The government decree that regulates the production and sale of CBD anger some players in the sector, who fear for the future of the sector.
“Dogmatic and irresponsible posture“,”snub made to French entrepreneurs and farmers“,”brutal and incoherent choice“… It is an understatement to say that the decree published on Friday in the Official Journal, which finally comes to regulate the production and sale of CBD, has not made that happy among professionals in the sector. Some unions and associations are indeed up against one of the flagship provisions of the text: the ban on the sale of CBD hemp flowers which, they claim, threatens the future of the industry. She is “mowed in flight“, For example castigates the Union of CBD Professionals (UPCBD) in a press release.
Because it is true that until then it knew an exceptional growth. In recent years, shops offering products based on this molecule, cannabidiol, present in cannabis, cousin of THC, but without a narcotic effect, have flourished throughout France. From a few hundred stores a few months ago, their number has grown to 2,000, according to figures from the Professional Hemp Trade Union, which estimates the market’s volume of business at 2 billion euros.
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If some players fear for the future of the sector, it is because flowers, most often used as smoking products, represent a significant share of sales: from 50 to 70% of the turnover of specialized shops, depending on the professionals in the sector. “If you take these products away from them, they go bankrupt.», Denounces Aurélien Delecroix, president of the Professional hemp trade union, explaining to have already heard of members abandoned by their bank. “There is a risk of closures and layoffs at short notice», Abounds Charles Morel, president of the UPCBD. The French Association of Cannabinoid Producers (AFPC) also denounces “economic ineptitude“Of another provision of the decree:”the obligation to have a written contract with a processor or extractor as a prerequisite for cultivation“, Which will lead to”cartelization of the sector», Criticizes its president François-Guillaume Piotrowski.
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CBD “made in France”
However, the government decree has a significant merit, that of putting an end to the legal vagueness surrounding the activity since its inception. If its development was accelerated by a judgment of the Court of Justice of the European Union (CJEU), delivered in November 2020, CBD was still not officially authorized in France. This text aims to “securing commercial activity around hemp», Explains Valérie Saintoyant, delegate of the Interministerial Mission for the fight against drugs and addictive behaviors (MILDECA), in charge of the file within the executive.
“If the flower market is to disappear, the global market will continue to grow. “
Ludovic Rachou, president of the Union of Industrialists for the Valorization of Hemp Extracts (UIVEC)
With now these legal guarantees, other players, hitherto cautious, could be encouraged to enter this market, already invested by pharmacies, drugstores, supermarkets and other tobacconists. “If the flower market is to disappear, the global market will continue to grow.“, Anticipates Ludovic Rachou, president of the Union of Industrialists for the valorization of hemp extracts (UIVEC). Everyone will be able to sell, without fear of criminal reprisals, products made from CBD extracts. There is already a wide range today, from electronic cigarette liquid to cosmetics, herbal teas, food supplements, oils and even … treats for pets.
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The decree also opens the door to the creation of a genuine French sector for the agricultural production of CBD. The text until then in force, dating from 1990, limited the cultivation of hemp to only fibers and seeds of the plant. This authorization is now extended to all parts of the hemp plant, including the flowers and leaves. “Today we have the right to produce CBD “made in France”“, Welcomes Ludovic Rachou, which should not fail to do the French farmers. France being “the leading hemp producer in Europe, with around 2000 producers», Underlines the boss of UIVEC.
On the side of the InterChanvre interprofession, we claim to have already been contacted by dozens of farmers interested in getting into this niche. “We are pleased that the decree provides for the possibility of producing CBD, and that it is reserved for farmers», Indicates the director Nathalie Fichaux, who says that despite everything regrets the absence of obligation to control the plots of hemp intended for the CBD.
An order under threat of appeal
If the decree published on the last day of the year 2021 has the effect of a real big bang in the small world of CBD, it is not immune to being suspended. Indeed, several representative organizations of the sector have expressed their desire to attack the text before the Council of State, judging that it conflicts with European law. The UPCBD has even already filed an appeal, which will be examined on January 14. The Professional Hemp Union and the AFPC are awaiting a decision from the Constitutional Council, expected Friday, which could already render the government decree null and void. The institution must rule on a priority question of constitutionality (QPC), filed by the PSAC last July, on the classification of cannabis and its derivatives as narcotics.
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On the side of the MILDECA, we are confident about the outcome of these appeals against the decree of December 30. “The draft decree had been notified to the European Commission in July, which made simple observations», Reports Valérie Saintoyant, explaining that Brussels made no mention of a possible violation of Community law with regard to the ban on the marketing of flowers. Despite everything, the unions and associations opposed to this decree do not intend to let go, and have seen strong support joining them in their fight: the environmentalist presidential candidate Yannick Jadot. “CBD: the government demonstrates its absolute ignorance of the subject, prisoner as it is of its policy of ineffective and dangerous repression against cannabis. Support for producers and sellersHe tweeted on Tuesday. His party, Europe Écologie Les Verts (EELV), should also soon organize a trip on this theme.