Zamhemp To Ensure Fair Price For Cannabis Farmers
The Zambian Hemp Growers and Industries Association (Zamhemp) has unpacked the association’s hemp buying and selling strategy for its members when hemp cultivation, processing, and export commences soon.
In its strategy published on its website, Zamhemp says it has designated one of its corporate member the Copperbelt Commodity Exchange (COMEX) to be the premium commodity-trading platform for buying and selling hemp from its members across the country.
According to the Zamhemp strategy, COMEX will work with the Government delegated agency for hemp to secure supply of raw hemp material for hemp industries affiliated to the association. Through commodity trading, COMEX will help to create liquidity in the national hemp business to ensure that farmers are paid for their produce handsomely and timely. The association also says that COMEX will trade on the international hemp market, and through it, local investors, small and big, could invest in speculative and other markets in the global hemp business.
“This means that several different types of local traders will be active in the hemp commodity market in Zambia,” says Zamhemp President and CEO Peter Sinkamba,
“This includes traders who will be dealing in raw materials used at the beginning of the production chain. For example, some traders will specialize in hemp cultivation and others in trading for extraction of hemp oil. Others will solely deal in hemp trading for processing in hemp construction blocks; others will specialize in hemp trading for oil used for medicinal and other pharmaceutical applications; others will specialize in hemp trading for cosmetics production, etc. So we have created space for everyone in the value chain,” he added.
The association says COMEX will on one hand operate independently, trading on major exchanges such as the New York Mercantile Exchange, and on the other hand others work for other international large hemp commodity producers.
“As a commodity trader working for local and international manufacturers or producers, COMEX will strive to secure the best prices on purchases while simultaneously supplying competitive bids to customers. In addition, COMEX will work as a broker working for brokerage firms helping in creating a deep and liquid international commodities market,” Mr. Sinkamba said.
“Furthermore, COMEX will in some instances act as speculators and attempt to make profits on small movements in commodity prices through forward and futures contracts,” he said.
“So right from cultivation through to export of hemp, we have gotten all systems figured out. We are good to go when time to get going comes pretty soon,” Mr. Sinkamba quipped.
On Monday this week, Government announced that Cabinet approved in principle the introduction of bills in parliament to enhance the existing legislation so that cannabis and hemp can be be cultivated, processed, and exported for medicinal, economic and industrial purposed. Mr. Sinkamba registered Zamhemp in June this year to work as a platform for members interested in hemp business value-chain. The Association plans to embark on hemp cultivation by October this year, if the laws are enacted by then.
This article originally appeared on Lusaka Times