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Prospects for the development of the cannabis market in Ukraine

12.06.2024

Contents

Profitability of growing industrial hemp in Ukraine

The cultivation of industrial hemp in Ukraine is becoming an increasingly promising business. Profitability can reach 50%, and income per hectare varies from $500 to $2000, subject to proper processing of products. These indicators make hemp an attractive crop for Ukrainian farmers.

Medical cannabis: potential and prospects

If medical cannabis is legalized in Ukraine or its use for recreational purposes is allowed , revenues could rise to $100,000 per hectare. According to research, this opens up enormous prospects for the market.

Cannabis next to which there are medical bottles.

Trends in the global cannabis market

European market

The global cannabis market is developing rapidly. In Europe, countries like Germany, the Czech Republic and Poland are gradually changing their attitude towards cannabis. Industry and public pressure are putting pressure on governments to legalize the use of cannabis for medical and recreational purposes.

North America

In the United States, 33 states and Washington DC have legalized medical cannabis, and 10 states and the District of Columbia allow recreational use. Canada fully legalized cannabis in 2018, and medical use has been permitted since 2001.

Rest of the world

The medical use of cannabis is legal in more than 30 countries, including Poland, Germany, the Czech Republic, Israel, Uruguay, Australia and the Netherlands. The European cannabis market is expected to reach €115.7 billion by 2028, making the EU the largest market in the world.

Cultivation of industrial hemp in Ukraine

Legalization and regulation

Growing industrial hemp in Ukraine requires compliance with a number of legislative standards. According to Cabinet of Ministers Resolution No. 770 of May 6, 2000, the content of tetrahydrocannabinol (THC) in hemp should not exceed 0.08%.

A woman examines a cannabis plant in a field with marijuana.

Obtaining a license

To grow hemp, you must obtain a license. The process of obtaining a license includes submitting an application, providing certificates of no criminal record and mental disorders among employees, as well as confirmation of the professional suitability of the manager.

Cultivation of medical cannabis

Legislative changes

The Verkhovna Rada of Ukraine supported in the first reading bill 7457, which regulates the use of hemp for medical, industrial, scientific and scientific-technical purposes. This bill is supported by the National Security and Defense Council of Ukraine and the President.

Recommended products:

CBD oil is dripping from a pipette into a flask against the background of hemp plants.

Growing requirements

Cultivation of medical cannabis requires strict compliance with the law. Companies must obtain a license and police permission, as well as ensure control over the cultivation, storage and processing of cannabis. All greenhouses must be equipped with video cameras and physical security.

Conclusions and recommendations

For the effective development of the hemp market in Ukraine, it is necessary to distinguish between the cultivation of medical and industrial hemp. Separate cultivation and processing rules for each type of hemp will help improve regulation and stimulate industry development.

Industrial hemp, which does not contain THC, has long been a standard agricultural crop. Supporting this sector and simplifying the requirements for the material and technical base of manufacturers can significantly contribute to business development and increased income.

In general, balanced regulation of the hemp market will create favorable conditions for the development of the industry, provide support for existing businesses and attract new investments into this promising sector.