Big economic potential in cannabis and hemp

Cobus du Plessis looks at two similar industries and products with very different legislative landscapes.

- Cobus du Plessis

A quote on hemp and cannabis attributed to Thomas Jefferson, the third president of the US, is as follows: “Hemp is of first necessity to the wealth & protection of the country.” This quote highlights the historical importance of hemp as a valuable crop in the US.

In recent years, the global perspective on hemp and cannabis has shifted dramatically. South Africa, with its rich agricultural heritage, is no exception. As the country navigates the complexities of these plants, understanding their differences, legislative framework, economic potential and farming requirements is crucial for all stakeholders.

UNDERSTANDING HEMP AND CANNABIS

Hemp and cannabis are both members of the Cannabis sativa plant species, but they differ significantly in their chemical composition and uses. Plants of the same species can have differences. For example, think of all the different kinds of wheat: bulgar, farro, freekeh, spelt, buckwheat, red wheat and einkorn. They are all different but they are all wheat. Hemp contains less than 0,2% tetrahydrocannabinol (THC), the psychoactive compound found in cannabis. This low THC content means that hemp cannot produce the ‘high’ associated with cannabis. Instead, hemp is valued for its strong fibres, seeds and oil, which are used in a variety of products, including textiles, construction materials and health supplements.

Cannabis, on the other hand, contains higher levels of THC and is primarily cultivated for medicinal or recreational purposes. The flowers and leaves of the cannabis plant are used to produce marijuana, which is consumed for its psychoactive effects.