Value chain analysis of industrial hemp: An extensive review and a case of Nepal

Value chain analysis of industrial hemp: An extensive review and a case of Nepal

Recently, many countries ended the early 20th century-imposed sanctions on industrial hemp to invigorate the hemp-based economy. Following the revival, studies aimed at assessing the environment and economic sustainability of industrial hemp and products along (entire or certain) value chain nodes have become the priority of the research realm. Systematic assimilation of such studies may cater to comparison among diverse hemp-based products and their fossil-based counterparts. Therefore, the first objective of the current study was to conduct a systematic literature review aimed at evaluating the industrial hemp value chain from enviro-economic perspective. We searched databases, namely Science Direct, Scopus and Web of Science to retrieve articles on industrial hemp related to lifecycle assessment (LCA), value chain (VC) and financial feasibility components. The results of the literature search highlight hempcrete as an environmentally friendly product due to the carbon negativity. From the economic perspective, industrial hemp may not be viable for the entire value chain actors, however, addressing key intervention (such as harvesting and processing) nodes and capitalization of value addition and valorisation opportunities may foster promising future potential. Similarly, the second objective narrows the research gap in the global south (indicated by the review study) as it provides insights from Nepal where the hemp value chain may be legally contested. Using the case of Nepalese western mountain farmers and employing a mixed-method approach, we uncovered the tapestry of the illegal hemp value chain, evaluated the contribution of industrial hemp to pro-poor households, and analysed the structure, conduct, and performance of the industrial hemp value chain. Based on our findings, we conceptualized 'dark,' 'opaque,' and 'transparent' visions, which respectively illustrate the compassionate ground for production allowance, created opacity for outbound operations, and unconcealed distribution activities. Results suggest, albeit negative gross margin for hemp farmers, profit-making opportunities for downstream actors. Industrial hemp legalization, market integration, and consortium marketing are some of the identified strategies. Globally, the findings of this study have the potential to contribute to sustainability benchmarking of hemp-based products and encourage global collaboration in research and innovation. Nationally, it can guide policy intervention ii and the development of the integrated framework for greater industrial hemp value chain efficiency.

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