This document discusses the potential for establishing an industrial hemp value chain in Italy. It provides background on the historical cultivation and use of hemp in Italy. It then discusses factors that led to the decline of hemp production, such as a lack of capital investment and industrialization. Current barriers to revitalizing the hemp industry are analyzed, including lack of knowledge, high costs, and regulatory issues. The document proposes new models and technologies that could help establish a circular economy approach for hemp, including the Hempbox platform. It concludes by emphasizing the importance of knowledge development and the potential economic and environmental benefits of the hemp industry in Italy.

1. INDUSTRIAL HEMP VALUE CHAIN
IN ITALY:
Status quo for the building
industry.
CEM 153 politics and economics
INDUSTRIAL HEMP VALUE CHAIN
(IHVC)AS AGRO-INDUSTRIAL
INNOVATION: New perspectives and
approaches needed for the
establishment in Italy, 2014
CEM 152 Environmentally responsive
materials
ESTABILISHING A HEMP BUILDING
INDUSTRY IN ITALY: Processing hemp to
semi- finished material , the link between
an historic past and a bright future.
+
Febraury 2014Francesco Perozzo

2. Presentation’s parts:
1- Resource depletion and climatic changes
2- modern uses, uses in building
3- Indiustrial Hemp history in Italy
4- Decline Reasons
5- Industrial Hemp Value Chain Barriers
6- New technologies and models, framework
7- Cultivation and first manufacturing
8- Conclusions

3. Contextualization
Source: Global energy outlook, IEA, 2012;
Source: Ceopalmoil.comSource: http://www.wdm.org.uk/carbon-
capital/nexus

4. Alongside economic Crisis
 Source European environmental agency(2012)

5. Modern uses for hemp

6. IH in Building
 Source http://www.hemparchitecture.com/#/theory/
 Source : www.hempbuildings.com

7.  Grown and used extensively for centuries in the Italian
peninsula, since the Romans, essential for Venetian empire
(Celetti,2007)
 Flourished in 14/15th century (growth of the craftsmanship)
 18th,19th and a fraction of the 20th century Italian IH among the best
in terms of quality all around the world (Guidi, 2003)
History of IH in Italy

8. History of IH in Italy
Years total production(quintals) total exportation(quintals)
1909 748.000 598.501
1910 868.400 530.737
1911 637.500 440.489
1912 949.000 446.386
1913 900.000 503.257
Italian exports; source V. Peglion,1919
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
quintals/year
Quintals produced in Italy
1921-1945 Italian hemp production, Source by the author data from Guidi 2003

9.  Played a central role in the every day’s life for many, as a valuable
resource;
 Historical significance and cultural-economic
importance(Hempbox,2013).
 “Roots” for nowadays acceptance ?!
IH is History

10.  Emilia Romagna
 Ferrara-Rovigo
 Campania
 Lazio
 Torino
Canavese area, Piedmont
Source http://www.localidautore.com/resort/canavese-area-186.aspx
Particularly intrested zones:

11.  Decline of hemp production, Source: Rhydwen (2006)
IH production’s dusk

12.  Failure to develop a capitalistic system for hemp
cultivation;
 Shortage of capital to invest;
 Inability to separate cultivation from that plant
transformation;
 Lack of industrialization was the major reason;
 External pressures (Oil’products competition/ alternative
fibers/ steam then oil powered engines..);
Decline reasons

13. Technical Commercial Knowledge
Lack of know-how in hemp
growing Difficulty to source hemp seed Lack of R&D in better hemp strains
Poor hemp quality Poor hemp crop yield Farmers' lack of knowledge
Lack expertise in hemp
manufacturing Necessary winter storage Architects' lack of knowledge
Lack of expertise in hemp use High trasportation costs Builders' lack of knowledge
Lack of producers Farmers profitability
Construction industry lack of
knowledge
Lack of processing plants
Difficulty to start up the hemp
industry Cosumers lack of knowledge
Lack of initial capital Hemp’s profitability Government lack of knowledge
Lack of processing plant R&D and
related industry Lack of economy of scale Others
Others Hemp products are expensive
Consumer resistance to innovation
Regulatory Psychological Invisible
Farmers difficulty to get clearance
for hemp cultivation Hemp association with marijuana
Synthetic fibre and products
vested' interest
Difficulty to obtain
certifications(new strains,
machinery, labels..)
Misconception that "traditional
product are better built"
Other natural fibre, alternative
product interest
Difficulty to get structural insurance Others
Cement industry' vested industry
(for hemp and lime )
Others Others
IHVC’s nowadays Barriers

14. Technical Commercial Knowledge
Lack of know-how in hemp
growing Difficulty to source hemp seed Lack of R&D in better hemp strains
Poor hemp quality Poor hemp crop yield Farmers' lack of knowledge
Lack expertise in hemp
manufacturing Necessary winter storage Architects' lack of knowledge
Lack of expertise in hemp use High trasportation costs Builders' lack of knowledge
Lack of producers Farmers profitability
Construction industry lack of
knowledge
Lack of processing plants
Difficulty to start up the hemp
industry Cosumers lack of knowledge
Lack of initial capital Hemp’s profitability Government lack of knowledge
Lack of processing plant R&D and
related industry Lack of economy of scale Others
Others Hemp products are expensive
Consumer resistance to innovation
Regulatory Psychological Invisible
Farmers difficulty to get clearance
for hemp cultivation Hemp association with marijuana
Synthetic fibre and products
vested' interest
Difficulty to obtain
certifications(new strains,
machinery, labels..)
Misconception that "traditional
products are better built"
Other natural fibre, alternative
product interest
Difficulty to get structural insurance Others
Cement industry' vested industry
(for hemp and lime )
Others Others
IHVC’s nowadays Barriers

15.  Shortage of capital to invest;
 Lack of IHVC industrialization IS the major reason;
 External pressures
 Knowledge and know-how
Current reasons

16. Source: DAFF SA 2011.
IH modern value chains

17.  Requires the development of models capable
of interpreting the dynamics of vertical and
horizontal coordination between the agents
Involve and create…
NEW ENTREPENEURS,EXPERTS, MARKETS..
 What most affect the ability of operators to
give added value to products/growing
NEW FARMERS and MANUFACTURER’S SKILLS
(Contò et al,2009)
“UPDATED “ roles in Process
DISINTERMEDIATION

18. New technology and “global
village”
Source UNEP “Keeping track, Rio 1992-Rio 2012”
 “Global commons” concept

19. Global village construction set, 2011 situation. Source opensource ecology.org/wiki/GVCS
Tools given by
OPEN SOURCE ECOLOGY

20. New tools and approaches creates alternatives to waste of
energy, money..
 Linear economy, involves traditionally waste and fossil fuels. Source Ellen Mc Arthur foundation
From linear model of economy
and value chains...

21.  The circular economy, an industrial system that is restorative by design. Source Ellen Mc
Arthur foundation
..to the platforms of circular
model of economy

22. HEMPBOX - Platform for strategic and
technological exploitation of industrial hemp
potentials
 Knowledge, know-how and planning
capability of IHVC’s major issues;
 Brings back a narrative, a fulcrum, around
which the social life of many areas have lived;
 Aiming at creating win-win solutions and real
sustainability;
New IHVC management

23.  Scalable and exportable business project;
 R&D t as ethical values;
 Redevelop environmentally and economically rural
Italian resources, win-win solutions;
 Dealing with different frameworks
Partners, Industry, farmers, communities, municipalities, poli
tics?
Hempbox’s mission and goals

24.  13,500 ha. Of cereal crops to exploit in order to introduce industrial
hemp as a rotation crop, Italian example in the Canavese area,
Piedmont region. Source Baldini et al., 2014
COLTIVATION AS APPEALING PHASE

25.  Hemp cultivation (especially for seeds) improves local biodiversity.
Directly as a food to birds and small mammals
Indirectly because of hemp cultivation needs no biocides. (Source Small 2002 quoted in
Rhydwen, 2006)
COLTIVATION AS APPEALING PHASE

26. The only processing plant is in Carmagnola (PIEDMONT)
1st° Tier manufacturing
Canavese area, Piedmont
Source http://www.localidautore.com/resort/canavese-area-186.aspx

27.  268.000 m2 of dismissed industrial area, usable for industrial hemp manufacturing
plants, Canavese area, Piedmont. Source Baldini et al.(2014)
MANUFACTURING AS WEAK RING
OF IHVC

28. OPENESS IS A RELSILIENCE STRATEGY, COMPANIES ARE
COMMUINITIES.
 HISTORICAL IMPORTANCE
 LEGAL FROM 15 YEARS, EARLY ADOPTERS PHASE
 NEW IHVC KNOWLEDGE AND KNOW-HOW NEEDED
 BIG INVESTMENTS, BIG FUTURE POSSIBILITIES
 WIN-WIN SOLUTION FOR ENVIRONMENT AND ECONOMY
Conclusions

29. References
 Baldini et al.(2014) Rehabilitation of a historic cultivation through the creation of an agro-
industrial sector able to activate new territorial economies: study of environmental, economic
and landscape outcomes of industrial Hemp in the Canavese area,Politecnico di
Torino, unpublished work. Accessed:21 june 2013
 Contò F., La Sala P. et al.(2010)” Identity, quality and competitiveness of the Pollino area: a
case of "atypical" agro supply chain-planning”, XXXI CONFERENZA ITALIANA DI SCIENZE
REGIONALI, Aosta, 20‐22 Settembre 2010. AISRE (ONLINE) Available at:
http://www.grupposervizioambiente.it/aisre/pendrive2010/pendrive/Paper/Conto1.pdf
Accessed :19 December 2014
 Department of agriculture forestry and fisheries south Africa DAFF SA(2011) A PROFILE OF THE
SOUTH AFRICAN HEMP MARKET VALUE CHAIN (ONLINE) Availble at:
http://www.nda.agric.za/docs/AMCP/HEMPMVCP2011-12.pdf Accessed:19 june 2013
 Guidi D.(2003) Dagli splendori ottocenteschi, dopo un lungo declino, verso il ritorno della
produzione di canapa in Italia (1860-2003), Unpublished Thesis, Università Boconi Milano
 Hempbox,(2013)Hempbox’s project, 2013 (ONLINE) retrieved http://hempbox.org/ Accessed:
December 2013
 ISTITUTO VENETO DI SCIENZE, LETTERE ED ARTI, CELETTI D.(2007) La canapa Nella repubblica
veneta: produzione nazionale e importazioni in età moderna,venezia(ONLINE) Available at:
https://www.academia.edu/attachments/32226232/download_file Accessed: 17 December
2014
 Peglion Vittorio(1921) - Le nostre piante industriali : canapa, lino, bietola da zucchero, tabacco
ecc., Bologna
 Rhydwen G.R.,2006, A model for UK hemp cultivation and processing to supply the building
industry with hurds for hemp and lime concrete and fibers for insulation bats, with the ethos of
environmental protection as a priority (ONLINE) Availble at:
http://gse.cat.org.uk/public_downloads/research/Ranyl_Rhydwen_thesis_january_2006.pdf
Accessed:28 june 2013
 UNEP (2011). Keeping Track of Our Changing Environment: From Rio to Rio+20 (1992-2012).
 Division of Early Warning and Assessment (DEWA), United Nations Environment Programme
(UNEP), Nairobi (ONLINE) Availeble at: (ONLINE) Availble at:
http://www.unep.org/geo/pdfs/keeping_track.pdf Accessed:21 June 2013

30.  UK’s circular economy. Source
http://greenlivingblogorguk.files.wordpress.com/2012/05/ukce.png

31.  Starting with bigger investments can be risky since there’s no
strongly established market, but growing requests;
 Haulage issues and farmers profitability to be studied deeply;
 Needs to understand the hemp value chain in order to create
new markets, and vice-versa;
 “manual(s)” of all variables and possibilities that affect hemp
cultivation, processing and hemp-based materials;
 Best combinations that create economy of scale, expected
time for return on investment;
 How to integrate a hemp transport systems based on hemp
bio-fuels.
EXTRA from essay #1

32.  New participative communications and technologies can
then bring its potentials to a wider set of new stakeholders and
markets;
 Hempbox Lack of proper business planning;
 Legal framework analysis/projections;
 Exportability and scalability of IHVC model, for rural areas;
 Min/max areas(both crop rotation and dedicated land) to
install a manufacturing plant (and where).
EXTRA from essay #2

33. Platform next’s steps
 Contacts with farmers, agronomy studies;
 Revenue models and venture capital;
 Involving entrepeneurs/manufacturers of the
machinaries;
 Comunication & marketing;
 Get a high-performing variety of industrial
hemp.
 GVCS potential;