Getting A Hemp Plantation License In Portugal (What You Need To Know)

Learn how to get hemp plantation license in Portugal

Hemp has an undeniable role in the growing cannabis industry in Portugal. As legalization opens doors for producers and farmers, one of the first steps to successful cultivation is obtaining a hemp plantation license. Learning how to get a license can be daunting, but that’s where this blog comes in. Here, you’ll find valuable insights on getting a license for cannabis plantation in Portugal. 

GrowerIQ’s cannabis production software can help you achieve your goals, like learning about getting a license for hemp cultivation in Portugal. The program can simplify your operations and keep you organized as you start your hemp plantation.

What Is Industrial Hemp?

Industrial hemp is a plant species of Cannabis sativa used worldwide to produce various industrial and consumer products. It is also a source of fiber and oilseed grown in more than 30 nations. In Ecuador, production is controlled under Regulatory Decree No. 2/2020.  

This decree clarifies that DGAV is responsible for authorizing hemp cultivation for industrial purposes, including using hemp to produce foodstuffs and animal feed. The decree also specifies the administrative fees applicable to these activities.

The Difference Between Hemp and Marijuana

Industrial hemp is high in fiber and low in active tetrahydrocannabinol (THC, the psychoactive ingredient in marijuana that makes some cannabis varieties a valued drug). Several countries, including Portugal, maintain this distinction by strictly regulating the THC levels of:

• Industrial hemp 
• Marijuana

Industrial Hemp Laws In Portugal

The cultivation of hemp for industrial purposes is a lawful activity in Portugal, having first been authorized and encouraged by Community law; it was then transposed into national law by an amendment to Regulatory Decree 61/94, establishing rules for the control of the lawful market in:

• Narcotic drugs 
• Psychotropic substances

The Administrative Rule 14/2022, of 5 January, provides that:

• Hemp can only be cultivated outdoors (it is not possible to grow in greenhouses or in closed spaces)
• Cultivation can only take place in an area of at least five hectares
• Transplanting of plants is not allowed
• The density of sowing cannot be less than 30 kg per hectare

It is also forbidden to transport flowering plant juices off the farm (even if they can no longer be used for industrial hemp cultivation). Rules have also been established on reusing opened seed packages.

The Legal Status of CBD and What It Means for Hemp Cultivation

From a legal point of view, CBD is in a grey area. In fact, in Portugal, the marketing of CBD is classified by the authorities as a prohibited activity, as CBD, as a substance extracted from the flowers and leaves of the cannabis plant (and not from the stalks and seeds), must be treated as a controlled substance. 

The plant may only be cultivated and marketed by the rules for cultivating and marketing controlled substances (i.e., essentially for medicinal purposes).

Novel Food Status

In ASAE’s view, the use of cannabinoids (such as CBD, THC, cannabigerol (CBG), and cannabinol (CBN)) in food will mean that such foods are considered unauthorized novel foods, similar to plant parts and their extracts. The commercialization of foods containing these substances is not authorized. 

The DGAV has also commented on this, stating that CBD has no history of consumption as a food or food ingredient in the EU before 1997. It cannot be used in food as it does not meet the Novel Foods and Food Ingredients Regulation (EU) requirements 2015-2283. CBD must undergo a risk assessment by EFSA before it can be placed on the market.

Related Reading

• CBD Legislation Portugal

Hemp Cultivation Laws In Portugal

Hemp cultivation laws in Portugal have changed significantly in recent months. They were updated with the publication of Regulatory-Decree No. 2/2020 on August 4, 2020. This regulatory decree established a clear framework for the cultivation and industrial exploitation of hemp varieties, resolving much of the uncertainty surrounding the industry in the country. 

This decree is seen as a significant step forward for hemp cultivation in Portugal, particularly after the confusion that followed the introduction of Decree-Law No. 8/2019.

Uncertainty Hindered Hemp Cultivation

The confusion began with the introduction of Decree-Law No. 8/2019, which aimed to regulate the use of cannabis for medical purposes. The law also altered Regulatory Decree No. 61/94, impacting the regulatory framework for hemp cultivation. 

These changes halted the authorization process for hemp cultivation, as farmers needed clarification about the procedures and requirements. The lack of a subsequent government ordinance clarifying the new rules further compounded the uncertainty.

Clarification of Authority for Hemp Cultivation Authorization

One critical area of confusion was identifying the competent authority for granting hemp cultivation authorizations. There was uncertainty about whether INFARMED (the National Authority of Medicines and Health Products) or DGAV (the Portuguese Food and Veterinary General Directorate) should oversee the process. 

DGAV Jurisdiction

Regulatory-Decree No. 2/2020 has now clarified that DGAV is the responsible authority for:

• Authorizing hemp cultivation for industrial purposes
• Including the production of foodstuffs 
• Animal feed

The decree also specifies the administrative fees applicable to these activities.

Addressing THC Content and Control Measures

The new regulatory framework also addresses the requirement for the authorization of hemp cultivation due to the potential for THC content in cannabis varieties to exceed the legally allowed limit of 0.2% due to natural fluctuations during growth. 

This requirement applies regardless of the intended use of the hemp. To ensure compliance, the decree assigns control responsibilities to the Institute for Financing of Agriculture and Fisheries, with support from law enforcement agencies such as:

• The Portuguese Criminal Police
• The Republican National Guard
• The Public Security Police

GrowerIQ Solution

GrowerIQ provides cannabis growers with a comprehensive solution for:

• Managing their cultivation operations
• Ensuring compliance
• Optimizing quality
• Enhancing efficiency throughout the seed-to-sale process

Related Reading

• Hemp Cultivation in Portugal
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Medical Cannabis In Portugal

Under Portuguese Law, the use of cannabis for medical purposes is permissible, provided the requirements and the mandatory licenses are obtained. The Portuguese legal framework is set forth under Law no. 33/2018, of July 18th, and the Decree-Law no. 8/2019 of January 15th on the use of medicines, preparations, and substances based on the cannabis plant for medicinal purposes, determining its principles and objectives, as well as the regulation and supervision of activities related to the use of the cannabis plant for medicinal purposes.

What Are the Authorizations Required to Carry Out Activities with Medical Cannabis?

More recently, the Ministerial Order 83/2021 established several practical aspects regarding the authorizations to engage in activities related to the medical use of, as well as the requirements and procedures for applying and granting authorization for the exercise activities of:

• Cultivation
• Manufacture
• Wholesale trade
• Transport
• Circulation
• Import and export of medicines
• Preparations and substances based on the cannabis plant

INFARMED Authorization

According to which the applications for the authorization of activities related to cannabis for medical, veterinary, or scientific research purposes should be submitted through INFARMED’s website, which will then request an opinion from the Intervention Service on Additive Behaviors and Addictions (SICAD). 

The considered authorizations must comprise several mandatory elements and information, which may vary depending on the specific scope of activity. Regarding the INFARMED authorization, INFARMED will decide on the request within 90 days from the application’s admission date.

How Are Cannabis-Based Medicinal Products Prescribed and Dispensed?

The prescription of cannabis-based medicinal products, preparations, and substances is a special medical prescription made by a special form approved by the Ministry of Health. The prescription must identify:

• The patient
• The prescribing doctor
• The medicinal product
• Preparation or substance
• Respective quantity
• Dosage
• Mode of application

Prescription and Dispensing

The prescription of cannabis-based medicinal products, preparations, and substances can only take place when conventional treatments are not efficient or cause relevant adverse effects, and the therapeutic indication of the cannabis-based medicinal products, preparations, and substances has been approved by INFARMED. Prescriptions of cannabis-based medicinal products, preparations, and substances can only be used once.

Dispensation of cannabis-based medicinal products, preparations, and substances for medical purposes can only be made in pharmacies by pharmacists upon the provision of the following:

• Respective prescription 
• Verification of the purchaser’s identity

Personal Possession

The holder of a special prescription for cannabis-based medicinal products, preparations, and substances can hold and transport cannabis-based medicinal products, preparations, and substances for their consumption, according to the prescription and up to the quantity prescribed.

What Security Measures Are Required for Medical Cannabis Production?

Furthermore, under Ministerial Order 83/2021, several security measures must be implemented throughout the medical cannabis production chain, such as:

• Video surveillance system
• Intrusion detection system
• Permanent connection with the control center
• Security guard on permanent duty

These obligations can be densified according to the activity pursued.

How Are the Prices of Medical Cannabis Products Determined?

Ministerial Order No. 44-A/2019, of 31 January, establishes the mechanisms under which the price of medicines and preparations and substances based on the cannabis plant intended for medical purposes should be set. The framework generally establishes that the authorization holder should propose the price to place the substance on the market to INFARMED concerning the current price on the international market. 

INFARMED will then approve or refuse the price. In case of refusal, the authorization holder to place the substance on the market should propose a new price.

What Are the Waste Disposal Guidelines for Medical Cannabis?

A recent technical note regarding the Management of Cannabis Waste in the context of activities that produce cannabis for medicinal purposes was published on 8 February 2022 and has been issued jointly by INFARMED and APA (the Portuguese Environmental Agency), establishing an ancillary obligation to submit all data on the waste managed to the Integrated Electronic Waste Registration System (Sistema Integrado de Registo Eletrónico de Resíduos – “SIRER”). 

Getting A Hemp Plantation License In Portugal

Hemp cultivation in Portugal is legal but subject to strict regulations and oversight, primarily concerning industrial purposes. The Portuguese Ministry of Agriculture, through the Directorate-General for Food and Veterinary Affairs (DGAV), oversees the licensing process. Although industrial hemp is legal, growing hemp for medicinal purposes is regulated by INFARMED and subject to stricter requirements.

The Application Process for Obtaining a Hemp Plantation License 

The application process for obtaining a hemp plantation license in Portugal requires a thorough understanding of the steps involved. You must apply for a permit before planting; approval can take time. The application process entails submitting information to the DGAV, such as:

Farmer Identification

You must provide full identification details and the address of the farmer or registered individual involved in the cultivation.

Development Stages

A detailed outline of the plant’s development stages, including forecasted dates, is necessary.

Seed Origin

You must indicate the origin of the seed. The seed must be registered with the EU, so you cannot use just hemp genetics; they must meet specific standards.

Production Destination

You need to specify the intended destination of the production. This may include providing off-take or sales contracts to justify the crop’s production.

Seed Quantity

Clearly state the quantity of seed to be sown for each variety.

Location Details

Provide the complete address and geographical coordinates of the installations where the product will be stored.

Additional Requirements and Oversight for Hemp Plantation License Applications

The application process doesn’t end with the initial submission. Authorities may request additional documentation, such as production records. You must report to three different police forces, reflecting the strict regulatory environment surrounding hemp cultivation in Portugal.

Challenges and Grey Areas in the Hemp Cultivation Licensing Process

While industrial hemp is legal for specific purposes, there are still grey areas, particularly regarding the need for an additional NFA license from the European Food Safety Authority (EFSA) if the hemp is intended for food products. This adds a layer of complexity for those looking to enter the market.

Hemp Plantation License Approval Rates

It’s also worth noting that the approval rate for hemp plantation applications is not guaranteed. For instance, in 2021, the DGAV approved only 20 out of 60 applications, accounting for just 33% of the submitted applications.

Industrial Hemp Market Potential In Portugal

Portugal will become a significant player in the global industrial hemp market. Several factors drive this opportunity, including new regulatory frameworks and a growing interest in diverse hemp applications. The recent implementation of Regulatory Decree No. 2/2020 has clarified hemp cultivation, setting the stage for economic growth within the sector. 

This development is timely as global demand for hemp-derived products—from cosmetics and medicines to fibers and seeds—continues to rise. 

Numbers Don’t Lie—Hemp Has Serious Economic Potential in Portugal

The economic potential of hemp in Portugal is becoming increasingly apparent. By 2024, the country’s cannabis market is projected to reach a revenue of US$42.80 million, with an annual growth rate of 2.23% expected between 2024 and 2029. 

This growth would increase the market volume to US$47.79 million by 2029. Although these figures are modest compared to the United States, where revenue is expected to soar to US$42.98 billion in 2024, they represent a significant opportunity for Portugal to establish itself as a key player in the European hemp industry.

More Than Just Hemp—CBD Products Are Gaining Traction in Portugal

In addition to the broader cannabis market, Portugal’s CBD sector also shows promising growth. The market is projected to generate US$27.06 million in revenue by 2024, with a growth rate of 0.74% annually until 2029, when it will reach US$28.07 million. 

This growth reflects a broader shift toward wellness and innovation in the cannabis industry, with a particular focus on the quality of products that meet both:

• National a
• International demand

Investors Are Paying Attention to New Regulatory Frameworks

Clarifying the regulatory framework through Regulatory Decree No. 2/2020 will attract significant investment into Portugal’s hemp industry. Investors are increasingly drawn to the country’s burgeoning market, recognizing the potential for growth in a region that has historically been on the sidelines of the global cannabis industry. 

As a result, Portugal is likely to see an influx of capital and expertise, further boosting its standing in the international hemp market.

Portugal Is a Burgeoning Hub for Hemp Cultivation

As Portugal navigates the evolving landscape of hemp regulation and market expansion, the country stands at the threshold of a new agricultural and industrial innovation era. The regulatory clarity the government provides encourages the growth of existing markets and paves the way for exploring new opportunities within the hemp industry. 

Growing Industrial Hemp In Portugal, How Does GrowerIQ Help?

GrowerIQ helps hemp cultivators in Portugal manage their cultivation and compliance with regulatory bodies. As hemp regulations grow more complex, cannabis software like GrowerIQ can simplify compliance to help operators avoid costly mistakes.

GrowerIQ has even worked directly with Infarmed to ensure its software meets the specific needs of cannabis cultivators in Portugal.

Simplifying GACP & GMP Compliance with GrowerIQ

Cannabis and hemp operators in Portugal must comply with Good Agricultural and Collecting Practices (GACP) and Good Manufacturing Practices (GMP) by INFARMED. GrowerIQ has the tools to help licensed producers comply with these regulations so they can:

• Operate legally 
• Avoid costly penalties

Digital Records Are More Reliable Than Paper

Regulatory compliance requires extensive documentation. One of the first rules any cannabis operator should learn is that regulatory compliance is essential to avoid costly penalties no matter what stage of production they are in. The best way to ensure compliance is to use cannabis software to manage your operation.

Batch Numbering and Status Control

Cannabis products must be tracked and traced from their origin through processing until they reach the consumer. Any cannabis product that is found to be contaminated or unsafe for human use must be recalled, and the process will be much easier if you have:

• Proper records 
• Inventory control in place

Seed-to-Sale Tracking of Cannabis

To comply with GACP and GMP, licensed producers in Portugal must implement seed-to-sale tracking. This means that every single cannabis plant must be tracked throughout its lifecycle, and operations need to be documented in case any issues arise.

Inventory Control

Cannabis products must be tracked and traced from their origin through processing until they reach the consumer. Any cannabis product that is found to be contaminated or unsafe for human use must be recalled, and the process will be much easier if you have:

• Proper records 
• Inventory control in place

Quality Management Software Functions

Quality management software (QMS) helps cannabis operators improve their processes to produce safe products that meet regulatory standards. QMS also helps businesses comply with GACP and GMP by ensuring:

• Proper documentation 
• Records are kept

Cultivation and Monitoring Software Functions

Cannabis cultivation is a complex process that requires extensive data tracking and analysis to optimize growth. Cultivation and monitoring software functions help producers improve yields and stay compliant with GACP and GMP by keeping proper records.

ERP Software Functions

GrowerIQ also has enterprise resource planning (ERP) software functions that help cannabis businesses manage their operations. By integrating all of the various processes within your cannabis operation, you can improve efficiency and reduce redundancies that could lead to costly errors.

Uncomplicate Your Cannabis Production Today With GrowerIQ!

Cannabis growers face challenges in managing reporting, documentation, and compliance requirements due to the complexity of regulatory frameworks, evolving legal standards, and the need for accurate record-keeping in a highly regulated industry. 

At GrowerIQ, our software aims to provide cannabis growers with a comprehensive solution for:

• Managing their cultivation operations
• Ensuring compliance
• Optimizing quality
• Enhancing efficiency throughout the seed-to-sale process
• Overall uncomplicating, the production process

Software Features

GrowerIQ does this with its software, which offers a range of functionalities to assist cannabis growers, including:

• Seed-to-Sale Tracking
• Quality Management
• Cultivation Planning

Related Reading

• Industrial Hemp
• Cannabis Companies Portugal
• Cannabis Seeds
• Cannabis Cultivation Portugal
• How to Sell Cannabis in Portugal
• CBD Legislation Portugal
• Portugal Cannabiscafe
• Medicinal Cannabis Portugal