The Coronavirus broke out in Wuhan City, Hubei Province in China in December 2019. As of 23 February, there were 78,987 cases that had been confirmed, and roughly 31,000 of them were from China. The outbreak has put the entire world on alert, with most governments putting screening processes in place to prevent the disease from entering their borders.
China, on the other hand, has effectively gone into a shutdown mode, with numerous regions unable to conduct proper business due to the virus shutdown. While the slowdown in business may wreak havoc on the Chinese economy if it happens for a prolonged period, it could lead to a boon for American hemp producers.
China is the world’s largest producer and exporter of hemp, and as hemp becomes increasingly popular, mostly due to the growing demand for hemp-derived CBD, the country was poised to dominate the market. This posed a major threat to U.S. producers who were only just getting their bearings in the hemp industry. However, the Coronavirus has greatly disrupted business in China, and it could give American hemp producers a boost in the race for hemp supremacy.
“Honestly, I think that the American hemp industry can do nothing but benefit from the Coronavirus in China,” says Landon Butterfield, a crop consultant with Klamath Falls, Oregon-based Patriot Hemp Services.
Since China produces a lot of the hemp on the world market, any kind of hiccup in that supply chain on their end allows American farmers to get into the international market, and it’ll help limit the flood of cheap Chinese CBD that’s coming into America, she adds.
Corning, California-based hemp farmer John Eller concurs, stating that anytime China slows down hemp exports is good news. “They’re one of our competitors. If China doesn’t bring in as much hemp, that means we’re not competing as hard.”
However, while hemp producers may get a boost from the virus shutdown slowing business in China, there are some players who have been affected adversely.
Jay Miller, a soil scientist at Oregon State University and Lead Researcher for the institution’s Global Hemp Innovation Center, says he has several trials on hemp varieties in China in conjunction with the central government and regional provinces. Since access in and out of the country is still limited, the joint research has been delayed.
“In two weeks, I was scheduled to go to China, and now I have to wait.”
Those on American soil losing out because of the outbreak in China are in the minority and experts believe that hemp industry actors, such as No Borders Inc. (OTC: NBDR), would be pleased to enjoy any benefits that the issues in China bring to American hemp producers.
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