Commoditization on the Horizon

Commoditization on the Horizon

As the hemp industry expands and normalizes, the participants become more diverse, and large multinational food, cosmetic, or dietary supplement companies – among others – are strategically exploring market opportunities, and monitoring policy developments.  Some of the multinational agricultural companies like Syngenta, Cargill, and ADM are actively lobbying for pro-hemp and CBD policy, poised to play a role in the hemp value chain. The volume of product needed for large rollouts like a nationally distributed beverage from one of the many big players cannot be easily met with todays infrastructure.  Agriculture has a mature, comprehensive supply chain to bring raw food or fiber commodities to large scale product manufacturers. 

 

For this to happen, products must be uniform, with detailed standards and specifications, fostering confidence in buyers.  This creates liquidity in…

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