Friday release was GOOD newsFriday release was
GOOD news
The BNN:Bloomberg article
Hemp prices plunge as CBD demand falls short and the Vegan Business Magazine article
UN Report Warns Investors to Prepare for Major Shift to Plant-Based Global Food System posted below pretty much confirm that the
Friday release was GOOD news.
Time to go back and read parts of the last two NSP news releases:
Vancouver, British Columbia - TheNewswire -January 24, 2020 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) provides the following updates.
The Company has reviewed the CBD edibles opportunity and has strategically adapted our strategy for this emerging market.
Naturally Splendid, will continue to focus our core strengths manufacturing nutritious food, with plant-based ingredients in our SQF2 Certified food manufacturing facility while the market for edibles continues to evolve. We will leverage this expertise to extend into the 'edibles market' as opportunities warrant and the necessary licensing secured.
In 2019 many companies involved in the cannabis industry began to tighten their budgets and and/or reduced the scope of projects given the state of the cannabis market in Canada. That trend is continuing into 2020. It is prudent for Naturally Splendid to adjust strategies to best suit these challenging times for the cannabis industry.
Therefore, after a thorough review, the agreements with AlternaMedz Canada Holdings Inc. and Prairie Pure (1159705 BC Ltd.) have been terminated.
**
Vancouver, British Columbia - TheNewswire - January 21, 2020 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) is pleased to provide the following updates and outlook for 2020.
Naturally Splendid derives the majority of revenue from the Prosnack Division, manufacturing nutritional bars & bites from mainly plant-based ingredients at our Safe Quality Food Level 2 manufacturing facility (SQF2).
Purchase orders in January have already exceeded $300,000 CDN to date. The Company's focus will be on expanding business and growing revenue in the plant-based nutritional category while the cannabis edibles markets continues the path to more mainstream opportunities.
**
I repeat: The termination of both AlternaMedz & Prairie Pure agreements
is good news
:<) *****
“NSP is a very viable business without the Processor’s License!” *****
“Living in the sunshine” Always DYODD DKM *****
Hemp prices plunge as CBD demand falls short - Jan 26, 2020
It may not be apparent when you’re spending US$70 on CBD foot cream, but hemp prices are plunging amid a “grossly oversupplied” market, according to the head of the industry’s first price provider.
Hemp biomass prices reached a high of over US$40 a pound in July, just before the 2019 harvest came in, according to PanXchange Chief Executive Officer Julie Lerner. Today, it’s trading under US$10 a pound following a quadrupling of supply from 2018 to 2019.
Meanwhile, the CBD consumer market remains limited as the U.S. Food and Drug Administration continues to prohibit the extract in food or dietary supplements, although many sellers ignore that mandate. CBD is legal in other uses, such as topicals, as long as it contains less than 0.3 per cent THC, the cannabis compound that gets you high.
“Every way you slice it, the physical demand for the CBD market is much, much smaller” then the supply, Lerner said in an interview. “I’m a little surprised that retail prices have not started to come down yet. There’s so much competition.”
Lerner, a former Cargill trader, founded PanXchange in 2011. It started as a trading platform and benchmark pricing service for commodities in East Africa, then expanded into the U.S. via the specialty sand market for oil and gas. PanXchange launched the hemp industry’s first suite of benchmark prices in January 2019, one month after the U.S. farm bill legalized the plant, and added a trading platform in August.
Today, the hemp market is “rife with desperate sellers and opportunist buyers,” Lerner said in her December analysis of the industry. She looked at three different measures of potential CBD demand and found in each case that farmers are growing far more hemp than the industry needs.
For example, Lerner estimated that Charlotte’s Web Holdings Inc., the largest publicly traded CBD company, needed less than 500 acres of hemp to service an estimated $95 million of sales in 2019. Assuming Charlotte’s Web accounts for approximately 2.4% of the $4 billion U.S. CBD market, that means about 20,000 acres of hemp are needed in total.
Instead, Lerner estimated that approximately 115,000 acres were harvested in 2019. And it’s only going to get worse.
“We are hearing that despite the losses people have had this year, they’re still going to increase plantings, and you have Texas, Florida, Wyoming and a bunch of late-comers that are just starting this crop year,” she said.
Lerner predicted that industrial demand for hemp will eventually dwarf the CBD market, but that won’t happen until prices drop even more.
“It’s a little bit chicken and egg,” she said. “There won’t be demand for it until prices drop, and people won’t be planting for the industrial fiber market until there’s huge demand for it, so we’ve got to get over that hump first.”
Cannabis Prices Meanwhile, U.S. prices for cannabis also fell in most states and categories in 2019 -- the opposite of the trend seen north of the border.
An analysis by wholesale cannabis marketplace LeafLink found that statewide pricing across categories fell in every legal state except Washington and Oregon. Prices also dropped in all categories except for edibles and ingestibles.
Notably, prices for smokable flower dropped 8% nationwide, with California prices falling 21 per cent and Oregon tumbling 24 per cent. “This is likely due to the proliferation of non-flower related products as these two markets reach maturity,” LeafLink said in its report.
Despite the price increases in 2019, Washington remained the cheapest state to buy cannabis due to “product over-saturation,” LeafLink said. The most expensive state is Alaska, with its “exceptionally high logistics and shipping costs.”
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A United Nations backed independent organisation,
Principles for Responsible Investment (PRI), has recently released a report warning investors to prepare for a major shift towards a plantbased food system. The report by the PRI, titled the
Inevitable Policy Response, overviews a number of policies that should be put in place imminently to mitigate climate change.
Mirroring a similar study as we reported last September, which declared that we are “on the cusp of the fastest, deepest, most consequential disruption in history”, this new analysis forecasts an abrupt and disruptive policy response to climate change which will cause re-pricing of many of the world’s most valuable companies by 2025.
The analysis was commissioned by PRI and undertaken by Vivid Economics and Energy Transition advisors. It is based on company level impacts and demonstrates the significant risk of value loss across and within major sectors and sub-sectors as well as a significant upside for those prepared to take advantage of the transition.
These analysts are warning investors to expect a global dietary shift toward a plant-based system amid our
climate crisis. The report outlines that certain climate change mitigation policies, which include a drastic
reduction in meat consumption among others, need to be implemented in the coming years.
The PRI states: “With production, processing and retail of food accounting for 15-30% of all greenhouse gas emissions in high-income countries, significant shifts in food consumption patterns will be required as a part of the low carbon transition.”