Problems and tendencies of development of niche hemp agribusiness in Ukraine

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Visnyk LNAU: Economics of AIC 2020 №27: 121-125

Problems and tendencies of development of niche hemp agribusiness in Ukraine

Cherevko I., Ph.D.
Lviv National Agrarian University

https://doi.org/10.31734/economics2020.27.121

Annotation

The article presents the main results of the conducted research of the state and dynamics of development of the hemp industry in Ukraine and outlines the main ways of its further development taking into account the experience of problems solving in foreign countries. Hemp is a highly profitable crop. In addition, it can provide an extremely high environmental effect, at least by saving wood for paper production, and thus by preserving forests. There are medical hemp (cannabis) and technical hemp. In technical hemp, the content of drugs is minimal, so it has nothing to do with cannabis. The profitability of production of technical hemp today reaches 50 %. On seeds you can earn $ 500–700 / ha, for straw processing (trusts) – another $ 2000 / ha. On inflorescences and leaves of hemp it is possible to receive up to $ 100 th /ha. Technical hemp grows in over 30 countries and its areas are expanding. The Ukrainian SSR had hemp crops with a total area of 120,000 ha and 35 processing plants. After the campaign to control the cultivation of narcotic crops, the area of hemp in Ukraine was 270 ha. Currently, only about 4 th ha of land are sown in hemp in Ukraine. The development of the hemp cultivation industry depends to a large extent on legislation on the cultivation of hemp, the main problem of which is the equation of industrial non-narcotic hemp to narcotic drugs. The second factor is the lack of a proper processing base. For the further effective development of hemp growing, the experience of foreign legislation and the possibility of its adaptation to Ukrainian conditions should be taken into account. Currently, Ukrainian hemp growers need to hold strong positions in this segment by exporting products of its cultivation to Europe, which is constantly increasing the capacity for processing hemp raw materials. Regulation of the Ukrainian legal framework in the field of hemp production will be a real contribution to the development of this industry and of the corresponding processing enterprises, and the creation of additional jobs will contribute to the sustainable development of rural regions of the country.

Key words

industrial hemp, cannabis, efficiency, processing, export, legislation

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