New Industrial Hemp Processing Plant to Open in Bashkortostan

LLC “Bashhemp-Agro” is planning to open a plant for processing industrial hemp in the Kushnarenkovsky District of Bashkortostan, where they will produce environmentally friendly products. The company has already started construction and plans to invest 200.5 million rubles in the facility. The factory will produce more than 50 different products from industrial hemp varieties and is expected to create 75 new jobs.

Hemp Cultivation Begins in Bashkortostan

The government of Bashkortostan approved Bashhemp-Agro’s project during an “Investment Hour” meeting and agreed to lease 2,400 hectares of agricultural land to the company. On this land, Bashhemp-Agro will grow industrial hemp and process the raw materials at its own plant.

Growth of Hemp Cultivation in Russia

In 2020, the area of hemp crops in Russia increased by 3% compared to 2019, reaching 10,500 hectares. The Volga Federal District ranked first among Russian regions in terms of hemp farmland, with 5,345 hectares. The Central Federal District came in second (3,863 hectares), followed by the Ivanovo region (1,853 hectares). Last year, hemp was not cultivated in Bashkortostan, so Bashhemp-Agro will become the first and so far only hemp company in the republic.

Russian Hemp Industry Continues to Develop

From 2016 to 2020, the weight of products made from hemp in Russia grew from 600 to 3,300 tons, with crop yields increasing by 35% (from 2.3 to 3.1 centners per hectare). However, the largest Russian hemp company, Konoplex Group, does not plan to stop there. The company has already started sowing hemp and plans to cultivate the plant on 2,000 hectares in 2021. Last year, Konoplex launched the country’s first full-cycle hemp oil production plant using cold-press technology. The “Konoplyanka” oil produced at the factory was awarded “Best Product” at the Prodexpo-2021 exhibition.

Konoplex Group reports a 30% monthly increase in revenue from online sales of hemp products, so the company aims to expand its product range and increase the production of hemp fiber and oil. In 2026, the company plans to open a plant in the Penza region to produce cellulose from hemp and other bast crops. The construction will require an investment of 2 billion rubles, which is expected to pay off within 15 years.