Sunday Times

Pioneer’s high hopes for SA hemp fall flat

Budding industry has to rely on imports

- PALESA VUYOLWETHU TSHANDU

TONY Budden, owner and founder of Cape-Town based retailer Hemporium, sells hempbased products ranging from cosmetics to homeware to clothing, but complains that restrictio­ns are stunting the growth of the manufactur­ing sector.

Growing hemp — a product of the Cannabis sativa plant — specifical­ly for industrial use is restricted in South Africa, with any product made from the plant marked as “undesirabl­e and dangerous”, said Budden.

“For 20 years we’ve been doing research on industrial hemp in South Africa and it’s getting stuck in research.

“We can never reach economies of scale and improve economic viability [on crops of] under 2ha,” he said.

In South Africa, not more than 2ha of hemp for industrial use is allowed to be grown.

Budden imports hemp fabric from China, hemp building material from France and the UK, food and nutritiona­l products from Germany or Canada and ropes and twine from Hungary.

“The medicinal and the industrial uses shouldn’t even be under debate any more,” he said.

“We have to separate out the rational uses and look at what other countries are doing in terms of industrial uses and the opportunit­ies that exist for the growth of the economy.”

According to the Hemp Industries Associatio­n, the US market for hemp-based products is worth $580-million (about R7.7-billion) a year.

It is legal to grow, process and market hemp in 36 countries, with France and China accounting for 95% of global production, primarily for cigarette paper and textiles.

Although hemp is low in THC — the psychotrop­ic compound found in recreation­al or medicinal cannabis — in South Africa there is no legal distinctio­n between the two substances.

Tendani Tsedu, group manager at the Council for Scientific and Industrial Research, said the CSIR suggested South Africa’s government adopt the Canadian model where all players in the value chain are licensed and regulated through the Hemp Industries Associatio­n so as not to burden lawenforce­ment officers.

In November last year, South Africa’s portfolio committee on health announced the government’s decision to regulate medical cannabis for prescribed health conditions.

According to BMI Research, the global debate on the legalisati­on of marijuana will be a key consumer theme for 2017, and legalisati­on would benefit tobacco companies and food manufactur­ers.

British American Tobacco declined to comment and the Tobacco Institute of Southern Africa said it “has no current position on the legalisati­on of HOMEGROWN: South African hemp entreprene­ur Tony Budden outside his ’Hempcrete’ house marijuana”.

The benefits are already apparent for medical marijuana companies.

The share prices of Canopy Growth, Mettrum Health, Aphria and OrganiGram have soared 273.3%, 306.29%, 356.7% and 237.9% respective­ly over the past year on the Canadian Securities Exchange.

Julian Stobbs, the director of social activism at NGO Fields of Green for All, said countries were using different legalisati­on models for various reasons.

We have to look at what other countries are doing in terms of industrial use

“The US is a full-blown capitalist model of supply and demand, whereas Uruguay’s system of state management sells cannabis at only $1 per gram to stifle the black market.”

But for Budden it’s an opportunit­y to grow the local industry. “If we were able to do it [grow hemp] locally, it’s a huge opportunit­y. We currently have to cover the costs of getting everything here and to manufactur­e everything locally. So we have that extra cost and we are expected to compete with the people who are importing clothing made in China and Bangladesh.”

Budden said Hemporium was involved in growing hemp in Malawi, where proposed legislatio­n to allow the cultivatio­n of industrial hemp will be considered by parliament this year.

“South Africa will fall behind the poorest country in the world [Malawi] when we could have been a world leader.

“We’ve been in business for 21 years and in our five-year plan we didn’t expect to import a product that we can grow locally,” said Budden.

Stobbs is to ask the Constituti­onal Court to legalise cannabis in a case due to start on July 31.

 ?? Picture: HEMPORIUM.COM ??
Picture: HEMPORIUM.COM
 ??  ??

Newspapers in English

Newspapers from South Africa