BioAg Group Announces Plant Expansion
Fayetteville, AR (October 1, 2020)
BioAg Group is excited to finally be receiving new equipment for hemp processing which was originally ordered in January 2020. This equipment will be part of a 20,000 square foot expansion at the Victorville California processing facility and will add additional cold storage space for the highly refined CBD isolate powder. “These improvements will allow us to boost processing capacity by an additional 9000 pounds per day of Biomass and up to 400 more kilos of CBD isolate per week,” says Joseph Hooper, President of BioAg Group.
As inventories of CBD isolate are accumulated and put into cold storage, the spot price for CBD continues to rise with very strong demand in Europe. “Selling CBD overseas is a big deal with lots of very stringent requirements and red tape that many hemp farmers are unable to overcome,” says Robert Mitchell, Vice President of BioAg Group. Our farming partner (Harvest Farm Group) puts its 30 plus years of organic farming experience to work to achieve these requirements. From dealing with the FDA and other agencies to provide fully documented and compliant organic growing techniques, Harvest Farm Group is well equipped to overcome these barriers and plans to sell a large portion of its 2020 inventory to Canada and Europe.
As international markets soar, the climate for hemp-derived CBD in the United States continues to warm up with new bills recently passed in California to continue easing banking restrictions. Although the 2018 farm bill allowed banks to work un-prohibited with hemp farming companies, many of the large national banks still have been reluctant to provide banking services to hemp farmers and particularly CBD retailers even though their products contain no THC. California Governor, Gavin Newsom signed several bills on Tuesday including Bill 1525 which eases banking restrictions mainly on cannabis companies. And other current legislation is geared toward preventing contaminated and unsafe products from entering the retail market, which has been a big concern for large retailers such as Wal Mart, CVS, and others. This coupled with the challenge of finding growers that can consistently deliver high-quality documented CBD products in large volumes has kept most of the big retailers on the sideline, but that could soon be changing. “The CBD industry is still largely in its infancy and as these large retailers become more comfortable with government regulations and deliverability of quality products, the CBD industry should continue to grow at an even faster pace from here,” says Mitchell.
To learn more about BioAgGroup and its hemp farming operations, go to BioAgGroup.com or contact Joseph Hooper at 270-991-6858 Joseph@BioAgGroup.com