Reviving the hemp market in the Central Asian steppes

Hemp Mongolia LLC reveals its implementation plan to build the largest hemp processing farm in the Central Asian steppes

Three years since research and intensive awareness efforts began dedicated to challenging prohibitive public barriers, our company has secured government authorisations and regulatory segregated individual licenses for the farming, processing, transportation, importing, exporting of hemp and its derivate by-product assortments, including CBD oil with its tremendously versatile industrial application potential.

Mongolia, a country best known in the ancient times as the cross route of the Silk Road, connecting trade between Europe and Asia and today, it is more visible in the eyes of international investors’ eyes due to its vast mineral resources and untouched natural landscapes covering nomadic livestock grazing areas.

Our company’s planned activities are focused on building a production facility plant logistically close to large agricultural farmland resources, including around 15,000 hectares of wild hemp fauna of prime genetically unmodified strains of both hemp and cannabis seeds. The fertile soil unexploited over the last 50 years has recently become an industrial-scale crop cultivation field.

However, the continental dry climate, prevailing meteorological conditions and relatively short cultivation seasonality factors have influenced the protection of the land from soil degradation and chemical contamination and helped to preserve the pristine qualities of hemp and have allowed the natural expansion of its growth area.

As the first company licensed in Mongolia to farm and process hemp – our team of investors, advisors and staff worked hard to build a consensus team of different public agencies representatives and convinced these cross-sectoral officers about the unique opportunities of Mongolia as a country with multilateral and cross-board trade facilitation agreements on a regional level – with our biggest trading partners and good neighbours being the Russian Federation and People’s Republic of China, as well as Singapore, South Korea, Japan and the European Union (EU). Also, our country is a Member State of the World Trade Organization (WTO) and an especially important agreement has been signed by the Mongolian Government with the Government of Japan that waives reciprocal export and sales taxes on traded goods.

To build a strong community for the professional exchange of news and media coverage provided by the opportunities opened up by the digital communications, Hemp Mongolia LLC aims to develop a strong and unified working group of NGO’s consisting of hemp industry professionals representing countries in the Asian region, including India, Bhutan, Malaysia, Vietnam, Korea, Japan, Singapore so that that the hemp industry’s latest product, technological market trends and trade flow developments can be followed by such working group members.

A.Anar’s sums up the role of Asia in the hemp and cannabis sector in his own words: “Asia is moving in the hemp and cannabis sectors – the development is swifter following the oversight deregulations of industrially developed countries. This trend we follow may bring in the next round of significant ease in policy, inducing a potential hemp boom in the mid-term future. I believe the near future will determine Asia’s marketplace as the price moving market force for hemp products due to its dominant consumption and volume demand.

Meanwhile, Hemp Mongolia LLC successfully accomplished its first open-air greenhouse hemp plantation trial and formed the first steps to add value in its technological and chemical property research and laboratory testing results assurances.

A.Anar then comments on this research in his own words:

“This research and trial phase following the formalisation of the licensing regulatory requirements are an essential part of our work to study the previously undocumented and tested local seeds’ genetic properties of local hemp. The improvement of selection and breeding is a big piece of work to carry out after the revealed findings and a result of the sampling and testing of the large variety of wild indigenous genetically preserved species originating in the vast regions of Mongolia, potential has been identified.”

Phase 1:

The U.S. sales volume statistics are approximately $130 million. For CBD sales and the discussions around the legal framework regulations in the Asian region, I suggest that the CBD production is still relatively low compared to the existing and historically traceable demand volume of cultivated hemp harvest for medicinal usage. CBD oils are again becoming the centre point of international discussions as an alternative and effective, naturally-low side effect carrying organic treatment for certain diseases and illnesses. Compared to the traditionally strictly standardised other agricultural farming cultures, hemp is not a cost-intensive crop culture with modest loss and unpretentious to climatic conditions.

The Mongolian climate has short cultivation periods and continental conditions and harsher climate leads to improvements in the chemical properties of hemp as a medicinal plant. Cannabinoid science is now in the starting phase to explore the medicinal properties of CBDA, CBN, CBG and CBC.

In summary, with this research and study trials of the Mongolian originated hemp cultures, I am sure that we will contribute to the development of the data bank of such scientific works and we will definitely be of an asset to the market of such R&D companies in the Asian region, as well as in the more industrially advanced countries.

Phase 2:

“Hemp Mongolia LLC’s second stage is to build an extraction plant for CBD and other medicinal cannabinoids from hemp. The selection and on-site study of the latest extraction systems and building GMP compliant facilities in Mongolia is the main goal for developing and diversifying the export market based on the low-cost advantages of arable and cultivation land. Also, the plant facility land initial investment costs are attributed to the first industrial hemp processing plant licensed developer company. Already, during the beginning of our trial phase market, participants from Korea, Japan, Russian Federation, Germany and China have been approached with workable contacts and information exchange.”

A.Anar notes:

“Our company is confident in a production strategy based on the two sources of raw material available for the start of processing.”

Firstly, wild hemp harvests, to be supplied for our production will bring in a relatively low material entry cost. The processing of wild hemp harvest will attract customers with a high awareness of a naturally and organically originated end product. The marketing and pricing of such pure organic hemp labelled products are commonly placed as high-end users preferred brands.

Secondly, assisted and advised by our company’s partners in Spain, we will be providing selected and improved Mongolian strains based on newly cultured raw hemp materials on an industrial scale from in-house and out-door greenhouse plantations built on fertile virgin soil, without any industrial chemical contamination. Such outdoor open-air and indoor and outdoor greenhouse cultivation areas will be operated on with up to 15,000 hectares of good clean soil land leased from the government for at least 20 years and should be renewable for further periods.

“HempMongolia LLC is closely working with and our activities are under the regulatory oversight of the Mongolian Government’s respective agencies. Our company has invested major efforts since 2015 in early education, informing and awareness-building activities with public agencies. With an ‘official’ awareness of our company’s activities, the benefits of hemp production and its exporting potentials are a large preparatory work to improve the regulatory relationships necessary to be licensed as the first company,” A.Anar said.

A.Anar then develops this point further and recalls:

“During the first discussions, officials were ignorant about hemp farming, due to a lack of information and industry and market-specific latest developments covered in the international media, but mainly due to the barriers of an old stigmatised approach to the hemp plant. So, we continuously provided scientific evidence and study to the agencies’ responsible representatives, which could not ultimately afford to be ignored or overlooked simply due to the significant international trends in the regulatory environment.

“Presently, our company has been able to gain the support of the Ministry of Health, the Innovation Center, an agency under the auspice of the Mongolian Government Cabinet Administration and other governmental institutions.”

Phase 3:

AGROPARK

Located after a two hours paved road drive east to Ulaanbaatar, Baganuur is a suburban city close to the capital of Mongolia. The Baganuur city is a special tax-free zone for industrial production factories, approved for new housing project developments supported and potentially to be financed by development agencies from the Mongolian government. HempMongolia LLC is studying the utilities and logistics, infrastructure connectivity and communication suitability requirements for building its production plant facilities in this city area.

Hemp Fibre, Hemp Food, Hemp Eco-Building Panels are some potentially profitable investment expansion areas for the environmentally friendly and green usage of Hemp industry investments. With the assistance of our advisor from Italy, Mrs Rachele Invernizzi is interested in the fibre and construction material domestic market, so our company will find investors for Mongolian company’s projects willing to co-operate in the long-term with HempMongolia LLC to fill the gap in these areas of production, in particular, to offload the foreign exchange exposure of such importer companies and diversify their business to substitution materials manufacturing.

Our company sees good opportunities ahead to create market demand internally in Mongolia, as well as a comfortable foreign market environment for hemp growers and processing manufacturers and their sales agents. We are looking and willing to work to adopt the best international practices of hemp regulations and to assist and cooperate with Mongolian regulatory agencies.

Phase 4:

HempMongolia LLC sees a good future ahead when it comes to participating in Asian professional NGO’s to become one of the best working teams to represent the countries vision for wellbeing and prosperity. With the digital age present in the daily life of each of us, our company believes blockchain technology and artificial intelligence (AI) will become the next facilitators for hemp value chain building participants.

Hemp Mongolia LLC

*Please note: This is a commercial profile