How to become a CBD producer in France?

The cannabidiol (CBD) market is booming in Europe, and particularly in France. Indeed, demand is experiencing significant growth. More and more growers are switching to hemp cultivation. Numerous retail brands are specializing in the legal CBD in France sector. Would you like to launch your business in this sector? Discover in this dedicated guide how to become a CBD producer in France.

What is CBD?

CBD, scientifically known as cannabidiol, is one of the many cannabinoids found in the composition of hemp. CBD concentrates the many benefits of hemp. Furthermore, the substance has no euphoric or addictive effects, unlike tetrahydrocannabinol (THC).

Cannabidiol has been the subject of various dedicated scientific studies for several years. Research has made it possible to prove several properties of CBD on health. The WHO recognizes the demonstrated benefits of the product derived from the cannabis plant and recognizes CBD as a safe natural remedy. Thus, several European countries, including France, have legalized cannabidiol.

Is CBD cultivation legal in France?

French legislation concerning the cultivation and exploitation of CBD has undergone many changes over the years.

Until 2008, the cultivation of hemp in France was governed by the decree of 22 August 1990. This law stipulated:

• authorization to exploit the fibers and seeds of Cannabis sativa L.;
• the prohibition on the use of CBD flowers and leaves.

The decree of 21 February 2008 subsequently introduced a modification to the THC threshold in the CBD hemp plant, changing it from 0,3 % to 0,2 %. This provision was modified again on 23 July 2018. By this decree, the Ministry of Justice readjusted the legal THC level to 0,3%.

The law underwent a new change in February 2021. Indeed, a specific decree formalized the legalization of the cultivation, importation, exportation, and exploitation of all extracts of the hemp plant for commercial and industrial purposes. However, any personal use of hemp for recreational purposes is prohibited by French law.

On 30 December 2021, a decree formalized the legalization of the cultivation and harvesting of CBD for processing into derived products: food, cosmetics. However, the exploitation of CBD flowers and leaves was strictly prohibited. But this prohibition was lifted on 24 January 2022.

To the great delight of CBD hemp producers, the Council of State made an official announcement concerning the legalization of CBD exploitation in France on 29 December 2022. Since that date, growers, producers, and merchants are free to exploit CBD while respecting the regulations in force, particularly concerning the THC level.

The steps to follow to become a CBD producer in France

France is one of the largest producers of hemp in the world. However, the largest share of cannabis harvests exploited in France is intended for use in the textile and construction sectors. The CBD market is therefore broad and offers many opportunities. Here are the steps to follow if you wish to become a CBD producer in France:

Obtaining a license

As with any legal activity, you must file a declaration in order to obtain an operating license. This document formalizes your status as a CBD producer in France. The State may notably carry out background checks to determine your real objectives and the nature of your activities. The observations concern both the declarant and all of their employees. Note that applicants with a criminal record, particularly related to drug use, do not obtain a license.

The application file for a CBD hemp cultivation license must include, among other things:

• supporting documents relating to the use of CBD for therapeutic, medical, and wellness purposes;
• documents identifying the approved and recognized experts who support you in the business.

If all documents are complete and compliant, the license is issued within 6 to 8 months from the date of the application.

For information purposes, the license only concerns CBD cultivation. The holder of this official document is not authorized to carry out processing activities of the CBD hemp plant. This explains why most derived products sold in France do not come from local production but from European production, particularly Swiss.

Finding the right location for CBD cultivation

The applicant must define the location of their CBD hemp fields. This requires expert knowledge in the field of agriculture. In the absence of being an expert, the future CBD producer must work in collaboration with a cannabidiol specialist. The latter must have the necessary skills to establish the essential criteria to identify the best location guaranteeing quality harvests.

The future CBD producer must notably provide information relating to the geographical location of the cultivation to the National Federation of Hemp Producers (FNPC) and to the gendarmerie for validation.

Furthermore, the various technical details related to the production itself and the harvests must be determined when choosing the location.

Determining the cultivation method

The future CBD producer in France must also define the cultivation method. They notably have the choice between the following CBD cultivation methods:

• Indoor: CBD plants are grown in an enclosed space. The producer must replicate the best conditions to grow their hemp plants. They must therefore have all the necessary equipment for this purpose, including pots, lighting, ventilation systems, and devices that regulate ambient temperature. This cultivation method offers several quality harvests in one year of operation. However, indoor CBD cultivation requires a significant financial investment;
• Outdoor: less expensive than indoor CBD cultivation, outdoor cannabidiol cultivation provides premium quality harvests thanks to 100 % natural growing conditions. The taste of outdoor CBD is better and its properties are generally well-supported. Nevertheless, CBD plants that grow in the open air are subject to climatic hazards (rain, extreme temperature variations, etc.) and external factors (pests, intruders, etc.). The producer notably runs the risk of losing their entire operation at the slightest natural disaster. Furthermore, outdoor cannabidiol cultivation only offers one good harvest per year;
• Greenhouse: Greenhouse CBD cultivation combines the advantages of indoor CBD cultivation and outdoor CBD cultivation. Hemp plants are protected from external hazards and benefit from perfectly controlled sunlight conditions, humidity levels, and temperatures. Specific equipment is therefore necessary. The cannabidiol obtained through greenhouse cultivation is of average quality.

Choose the CBD cultivation method according to your knowledge, your level of experience, and your budget.

Defining the CBD extraction method

The CBD extraction process notably influences the quality of the production. The future professional CBD producer must determine the technique they will use. There are different CBD extraction processes, including:

• supercritical CO2 extraction: consisting of subjecting the CBD plant to very high or very low temperatures to extract the CBD molecule. This method offers superior quality cannabidiol and presents no risk in terms of toxicology;
• CBD extraction using food oil: using vegetable oil (coconut, sesame, olive) to obtain quality CBD. This process is simple and inexpensive; however, the quality of the cannabidiol obtained is not comparable to that of CBD extracted by supercritical CO2;
• cannabidiol extraction using a liquid solvent: it is possible to extract CBD from the hemp plant with a solvent such as alcohol or ethanol. This method requires meticulous and careful handling as well as perfectly mastered techniques. Furthermore, solvents alter the quality of CBD and leave often harmful residues in the finished product intended for therapeutic use.

Therefore, favor supercritical CO2 extraction to ensure you offer premium quality products. This increases your chances of thriving in the CBD production business in France.

Establishing the budget to launch the CBD production business in France

As with any lucrative activity, you must draw up a budget plan to launch the business and assess its viability and sustainability.

Start notably by defining the capital. Refer to the technical information determined previously to set the various expense items and corresponding amounts. Also consider operating costs and miscellaneous fees: license acquisition fees, salaries, transportation and other charges, equipment, transportation, etc.

If you do not have all the necessary funds, you can call on investors. Since the legal regulations of the hemp sector still appear quite ambiguous in the eyes of the general public, make sure to build a solid and convincing file. Indeed, financial institutions and private funding providers are always quite reluctant regarding investments in the cannabis sector. Therefore, identify the people who could finance your project, or even accompany you in this adventure. To do this, do not hesitate to expand your network in the hemp sector.

Complying with legal standards

You must comply with the regulations in force in France to ensure you are carrying out a legal activity.

Know that cannabis Sativa L. is the only variety of hemp authorized for cultivation in France and in the European Union. Whether you produce plants or seeds, make sure to limit your activity to this very specific type of hemp. Indeed, cannabis Sativa L. has a high concentration of CBD and a low THC level, compliant with the legal threshold applied in France.

Furthermore, all legal CBD producers in France must submit their crops and products to systematic checks notably concerning the THC level and the quality of the crops, CBD plants, harvests, and the cannabidiol obtained.

For an optimal evaluation of the quality of their production, producers can call on independent laboratories.

CBD production in France is a business of the future. The steps to follow to launch the activity are quite complex. However, these procedures are necessary to guarantee the success and sustainability of the business.