Even The Biggest Cannabis Producers Are Struggling With Up-And-Down Marketplace Along With Increased Regulations
Hemp is an emerging industry and naturally has to encounter a lot of ups and downs. GenCanna, one of the biggest CBD oil processors, filed for Chapter 11 bankruptcy recently. A major issue that many companies are struggling to deal with is the oversupply of cannabidiol. GenCanna had to face other problems as well, such as a new CFO, construction delays at a new harvesting facility, a facilities fire, and more. Regardless of this, Steve Bevan, President and Executive Chairman of GenCanna, believes that the market is no trouble, but the FDA. He says,
“The FDA does not have a pathway to characterize a product that was considered a drug a few years ago. The reality of what’s happening is that farmers who are producing in a compliant manner and processors who are working in a compliant manner are being damaged economically because of FDA’s outdated rules.”
Quarles believes many companies would like to sell CBD-based food and supplements, but the laws are not supportive. On the other hand, some hemp companies are already selling them without following the law. This is a major reason why the FDA needs to work closely with the hemp industry. The lack of a process by the FDA has resulted in investments going down significantly. Kentucky-based farmers want the FDA to approve regulations for CBD as soon as possible. Possibly, someday we might see car parts with hemp fibers in them.
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CBD is one of many powerful cannabinoids found in hemp known for helping to support our body and mind. Here at Healing Dragon CBD we do not intend to make unfounded medical claims about the health benefits of CBD. The FDA has not confirmed that CBD cures, treats, or prevents any diseases or conditions. Before reading this article please take a moment to read our full disclosure statement.