29 February 2024
In itself, it’s a good initiative: an academy in the Eastern Cape that trains emerging farmers in the production of cannabis and hemp products. The stumbling block, however, is the red tape that follows.
According to cannabis producers, the easiest part of this type of farming is to obtain a production licence.
Training Force, in collaboration with Cheeba Cannabis Training, recently trained a diverse group of 100 farmers in the cultivation and production of industrial hemp.
The course covered the agricultural aspect of hemp cultivation, as well as the industrial applications of hemp and how to harvest and process the plants.
It also included aspects of the legal framework of the hemp industry, as well as how to make products from hemp and take them to market.
The training, which took place at the Fort Cox Agricultural and Forestry Training Institute in iXesi (formerly Middledrift) near Qonce (formerly King William’s Town), was funded by the Eastern Cape Rural Development Association.
“South Africa’s climate is ideal for hemp cultivation. The industry represents a significant opportunity for economic growth, rural development, community upliftment and carbon reduction,” said Linda Siboto, director and co-founder of Cheeba Cannabis Training.
“It has been identified worldwide as one of the largest growth sectors. Agriculture is a catalyst for hemp production and can create job opportunities right across the value chain.”
Regulations suffocate the industry
However, for every 100 licences issued to produce cannabis in South Africa, approximately 80% of farms close within several years.
This is according to Gog van der Colff of Leaf Botanicals, one of the first legal manufacturers of medicinal cannabis in South Africa. Its farm is in the Upington area of the Northern Cape and part of the Van der Colff family’s farming interests.
“The regulations are currently of such a nature that you struggle to get a product on the market. In some respects, it has even become stricter. Other importing countries do not necessarily make the regulations stricter; they just shift the goalposts,” said Van der Colff.
“For example, a process that grapes must follow to reach the market costs R30 000. The same process for cannabis will cost R200 000.”
He says cannabis producers can do everything up to a point, then they have to stand before the government’s door to move forward.
“There is just no end. At this stage, the government is squeezing the industry to death.”
Two producers recently exited the industry and one was placed in liquidation with R200 million in capital to be recovered.
“South Africa has suitable areas for cannabis production, but in my opinion the industry is being destroyed by all the regulations that must be complied with to farm sustainably,” said Van der Colff.
“If things don’t get better, more and more guys will close shop. It’s not an easy industry.
“Getting a license is the easy part. Getting volumes on the market so that it makes sense for your business – that’s the problem.”
Bill approved
Meanwhile, the National Council of Provinces approved the Cannabis for Private Purposes Bill on Tuesday. The bill now goes to President Cyril Ramaphosa for final approval. According to its current wording, trading in cannabis remains a criminal offence, but this may be addressed in separate legislation.
There is a possibility that some organisations dissatisfied with the bill may petition against it, which will delay its ratification.
