The second edition of the Canxchange quarterly benchmark report has revealed a positive outlook for European hemp farmers.
Surveying over 100 hemp farms and co-operatives across Europe, the Canxchange Farmers Sentiment Index (CFSI) shows a fairly optimistic outlook from European hemp farmers overall, with an index score of 111.7.
The report highlights a number of different factors contributing to the sentiment, including the “slowdown of the COVID-19 pandemic” and “better visibility due to vaccine programmes that have been implemented across the globe” – giving farmers the confidence to invest in production machinery and materials.
Small farmers less confident
Farms over 1000 hectares showed a CFSI of 116.8, between ‘fairly optimistic’ and ‘highly optimistic’, whereas farms at less than 500 hectares showed a CFSI of 106.6 between ‘fairly optimistic’ and ‘neither pessimistic or optimistic’.
The difference in sentiment is possibly due to a number of variables, according to the report, including smaller production units struggling with access to distribution networks, price competition, and that smaller farms were hit harder by the COVID-19 pandemic.
Despite this, the report states that the vast majority of hemp producers are expecting to sell more than 80% of their production this year, with 60% of survey participants having already pre-sold the majority of production for the year, and negotiations having already begun for the 2022 harvesting campaign.
Overseas competition
Prices for CBD whole flowers, biomass and oil have remained stable, however, CBD, CBN and CBC isolate prices from the US have been blowing “European competition out the water” at €400-500/kg, compared to the cheapest European isolates which have been closer to €1000/kg. The report goes on to highlight that the last few months have seen European isolate prices stabilise at €400-500, but that US products that are beginning to appear on the European market continue to put pressure on producers.
The report states: “The minor cannabinoid space is gaining more and more traction as CBD has become a very competitive market and experienced CBD players are looking to diversify into minor cannabinoids which are picking up in popularity. CBN and CBC prices remain stable as the supply and demand curve looks stable. Some US products are starting to appear in Europe putting pressure for prices on European producers.”
Canxchange says that a number of other indicators will be published in the coming months. To read the full report please visit https://www.canxchange.eu/contact-10.
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