Industrial Hemp Compliance in Portugal (Legalities & Licensing for Companies)

Learn industrial hemp compliance, legalities, and licensing requirements for businesses in Portugal

Hemp is becoming a popular topic of conversation as more people recognize its environmental, economic, and health benefits. On a larger scale, the appeal of hemp is helping to drive the revival of the cannabis industry after the ups and downs of legalization. Cannabis production in Portugal creates jobs and generates tax revenue for local municipalities. These are just a few reasons why industrial hemp deserves a closer look.

GrowerIQ’s cannabis production software can make your research and compliance tasks easier so you can focus on setting up your industrial hemp farm in Portugal and reaching your goals.

What Is Industrial Hemp and Why Is It Called Industrial Hemp?

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 Portugal, production is controlled under the Regulatory Decree No. 2/2020. This decree clarifies that DGAV is responsible for authorizing hemp cultivation for industrial purposes, including producing foodstuffs and animal feed. The decree also specifies the administrative fees applicable to these activities.  

The Distinction Between Industrial Hemp and Marijuana

By definition, 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 and marijuana.

Why Is It Called Industrial Hemp?

The term industrial hemp differentiates it from cannabis used for recreational or medicinal purposes. Its designation emphasizes its primary objective in manufacturing and agriculture. Due to its versatility and strength, hemp has been used for thousands of years in various industries, including:

• Making rope
• Fabric
• Early forms of paper

Modern uses extend to eco-friendly applications like hempcrete (a building material) and natural fiber composites.

Hemp’s Non-Psychoactive Nature and Industrial Applications

Hemp’s low THC content makes it unsuitable for getting high, which is why it’s regulated differently from other cannabis strains. The term industrial highlights its role in producing sustainable, non-psychoactive products, making it an attractive option for agriculture and environmentally conscious industries.

Is Hemp Legal in Portugal? Industrial Hemp Laws

The cultivation of hemp for industrial purposes is a lawful activity in Portugal. It was first authorized and encouraged by Community law, which was then transposed into national law by an amendment to Regulatory Decree 61/94.

Restrictions on Hemp Cultivation

Administrative Rule 14/2022, of 5 January, provides that hemp can only be cultivated outdoors; cultivation can only occur in an area of at least five hectares; plant transplanting is not allowed; and the sowing density cannot be less than 30kg per hectare. 

Portugal’s Strict Hemp Regulations

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

As CBD is produced from hemp, it is, from a legal point of view, in a grey area. In fact, in Portugal, the marketing of CBD is classified by the authorities as a prohibited activity insofar 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.

CBD and Cannabinoids in Portuguese Food

Consequently, the plant may only be cultivated and marketed by the rules for cultivating and marketing controlled substances (i.e., essentially for medicinal purposes). 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. Thus, 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. Therefore, to be placed on the market, CBD will have to undergo a risk assessment by EFSA. 

Related Reading

• CBD Legislation Portugal
• Hemp Plantation License

Industrial Hemp Cultivation Laws in Portugal

Hemp cultivation in Portugal has seen significant changes recently, particularly with the introduction of Regulatory Decree No. 2/2020 on August 4th. This decree provides a more transparent framework for hemp’s cultivation and industrial use. Farmers and industry players have welcomed this decree, as it resolves much of the regulatory uncertainty hindering the development of hemp cultivation in the country.

Regulatory Challenges

The confusion began with Decree-Law No. 8/2019, which was initially intended to regulate cannabis for medical use. However, it also impacted hemp cultivation by altering previous regulations, leaving farmers unsure how to proceed. Without clear guidelines, the approval process for hemp cultivation came to a halt, and the lack of a subsequent ordinance to clarify the rules added to the uncertainty. This resulted in many farmers pausing their operations or hesitating to enter the industry.

Clarifying the Authorization Process

One of the biggest challenges was determining which government agency was responsible for authorizing hemp cultivation. It wasn’t clear whether INFARMED, which oversees medicinal cannabis, or DGAV (the Portuguese Food and Veterinary General Directorate) should handle hemp authorizations. 

DGAV’s Role in Hemp Cultivation

With the introduction of Regulatory Decree No. 2/2020, DGAV has been established as the authority for hemp cultivation authorizations, specifically for industrial purposes like food and animal feed production. This decree also outlines the administrative fees associated with these activities, giving farmers more transparency.

THC Limits and Compliance

Another critical aspect of the new regulatory framework is how it handles THC content, as hemp plants can naturally fluctuate in THC levels, sometimes exceeding the legal limit of 0.2%. 

Regardless of the intended industrial use, all hemp cultivation in Portugal requires authorization to ensure THC levels stay within legal limits. The Institute for Financing of Agriculture and Fisheries is now tasked with overseeing compliance, with support from law enforcement agencies like:

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

Growing Interest in Hemp Cultivation

With more transparent regulations, interest in hemp cultivation is increasing in Portugal. Farmers are now better positioned to grow hemp for various industrial uses, including:

• Textiles
• Food production
• Animal feed

The new framework aims to support the growth of the hemp industry while maintaining strict controls to ensure compliance with THC regulations. This shift in Portugal’s approach to hemp will foster more innovation and opportunities in the agricultural and industrial sectors.

Medical Cannabis in Portugal

The National Authority of Medicines and Health Products, known as INFARMED, oversees the regulation of medical cannabis in Portugal. INFARMED is responsible for enforcing laws and regulations related to cannabis and cannabinoids for medical purposes. The entity operates under the purview of the Ministry of Health. 

The Legal Framework for Medical Cannabis in Portugal

The legal framework for the medical use of cannabis in Portugal is primarily based on the following:

• Law no. 33/2018 of July 18th establishes the principles and objectives for the use of cannabis for medicinal purposes.
• Decree-Law no. 8/2019 of January 15th, which regulates the activities related to the use of cannabis for medicinal purposes.
• Ministerial Order 83/2021 defines the requirements and procedures for granting authorizations to engage in activities related to the cultivation, manufacture, wholesale trade, transport, import, and export of cannabis-based medicines, preparations, and substances.

The Licensing Process for Medical Cannabis Operations in Portugal

Companies interested in growing cannabis for medicinal purposes in Portugal must obtain specific licenses and authorizations from INFARMED. The licensing process is governed by regulations and requirements designed to ensure compliance with local and international laws and promote product safety and quality. 

The Approved Medical Cannabis Products in Portugal

Since 2018, Portugal has seen a substantial increase in license applications for the cultivation and manufacture of cannabis for medicinal purposes. As of March 2023, INFARMED has approved three new cannabis preparations for the medical cannabis program, marking the first expansion since 2021. The approved products include dried flower and oral solutions with varying THC and CBD ratios. 

Getting a License for Industrial Hemp Cultivation in Portugal

The primary authority overseeing hemp cultivation is the Portuguese Ministry of Agriculture (DGAV), and they have specific requirements that must be met before you can begin growing hemp.

What Information Do I Need to Provide to Get Started?

Here is the official information you must submit to start your application process:

1. Please provide the complete identification and address of the farmer or farmers or the person registered if it is not the applicant.
2. Identification of the plant’s development stages, including the forecast of dates;
3. Indicate the origin of the seed (technically, the seed must be EU registered, so you can’t use any old genetics).
4. Indication of the destination of production (this can include a request for your off-take/sales contracts to justify the production of the crop)> (and) quantity of seed to be sowed for each variety;
5. Complete address and geographical location by coordinates of the installations where the product is stored.

This is the initial requirements list, but there will be other requests, including your production records. You must also report to three (3) different police forces.

Suppose you plan to grow hemp for medicinal purposes, like CBD extraction or anything related to medical cannabis. In that case, you’ll need to go through a different, more stringent process regulated by INFARMED, the national authority responsible for medications and health products. 

What Happens After I Submit My Application?

Once you’ve submitted your application, the process doesn’t end there. Authorities may request additional documentation, like detailed production records, to ensure compliance with regulations. You’ll need to report your activities to three different police forces, underscoring the strict regulatory environment surrounding hemp cultivation in Portugal. 

What Additional Requirements Are There?

Despite the legality of industrial hemp, there are some grey areas, especially if you intend to produce food products. In such cases, you might need an additional Novel Food Authorization (NFA) from the European Food Safety Authority (EFSA). This adds another layer of complexity to the process. 

What Are My Chances at Approval?

It’s also important to be aware that not all applications are approved. For example, in 2021, only 20 out of 60 applications were approved by the DGAV, which means about one-third of applicants were successful. This highlights the importance of carefully preparing your application and ensuring it meets all regulatory requirements.

Market Potential of Industrial Hemp in Portugal

The industrial hemp market in Portugal is showing great promise. While the broader cannabis market in the country is expected to reach about US$42.80 million by 2024, the growth may seem small compared to giants like the U.S. However, for Portugal, this represents a great opportunity within the European landscape. By 2029, the market is projected to grow to around US$47.79 million, signaling steady growth.

One of the main drivers of this growth is the rising demand for CBD products. The market is expected to hit US$27.06 million in revenue by 2024 and continue its upward trend. Consumers are increasingly interested in wellness products, and CBD is at the forefront of this shift. 

Portugal’s Favorable Conditions for Hemp Cultivation

Portugal’s hemp market has a unique advantage thanks to the country’s favorable cultivation climate and agricultural expertise. This positions Portugal perfectly to meet the rising demand for hemp and CBD products. 

Anticipated Industry Growth and Investment

Now that the regulatory framework is more precise, the industry can expect more investment, both from within the country and abroad. This will provide the capital and knowledge needed to expand production and explore innovative uses for hemp, such as construction materials.

Portugal’s Potential as a European Hemp Leader

With the right strategies, Portugal could become a key player in Europe’s growing hemp industry, both in cultivation and processing and manufacturing. This would position the country to take full advantage of this booming global market.

Related Reading

• Hemp Cultivation in Portugal
• Cannabis Portugal

Which Country Is the Largest Producer of Hemp?

Industrial hemp is a versatile plant with many applications, from textiles to biocomposites to green construction materials. Perhaps unsurprisingly, China is currently the world’s largest producer of hemp. The country has long been recognized as the birthplace of hemp and has dominated the market for years.

Today, China produces around 44,000 tons of hemp per year, over half of the world’s supply. While France is the largest producer in Europe, China remains the undisputed global leader in total hemp production annually. China’s dominance in the hemp market is partly because industrial hemp was never banned in the country, unlike many other parts of the world. This allowed its hemp industry to continue growing while others declined.

Related Reading

• Cannabis Companies Portugal
• Cannabis Seeds
• Cannabis Cultivation Portugal
• How to Sell Cannabis in Portugal

Uncomplicate Your Cannabis Production Today With GrowerIQ!

Cannabis cultivators face numerous challenges in achieving and maintaining compliance with complex regulations. GrowerIQ’s software automates many associated processes, taking some of the oversight and stress out of compliance. 

Seed-to-Sale Tracking Platform

The platform’s seed-to-sale tracking capabilities allow growers to monitor plants and products throughout their lifecycle, from when seeds are planted until they are sold to dispensaries or customers. 

Compliance with GrowerIQ’s Reporting Features

With GrowerIQ, cannabis cultivators can quickly and easily generate the reports needed for compliance audits, ensuring they remain on the right side of the law.

Using GrowerIQ’s cannabis production software, you can easily ensure compliance. Automate processes, track plants from seed to sale and generate audit-ready reports. Get started today!