[url=http://www.kltprc.net/foresight/Chpt_21.htm]Valerie L. Vantreese[/url] said:
Despite the merits of hemp fiber and oil, the global market has been on a downward trend and remains negligible in magnitude. Total world trade in hemp fiber and seed amounted to only $10.4 million in 1996! Processing costs are one of the largest obstacles the hemp industry faces. For example, bleached softwood pulp currently sells for about $800 (U.S.) per ton compared to hemp pulp at about $2,100 (U.S.) per ton. New processing technology must be found for hemp to be cost competitive.
Hemp profits also suffer from price volatility. Projected hemp demand, coupled with a low volume market, makes profit estimations adventurous. At current world prices it does not appear that hemp can compete on a large scale and may be confined to a specialty market until processing technology improves.
None of the large multinationals has openly supported hemp legalization in the United States. Why? Corporate America has the capacity to invest in hemp production and processing facilities all around the world. They have access to plenty of raw material and low labor costs (China and Eastern Europe) and a stable economic and political environment where hemp production is legal (the European Union). But investment in hemp processing remains negligible. For example, there are only about 20 paper mills worldwide that use hemp as a fiber source, which produce about 0.05 percent of the world’s annual paper production volume.
Again, it must be emphasized that hemp production is not the problem. It is the challenge of improving hemp processing that will open the doors of cost competitiveness. If the large multinationals can’t make hemp work in the marketplace, what type of costs and return differentials might small farmers and businesses work towards? That is the crux of the great hemp debate.