Low CBD prices? Chinese foodmaker says it’s no problem

Share this:

Chinese foodmaker Chenguang Biotech Group Co., Ltd. said it has reached elevated extraction yield levels that give the company a significant edge in the production of CBD, allowing it to make margins even at current low prices.

Chenguang claims output from its extraction operations is significantly greater than that of its peers, leading to cost advantages that are allowing the company maintain sound profitability despite estimates that CBD has dropped in price from ~$6,000 per kilogram to ~$1,000 in the past 18 months. Further planned expansion is expected to lead to even greater efficiency gains, the company said.

License in Yunnan

Long-term investment in raw materials research, and internal development of core plant extraction technology give the company a decided edge in global markets, where Chenguang has experience in overseas factory management. The company said it maintains robust monitoring of hemp markets around the world, and constantly tracks regulatory policies.

Chenguang Biotech Group Co., Ltd., located in Handan, Hebei, a northern Chinese province near Beijing, generates roughly €380 million ($450 million) in annual sales. The company’s main business is in natural plant extracts; it produces, develops and markets red pepper essence, marigold extract, Capsicum oleoresin and lycopene, among others. The group, which comprises 25 companies, received an industrial hemp processing license in Yunnan province in July 2020.

Bio-tech & hemp

Chenguang is among a growing number of Chinese health and bio-technology companies that are aggressively taking up positions in the hemp production chain, backed by investors driven primarily by the potential for CBD and other cannabinoids. Most have assets in the burgeoning CBD center in Yunnan Province, where local officials have identified industrial hemp as a key driver in economic development plans. The government and Chinese industrialists see a major role for hemp in traditional Chinese medicines, a sector the government is also pushing.

A major CBD supplier to world markets, China exports CBD to the United States, Europe, Canada, Japan, South Korea and other countries and regions. Some CBD is also sold domestically for health & beauty products, the only CBD applications that can be legally sold to Chinese consumers.

Recent Posts

Hemp operators in Portugal frustrated by questionable rules

Portuguese hemp stakeholders say rules in a new law covering medical cannabis and hemp put…

June 14, 2021

1996: Hemp shaking its seedy past

Celebrating Hemp History Month – [Santa Rosa Press Democrat, Jan 29 1996] – It’s no…

June 14, 2021

Débora Paulino will head HempToday’s new Portuguese language edition

HempToday has launched a Portuguese language news service covering industrial hemp, the fifth non-English iteration…

June 14, 2021

NFL will spend $1 million to study cannabinoids in pain management

The U.S. National Football League (NFL) said it will award $1 million in grants for…

June 11, 2021

Passage of law in Argentina could spark $500 million market

Regulated medical cannabis and hemp industries in Argentina could generate 10,000 new jobs, $500 million…

June 11, 2021

1995: An early hemp trial faces the bulldozer

Celebrating Hemp History Month – [Sonoma Business, May 1995] – In 1994, an experimental hemp crop…

June 11, 2021