Ukraine Opens Its Largest Industrial Hemp Processing Facility

Introduction

Ukraine has taken a major step in industrial hemp production with the launch of its largest hemp processing facility in the Zhytomyr region. Built by the Ma’Ryzhany Hemp Company, this investment is seen as a cornerstone for reviving hemp as a sustainable agricultural and industrial resource. The project reflects a growing global interest in hemp for textiles, paper, construction, and bioplastics — while also supporting Ukraine’s economic recovery during wartime challenges.

Background: Hemp in Ukraine

Hemp has deep roots in Ukraine’s agricultural history. Once widely cultivated for textiles and ropes, it declined during the 20th century due to strict regulations and competition from synthetic fibers. In recent years, renewed legislation has allowed for industrial hemp with very low THC levels to return to cultivation.

In December 2023, Ukraine’s parliament lifted restrictions on processing hemp, opening the way for private investments into large-scale facilities. This policy shift has paved the way for the current development in Zhytomyr, signaling government support for the hemp sector.

The New Facility in Zhytomyr

The Ma’Ryzhany Hemp Company has invested more than $20 million into restoring an abandoned flax mill and transforming it into a modern hemp processing center.

Key features include:

• 10,000 m² of production space.
• 10,800 m² of warehousing.
• A processing capacity of up to 14,000 tons of hemp annually.

The facility is designed to handle multiple product streams, ensuring that every part of the hemp plant is utilized efficiently.

What the Facility Will Produce

The new plant is expected to supply both domestic and international markets with:

• Long fiber: for textiles, ropes, and industrial fabrics.
• Short fiber: for paper, insulation, and composites.
• Hemp hurd (woody core): for construction materials, animal bedding, and bioplastics.

By using the whole plant, the company reduces waste and increases profitability. Initial sample products have already been produced, showing the facility’s readiness to scale.

Agricultural Expansion

To meet growing demand, Ma’Ryzhany Hemp Company cultivated 890 hectares of hemp last year and plans to expand to 1,200 hectares. Despite this growth, experts note that Ukrainian farmers remain cautious. The main reasons include:

• Regulatory uncertainty around licenses and testing.
• High initial investment costs for machinery and seeds.
• Lack of familiarity with hemp compared to traditional crops.

These challenges mean that while hemp has enormous potential, adoption will take time.

Economic and Social Impact

The hemp facility represents more than just industrial investment. Its impact extends to:

• Job creation: revitalizing employment in Zhytomyr, particularly in areas hit by wartime economic decline.
• Local value addition: processing hemp domestically instead of exporting raw material keeps profits within Ukraine.
• Export opportunities: Europe’s textile and construction industries represent a strong market for hemp fiber and hurd.

This aligns with Ukraine’s broader economic strategy of diversifying exports and strengthening sustainable industries.

Sustainability Advantages

Hemp is recognized as one of the most eco-friendly crops. Research highlights its:

• Fast growth cycle, requiring fewer pesticides and less water compared to cotton (study).
• High carbon sequestration potential, with the ability to capture significant amounts of CO₂ (source).
• Versatility across industries, from bioplastics to green construction materials.

By expanding hemp processing, Ukraine not only supports its economy but also contributes to the global shift toward sustainable materials.

Challenges Ahead

While the facility is a milestone, several challenges remain:

• Farmer hesitancy: overcoming fears about regulations and profitability.
• Global competition: ensuring Ukrainian hemp fiber meets quality standards demanded by European buyers.
• Capital intensity: both farming and processing require significant upfront investments.

Addressing these issues will be crucial for the long-term success of Ukraine’s hemp industry.

Outlook for the Future

Ukraine’s entry into large-scale hemp processing places it firmly on the map of global hemp producers. If cultivation expands and regulations stabilize, the country could become a regional leader in sustainable hemp products.

The Ma’Ryzhany Hemp facility is more than a factory — it is a symbol of economic resilience, innovation, and a greener future for Ukraine.

FAQ

What is industrial hemp?
Industrial hemp refers to cannabis varieties with very low THC content, grown legally for fiber, seeds, and hurd.

Why is hemp important for Ukraine?
It creates jobs, supports rural economies, and offers sustainable products for export.

What products can come from hemp processing?
Textiles, ropes, paper, insulation, construction materials, animal bedding, and bioplastics.

Is hemp cultivation legal in Ukraine?
Yes. Regulations were eased in 2023 to allow for cultivation and processing of industrial hemp, though licenses and THC testing are required.