Alliance to meet demand for CBD goods
Ocean Commerce Plc, a provider of original palm oil fuel ash, has joined hands with two cannabis and pharmaceutical business operators to develop water-soluble cannabidol (CBD) extracts from hemp for the first time in Thailand to serve growing domestic and global demand for CBD-based products.
"Our customers do not need to conduct further development because we use technology to make water-soluble CBD that can be mixed with drinks. Other companies in the market have yet to go to this production level," said Teera Chutivaraporn, chief executive of Ocean Commerce Plc.
His company has partnered with Cannabiz Way Co and JSP Pharmaceutical Manufacturing (Thailand) Plc.
Experts have found hemp is rich with CBD, which can be used to treat a number of ailments.
Both hemp and marijuana have potential to be new economic crops used to make value added products, said Mr Teera.
Market value of CBD oil in the global market currently stands at 100 billion baht.
Ocean Commerce expects the value will increase to 400 billion baht within 2028.
The firm has spent 30 million baht investing in CBD-extracting machinery installed at a factory of JSP Pharmaceutical Manufacturing factory in Bangkok.
CBD extracts from hemp are expected to generate revenue worth 100 million baht for Ocean Commerce in 2022.
Unarin Kitpaiboonthawee, managing director of Cannabiz Way, said her firm is also working with Naresuan University in Phitsanulok to develop hemp and marijuana seeds to serve the water soluble CBD project.
"We plan to grow hemp amounting to 250,000 plants in 2021 and increase the number to 1 million in 2022," she said, adding the farming takes four months before harvest.
Sittichai Daengprasert, president of JSP Pharmaceutical Manufacturing (Thailand), a provider of cosmetics, nutritional supplements and traditional medicines, said the firm is waiting for the Food and Drug Administration to grant it a licence to make CBD oil.