Abstract

After a long period of decline and persecution, there is a revival and rapid development of the cannabis industry around the world: the use of this unique crop is expanding rapidly, and finally, it was transferred from a narcotic to an agricultural one (except for Ukraine). Nowadays, the Ukrainian hemp industry has practically gone unnoticed by the state, scientists, practitioners and society. At the same time, it has development prospects and can play a significant role for rural areas and the national economy. The paperis aimed at exploring the possibilities of growing hemp (Cannabis sativa L.) and justifying the need for strategic management of the development of the cannabis industry in Ukraine. Based on the analysis of hemp production, it is established that during the years of Ukraine’s independence, the area of hemp crops has decreased almost 8 times; the number of producers is limited; hemp processing plants do not function; the yield of technical hemp seeds has a slight tendency to increase andapproximates 6-7 kg/ha. The prospects for cannabis cultivation require building strategic management of the cannabis industry to address key issues and mitigate threats. The key elements of the production development strategy are identified as improving institutional and financial support at the state level. The main guidelines of strategic management of hemp cultivation are: simplification of regulation for producers; intensification of agribusiness entities; increasing production volumes; and improving the competitive environment in the hemp market. It is proved that the strategic development of the hemp industry requires developing hemp processing enterprises; disseminating knowledge among the population about the usefulness and benefits of this multi-purpose culture. To substantiate the effectiveness of strategic decisions, the algorithm was proposed for assessing the effectiveness of growing different types of hemp products by different technologies, which is carried out using economic and mathematical modeling.

Highlights

  • Hemp has been an indispensable culture since ancient times as it provides food, clothing, textiles, fuel, and medicine

  • Ukraine’s integration into the European eco- The Institute of Bast Crops of the National nomic community requires a change in the ap- Academy of Agrarian Sciences of Ukraine, which proach to strategic management of the develop- is the originator of elite seeds and resource-saving ment of the cannabis industry as a promising technologies for growing this crop and in-depth component of economic growth in rural areas. processing, has a decisive place in forming theKravets (2014) studied conceptual approaches to oretical and methodological foundations of the strategic management of agricultural enterpris- hemp industry strategic management

  • It is well known that hemp (Cannabis sativa L.) or and allow the cultivation of cannabis for theracannabis is a strategic sector of society global- peutic use, legal cannabis earnings will be ly

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Summary

INTRODUCTION

Hemp has been an indispensable culture since ancient times as it provides food, clothing, textiles, fuel, and medicine. Agricultural producers favor sunflower, corn, soybeans, etc., motivating their choice by established markets, availability of processing plants, stable prices, etc. Even the leaders of the modern cannabis market – Canada and France – have not got such schools until now: France, for instance, has steadily imported hemp seeds from Ukraine in recent years. The need for strategic management of the hemp industry development in Ukraine is exacerbated by the existing public demand for knowledge about using hemp products, agricultural techniques for their cultivation, organizational, economic and environmental aspects of hemp cultivation

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