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Challenges in running a hemp and CBD business in Thailand

  • Farmers must take into account the supporting market. Kind of species Knowledge and understanding of planting, selling price, competitiveness, weather conditions, production technology To obtain the yield and quality according to market demands[8], for example, planting for fibers or seeds is not much of a barrier because the yield is relatively stable in quantity. But cultivating CBD kaufenextracts has a higher variability because the extracts contained in the seeds are highly volatile to the environment in which hemp grows.
  • Intermediate and downstream entrepreneurs Several issues have to be taken into account, including:
    • Strict production conditions/standards such as THC content of less than 0.001% in food or beverages. Product labeling, advertising, and raw material sourcing.
    • Copyright/patent of hemp, Especially in the mid-water industry that requires high-standard production technology.
    • investment value Many hemp companies abroad, despite their high revenue growth rates, have high expenses, especially the cost of extraction machinery factory R&D expenses, including hemp species suitable for the production process.
    • Competitiveness, More manufacturers enter the market. including foreign competitors.
    • building consumer confidence both in terms of security or side effects that may occur from using hemp products.
    • Limitations of the export market Although the United Nations has begun to relax on CBD kaufen; its use remains under the control of physicians. causing many countries to still classify hemp as a drug which is a limitation in terms of exporting downstream products.
  • Although hemp trading is a direct trade (Contract_Farming system) between buyers and growers, a trading market is still under development and establishment. But the price is determined by the Hemp Central Market, established by the Cooperative Promotion Department. It will act as a trading center. Product standardization Determining central prices using a network system connecting all markets as a single market system (Single Central Market) and establishing fair trading procedures. It also plays a significant role in supplying the market or a market network to serve as a channel for small-scale farmers to distribute to the industrial sector, extraction plants, and processors.
  • Legal restrictions include: (1) Industrial CBD kaufen must be licensed for domestic production only. Imports are not allowed to be extracted. But can be exported to create added value for entrepreneurs in the country (2) The request for planting permission must have a clear buyer. It is not allowed to plant without a source of purchase. No production plan or plans for use (3) Quality and standards must be by the Ministry of Public Health’s notification, especially THC substances that must not exceed 0.2% dry weight. Or depending on the type of product in which hemp is mixed, and (4) the law supports the use of hemp as a component of the product. A law has been announced that allows hemp seeds, oils, and extracts in the food, beverage, and cosmetic industries. while other industries In the process of approval or considering issuing additional announcements.
  • Resistance of social and cultural currents At present, information, facts, and benefits from cannabis is not widely known because Thai law has classified hemp plants as drugs for a long time.

The food, beverage, and cosmetic industries also face limitations on raw materials. The use of hemp in the downstream industry requires legal certifying to operate. Only the food, beverage, and cosmetic industries are supported by the Royal Gazette[7]. However, the use of hemp in such industries has specific requirements; for example, food and beverages can only use hemp-derived ingredients. Hemp seed oil and protein from hemp seeds For cosmetics, use ingredients derived from hemp seed oil and extract. Hemp raw materials must come from local entrepreneurs only. Not allowed to import; as a result, downstream industrial operators still have to wait for raw materials from extraction mill operators. Which is produced as a standard grade (According to the Food and Drug Administration), it takes time to develop strains and produce oil/extract varieties. It is expected to be able to sell industrially/commercially from 2022 onwards. At present, there are a large number of entrepreneurs interested in entering the hemp business.

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