Hemp and its products, such as cannabidiol, are part of the 1 trillion-dollar agricultural industry that is being impacted by COVID-19.[1] With the many health and economic worries surrounding COVID-19, little coverage has been given to how this pandemic is affecting the various agricultural industries. Consumers understandably might think that farmers and ranchers are doing well, given the empty shelves at grocery stores. But those buying habits could slow down, and there has already been a dramatic drop in demand from food service, restaurants and schools and universities. There are unofficial estimates that the current market price of milk is down 40% compared to January. Prices for cattle, corn and other farm goods also are falling. Agricultural futures, which many farmers and ranchers depend on to lock in better prices later on, are down as well. That shows a concern that consumers will buy less in the coming weeks and months as the economy slows, and unemployment worsens. It also reflects worries about whether our overseas markets will return if product cannot move and as economies around the world are reeling from the virus outbreak and restrictions to contain it.[2]
An important agricultural product that provides a good source for vegan protein, healthy oil, material for textiles and the raw material for the various cannabidiol products is hemp. Like every other industry in the United States, experts predict that the hemp industry will experience shortages at every stop along the supply chain. From a rapidly growing labor shortage, to increasing restrictions on operation and finally, a pullback of consumers, the hemp industry is seeing the same bottom out of futures as the rest of the agricultural world.[3]
As Unites States hemp futures begin to dip, we will ultimately see a decline in prices for cannabidiol and products containing cannabidiol. While this is not ideal for farmers right now, in the long term it will make the United States more competitive with Chinese produced cannabidiol, which means more cannabidiol containing products will be made from U.S. grown hemp. In the short term, however, regulatory uncertainty coupled with the fact that retailers are not focused on onboarding new brands right now make this a tough time for new CBD brands. While we have seen a very sharp decline in purchases from your favorite vape shops, CBD shops and dispensaries, e-commerce sales of hemp-derived CBD have spiked. While an e-commerce spike is good news, this may only be advantageous to brands that have been around for a few years. New brands and products are still struggling to gain a foothold in this somewhat dystopian world of living through a global pandemic.[4][5]
http//cbd-2go.com
[1] Ag and Food Sectors and the Economy. https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy. March 3, 2020
[2] Yes, There are COVID-19 Impacts on Agriculture. https://www.fb.org/viewpoints/yes-there-are-covid-19-impacts-on-agriculture1. April 1, 2020
[3] How the Coronavirus Outbreak Will Hit the Hemp Industry. https://www.cannabisbusinesstimes.com/article/how-coronavirus-will-impact-hemp-industry. March 20, 2020.
[4] Coronavirus prompts spike in e-commerce sales of CBD; consumers seek higher dose products. https://www.foodnavigator-usa.com/Article/2020/03/26/Coronavirus-prompts-spike-in-e-commerce-sales-of-CBD-consumers-seek-higher-dose-products?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright. March 26, 2020
[5] Cannabis, CBD Brands Feel Impact of COVID-19. https://www.bevnet.com/news/2020/cannabis-cbd-brands-feel-impact-of-covid-19. April 9, 2020.
