New Partnership Seeks to Dominate Hemp Manufacturing Supply Chains

A new alliance is forming in the hemp production industry.

The alliance is currently made of partners Dümmen Orange North America and Royale Botanicals. Dümmen Orange is the world’s largest ornamental plant breeder and propagator. Royale Botanicals is a division of Denver’s Dutch Heritage Gardens specializing in a hemp plant breeding and clone production.

These privately held partners plan to build a national hemp production and distribution alliance in an attempt to take hemp genetics and production systems to the next level using Dümmen’s Quick Plug division.

Their goal is to dominate the hemp-manufacturing supply chain with strategic relationships between big manufacturers and big suppliers.

Hemp Manufacturing Supply Chain

Goal of This New Hemp Manufacturing Alliance

Everyone in the cannabinoid industry is waiting for regulators to take the breaks off the global market. When this happens, the demand for reliable manufacturers and distributors will explode.  

This abovementioned partners are counting on the fact that cannabinoid production will soon mirror well-established horticultural supply chains.

“We think there’s a great potential to professionalize the business,” said Keith Cable, president of Dümmen North America, headquartered in Columbus, Ohio. “It’s been an up-and-down cycle, but certainly the prospects for long-term growth are significant.”

While one goal is to use their distribution network to provide U.S. farmers with hemp clones, another goal is to establish a stable supply chain for large product manufacturers in search of trustworthy suppliers.

“The big beverage and (CPG) guys will come, and that’s inevitable,” said Jamie Chittum, director of business development for a division of Dümmen Orange North America. “If you want to participate in that market, I don’t think you can wait until the day that happens. That’s why we’re trying to start the supply chain that we’ve envisioned as successful now, so we’re ready.”

Chittum also said that this alliance could give supply product manufacturers a stable and closed loop supply chains that are years long and reliable.

“We can genetically develop it to meet their needs, (and) we can professionally produce it so that they have a successful and sustainable product launch,” said Chittum. “We see this as the next step in this new world. We want to make sure that we have a supply chain that connects everyone together in a professional manner to support many different industries utilizing CBD products.” 

Hemp Manufacturing and Horticulture

Dümmen Orange also plans to use this partnership with Royale Botanicals to build a pipeline of hemp varieties suitable for various U.S. regions. The hopes it hat this will empower growers choose their own varieties.

Theoretically, this will result in high-quality hemp clones as a competitively superior alternative to the hemp seed market and make high quality crop cultivation affordable for all farmers. 

“The market wants clean genetics with predictable levels of CBD,” said Chittum. “They want unique cannabinoid profiles, they want disease tolerance and all the things that a national roll-out would require.”

Chittum confirmed that these companies already have multiple plant-breeding projects in the works, including some varieties of minor cannabinoid profiles. He also said that hemp growers will probably be using transplanters and field automation and that stable media will help them to maintain intact clones while planting (indoors or outdoors). 

To answer this demand, Chittum confirmed that QuickPlug (the media division of Dümmen Orange DBA “GrowTech”), has been busy for some time creating media for the hemp industry. Dümmen Orange bought GrowTech and a few other companies in 2017 to create their current media division. QuickPlug has also been developing technology for increasing the efficiency of clone production and planting.

More Plans for Stable Expansion

Dümmen Orange has even bigger plans for using their technology and connections to help the exploding hemp industry. The large plant breeding company owns a worldwide network of farms and propagation facilities and multiple applications to assist hemp growers with automation technology to increase their efficiency and product quality. 

“We have all of this at our fingertips, and as soon as it makes sense, we can bring these tools to bear,” said Chittum. “We look forward to that, and we’re hoping this market matures quickly and becomes just like any other horticulture markets out there.”

No financial terms have been released yet, but the partners have talked publicly about pooling their resources to attract the world’s leading product manufacturers. They are also seeking to add other partners to their alliance. 

This CBD industry news update is brought to you by CBD Manufacturer, Spring Creek Labs. 

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