Industrial hemp cultivation is gradually being revived in Ukraine, with its products now used in a variety of sectors, including food, cosmetics, fuel, gunpowder, and medical cannabis.
Last year, a long-awaited law came into effect, legalizing the use of plant cannabinoids from hemp for medical purposes. The law also covers the cultivation, registration, and regulation of “medical” hemp through the government’s “e-Hemp” system, aiming to streamline the process for farmers interested in growing hemp. With these developments, the Ministry of Agrarian Policy and Food predicts that by 2025, the area dedicated to industrial hemp cultivation in Ukraine could reach nearly 8,000 hectares.
The Association for the Development of Flax and Hemp Growing reports that industrial hemp is cultivated in over 30 countries, with Asia producing 75% of the global supply and Europe 15%, valued for its processed products. Ukraine’s hemp exports to the EU benefit from zero import duties, but domestic production remains limited to 2,000–4,000 hectares annually — far from the 120,000 hectares and 35 processing plants of the Soviet era, of which only three remain operational, according to a press release.
“I don’t like to compare present with the Soviet period, but then the area under hemp in Ukraine used to be much larger. We had rope factories that supplied products to shipbuilding enterprises in Europe. There were also gunpowder factories that were used in the production of cellulose from industrial hemp. This strategy was and remains important for our country,” said Andriy Alechko, director of the management company of the Hempy UA Industrial Park, a member of the Public Organization Association for the Development of Flax and Hemp Growing in Ukraine.
The Ministry of Agrarian Policy had previously forecast that the adoption of the law on state regulation of hemp circulation could lead to an increase in hemp cultivation to 8,000 hectares. Alechko believes this target is achievable for Ukraine, noting that even a single agricultural producer could handle such volumes.
“To establish a plant for hemp product production, we would only need 7,000-8,000 hectares of industrial hemp. These are not large areas for Ukraine. Fifteen years ago, we didn’t even grow soybeans, and last year we planted 1.8 million hectares and achieved a record yield. Therefore, a single agricultural producer can manage 8,000 hectares for the state,” he explained.
However, the Institute of Bast Crops remains cautious about making bold predictions due to environmental, political, and military uncertainties. Primakov estimates that the actual area of hemp to be planted this year will be around 4,500 hectares.
“It makes no sense to simply pass a law — we need to change the approach. If farmers are well aware of the processes and all stages, then it will be possible to grow hemp more effectively, because the farmer must be ready for new requirements,” Oleg Primakov emphasized. Primakov is a Ukrainian expert and specialist in the field of agriculture, particularly in industrial hemp cultivation and processing.
Primakov noted hemp cultivation decisions take over a year, but if conditions improve by 2026, the area could reach 4,500 hectares. Alechko emphasized early moisture retention over high humidity. Trials are planned in the south, and Ukraine’s strong varietal potential supports nationwide cultivation.
New Hemp Registration System
When it comes to producing hemp for medical purposes, it’s important to understand that cannabis is classified into different types based on the level of the psychoactive substance tetrahydrocannabinol (THC). Until recently, Ukraine’s permissible THC content for industrial hemp was limited to 0.08%, a restriction that, according to the Office of Effective Regulation (BRDO), hindered Ukrainian producers’ ability to compete in the international market. In contrast, countries like the U.S., Canada, the EU, and China allow a THC level of up to 0.3%. However, starting in August 2024, new legislation in Ukraine raised the permissible THC content in industrial hemp to 0.2%, with plans to increase it to 0.3% by 2027.
Ukraine’s legal reforms have simplified industrial hemp cultivation by removing licensing requirements. The new “e-Hemp” system mandates farmer registration and THC testing, with a second test waived if levels comply. State labs ensure impartial results, easing concerns about delays.
Inna Dranytsya highlighted that the “e-Hemp” system reduces errors, streamlines registration, and tracks land, crops, and THC levels. It flags violations and may ban repeat-offending varieties. Since launch, four entities, including the Institute of Bast Crops, have begun registering. Funded by the Eastern Europe Foundation, the system continues to evolve.
Hemp Cellulose – A New Opportunity for the Development of the Industry
Farmers can start earning from industrial hemp early, with the focus on grain yielding around 70,000-80,000 UAH per hectare (1500-1800 EUR) and investment costs of 30,000-40,000 UAH (700-900 EUR). Selling seeds can increase profitability by 20%. Larger cultivation areas offer higher profit potential, especially through contracts. Primakov suggests boosting profits by processing raw materials, such as turning them into seeds, and the institute assists farmers with tailored production models.
Andriy Alechko sees hemp cultivation as profitable but notes harvesting challenges. Ukrainian enterprises manage primary processing, with deep processing potential at Hempy UA. Ukraine exports hemp fiber to the EU, emphasizing primary processing for value-added products like sphagnum.
“For example, the cost of trust (hemp straw, – ed.) ranges from 120-130 euros per ton, while primary processing products, such as hemp fiber, can bring up to 600-650 euros per ton, and hemp straw – from 300 euros per ton. In addition, this product is more promising for our farmers, because there are no quotas and duties on them in Europe,” Alechko noted.
In general, industrial hemp in Ukraine is used to produce a variety of products, including food (oil, flour, milk, bran, cookies, chocolate), cosmetics (soap, creams), textiles, clothing, footwear, hats, reusable masks, hemp fur, and even building materials. At the same time, this is only part of the possible application, because, according to Alechko, hemp is of strategic importance for the country, since it can be used to produce a key product for gunpowder production – cellulose.
“From industrial hemp, namely from trinitrocellulose made from hemp cellulose, you can get very high-quality gunpowder. By adding cotton powder, the technology can be improved. But hemp really makes excellent cellulose,” Alechko noted. “For Ukrainian farmers, the benefit is that profits can reach up to $1,000 per hectare. This is an excellent indicator for today, and we are on the way to it. We are confident that this can be achieved. It is important that hemp is a strategic crop,” the expert added. Alechko predicts that in 2-3 years Ukraine will be able to ensure such production, but for this it is necessary to increase the area of crops and improve primary processing technologies.
Primakov highlighted the untapped potential in the primary processing market and emphasized that deep processing requires significant investments. He noted that there are ten enterprises in Ukraine involved in primary processing, with room for growth. He suggested that launching a pulp mill to produce hemp fiber for paper would be a breakthrough, as it could operate with raw materials from 5,000 hectares of hemp. Primakov stressed the need for state support in improving legislation and providing enterprises with state orders, with ongoing efforts to resolve issues in collaboration with the state, businesses, and farmers.
The post Ukraine: Emerging Opportunities in Industrial Hemp Cultivation and Medical Cannabis Legalization appeared first on Seed World.