seed supply in Europe “exhausted”

The Canxchange report found that seed supply in Europe has been “exhausted” with prices expected to surge over the coming months as demand continues to rise.

“We have seen a last attempt from food producers to source as much as possible but supply is drained,” the report states. “Our members are attempting to contract large amounts of seeds from the new harvest so expect the demand to surge further next year.

“Next year’s prices are naturally going to be higher due to increased fuel and fertiliser prices.”

Meanwhile, isolate extract prices have remained stable over the past few months at just over €300, the report found. Canxchange expects that this is the lowest prices will go before hitting highs of just under €400 within the next six months.

Renewed demand for industrial hemp

In the industrial hemp sector, Canxchange has seen fresh demand globally for hemp hurd (also known as shives), industrial hemp stalks used for building materials.

South Africa has been actively sourcing shives from the EU for hempcrete and hemp blocks, the report found while fibre demand has remained stable among insulation producers. However, some EU suppliers have had buyers cancel orders and contracts due to the impact of inflationary pressures.

Canxchange is a B2B market infrastructure that facilitates industrial hemp, CBD and medical cannabis  transactions. Canxchange is a B2B marketplace and electronic platform that connects businesses, helping them to transact in a secure, fast and transparent environment.

Founded in 2019, the London-based company operates globally with over 400 members.

Related Posts

Related Posts

CONNECT

Related Posts

Related Posts

Recent Posts

Related Posts

Subscribe to our mailing list to receives daily updates!

We won’t spam you

Categories

Browse by Tags

CATEGORIES

EDITION

BUSINESS OF CANNABIS

© 2023 Prohibition Holdings Ltd. All Rights Reserved.

EDITION

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?