Investment Opportunity

First-mover advantage in the $927M hemp animal feed market. Regulatory catalyst timeline: 2027-2028.

Investment Thesis

Spent hemp biomass is the highest-protein, most nutrient-dense livestock feed ever tested, currently sitting in landfills because it lacks FDA approval. Oregon State research (June 2025) solved the THC residue concern by proving cannabinoids clear completely within 15 days, removing the primary regulatory barrier. The hemp animal feed market is $657M today, but spent hemp biomass has ZERO commercial market share because it's not approved. FDA approval (expected 2027-2028) transforms spent hemp biomass from waste product to premium feed ingredient. Companies with processing infrastructure, farmer relationships, and distribution channels before approval will capture the arbitrage.

The Opportunity

  • 47% protein content (highest in industry)
  • Currently zero economic value (waste product)
  • 60%+ of US hemp creates this byproduct
  • Massive supply with zero competition

The Catalyst

  • Oregon State: THC clears in 15 days (June 2025)
  • HEMP Act establishes FDA framework (2026)
  • FDA approval expected 2027-2028
  • Market activation immediate post-approval

The Moat

  • Regulatory barriers keep competition out
  • Capital-intensive processing infrastructure
  • Exclusive supply agreements with farmers
  • First-mover brand establishment

The Exit

  • Strategic acquisition by Cargill, ADM, Purina
  • IPO post-approval with proven revenue
  • Private equity rollup of regional players
  • Vertical integration into hemp operations

Market Analysis

$657.3M
2025 Market Size
Hemp Animal Feed (Total)
$927.2M
2035 Projection
3.5% CAGR (Conservative)
0%
Current Market Share
Spent Hemp Biomass (Not Approved)

Market Segments & Opportunity

Hemp Seed Meal (Currently Approved)38% Market Share

Cold-pressed byproduct after oil extraction. High protein, but lower than spent biomass.

Spent Hemp Biomass (Awaiting Approval)0% Market Share

47% protein content - highest in industry. Currently waste product. Post-approval: dominant market position likely.

Other Hemp Products62% Market Share

Hemp stalk meal, oil, cake, and other byproducts. Fragmented market.

Use of Funds

Infrastructure Buildout

Processing Equipment35%
Facility Expansion25%
Quality Control Systems10%

Market Development

Supply Agreements15%
Distribution Network10%
Working Capital5%

INVESTMENT STRATEGY

Capital deployed during regulatory approval phase to build infrastructure and secure supply agreements before market activation. First-mover advantage maximized by operational readiness at approval date.

Risk Factors

Regulatory Risk

FDA approval timeline uncertain. While Oregon State research (2025) solved the THC barrier and HEMP Act (2026) establishes framework, approval could take longer than projected 2027-2028 timeline. Mitigation: Infrastructure buildout provides value regardless of exact timing.

Market Risk

Farmer adoption rates uncertain. Competition from traditional feed. Pricing pressure post-approval. Mitigation: Superior nutritional profile (47% protein) and cost advantage (waste product → premium feed) provide strong value proposition.

Operational Risk

Processing infrastructure capital requirements. Quality control (THC levels). Withdrawal period management. Traceability systems. Mitigation: Experienced team, proven processing technology, established supply relationships.

Ready to Discuss Investment?

We're seeking strategic partners and institutional investors who understand the regulatory arbitrage opportunity. Contact us for the full investment deck and financial projections.

INVESTOR INQUIRIES

[email protected]

Qualified institutional investors and accredited investors only. All investment opportunities subject to regulatory approval and compliance.