hemp business plan south africa

The Hemp & Cannabis industry in South Africa – how to start your own business

What's Inside

Legalities of Growing Hemp

Hemp vs Marijuana

How to Start a Hemp Business in South Africa

Licensing Costs

Future of Cannabis in South Africa

Following the latest SONA ( check out the infographic highlighting the main outcomes), a hot topic in South Africa is the industrialisation of the hemp and cannabis industry and what this means for the economy, and for small businesses looking to get involved  

We don’t claim to be experts on the topic but thought it will be valuable to walk you through some insights from thought leaders and businesses who know a thing or two.  

We are in the business of SMEs however, and with the potential to attract international investment, positioning your business as a service provider in this growing industry is a massive opportunity.  

Let’s jump in and get a better understanding of the hemp and cannabis industry in South Africa!

Is it legal to grow hemp in South Africa?

Up until 29 October 2021, it was illegal to grow hemp in South Africa. After careful consideration, The Minister of Agriculture, Land Reform and Rural Development, announced the opening of the application process for Hemp permits.  

This means that farmers are now able to apply for a permit to farm hemp as an agricultural crop.

With it now being classified as an agricultural crop, it falls under the Plant Improvement Act, no.53 of 1976. This act provides support for import and export, as well as maintaining the quality of such plants and propagating material. It further ensures that the hemp is deemed useful, and used for agricultural and industrial purposes.

Are hemp and marijuana the same thing?  

This is a common misconception and it's important to note that hemp and marijuana are not the same things . Although they fall under the same genus, Cannabis, hemp ( Cannabis sativa L ) is very much for industrial or agricultural use, whereas marijuana (dagga as it’s commonly known) can be used for medicinal or recreational purposes.  

The important differentiating factor between marijuana and hemp is that Hemp has far less THC (tetrahydrocannabinol).  

In South Africa specifically, CBD products are required to contain no more than 0,001% THC content and need to be sourced from hemp plants rather than marijuana plants. Rethink Cannabis for Life , a South African-based pharmaceuticals company, give the full breakdown on CBD legislation.  

How to start a cannabis business in South Africa?  

First, you’ll need to decide on the avenue you want to take for your cannabis business.

It’s important to remember that in South Africa specifically, you can only start a cannabis business with hemp as your product (marijuana farming is still illegal).

Here are a couple of options (if you’re ambitious, you can go for all of them):  

• Cannabis farmer – growing and cultivating hemp (>0,001% THC) ‍
• CBD or Hemp manufacturer – this could include producing CBD oils or Hemp textiles.   ‍
• CBD or Hemp product developer – creating products using the CBD oils or hemp textiles.   ‍
• Hemp or CBD product distributor – selling the CBD or hemp products to consumers.  

Each cannabis business type has its own set of rules and regulations when it comes to licensing and distribution, it’s best to seek advice from an attorney who specialises in this field beforehand.  

According to Cliffe Dekker Hofmeyer , if you are wanting to take the CBD business route, then a section 22C(1)(b) license (part of the medicines act), gives license holders the ability to:  

• Cultivate/grow and produce Cannabis and Cannabis resin;
• Extract and test Cannabis, Cannabis resin and/or CBD;
• Manufacture a Cannabis-containing or CBD-containing substances;
• Import Cannabis-containing substances;
• Export Cannabis-containing substances; and/or
• Distribute Cannabis-containing substances.

Choosing the Right Type of Hemp Business

There are numerous things to consider when choosing what part of the hemp and cannabis industry you want to be involved in.

Here are some considerations you might find useful:

• Your previous work and business experience . If you’ve never farmed before, it may be a steep learning curve to get into farming.   ‍
• The cost of compliance . Hemp is a much simpler product to grow, handle and process. That’s because the end-product is not one that is heavily regulated. CBD is a product with very fine technical margins, and so to grow and process it costs significantly more.
• ‍ Setup costs . If you don’t already have land, equipment and staff to get you going, there may be exorbitant setup costs involved with becoming a hemp or cannabis farmer. Consider how much capital you have to get started.  

Getting Started

Once you’ve decided on the type of hemp/cannabis business you’d like to start, it’s time to really get it off the ground.  

First, you need to identify where there is demand in the market. Whether your business is in hemp, CBD, or another part of the industry – there needs to be a customer that’s willing to buy your product. Only once you know someone is going to pay you money for the product, should you consider taking this business venture.  

A must is to develop a marketing strategy and brand guide for your business, along with a strong business vision. Much like your selected attorney, make sure to partner with a marketing agency that knows a thing or two about the legalities involved in advertising CBD and hemp products in South Africa.    

Licensing and Legals

For more on Cannabis licensing , GrowIQ get into the nitty-gritty. If you are wanting to apply for a cannabis license to cultivate, manufacture or import cannabis for medical purposes in South Africa, then you’ll need to apply via SAHPHRA.  

How much does a cannabis license cost in South Africa?  

To grow, cultivate, manufacture or import Cannabis in South Africa, you are looking at anywhere upwards of R25 000 a year for licensing. SAHPRA will give you the final costs once you go through the application process.  

The future of the cannabis industry in South Africa  

Following SONA 2022, President Cyril Ramaphosa placed emphasis on the plans for the cannabis industry in South Africa. The main theme was around the industrialisation of the industry and easing policies that prohibit the growth of the hemp and cannabis sector nationally.  

With forecasts of providing jobs in upwards of 120 000, and a particular focus on the Eastern Cape and Kwa-Zulu Natal which have high unemployment rates but arable land for hemp production.

The Cannabis for Private Purposes Bill, which was introduced in September 2020 – is now seeing a resurgence and focus, with parliament revisiting the bill. The draft bill outlines the rules for cannabis users at home, or people who want to cultivate the plant.  

Labat Africa, a JSE-listed company is expanding its healthcare offering, by acquiring US run CBD lifestyle brand Echo Life. According to Business Tech , in December 2021, the group saw a R300 million Rand cash injection from GR Global Venture. Labat entered the retail market by opening Cannafrica stores in Cape Town, Joburg and Hartebeesport and an online store.  

South Africa is the third-largest illegal cannabis producer in the world, according to the World Health Organisation. 2,500 tons of cannabis are grown a year, and although cannabis was decriminalised for recreational use in 2018, there are still a myriad of regulations in place surrounding cannabis farming, distribution and use.  

South African cannabis master plan forecast:  

The department of Agriculture, Land Reform and Rural Development has a master plan in place for further growing the cannabis industry, a few of these pillars include:    

• Creating an effective regulatory system – as mentioned earlier, this will involve re-looking at the legislation by removing constraints that are hindering commercialisation.
• ‍ Ensuring there is a sustainable seed supply system – this will focus on the production, packaging, quality control and trade of cannabis seeds.   ‍
• Cannabis education focus – as a fairly new formalised industry, there needs to be more focus on training and education around the cannabis industry in South Africa, starting from schools all the way through to educational training for staff.   ‍
• Developing new markets – the focus here will be on facilitating both domestic and international cannabis trade.   ‍
• A shift in messaging – this pillar will focus on clear communication, ensuring negative perceptions are demystified.  

Keep your finger on the pulse…  

The hemp and cannabis sector is definitely one to watch out for in South Africa, and although we haven’t ventured into the field of business funding for the cannabis industry, we are all about listening to our customer’s needs.

‍ Pop us an email if you’d like to send us any insights, or if you are a lender open to business funding in this sector. We’d be interested to hear your thoughts.

PS, here's a quick infographic that outlines the main SME themes from SONA 2022:

Hemp Farm Business Plan Template

Written by Dave Lavinsky

Hemp Farm Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hemp farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Hemp Farm Business Plan?

A business plan provides a snapshot of your hemp farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hemp Farm

If you’re looking to start a hemp farm, or grow your existing hemp farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hemp farm in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hemp Farm Businesses

With regards to funding, the main sources of funding for a hemp farm are personal savings, credit cards, USDA/FSA loans, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a hemp farm is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a hemp farm. They might consider funding a hemp farm company with locations across the country, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for hemp farming.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hemp farm you are operating and the status; for example, are you a startup, do you have an existing hemp farm that you would like to grow, or are you operating a network of hemp farms?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hemp industry. Discuss the type of hemp farm you are running. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of hemp farm you are running.

For example, you might operate one of the following types:

• Food-grade hemp: this type of hemp farm grows hemp for its seeds, which may be consumed in raw or roasted form, or pressed for oil and milk
• CBD hemp: this type of hemp farm grows hemp for the extraction of CBD from leaves and stalks. CBD hemp farms may also manufacture hemp products such as oils, supplements, or personal care products.
• Hemp for textiles: this type of hemp farm sells hemp plants to fabric producers
• Industrial hemp: this type of hemp farm grows hemp for industrial uses such as the production of paper, sanitary items, and biodegradable plastic

In addition to explaining the type of hemp farm you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, plantation acreage, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hemp industry.

First, researching the hemp industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the hemp industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your hemp. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

These are examples of customers segments: Manufacturers, specialty retailers, end consumers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hemp farm you operate. Clearly, manufacturers would want different services, and would respond to different marketing tactics than end consumers.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, if you are targeting end consumers, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hemp farms primarily serve customers living in their same region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Hemp Farm Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hemp farms.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes imports and other cannabis cultivators. You need to mention such competition to show you understand that not all fiber or supplement demand will be fulfilled by hemp.

With regards to direct competition, you want to detail the other hemp farms with which you compete. Most likely, your direct competitors will be hemp farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of product creation do they engage in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products or services that your competitors don’t offer?
• Will you make it easier or faster for customers to purchase your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hemp farm, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hemp farm that you documented in your Company Analysis. Then, detail the specific services you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your hemp farm. Document your location and mention how the location will impact your success. For example, is your hemp farm in a central location that will make transportation easier, etc. Discuss how your location might allow you to serve a greater volume of customers.

Promotions : the final part of your hemp farm marketing plan is the promotions section. Here you will document how you will drive customers to your business. The following are some promotional methods you might consider:

• Advertising in trade magazines
• Attending trade shows
• Advertising in local papers and magazines
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hemp farm, such as tilling, planting, growing, and harvesting the crop, maintaining equipment, staying abreast of new technology and/or regulatory developments, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to plant your 100 th acre, or when you hope to reach $X in sales. It could also be when you expect to purchase additional acreage, or when you expect to launch a new location.  

Management Team

To demonstrate your hemp farm’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in agriculture. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in hemp or farming in general and/or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you plant 40 acres or 400? Or will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $250,000 on building out your hemp farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a manufacturer approached you with a $500,000 contract for hemp fiber, that would cost you $350,000 to fulfill. Well, in most cases, you would have to pay that $350,000 now for inputs such as seed and soil amendments, employee salaries, equipment, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hemp farming business:

• Location build-out including land preparation fees, construction of barns and production facilities, etc.
• Cost of equipment
• Payroll or salaries paid to staff
• Business and liability insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your hemp farm design blueprint or location lease.  

Putting together a business plan for your hemp farm company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hemp industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful hemp farm.  

Hemp Farm Business Plan FAQs

What is the easiest way to complete my hemp farm business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Hemp Farm Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hemp farm business you are operating and the status; for example, are you a startup, do you have a hemp farm that you would like to grow, or are you operating multiple hemp farms.

Don’t you wish there was a faster, easier way to finish your Hemp Farm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

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Growing hemp: SA takes a step closer to commercial cultivation

Natie ferreira, director of a new cannabis research centre at the agricultural research council’s bien donné site near paarl, was recently issued with a permit to cultivate 8ha of hemp for the purposes of study and development. he and researcher moses mlangeni spoke to marinda louw coetzee about the planned research at the centre, and how it will help to boost the commercial cultivation of hemp in south africa..

Hailing from a family of vegetable growers, ‘master grower’ Natie Ferreira looks the part, with his lush beard and hard-working hands. Based in the Boland, Western Cape, Ferreira has been involved in gardening and farming for over two decades.

He has worked in permaculture and biodynamics, and as a landscaper has focused on foodscaping. He has also been growing cannabis for years.

Recently, the Department of Agriculture, Land Reform and Rural Development (agriculture department) issued a three-year permit to Ferreira to grow 8ha of hemp in the Western Cape, at what will now be called the Bien Donné Cannabis Research and Training Centre.

An Agricultural Research Council (ARC) facility, Bien Donné is a historic farm in the Drakenstein Municipality near Paarl, and receives around 800mm of rainfall a year. Part of the farm, and included in Ferreira’s permit, are old fruit orchards, a barn that will be converted into an experimental kitchen and food factory, and 15ha of deep alluvial soil.

The centre will focus on the cultivation of hemp for various uses, including food and fibre. In addition, a number of buildings and open spaces on the farm will be developed to house income-generating facilities such as a deli/restaurant, a dispensary and a nursery.

The many uses of hemp Hemp has long played an integral part in societies across the world, but its economic and social potential is yet to be recognised by South Africa’s authorities. Evidence suggests that it is an ancient crop: remnants of hemp fibre in Chinese pottery can be traced back to 8 000 BCE.

Ancient Hindu and Persian religious texts refer to hemp as ‘Sacred Grass’ or ‘King of Seeds’, and it has been used in common articles such as clothing, rope and paper in many cultures for millennia.

Hemp is a form of cannabis (Cannabis sativa). To be legally classified as hemp in South Africa, the cannabis plant must have a tetrahydrocannabinol (THC) content of less than 0,2%, making it non-psychoactive.

Cannabis is versatile and holds great medicinal, nutritional and economic value. Ferreira emphasises that the uses for the plant extend far beyond its recreational and medicinal applications.

Cannabis in the form of hemp is used to make numerous products, including textiles, building material, cosmetics and biofuel. It can also be used as fresh produce and fodder. Hemp seeds are gluten-free, and have a protein and oil content of 20% to 25% and 25% to 35% respectively. Hemp is also rich in dietary fibre, and vitamins A, B1, B6, B12, C, D and E.

After the extraction of hemp seed oil, the remaining oilcake, containing between 15% and 20% digestible protein, can be ground to a powder for use in foodstuffs. Hemp seed oilcake can also be used as a source of protein in dairy cow and broiler chicken feed.

Oil extracted from the flowers and leaves is rich in cannabidiol (CBD), which has a wide range of medicinal applications that include the treatment of epilepsy, chronic pain and anxiety. In South Africa, however, permits for hemp production do not allow for the harvesting and marketing of CBD as a medicine, as the South African Health Products

Regulatory Authority (SAHPRA) still lists it as a Schedule 4 substance. The seeds selected for future planting at the Bien Donné centre will be determined by the end products, such as food and fibre.

Apart from seeds, the plant produces two types of fibre: bast, fine fibre used to make paper and fabric; and hurd, woody fibre utilised as construction material.

While Ferreira will focus on hemp as a food crop, the fibre of the plant can be used to make items such as hempcrete bricks for construction. It was recently reported that Cape Town is now home to the world’s tallest building (12 storeys) made of hempcrete blocks and hemp building materials.

Cultivation and propagation

Hemp is planted by hand, and production requires irrigation, explains Ferreira. “Planting density varies from one to 250 plants/ m², depending on the cultivar or end use. At Bien Donné, we’re currently planting 30 to 50 plants/m², with an intra-row spacing of between 10cm and 50cm, and 40cm to 120cm between the rows.

“We’ll plant a grain crop in September (to harvest in December) and another hemp crop under lighting in January.”

Pest control is similar to that used on tomatoes. “We farm organically, so we use natural methods and bought-in predatory mites to combat pests. Harvesting and post-harvest processing will also be done by hand.”

Apart from the cultivation of hemp, Ferreira is also permitted to import hemp plants and seeds. He has plans for an on-farm nursery, as the propagation, export and sale of hemp seeds and plants are included in his permit from the agriculture department and authorised under the Plant Improvement Act (PIA).

Ferreira is keen to expand his operations to include a hemp production training facility, and by signing bioprospecting agreements with the local |Xam Bushmen, he hopes to preserve and develop these people’s cultural and ancestral knowledge of various indigenous plants.

The soil and climate at Bien Donné are ideal for incorporating vegetables into a mixed farming concern, and the cultivation and preservation of heritage vegetables and indigenous crops will further diversify the operation.

Joining Ferreira at the new research centre is Moses Mlangeni, the Drakenstein Municipality’s manager of economic growth, and a doctoral candidate at the University of Zululand.

Mlangeni has been involved in cannabis research for years, and is conducting cultivation trials on hemp cultivars grown for fibre. His research involves a hemp cultivation trial, fibre processing, and fabric manufacturing. One of his aims is to estimate the cost of 1m of fabric made of South African-grown hemp fibre. Similarly, he is conducting trials on hemp oil seed cultivars to estimate the cost of a litre of hemp oil.

Mlangeni has been collaborating with Poland’s Institute of Natural Fibers and Medicinal Plants, which is leading the development of the international hemp industry.

“The ARC has also done extensive research on hemp, including the breeding of SA Hemp 1 and SA Hemp 2 seed cultivars,” he says. “Government is heading in the right direction by developing a ‘cannabis master plan’ and issuing research and cultivation permits, but it can learn from Poland. It should allocate more financial resources to the development of the local hemp industry.”

The South African government has been widely criticised for its handling of cannabis policies, permits and processes. Prior to October 2021, hemp permits were issued by SAHPRA. Since then, this task has been handled by the agriculture department.

However, there is still much red tape, as well as a lack of synergy between the agriculture, health and justice departments. To cite just one example, the signature of the local police station commander must be included on the permit application forms. This alone added five months to Ferreira’s application process.

To aid the development of South Africa’s hemp industry, the Cannabis Research Institute of South Africa suggests that the legal THC content be increased from 0,2% to 1%, and that cannabis be registered as a crop under the PIA. It has also asked that authorities adhere to stricter timelines to limit delays in the issuing of permits, which subsequently lead to missing the planting season.

Stakeholders and permit holders also believe that government could help to create demand for hemp.

“Government could specify the application of hemp as a building material for the construction of state-funded housing, or the use of hemp fabric for staff uniforms,” suggests Mlangeni.

Despite the fact that government has neither realised the economic value of hemp nor facilitated the growth of the local industry, it seems safe to say that the versatility of hemp will ensure the organic growth of its demand and supply.

Email Natie Ferreira at [email protected] , or phone him on 083 578 7619.

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Minister Thoko Didiza on opening of application process for HEMP permits

Minister didiza announces the opening of the application process for hemp permits.

The Minister of Agriculture, Land Reform and Rural Development, Ms Thoko Didiza wishes to announce the opening of the application process for HEMP permits effectively today, Friday, 29 October 2021.  This follows the declaration of HEMP as an agricultural crop under the Plant Improvement Act, no.53 of 1976.   This Act provides for import and export control of certain plants and propagating material, maintaining the quality of such plants and propagating material, and ensuring the usefulness of the products thereof for agricultural and industrial purposes.

It is important to indicate that both hemp and dagga are plants of the same genus, namely Cannabis.  However, commercial use of dagga remains prohibited in terms of the Drugs & Drug Trafficking Act 140 of 1992.  

The declaration of HEMP as an agricultural crop now allows importation, exportation, cultivation, sale and research of hemp in South Africa.

This is a step towards the development of the Cannabis Master Plan which aims to provide a broad framework for the development and growth of the South African Cannabis industry in order to contribute to economic development, job creation, inclusive participation, rural development and poverty alleviation. Conservative estimates indicate that 25 000 jobs could be created across the various value chains. 

We appreciate the fact that various rural communities and farmers across South Africa have been planting hemp for many years. These farmers and traders will be prioritized to ensure that the commercialization of hemp contributes to their socio-economic upliftment.  We are working with the provincial departments and national departments to ensure that adequate support is provided to producers including value addition.  

A call is thus made to all interested growers, researchers, processors and manufacturers to apply for hemp permits. Application forms, guidelines, requirements and guidelines are accessible on the department’s website, www.dalrrd.gov.za . Follow the Plant Production link.  

For technical enquiries contact: Mr. Thabo Ramashala 067 410 4246 [email protected] or

Media Liaison Officer and Spokesperson Mr Reggie Ngcobo Cell: 066 2980980 Email: [email protected]           

Eviction Toll-free Number 0800 007 095

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Regenerative Hemp Farming in South Africa

Over 20 years ago, the South African government began investigating the viability of hemp farming in South Africa. Today, South Africa is still importing hemp products from other countries, largely because the country needs a sustainable, legalised system of production. So, where are we now when it comes to cultivating hemp products in South Africa? 

What is hemp?

Hemp is a plant species in the Cannabis genus, which is indigenous to Central and upper South Asia. The plant is mainly cultivated for its fibre and seed. 

Hemp products in South Africa

Products that can be made from hemp include food, clothing, rope, nappies, canvas, biodegradable plastics, fuels, chain lubricants, paper, cosmetics, cement blocks, soap… the list goes on. It can also be used to create hempcrete, a biocomposite material used in construction. 

What is the difference between hemp and marijuana?

Marijuana is also a species of the Cannabis genus. While hemp and marijuana plants look similar, the marijuana plant is bushier than hemp. Both plants contain hundreds of plant compounds, including:

• THC, which has psycho-activity qualities
• Cannabidiol (CBD), which has anti-anxiety qualities

However, hemp has 0.2% or less THC. This means that hemp-derived products don’t contain enough THC to create the “high” associated with marijuana.

In addition, the marijuana plant has low fibre content and is not suitable for fibre production. 

The state of hemp and cannabis farming in South Africa

South Africa released a National Cannabis Master Plan in 2021. This document highlights how the formal cannabis industry would be a boon for the country’s economy by integrating small growers into formal cannabis value chains and addressing licensing, technical and financial support. In his 2022 State of the Nation Address (SONA), President Cyril Ramaphosa said that the sector has the potential to create more than 130,000 new jobs. In the 2023 SONA, President Cyril Ramaphosa reiterated government’s commitment made in 2022 to unlock investment in the hemp and cannabis sector.

But despite promises of creating a fully-fledged cannabis and hemp industry in South Africa, the slow pace of legislative progress has resulted in several licensing and funding hurdles for businesses seeking to enter the hemp market legally .

In March 2024, these challenges were outlined by emerging businesses and the South African Health Product Regulatory Authority ( SAHPRA ) in a presentation to parliament ‘s Portfolio Committee on Small Business Development. 

Parliament’s response : “The committee welcomed SAHPRA’s recommendation that the government should take action to allow optimal participation by small growers. This includes expunging criminal records associated with illegal possession and trading of cannabis and hemp, bringing the industry into the mainstream economy, and protecting localisation for the small growers.”

The promise of the regenerative hemp industry in South Africa

With willing and knowledgeable farmers, drought-resistant acclimatised genetic strains of the plant, the perfect climate and demand for the product, South Africa certainly has the means to create a successful hemp industry. 

With more than 25,000 industrial applications, hemp farming could unlock an industry with a potential value of R27 billion annually and create thousands of jobs. In addition to the economic benefits, hemp also lends itself to regenerative farming: the plant is able to sequester carbon, it needs less water than many other plants, and it can be grown largely without herbicides and pesticides.

Is it legal to grow hemp in South Africa?

Both private use and private cultivation of cannabis was decriminalised by a Constitutional Court judgment in September 2018. In May 2020, the government redefined industrial hemp with a 0.2% tetrahydrocannabinol (THC) guideline and are now taking the next steps to make regenerative hemp farming in South Africa a possibility. 

On 29 October 2021, South Africa’s Minister of Agriculture, Land Reform and Rural Development, Ms Thoko Didiza, announced the opening of the application process for hemp permits. This followed the declaration of hemp as an agricultural crop under the Plant Improvement Act, no.53 of 1976. With hemp declared as an agricultural crop, the importation, exportation, cultivation, sale and research of hemp in South Africa is now permitted. However, the commercial use of marijuana remains prohibited in terms of the Drugs & Drug Trafficking Act 140 of 1992. 

In 2023, 664 hemp and cannabis farmers in KwaZulu-Natal Agriculture received permits which grants them authorisation to cultivate, store and transport content with THC levels of not more than 0.2%.

How to apply for a hemp permit in South Africa?

Interested growers, researchers, processors and manufacturers can access hemp permit application forms, guidelines, requirements and guidelines on the department’s website: www.dalrrd.gov.za .

The regenerative potential of hemp farming

Regenerative farming refers to a system of farming principles and practices that regenerate soils by restoring the carbon cycle, the water cycle and the nutrient cycle. It produces nutrient-dense foods and high-quality agricultural products while restoring the soil’s other crucial ecosystem services. 

Hemp fits well into the regenerative farming model. It is one of the easier plants to farm regeneratively, and it has its own regenerative properties. Even though it is an alien plant to South Africa, it is an annual plant and therefore can’t be truly invasive.

Hemp and carbon capture

Carbon capture  and minimisation are central to mitigating the world’s climate crisis. Hemp roots can drive six times deeper than some tree roots, which essentially means six times more potential to drive carbon into the earth. Cannabis sequesters up to  10,000 tons of carbon per hectare . 

Fewer pesticides and herbicides

Hemp farmed in South Africa doesn’t require as many carbon-emitting and environmentally-damaging herbicides or pesticides as many other crops.

Regenerative soil health

Hemp’s deep roots aerate the soil, which means that it works well as a rotational crop, soil rehabilitator and prevents soil erosion. Traditional agriculture uses nitrogen, which adds to global warming. By sequestering carbon in the soil with  regenerative farming practices  and plants such as hemp, farmers also  keep fungi and bacteria in the soil , which helps to remediate the damage done by conventional crop-protection chemicals. Using hemp as a  rotational crop  helps move agricultural systems to a polyculture farming approach and a meaningful change towards regenerative agriculture.

Environmentally-friendly hemp products

Hemp is a very versatile plant. Globally, hemp has a long history as one of the drivers of early industrialisation. The plant provided fibre for ropes and canvas for sails that powered maritime trade and helped to build the global market. It also provided textiles for clothing and played an important role in medicinal apothecaries.

As a fabric, hemp is three times stronger than cotton and lasts longer. It’s also a hollow fibre, which makes it breathable and anti-bacterial. According to The Environmental Price of Fast Fashion , hemp has the least environmental impact among common fibres: cotton, polyester, non-cotton cellulosics, polyamide and wool.

Hemp seeds can be processed into a high-protein food. Both hemp hearts and protein powder made from crushing the seed shell are extremely high in proteins and omega essential fatty acids. The seed can also be cold-pressed into consumable oil. The seed has the potential to improve the diet of SA’s poor, resulting in improved health and boosted immune systems.

Bio-fuel and plastic

The hemp plant can be processed for fuel through a pyrolysis process or converted into ethanol by a fermentation process, producing both ethanol and biofuel. This fuel could potentially feed directly into the energy and plastic sectors. Eco-friendly bio-plastics produced from hemp could help to start reversing land and sea plastic pollution.

The inner part of the hemp stalk is called the hurd. The hurd can be processed into “hempcrete”, a strong, fire-proof, moisture-proof, durable material that can be used for building. It can also be processed into eco-friendly insulation and pressed fibre-board. 

The outer part of the hemp stalk, known as the bast fibres, provides one of the longest fibres known to humanity. It is extremely versatile and can be used for an extensive range of consumer and industrial textiles, such as shoes, home furnishings, furniture and accessories. 

Paper can be made from either the hurd or bast fibre. Industrial hemp paper is an alternative to conventional paper made from trees, providing a more renewable source for the world’s paper needs. 

It takes hemp stalks just four months to grow, whereas trees take at least 20 years. This means that over a 20-year cycle, just one acre of hemp can produce as much paper as four to 10 acres of trees.

Until the 1920s, cannabis medicines were the most commonly used medicines in the world. These days, medical cannabis is playing an increasing role in offering healthcare solutions for a variety of ailments.

Harnessing a previously illegal industry

The World Health Organisation estimates that South Africa is the third-largest illegal cannabis producer in the world. With proper certification and hemp permits in place, this puts the country in a strong position to develop a local commercial hemp product market that unlocks the entire value chain:

• Creates jobs 
• Stimulates economic growth
• Generates substantial tax revenue 
• Encourage rural regeneration and small-scale industries 
• … all in a sustainable way

The South African government stated : “We appreciate the fact that various rural communities and farmers across South Africa have been planting hemp for many years. These farmers and traders will be prioritised to ensure that the commercialisation of hemp contributes to their socio-economic upliftment.  We are working with the provincial departments and national departments to ensure that adequate support is provided to producers including value addition.”

Getting the most out of your regenerative hemp farming

Like all agricultural preparations, starting a  regenerative hemp farm begins in the soil.  Whatever is going on under the surface of your farm before you plant your hemp determines the quality and quantity of the product that emerges. The hemp plant and sustainable farming methods will help to regenerate your soil over time. However, you may need to make some initial amendments to get the most out of your endeavour.

The team at RegenZ are pioneering and promoting innovative agricultural and food production technologies and practices in Southern Africa, including regenerative hemp farming. 

Get in touch with the RegenZ team to find out more about soil health and regenerative farming in South Africa.

About the Author: Alex Platt

Alex is Business Development Manager at RegenZ. He's inspired by the potential of regenerative farming and takes a special interest in the technology and products that are moving agriculture in a more sustainable direction.

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Small Business Development Committee Briefed by HEMP4LIFE and SAHPRA on Opportunities in the Cannabis and Hemp Industries

Parliament, Thursday, 7 March 2024 – The Portfolio Committee on Small Business Development was briefed yesterday by Hemp4Life and the South African Health Product Regulatory Authority (SAHPRA) about opportunities, challenges and licensing in the cannabis and hemp industry. According to Hemp4Life, both cannabis and hemp plants look and smell the same, but when sold in their raw form, the former has more economic value than the latter. For it to acquire more economic value, hemp needs to be processed first to extract cannabidiol (CBD) crude oil or CBD isolate. Although SAHPRA described the cannabis and hemp industries as demand-driven in the value-chain, Hemp4Life spoke of the challenges it faces in securing both private and government funding. SAHPRA reiterated the need to support small businesses in the farming and manufacturing sectors of the cannabis and hemp industries, pointing out that at the moment opportunities are only exploited by big businesses with a monopoly of the market. The committee welcomed SAHPRA’s recommendation that the government should take action to allow optimal participation by small growers. This includes expunging criminal records associated with illegal possession and trading of cannabis and hemp, bringing the industry into the mainstream economy, and protecting localisation for the small growers. The committee Chairperson, Mr Faiez Jacobs, said South Africa needs to destigmatise the use of cannabis and hemp, since the government and the Constitutional Court have provided a legislative framework. “The committee has welcomed the recommended actions by SAHPRA and we believe that some of them should be followed through, such as making sure that small businesses participate in the entire value chain,” Mr Jacobs said. ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT, MR FAIEZ JACOBS. For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer: Name: Mr Justice Molafo Cell: 081 424 7481 Email: [email protected]

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Cannabis industry plans for South Africa have stalled: how to get them moving again

Senior Lecturer Gordon Institute of Business Science, University of Pretoria

Disclosure statement

Motshedisi Mathibe is affiliated with University of Pretoria's Cannabis Organisation (COUP). She's also a faculty at GIBS Business School.

University of Pretoria provides funding as a partner of The Conversation AFRICA.

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South African president Cyril Ramaphosa recently reiterated plans to accelerate the commercialisation of hemp as well as cannabis plants. His speech setting out government’s priorities for 2023 was a reminder of a pledge in 2022 – also in his state of the nation address – that the government would mobilise investment in the hemp and cannabis sectors.

In his speech, the president indicated that government is in the process of addressing the conditions for the growth of the cannabis sector, particularly for rural farmers. The Department of Agriculture, Land Reform and Rural Development and the Department of Health are working closely to address the existing conditions for growing hemp and cannabis to enable outdoor cultivation and harvesting by rural farmers.

Currently farmers who have licences, grow their hemp and cannabis indoors under controlled conditions. The commercialisation will allow them to farm outdoors on a larger scale.

This is very exciting. The industry has the potential to create jobs, alleviate poverty and help reduce the extreme inequality in South Africa. One estimate is that the sector has the potential to create more than 130,000 new jobs.

The opportunity to commercialise the hemp and cannabis industry is that it is a new, fast-growing, multi-billion dollar sector with local and international markets. The potential legal pharmaceutical market for hemp and cannabis in South Africa alone has been estimated at over R100 billion a year.

But there are challenges.

First, that the government fails to implement changes needed to ensure the sector grows in a way that benefits township and rural entrepreneurs farmers. Adding a paragraph dedicated to the cannabis and hemp sector to the annual state of the nation address each year is one thing. But seeing action being taken and plans implemented is another.

The second is that, from mid-2022, small scale farmers farming cannabis promised to be issued with licences to farm legally. However, some farmers in the rural areas of the Eastern Cape are still waiting.

But there is a way forward. Based on my experience as a member of the Cannabis Organisation University of Pretoria and a member of one of the working groups set up to give inputs for a government masterplan first drawn up in 2021, I make four recommendations to fast-track the process.

These include reviewing and revising the existing master plan, getting defunct working groups up and running again, ensuring the plan is in place before investments begin and setting up a monitoring and evaluation capability.

A stalled process

The president mentioned that, in accelerating commercialisation of the sector, urgent work is being finalised by government to create an enabling regulatory framework for hemp and cannabis plants. This includes their use for complementary medicines, food, cosmetics as well as some industrial products.

The president said that the government was urgently finalising the work to create this enabling environment.

But some crucial questions need answering: what happened to the cannabis master plan working groups and workstreams set up in 2021/2022?. These working groups and workstreams consisted of representatives from government, the private sector, academic institutions and the cannabis research community. The groups got off to a good start and were in a process or reviewing and revising a plan to commercialise hemp and cannabis. One of the key objectives was to ensure that township entrepreneurs and rural farmers would benefit from any changes.

But working groups collapsed and disappeared without trace.

The president’s comments therefore invite the question: what happened to the master plan working groups, and the workstreams? When the president speaks about acceleration to commercialise the cannabis sector, which includes the participation of rural farmers, how far along is the planning?

The way forward

Firstly, the presidency must reinstate the cannabis master plan working groups and workstreams. They must be allowed to finalise the review and revision of the current master plan.

The revised master plan should enable the inclusion of township entrepreneurs and rural farmers. They are currently excluded from the mainstream commercialisation of hemp and cannabis due to a cumbersome licensing process.

Secondly, investments in the hemp and cannabis sector should only be implemented once the master plan has been reviewed and revised. This will provide guidance on how the proposed funds can be properly channelled.

The wheel should not be reinvented. Neither should time and effort be wasted.

Thirdly, a monitoring and evaluation committee needs to be set up to look after the hemp and cannabis project implementation. It should be set up in the same way as the working groups were formed with representatives from all interested players. This will ensure that all players in the sector are included. And that funds are appropriately spent.

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Hemp Farm Business Plan Template

Written by Dave Lavinsky

Hemp Farm Business Plan

You’ve come to the right place to create your Hemp Farm business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hemp Farms.

Below is a template to help you create each section of your hemp farming business plan.

Sample Hemp Farm Business Plan

Executive summary, business overview.

Abundant Harvest Hemp Farm is a startup hemp farming business located in Boulder, Colorado. The company is founded by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Now that Jeffrey and Sharon have gained the essential experience and know-how involved in running an industrial hemp production farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp business. The duo plans on recruiting a team of experienced farm hands to perform the essential tasks involved in running a successful hemp farm including cultivating, harvesting, and trimming hemp products (flower, leaves, stems, and biomass) to be sold to other companies who produce CBD oil products.

Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The company will be the premier choice in Colorado for CBD businesses looking for quality and value in hemp products. Abundant Harvest Hemp Farm will charge its customers reasonable prices for its hemp products that are on par with competition, but unlike most of the hemp farm businesses that are in direct competition, the company’s hemp will be available year-round.

Product Offering

The following are the products that Abundant Harvest Hemp Farm will provide:

• Hemp flower
• Hemp leaves
• Hemp biomass

Customer Focus

Abundant Harvest Hemp Farm is a B2B business that will target all CBD processing, manufacturing, and extraction companies in Colorado. They will target CBD companies who value high quality, hand-harvested products at fair prices. No matter the client, Abundant Harvest Hemp Farm will deliver the best communication, service, and quality products.

Management Team

Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp production business since it became legal in the state of Colorado in 2014.

Jeffrey Moore is a graduate of the University of Colorado with a Bachelor’s degree in Agriculture. He has been working at a local hemp farm since 2014 as a Master Grower. Jeffrey excels in operations management, equipment safety, and the growing process. He will oversee the farm hands, crops, and equipment.

Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relations, while monitoring the global industrial hemp market for fluctuations and changes.

Success Factors

Abundant Harvest Hemp Farm will be able to achieve success by offering the following competitive advantages:

• Potent hand-harvested hemp that is high quality,  free of contaminants, and thoroughly inspected.
• Affordable prices for all customers and extra discounts for long-term contracts.
• Efficient indoor growing techniques using the latest technology to ensure high yields all year-round.

Financial Highlights

Abundant Harvest Hemp Farm is seeking $200,000 to launch its hemp farm business. The funding will be dedicated towards securing the land, building the indoor facility, and purchasing equipment and supplies. Funding will also be dedicated towards three months of operational costs, testing costs, and licensing costs. The breakout of the funding is below:

• Grow facility build-out: $70,000
• Equipment, supplies, and materials: $10,000
• Startup and operational costs: $90,000
• Testing and licensing costs: $2,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Abundant Harvest Hemp Farm.

Company Overview

Who is abundant harvest hemp farm.

Abundant Harvest Hemp Farm is a newly established hemp farm in Boulder, Colorado. Abundant Harvest Hemp Farm will be the most reliable, cost-effective, and efficient choice for CBD buyers in Boulder and the surrounding communities. Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The hemp farm will be the premier choice in Colorado for CBD companies looking for quality and value. Abundant Harvest Hemp Farm will charge reasonable prices for its hemp products that are on par with competition.

Abundant Harvest Hemp Farm will be able to manage the entire process of cultivation and harvesting. The owners will employ farm hands who have been working in the hemp business for several years to cultivate and harvest the hemp products. Abundant Harvest Hemp Farm removes all uncertainties and risks of potentially unsuccessful harvests from the buyer by ensuring its hemp products are reliably harvested all year-round while delivering the best customer service.

Abundant Harvest Hemp Farm History

Abundant Harvest is owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Jeffrey and Sharon have gained the essential experience and know-how involved in running a hemp farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp farm.

Since incorporation, Abundant Harvest Hemp Farm has achieved the following milestones:

• Registered Abundant Harvest Hemp Farm, LLC to transact business in the state of Colorado.
• Has selected the location for the facility and has begun negotiations for purchase of the property.
• Reached out to numerous contacts to include experienced farm hands to advise them on their upcoming hemp farm company in order to start recruiting employees.
• Began the licensing process to ensure compliance with all hemp farm regulations.

Abundant Harvest Hemp Farm Services

Industry analysis.

The global market for hemp is an estimated USD $205M (as of 2020) with an expected compound annual growth rate (CAGR) of 6%, increasing to $310M by 2027.  Hemp is produced commercially in over 30 countries around the world. The hemp market is segmented into textiles, hemp seeds, and hemp bio-composites.

The hemp market in North America is expected to reach USD $87.5M by the year 2027. Increased legalization of CBD oil products is boosting demand in the United States.

With segments that range from biomass, flower, extracts, isolates, and distillates, the CBD market offers a diverse set of products. Hemp oil is in high demand for pharmaceutical products, skin care products, topicals, edibles, and more.

Industry operators can maintain a competitive advantage by offering unique cultivation and harvesting techniques. For instance, hand-harvested plants can produce up to 5% more CBD than machine harvested plants, which destroys buds.

Customer Analysis

Demographic profile of target market, customer segmentation.

Abundant Harvest will primarily target the following customer profiles:

• Small CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.
• Mid-sized CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.

Competitive Analysis

Direct and indirect competitors.

Abundant Harvest Hemp Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Boulder Harvest Hemp Farm

Boulder Harvest Hemp Farm provides premium hemp for CBD oil producers. Located in Boulder, Colorado, Boulder Harvest Hemp Farm is able to provide a local source of hemp flower and biomass that can be used to make a variety of CBD products. The hemp is cultivated and harvested using the latest equipment and technology to ensure efficient production. Boulder Harvest Hemp Farm is also able to deliver its hemp directly to local customers.

Boulder Harvest Hemp Farm’s promise is to provide its customers with high quality hemp products that they can then use to create their signature CBD oils. The hemp farm uses a stringent quality control process to ensure its customers receive only the best of the hemp its crops produce. Any damaged or imperfect product gets thrown out. Boulder Harvest Hemp Farm’s team of experienced hemp farmers assures the quality of the product.

Greeny’s Hemp Farm

Greeny’s Hemp Farm is a Boulder-based hemp cultivation business that provides outstanding raw hemp products for its B2B customers. Greeny’s Hemp Farm provides high quality hemp products harvested from all parts of the plant – the flower, stem, leaves, and biomass. This ensures no part of the plant is wasted. The owners of Greeny’s Hemp Farm are long-time hemp farmers so they understand what goes into cultivating the ultimate crop. Clients can depend on their attention to quality in all of their processes to provide the best hemp possible. By choosing Greeny’s Hemp Farm, customers can rest assured they are getting hand-harvested hemp that has been thoroughly tested and evaluated before being carefully packaged and shipped out.

High Health Hemp Farm

High Health Hemp Farm is a trusted Colorado hemp company that provides superior hemp products to CBD oil brands in Boulder and the surrounding areas. High Health Hemp Farm is able to provide its products at low prices because it operates on a lean overhead model that allows the company to pass on its cost-savings to its customers. The indoor hemp farm uses the most advanced technology and equipment to harvest its product, ensuring high yield with few employees needed.

Competitive Advantage

Abundant Harvest Hemp Farm will be able to offer the following advantages over its competition:

• Potent hemp that is guaranteed to be high quality and free of contaminants due to the company’s thorough inspection process of its hand-harvested crops cultivated by skilled farm hands.
• The company’s efficient production techniques allow for cost-savings that are passed on to customers.
• Efficient indoor growing techniques using the latest technology to ensure high yields and year-round harvests.

Marketing Plan

Brand & value proposition.

Abundant Harvest Hemp Farm will offer the unique value proposition to its clientele:

• Potent CBD hemp available year-round that has been thoughtfully cultivated and thoroughly inspected for quality.
• Affordable prices for all and extra discounts for buyers with long-term contracts.

Promotions Strategy

The promotions strategy for Abundant Harvest Hemp Farm is as follows:

Website/SEO Marketing

Abundant Harvest Hemp Farm will create and maintain a professionally designed website. The website will be well organized, informative, and list all products that Abundant Harvest is able to provide. The website will also contain up-to-date information and informative content on hemp, the industry, CBD trends, and other issues that would be of interest to B2B clients. The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Boulder hemp farm” or “hemp farm near me”, Abundant Harvest Hemp Farm will be listed at the top of the search results.

Social Media Marketing

The company will use social media marketing tactics to expand its reach and gain new customers. Abundant Harvest will maintain an active presence on various social media platforms including Twitter, Instagram, Facebook, YouTube, LinkedIn, and TikTok.

Word of Mouth/Referrals

Jeffrey and Sharon Moore have built up an extensive list of contacts over the years by providing exceptional products and customer service to their B2B clients. Jeffrey and Sharon have reached out to these contacts to let them know about the new hemp farm. Many have already signed commitments to follow the Moore’s to their new company and help spread the word of Abundant Harvest Hemp Farm to their networks.

Professional Associations and Networking

Abundant Harvest Hemp Farm will become a member of professional associations such as the National Hemp Association, Hemp Industries Association, U.S. Hemp Roundtable, and the Colorado Hemp Association. They will attend industry events and focus their networking efforts on expanding their client network.

Print Advertising

Abundant Harvest Hemp Farm will invest in professionally designed print ads to display in programs or flyers at industry networking events, in industry publications, and for direct mailers that will be sent to various CBD companies.

The pricing of Abundant Harvest Hemp Farm will be moderate and on par with competitors so customers feel they receive value when purchasing its hemp products.

Operations Plan

The following will be the operations plan for Abundant Harvest Hemp Farm.

Operation Functions:

• Jeffrey and Sharon Moore will be the Co-owners of the company. Jeffrey will oversee all staff and equipment, while Sharon will manage the finances and client relations. Jeffrey and Sharon have spent the past year recruiting the following staff:
• John Stephens – Sales and Marketing Director who will provide all sales outreach and marketing activities for Abundant Harvest Hemp Farm.
• Maria Johnson – Staff Accountant who will assist Sharon by providing all client accounting, tax payments, and monthly financial reporting.
• Bill Martinez – Quality Control Manager who will oversee the inspection process for all crops throughout the cultivation and harvesting process.

Milestones:

Abundant Harvest Hemp Farm will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to purchase the land.

10/15/2022 – Begin build-out of the facility.

11/1/2022 – Finalize employment contracts for the management team and farm hands.

11/15/2022 – Begin networking at industry events and implement the marketing plan.

12/22/2022 – Begin the cultivation process for Abundant Harvest Hemp Farm’s first crop.

Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014.

Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relationships.

Financial Plan

Key revenue & costs.

The revenue drivers for Abundant Harvest Hemp Farm are the hemp farm fees they will charge to the B2B CBD oil companies for the hemp products. The company will charge between $150-$250 per pound for its hemp products.

The cost drivers will be the overhead costs required in order to maintain an indoor year-round hemp cultivation and harvesting operation. The expenses will be the payroll cost, equipment maintenance, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials.

• Average number of pounds of hemp produced per year: 10,000
• Average amount in sales per year: $200,000
• Average operational costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, hemp farm business plan faqs, what is a hemp farm business plan.

A hemp farm business plan is a plan to start and/or grow your hemp farm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your hemp farm business plan using our Hemp Farm Business Plan Template here .

What are the Main Types of Hemp Farms?

There are a number of different kinds of hemp farms, some examples include: Food-grade Hemp, CBD Hemp, Hemp for Textiles, and Industrial Hemp.

How Do You Get Funding for Your Hemp Farm Business Plan?

Hemp farms are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a hemp farming business plan, a cbd oil business plan or a cbd business plan template.

What are the Steps To Start a Hemp Farm Business?

Starting a hemp farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hemp Farm Business Plan - The first step in starting a business is to create a detailed hemp farming business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hemp farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hemp farm business is in compliance with local laws.

3. Register Your Hemp Farm Business - Once you have chosen a legal structure, the next step is to register your hemp farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hemp farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Hemp Farm Equipment & Supplies - In order to start your hemp farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hemp farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Hemp Farming in South Africa 101

Daisy Neema | Posted in: South Africa

Hemp was an illegal crop in South Africa but with pressure from local and international investors, the government finally legalized hemp farming under certain conditions. In a positive move to embrace hemp industry, the South African Minister of Health published the cannabis industries’ canonization in the Government Gazette on 23rd May 2019. In 2018 Constitutional Court, the highest court in the country, legalized cannabis for personal and private cultivation, possession, use and consumption.

Hemp can be used to make over 25,000 products such as hemp seed oil, rope, paper, fuel, household accessories, clothing, soap, building blocks, etc.

The UN Commission on Narcotic Drugs (CND) voted in December 2020 to remove marijuana from Schedule IV of the 1961 Single Convention on Narcotic Drugs where it was listed as one of the most dangerous drugs. The decision is expected to highlight the medicinal and therapeutic potential of marijuana as well as drive scientific research into marijuana.

Hemp Growing Permits and Licenses in South Africa

South Africa is among the few African countries that have passed laws to allow the cultivation, processing, and distribution of industrial and medical cannabis. However, you will need a license or permit to cultivate, process, or distribute hemp. Other countries in Africa include Zambia , Malawi , Lesotho, Zimbabwe, Uganda and Ghana.

Personal Cannabis License

The Constitutional Court legalized the private use of cannabis in 2018 after finding that banning personal cannabis use was an infringement of a person’s right to privacy. You do not need a license to grow and use your own cannabis in South Africa. However, any form of cannabis trade is still illegal. Although growing cannabis for personal use is allowed, the proposed new Cannabis Bill recommends the possession of up to 600g of dried cannabis per person or a maximum of 1200g per household with two or more adults. Consuming cannabis in public is also illegal.

Hemp Farmers’ License

Licenses for hemp farmers in South Africa are mainly for research purposes, and they require heavy paperwork to process. Additionally, farmers will need to invest in grow facilities before acquiring a license since South African Health Products Regulatory Authority (SAHPRA) will first inspect the facility and its quality-control procedure. Hemp growers in South Africa can buy seeds locally from pharmacies or animal feed shops or buy imported hemp seed. For imported hemp seeds, farmers will need a special permit to allow them to import the seeds. The Department of Agriculture, Forestry, and Fisheries (DAFF) issues seed permits in South Africa.

The Cannabis Development Council of South Africa (CDCSA) is a proposed self-regulating Cannabis Industry Association. It will help to regulate and control the cannabis industry of South Africa. Some of its activities will include the following:

• Advice on new legislative and regulatory frameworks so that adults can access regulated quality cannabis in line with international health and safety standards.
• Ensuring that the South African cannabis industry is protected from exploitation by foreign corporations.
• To ensure that all license and permit applicants get a fair and equitable opportunity as defined by law.
• To ensure that the youth do not abuse cannabis.
• CDCSA will help to uplift local communities through education, healthcare, and job creation.
• To boost South Africa’s economy through maximum exploration and exploitation of the great potential in cannabis.

Medical Cannabis License

Getting a medical cannabis license in South Africa is hectic as it follows a strict bureaucratic process. Furthermore, you will need to dig deeper into your pockets as the associated costs are quite high. Hemp farmers and producers for medicinal purposes will need to acquire a license from the South African Health Products Regulatory Authority (SAHPRA) by filling out this application form and a permit from the Department of Health under the Medicines Control Council. Additionally, applicants will also need to apply for a permit to acquire, possess, manufacture, use, or supply cannabis at the Director-General of Health office. The following is a list of guidelines published by the SAHPRA for prospective medical cannabis growers.

• Applicants for the medical cannabis license must not have been convicted for an illicit drug-related offense.
• Farmers must show the ability to adhere to the Good Manufacturing Practice in South Africa.
• Medical cannabis license applicants will need to show adequate measures to ensure security, transport, and employment of suitable persons.

Now that South Africans are aware of the great value in the hemp market, there is vast interest in obtaining licenses and growing hemp legally. With South African’s natural climate, rich agricultural tradition, and affordable land, the South African hemp market can boost its economy. This is made possible through job creation and revenue generation if appropriate legal frameworks are put in place.

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• March 10, 2023

Hemp production in South Africa – Western Cape

A company and a farmers’ association recently joined hands to start hemp production in gouda in the western cape..

In October last year, Hemp Africa SA, in partnership with a group of 54 previously disadvantaged farmers from the Gouda Farmers’ Association, launched a research and development hemp project on 0,5ha of land belonging to the Gouda community trust.

If all works out, the partnership hopes to turn Gouda in the Western Cape into South Africa’s hemp-producing hub.

“Our vision is to put 10 000ha under hemp production over the next five to 10 years and to then run the project like a kibbutz, which we want to call Mega Pharm. The idea is for two to three farmers to be responsible for growing 1 000ha each,” explains Nicole Pryor, Hemp Africa SA’s secretary.

While the initial plan is to sell the raw product to off-takers, they also plan to later create a co-operative and processing facility where value can be added to the raw material by workers from the community.

The big drive behind the project is to eradicate poverty and create job opportunities in the region. Gerrie Koopman, the farm manager and vice-chairperson of the Gouda Farmers’ Association, says that roughly 90% of the people of working age in Gouda, and especially young people, are without jobs.

“The project promises to breathe new life into Gouda by creating jobs and giving young people valuable work exposure. It is already employing eight people on 0,5ha, which will soon be increased to 11 [workers]. Just imagine the opportunities once we have scaled up to over 1 000ha,” he says.

The idea is also to use profits and perhaps hemp-based bricks to build houses in the community, as well as a high school and church.

Research and development

But for now, baby steps are being taken as the community jumps through ‘big hoops’ to get the project off the ground. Gary Pryor, director of Hemp Africa SA and Nicole’s father-in-law, says they have a permit to plant 0,5ha for research and development and are in the process of getting a permit to grow another 50ha.

The community, however, has access to 300ha and the partnership is in negotiation with Drakenstein Municipality to get access to another 800ha.

So far the Holmes Group, which founded Hemp Africa SA in 2019, has invested R400 000 of its envisaged R580 000 in the establishment and running of the first stage of the operation, during which four different hemp strains have been planted for evaluation to identify the variety best suited for production in the region.

Hemp Africa SA and the farmer group also entered into a partnership with Power Ministries to help with the development of hemp-based products. Gary points out that Power Ministries has so far developed two products from the four strains with which they were supplied: a hemp oil for cosmetic purposes, and a nutritious food solution for humans.

The church already has a textile project for homeless people, and will also endeavour to process hemp into environmentally friendly duvet covers and pillow cases once sufficient volumes are available.

Pastor Benjamin Mawaro of the church does most of the research on the product development side, and is assisted by homeless people with the making of the products in return for food and training.

“We offer food garden training to improve people’s food security and help them become more self-sufficient. We are always looking for donations and funding to buy seed,” says the pastor.

Hemp Africa SA is constantly in talks with different hemp product off-takers to familiarise themselves with opportunities on the market, as well as the quality of products that are in demand.

Gary says that hemp’s versatility has turned it into a miracle plant. “It is of high nutrition as human and animal food, and can be used in textiles, building and the manufacturing of products. It has the ability to totally transform the Gouda community once we can get a permit to grow hemp commercially and scale up the project to grow volumes large enough to supply the market.”

But what is the difference between hemp and cannabis grown for the medicinal market? Gary explains that the project grows hemp of different varieties compared with what would be used to produce medical cannabis, as these varieties have lower tetrahydrocannabinol (THC) levels than medical cannabis.

In South Africa, hemp-based products are not allowed to contain more than 0,2% THC. Gary admits that this is a problem because of South Africa’s warm climatic conditions, which tend to push THC levels higher, but adds that they have found a way to reduce THC levels through heat treatment if it is too high.

The ideal, however, would be for government to change legislation to allow producers to grow hemp at higher THC levels.

Gary adds that cannabidiol (CBD) is one of the non-psychoactive cannabinoids found in hemp and medical cannabis that boosts its medicinal value, but it does not cause a “high” and is not addictive.

A major difference between cannabis produced for hemp and cannabis aimed at the medicinal market is the amount of security needed. Gary points out security fencing and the employment of guards to prevent theft are some of the biggest costs when you want to start a hemp farm.

The security requirements to produce medical cannabis, however, are significantly higher, requiring security cameras and even more security guards per area under production, making it over 10 times more expensive.

Gary says that cannabis grown for the medicinal market is also primarily produced in high-tech greenhouses with climate control and artificial lights to manipulate the production environment and create a consistent product that will conform to market standards.

Hemp, on the other hand, can be produced outside, but prices attained for it are lower than what are achieved in the medicinal market, which is why hemp needs to be produced on a large scale before the operation becomes commercially viable.

Nicole says a quote for a fence to secure the 50ha they intend planting once they have received their second permit came in at R890 000, while that for the irrigation system was R2,5 million. Along with this, they would need 250kg of seed. The seed to plant the first 0,5ha cost them R10 000.

“Personally, I think a farmer would need to plant at least 1 000ha to be commercially viable, so the permit to plant 50ha does not really make business sense. It would also be great to have a local seedbank instead of having to import expensive seed from overseas,” she says.

Field of hemp (Cannabis sativa) for industrial application.

While it is still early days, Koopman says their biggest challenges so far has been the wind, which can be expected as the project is situated right next to the Gouda Wind Farm.

“The soil is sandy and the wind dries it out, which means that overhead irrigation has to be managed much more carefully to prevent loss. I am experimenting with nets as windbreaks to help prevent this,” says Koopman.

Birds, especially starlings and finches, also ran havoc feeding on the plantings one weekend. Koopman solved this by putting up reflective ribbons and scarecrows in the field. They have also planted tomatoes all around the hemp field to act as an early indicator of pests and diseases and to serve as feed for baboons.

“The baboons won’t eat the hemp, but they can destroy your land if they get the chance. We hope they will stick to the tomatoes instead of going into the hemp lands,” he says.

There are two planting windows, in October and February, and each planting is able to produce two harvests per year. Hemp should be rotated with another crop after the second harvest to prevent a build-up of soil-borne diseases.

Nicole points out that they have identified a cannabis strain with the ability to grow through the winter. “It grows up to 4m tall and produces sturdy, fibrous stalks.”

Community benefits

At the time of writing, Hemp Africa SA was still in discussions with labour organisation SEESA on how the partnership with the Gouda Farmers’ Association should be structured. The idea is to give the association a 16% share in profits.

Hemp Africa SA was also in negotiation with the Black Farmers’ Association of South Africa with the aim of giving them a 10% share in the project. This would make Hemp Africa SA BEE-compliant at Level 2.

Aletta Stevens, treasurer of the Gouda Farmers’ Association, says: “We imagine it will take about a year before we would be able to share in the profits of the project, but the sooner we receive a permit to plant an additional 50ha, the sooner we can turn a profit.”

Profits will primarily be invested into the upliftment of the community and Gouda Farmers’ Association members. “We started the association eight years ago, with the majority of our members farming with a few livestock on communal land. The production of hemp, however, will have a much greater return per area than livestock,” says Stevens.

She adds that upliftment of the community will help to reduce crime, which is having a very negative impact on farming operations already.

“People are desperate, so we are sitting with very high levels of crime that are also affecting livestock production. They are even trying to steal our hemp, even though we put up clear signs stating that the hemp is not dagga and cannot be smoked.”

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House of Hemp (Pty) Ltd

House of Hemp is a proudly South African, black woman-led company that found its roots in the singular vision of Dr Thandeka R. Kunene, the Cannabis Queen of the South.

Through tireless campaigning, expert medical and industrial research and investment in indigenous knowledge, House of Hemp today has accumulated over 27 years of experience in the agriculture and production of Cannabis (Hemp). House of Hemp is leading a sustainable industry in South Africa that includes fibre, seed oil and Cannabidiol (CBD) medicines.

In 2010, House of Hemp became the first private company to be awarded an exclusive permit by the Departments of Agriculture and Health to legally cultivate and process hemp in South Africa for research purposes. From its extensive tap root system of knowledge, passion and people, House of Hemp was also awarded the first medical Cannabis license for the commercial production of medical Cannabis in South Africa in March 2019.

Committed to the creation of a fully inclusive industry which benefits disadvantaged communities, House of Hemp guarantees access, safety and efficacy in the commercialization of Cannabis.

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Hemp Solutions

What ever Wood, Steel & Oil can do - Hemp can do better.

Hemp Solutions Industrial Hemp Processing is a South African owned Industrial Hemp processing facility sourcing hemp from local farmers. From the Industrial Hemp, we create raw materials of Hemp Fiber, Hemp Hurd and Hemp Seeds. We offer consumer goods manufacturing companies affordable 100% South African Hemp raw materials and provide bulk Hemp seed to farmers. 

Our mission is simple: to utilize science and nature in order to advance and cultivate natural Hemp products. Creating employment and supporting nature at the same time will have a lasting impact on the individuals, the economy and world around us.  Nothing is better than hearing about how our raw materials have been used by our customers to help our communities.

We are proud to be an industry leader in Hemp Fiber-, Hemp Hurd-, Hemp Microfiber- and Hemp Seed production. We support our large, small and community farmers with training and information, we research best practices and we consistently develop new products. We don’t just talk the talk, we walk the walk.

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Exploring the Economic Opportunity of Hemp Industrial Hemp is from the plant species Cannabis sativa and has been used worldwide to produce various industrial and consumer products such as shoes, clothing, cement products and many more. The confusion between industrial hemp and cannabis is based on the visual similarities of plants. However, hemp does not have any THC, the psychoactive ingredient that gets you high. Hemp is farmed for either fiber production or oil production. In October 2021, the Minister of Agriculture, Land Reform and Rural Development, Ms Thoko Didiza, declared hemp as an agricultural crop under the Plant Improvement Act, no.53 of 1976. Following a successful and relatively low-cost permit application, any person in South Africa can now cultivate hemp with a THC value of a maximum of 0.2%. Unfortunately, one restrictive clause remains: that is the requirement to erect a 2m high fence around your hemp plantation. This will be a large barrier to entry for community and small scale farmers, and hopefully, the Minister will remove this barrier soon. It is widely written that hemp has 50 000 different uses, but we expect a few core uses to create a great economic opportunity for those willing to venture into the proverbial hemp field. Financial benefits can firstly be achieved from those that plant and grow hemp. It is estimated that 1Ha of hemp can give employment to 3 people and conservatively produce 5 tons of hemp straw that can sell for approximately R230 000. The hemp has a 120 grow period from plant to harvest and is planted around October of the year and harvested around February of the following year. The hemp straw is then processed into hemp fiber, hemp hurd and hemp microfiber & seeds. Textile manufacturers can use hemp fiber to make hemp cloth & rolls of hemp textile. The hemp cloth can be used to make many different items such as clothing, shoes, linen, etc. The hemp fiber can also be used in the construction industry, vehicle manufacturing, and others to make reinforced fiber products. The hemp hurd is also used in the construction industry to make hempcrete similar to brick but has very high thermal and strength properties. The hemp hurd is used in the paper industry to make paper and in the pet industry for pet bedding and cat litter. Microfiber is used in the medical industry for making CBD based extracts and in the health and beauty industry. Hemp Solutions Inc. is planning to establish a hemp processing plant in the Paarl area and is looking for contract cultivators of between 10Ha to 50Ha each. Farmers will have to apply for their licence at the Department of Agriculture. The first-year requirement (planting latest this October 2022) is a total of 200 Ha of hemp straw needed. The next four years seasons requirements are 600Ha, 1000Ha, 1500Ha and 2000Ha of hemp straw required. With the declaration of hemp as an Agricultural crop, the Minister has created a huge opportunity for economic growth in South Africa. Hemp Solutions Inc.'s goal is to support the Western Cape development as a hemp hotspot in 2022 and beyond.

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Please get in touch with any questions about our Hemp processing facility, our South African made Hemp raw materials or about bulk Hemp seed or becoming a contracted Hemp grower.

Paarl, Western Cape, South Africa

[email protected]

+27825525852

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Hemp   //

Hemp, Cannabis sativa L, is an industrial crop and is one of the oldest cultivated crops in the world. Hemp is cultivated in many countries, including, China, Canada, Russia, the USA, and several European countries. In these countries hemp farming is regulated.

It is illegal to cultivate hemp in South Africa as it is classified under the Cannabis species. A permit is required before one can plant hemp and this permit is obtained from the Department of Health under the Medicines Control Council.

The plant has been used for a wide variety of purposes. It is used to make over 25,000 consumer products, from hemp apparel and accessories to house-wares and hempseed oil cosmetics. Some of the products made from hemp are: clothing, shoes, diapers, rope, canvas, cellophane, paints, fuels, chain lubricants, biodegradable plastics, paper, fibreboard, cement blocks, food, cosmetics, and soap.

Hemp is described as an annual herbaceous plant with an upright growth habit and its characteristic leaves are composed of five to seven leaflets. The hemp plant can reach nine metres in height, but under cultivation it averages between two to four metres. Hemp is from the same plant species ( Cannabis ) as dagga (marijuana). Although similar in appearance, the dagga plant may develop more side branches and has a more bushy appearance in contrast with hemp. Hemp is mainly cultivated for fibre and oil and because the delta-9-tetrahydrocannabinol (THC) content is very low, it cannot be used as a drug. Dagga, on the hand, has such a low fibre content that it is not suitable for fibre production. Hemp generally refers to the fibre-producing strain of Cannabis . Currently three main groups of varieties under cultivation, namely, varieties cultivated primarily for fibre, varieties grown for seed and varieties grown for their medicinal and narcotic properties.

The hemp plant requires a mild, temperate climate and an annual rainfall or irrigation of at least 500 to 700 mm. For optimum yield, it requires 250 to 300 mm of moisture during the vegetative growing stage. Droughts are damaging, especially while the seed is germinating and during flowering. Hemp grows best when supplied with moisture throughout its growing season and especially in its early stages of growth or during the first six weeks of growth. The hemp plant is sensitive to short day length which induces early flowering. It requires a day length of between 14 and 16 hours. A short day length also inhibits stem growth and decreases the production of fibre hemp after flowering. Currently suitable growing areas in South Africa are limited to the Western and Eastern Cape regions during the summer where there is a maximum of 13 to 14.4 hours of daylight.

The planting date is another important factor in fibre hemp production. As hemp is sensitive to day-length, the vegetative growth period should be maximized. Therefore, an early planting date (October to November in the Eastern and Western Cape) results in taller plants with higher fibre yields, while later planting will result in early flowering and poor fibre production. Hemp is ready for harvest 120 days after planting.

The method used for harvesting hemp is determined by the use to which the hemp will be put. The common method of harvesting hemp for seed is to cut it by hand but it can also be harvested mechanically. If hemp is harvested for fibre, early harvesting will result in low fibre yield and late harvesting in coarse fibre.

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South Africa Hemp Industry

The population in South Africa is estimated at 62 million and is growing at about 2% per year. If this trend in population growth persists there will be nearly 82 million people living in South Africa by the year 2035. South Africa has a total surface area of 122 million ha, of which almost 86% is used for agriculture, 74% being natural veld and 14% arable land.

“Sustainable farming is about meeting the needs of South Africans today and in the future.” – WWF .

Africa Hemp CBD Industry

In South Africa, the law, valid until the end of May 2020, allowed the sale and use of some CBD products over the counter. In June 2020, the country exempted industrial hemp with less than 0.2% THC from medical control and rescheduled CBD to be regulated as a supplement on schedule 0:

• CBD medication marketed for general health, or the “relief of minor symptoms” containing no more than 600 mg of CBD per pack and provide a maximum daily dose of 20 mg.
• Ingestible products derived from raw biomass that contain no more than 0.0075% total CBD and only the naturally occurring cannabinoids found in the source material.

In 2023, the Department of Agriculture and Rural Development (DARD) issued a total of 664 licenses in the South African province of KwaZulu-Natal. The permits authorize the farmers to grow, store and transport cannabis with less than 0.2% THC – the dividing line between hemp and marijuana in South Africa. South Africa’s cannabis/CBD industry is expected to grow at a CAGR of 28.4% between 2022 and 2026.

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Our hemp/CBD financial models and business plan templates will help you estimate how much it costs to start and operate your own hemp/CBD business, to build all revenue and cost line-items monthly over a flexible seven year period, and then summarize the monthly results into quarters and years for an easy view into the various time periods. We also offer investor pitch deck templates.

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