The first official deal in hemp has just been signed in the United States, according to a report.
According to influential finance news medium, Business Insider, a company in Nebraska on Thursday signed a deal to supply a fashion house hemp on a commercial scale for the production of clothing materials.
Although its cultivation is a crime in Nigeria, hemp is widely grown in rural areas of Nigeria.
Some scientists say that under proper guidance, it could have medicinal value.
According to Wikipedia, China is the world-leading producer of hemp, producing more than 70% of the world output. It is followed by France which has approximately a quarter of the global production.
The list also includes Egypt, Finland, Great Britain, Germany, Greece, Hungary, India, Italy, Japan, Korea, and The Netherlands.
The rest are New Zealand, Poland, POrtugal, Romania, Russia, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey and Ukraine
The UK and Germany resumed commercial production in the 1990s. British production is mostly used as bedding for horses; other uses are under development. Companies in Canada, the UK, the United States and Germany, among many others, process hemp seed into a growing range of food products and cosmetics; many traditional growing countries still continue to produce textile grade fibre.
Business Insider quoted an investor close to the deal as saying that the Nebraska-based company, Bastcore, LLC, signed the first contract to supply US-grown hemp fibre to the fashion house.
Bastcore purchases raw hemp grown by US farmers and has a proprietary process for converting hemp stalks into commercial materials, for textiles, composites, and energy production, the report added.
“This fiber supply contract marks a historic milestone in the U.S. Hemp Industry, and particularly for American-made hemp textiles, since the passage of the 2014 Farm Bill,” Bastcore CEO John Lupien said in an announcement obtained by Business Insider.
The hemp is sourced from farms in Colorado, Kentucky, and Minnesota. Bastcore plans to work with farmers in North Carolina and New York also as those states develop the legal framework for growing hemp.
The hemp will be used by a Los Angeles-based fashion house, Recreator, that focuses on “bringing regenerative agricultural practices to the American fashion industry,” the company said. Recreator will use Bastcore’s hemp to make t-shirts and other garments in Los Angeles.
“This partnership should encourage rural communities to re-invest in natural fibers and textile production. We are excited to show the pull-through capacity of Recreator by implementing Bastcore’s American-grown and processed hemp fiber into our premium apparel line,” Recreator CEO Matt McClain said.
Morgan Paxhia, a co-founder of Poseidon Asset Management, a cannabis-focused hedge fund that invested in Bastcore, told Business Insider in an email that “Bastcore’s innovative technology is a cornerstone to revitalizing the US hemp economy.”