Hemp has the potential to become Thailand's next cash crop with perceived utilization in downstream industries for varied purposes with high added-value. Meanwhile, the initial supply of hemp - once restrictions have been lifted - will likely hit the market in 4Q21, and is projected to see steady increases. Nonetheless, growing hemp is still considered a difficult endeavor, as the process is dependent on multiple conditions.
KResearch has preliminarily assessed that the income from outdoor hemp farming in 2021 may average at Baht 200,000 – 1 million per rai, due to its high price which mainly stems from its limited supply. At the same time, the cost of growing hemp may range from Baht 300,000 to 1.5 million per rai. For this reason, a breakeven point for hemp farming could be around 4-5 years. Over the forthcoming period, it is likely that hemp farmers' income will gradually decline owing to increased availability which would consequently put pressure on price. Additionally, hemp farmers can expect to face challenges from foreign competitors who are expected to sell fresh hemp and hemp extracts once import restrictions are lifted. Therefore, those who wish to invest in hemp farming should carefully consider a number of important factors.