The economy of the Chui Valley

Economy of the Chui Valley

A few hemp calculations. For example, how much we could earn from what we got for free — the Chui Valley.

The approximate area of wild hemp in the valley is 140,000 hectares. On the territory of Kazakhstan, according to various estimates, it ranges from 60,000 to 70,000 hectares.

For the calculations, let's take the lowest limit — 60,000 hectares. Also, let's not consider the experiments of the 1990s, when they obtained 40 tons of biomass per 1 hectare. Let's take a minimum yield of 2 tons per 1 hectare.

So, 2 x 60,000 = 120,000 tons.

Let's assume that 70% of the raw material is suitable for processing. That gives us 84,000 tons of free, self-growing product annually.

There are 2 scenarios for how to sell this:

A) Industrial hemp — from $300 to $500 per ton. Let's take an average price of $400.

Potential revenue: 84,000 x 400 = $33.6 million

Harvesting and transportation costs — $50 per ton — $4.2 million.

Profit before tax — $29.4 million.

B) THC and CBD extracts — from $1,000 to $2,500 per ton. For calculations, let's take an average price of $1,750.

Potential revenue — $147 million

Extraction costs — $400 per ton — $33.6 million.

Profit before tax — $113.4 million.

Investment in equipment will also be needed, but it will pay off in the first year.