Sappe PCL (SAPPE) and Thai Hemp Wellness Co., Ltd signed a Memorandum of Agreement to collaborate in a project to promote hemp cultivation for production and generate income for farmers as well as ethnic groups in Chiang Rai. The project members will receive hemp sprouts, organic fertilizer and high-quality microbe to boost crop yields. The project is promoted as a fundamental base for hemp products while the cultivation was expected to begin in May. After harvesting, the hemp will be extracted to be cannabidiol and hemp seed oil. The hemp yields are expected to be ready in September, and will be developed as hemp products in the future.
Ms. Piyajit Ruckariyapong, Chief Executive Officer of Sappe PCL (SAPPE), said on March 25 that SAPPE signed a Memorandum of Agreement with Thai Hemp Wellness Co., Ltd in a project to promote hemp growing for production and create jobs for local farmers as well as ethnic groups in Chiang Rai. The project concept is to provide necessary resources including sprouts, fertilizer and microbe to boost the yields. A team of experts will be formed to give advice, ranging from planting, nourishing and harvesting, as well as how to comply with the relevant laws, to farmers. In addition, the company will buy the whole crop from a 200-rai planting plot.
SAPPE has been studying cannabis and hemp business in full scale from upstream, middle stream and downstream. For the upstream business, the company has brought expertise from Thai Hemp Wellness, which operates hemp cultivation to be extracted by scientific methods. Aside from its mastery in hemp, Thai Hemp Wellness is also recognized as a firm that closely cooperates with the Agro-Organic Agriculture foundation, which has many experts in hemp plant strains research. More importantly, the chairman and vice chairman of Thai Hemp Wellness are experienced medical doctors, who are authorized to provide treatment for patients with hemp-cannabis extracts at their clinics. The production bases are in Chiang Rai and Mae Hong Son, which are suitable to grow hemp.
The hemp growing areas are also certified under the organic farming international standards. Thai Hemp Wellness is in the process of applying for a license to extract cannabidiol (CBD) from hemp.
In the meantime, the farmers have sought approval to grow hemp and are expected to start plantation in May. The products from hemp will be extracted to be CBD and hemp seed oil, which are expected to be ready in September. The extracts from hemp will be developed into more items, such as food and beverage mixing with hemp extracts. The company will seek approval from the Food and Drug Administration (FDA) before launching the production.
Thai Hemp Wellness Chief Executive Officer Mr. Sathienpong Kaewsod said the green light from the government in hemp cultivation will benefit local economy as the hemp cultivation and usage will help build bioeconomy. In addition, hemp is a high-value cash crop, comparing with the other monocropping plants, which formers grow in the upstream forest area. Reducing the proportion of the plants previously grown in monoculture and replacing them with hemp will help develop and restore the area to become a forest by an agricultural procedure.
Furthermore, the company has promoted hemp cultivation to produce material for the extraction factory. It has also cooperated with the district agricultural office to establish a community enterprise to seek approval for hemp cultivation. The provincial public health office has provided help by giving approval, while setting up a panel of experts to provide technical knowledge and quality control to make the products meet required standards.
Thai Hemp Wellness also joins hands with the Agro-Organic Agriculture foundation, which sent a team of experts to set up a working system and educate the farmers for sustainability.