4 minute read
High time to demystify the cannabis industry
by WCDOA pubs
WCDoA visits the Felbridge medicinal cannabis producer
by Mzwanele Lingani
CCannabis sativa. L is an annual dioecious flowering herb and has a long history in the medicine industries as well as in nonmedicinal use.
Cannabis has two species, hemp and dagga, which are differentiated by their chemical composition, mainly the tetrahydrocannabinol (THC) content that is responsible for the “high”. Hemp contains about 0.3% or less THC with no psychoactive effects while dagga has greater than 0.3% of THC.
For more information!
Scan the QR code or visit https://bit.ly/3ILkmt4
The cannabis value chain starts at seed selection, then cultivation, after which it can be sold raw or processed, subject to the nature of country-level cannabis legislation. A range of products can be obtained from processing different parts of the cannabis plant. The cannabis stalk and leaves are usually used for fibre production whilst the flowers and seeds are mainly for oil extractions and further processed to produce other food products and medication.
Case Study
To demystify the cannabis industry, the Agricultural Producer Support and Development Programme of the Western Cape Department of Agriculture (WCDoA) organised a farm visit to Felbridge farm in Stellenbosch. Barry Zetler welcomed the delegation from the Department and took officials through the cannabis practices of the farm.
Strawberries and peppers were Felbridge’s primary production until July 2019, when they were granted a license by the South African Health Products Regulatory Authority (SAHPRA). The license granted permission to cultivate, import and export medicinal cannabis.
The cannabis production at Felbridge is under greenhouse and the total licensed area under cannabis is 1.4ha (14 000m2 ). Last year, the business exported over 1 000kg of cannabidiol (CBD) dry flowers to Switzerland, and seeds are exported to neighbouring countries, such as Zimbabwe. The cannabis business produces dry flowers, seeds and clone tissue culture.
The business highlighted that production costs in South Africa are low compared to European countries thanks to the South African climate. Felbridge has capacity to produce up to 10 000 clones per day with propagation capacity of 100 000 clones. They have a tissue culture storage capacity of 220 000 tissue cultures. These clone tissue cultures are packed in trays of 20 or 48 plants and sold mostly to European countries.
Normally, the business employs between 40 and 50 workers; however, this number goes up to 100 during planting and harvesting seasons. Electricity cost is the highest of the production cost as the lights and fan need to be operated 24 hours a day. This cost is double if there is load shedding, as the cost of fuel is expensive.
required in establishing a cannabis farm –an area of 1.4ha is estimated at R10 million to R30 million.
The Department of Agriculture, Land Reform and Rural Development (DALRRD) is mandated to regulate hemp production, however, lessons can be drawn from this farm, especially since the production processes of hemp and dagga are similar. The potential size of the cannabis industry in South Africa is estimated at R28 billion, creating about 10 000 to 25 000 jobs across the value chain (DALRRD, 2021).
Barry mentioned that the challenge in the sector is unregistered fertilisers and chemicals. He also said that besides the expensive cost of production and high returns, a significantly large investment is
The Felbridge business shows there is a high demand for cannabis, especially on the international market. The cannabis industry has potential to create employment and build capacity on cannabis production and marketing. The establishment costs of a cannabis farm may be substantial; however, the South African climate, which is favourable for the production of cannabis, may give the industry a competitive edge.
Some info on the South African legislation on cannabis
The cultivation and manufacturing of cannabis in South Africa for medicinal purposes is currently regulated by the SAHPRA as permitted by the Department of Health. Hemp is regulated by the DALRRD under the Plant Improvement Act, 1976 (Act No 53 of 1976). The Act regulates the cultivation, distribution and sale of hemp propagating material in South Africa. Therefore, the Department is responsible for issuing permits related to the hemp industry, such as the cultivation of hemp, transportation, the varietal listing of hemp varieties, and import and export of hemp among others. AP
“The cannabis value chain starts at seed selection, then cultivation, after which it can be sold raw or processed, subject to the nature of country-level cannabis legislation.”
ISebe leZolimo eNtshona Koloni lityelele abavelisi kwi “Felbridge Medicinal Cannabis” – Lifikile ixesha lokucacisa ngecandelo leemveliso zentsangu
Kumnyaka ka 2022 kuye kwatyelelwa kwifama i Felbridge ese Stellenbosch. Ngomnyaka ka 2019, eli shishini laye lanikwa ilayisensi ligunya lolawulo i SAHPRA nto leyo ilinike imvume yokulima, bathenge kumanye amazwe de bathengisele amanye amazwe intsangu elungele amayeza onyango.
Ukuveliswa kwentsangu (amagqabi entsangu, iipete zentsangu kunye nokulinyelwa kwezityalo kwizitya kumhlaba ongaphantsi kwe 14 000 m2 (ngobukhulu) kukhokelele ekuthunyelweni kweemveliso ezingaphezulu kobunzima be toni yamagqabi entsangu ehlobo lungenasiyobisi (CBD) ngonyaka, kwilizwe lase Switzerland ze lathengisa iipete zentsangu kumazwe angabamelwane. Ngokuthi sincokole nalo mfama, siqaphele into yokuba iindleko zokulinywa kwentsangu kuMzantsi Afrika aziphakamanga kunaxa siqathanisa nakumazwe aseYurophi. Noku kunjalo, kufuneka imali eyinkunzi yokuqalisa eli shishini ephezulu kakhulu. Ukuveliswa kwentsangu kwenzeka ngokusetyenziswa kwabantu yaye nokuqhawu-qhawuka kogesi kuphimisela ifuthe leziphumo ezingezihle nanjengokuba kufuneka izibane zihlale zikhanyisa ze soloko kumonoya opholileyo, imini nobusuku bayo (iyure ezingama 24). Izichumisi ezingaziwayo ngokomthetho kunye namachiza zezinye zemingeni kweli shishini.
Hoog tyd om die kannabisbedryf te ontsluier
Die Wes-Kaapse Departement van Landbou het in 2022 besoek afgelê by die Felbridge-plaas in Stellenbosch. SAHPRA het in 2019 ’n lisensie aan dié onderneming toegestaan wat hulle toestemming gee om medisinale dagga te kweek, in te voer en uit te voer.
Die produksie van dagga (droë blomme, sade en kloonweefselkultuur) op ’n oppervlakte van 14 000 m2 het gelei tot die uitvoer van meer as ’n ton kannabidiol(CBD) droëblomme per jaar na Switserland en sade na buurlande.
Die boer, Barry Zetler, het genoem dat die koste van produksie in Suid-Afrika relatief laag is in vergelyking met Europese lande, maar kapitaalbesteding is enorm. Kannabisproduksie is arbeids-intensief en beurtkrag het wel ’n negatiewe impak aangesien die ligte en waaiers 24 uur per dag aan die gang is. Ongeregistreerde kunsmis en chemikalieë is van die uitdagings in die besigheid.
Launch Of Western Cape Canplan Set To Guide Development Of Cannabis And Hemp Value Chains
The CanPlan (Western Cape Cannabis Framework and Implementation Plan), launched on 29 March 2023 by Minister Ivan Meyer, Western Cape Minister of Agriculture, position the Western Cape in terms of the national regulatory framework and clearly identifies the mandate and recommended interventions of its Department of Agriculture and other provincial departments. For more information and the full plan, please refer to the following documentation and information:
CanPlan Implementation Plan
Scan the QR code or visit https://bit.ly/3qi949p
For more information, contact Mzwanele Lingani:
CanPlan Literature Review
Scan the QR code or visit https://bit.ly/3C3lEvM
Media release
Scan the QR code or visit https://bit.ly/3oAyoXA
