Mr. Michael Moloney:

I thank the Chairman and members for the opportunity to discuss the development of the hemp sector in Ireland. At the outset it is important that I clearly set out the responsibilities concerning hemp.

Cannabis and industrial hemp both derive from the species cannabis sativa and contain the psychoactive component tetrahydrocannabinol or THC. Hemp has lower concentrations of THC which decreases or eliminates its psychoactive effects. Cannabis, which includes hemp, is listed in Schedule 1 of the Misuse of Drugs Regulations 2017, as amended, which means it is subject to the strictest level of control. Legislation on cannabis, which includes hemp, is not a matter for this Department and it would not be appropriate for us to discuss any issues on the legal aspects that govern hemp. It should be noted that it is an offence to cultivate, import, export, produce, supply and possess cannabis, including hemp, except in accordance with a licence issued by the Minister for Health.

The Department of Agriculture, Food and the Marine regularly receives correspondence from interested parties on various aspects of the subject, including the legislative position and the potential commercial development of the industry. On foot of this interest, the current programme for Government includes a commitment to fully explore fibre crops such as hemp and consider whether these crops have a viable market. It is from that perspective that the Department is interested in examining the viability of growing hemp for fibre.

In August 2021, the Department wrote to several stakeholders inviting them to submit their considered views. In the letter of invitation the stakeholders were asked to include in their submission responses to the following questions: what markets exist for fibre from crops including hemp; the strengths and weaknesses of fibre crops so the classical strengths, weaknesses, opportunities and threats or SWOT analysis; and what is the scalability of the Irish fibre crop and hemp industry but taking into account market size and value, industry processing capacity and adequate economic returns for all along the supply chain.

The consultation process is ongoing and a report is near completion.  When the report is finalised it will be presented to the Minister for his consideration. It would not be appropriate for me or my colleagues to discuss any aspect of the consultation process until such time he has considered the report and made a determination on the programme for Government commitment to fully explore the potential for growing fibre crops such as hemp and whether there is a viable market for these crops.

Hemp has a number of uses. Hemp can be used in construction, marine construction, car manufacturing, paper, food, animal bedding, clothing, drinks and in the health, pharmaceutical, biofuel and cosmetics industries. Hemp oil, which is derived from seeds, is used in health supplements, personal care, cooking and also in industrial usage such as linseed oil in paints.

In terms of the hemp industry in Ireland, while the area sown between 2016 and 2019 increased considerably, 2020 saw a more than 50% decrease in the area sown when compared with 2019. My Department's basic payment scheme data, from which we derive our information, indicates that there was a further slight decline in area in 2021.

Hemp is included as an eligible crop under the basic payment scheme. For comparative purposes, the areas sown to hemp and Ireland’s main crop, spring barley, are included in the table in the Department submission. From 2015 to 2019, the area grew from a very low 17 ha to 314 ha. It subsequently dropped to 164 ha in 2020 and last year decreased slightly to 153 ha. In that same period, if it is compared with spring barley, we had 132,000 ha in 2015. That decreased to 94,636 ha in 2019, predominantly due to a swing towards higher yielding winter crops. It increased significantly in 2020 to 140,000 ha and 116,000 ha last year. Apart from some interest at national level, there is also increasing interest at international level, with the European Commission recently hosting a public meeting on the production of hemp and market opportunities. While the meeting was to be focused on fibre crops, much of the discussion centred around food. While many positives were put forward on the future potential of the sector, many similar problems exist in other European countries as are present in Ireland, including, for instance, access to processing facilities. Currently, Ireland does not have fibre processing facilities. These are required to be in close proximity to hemp growers. Any development in relation to a processing facility must be industry led.

On the area sown internationally, in 2016 more than 100,000 ha was sown globally, with China, Canada, the USA and Europe being the top four. The global area sown in 2019 mirrored Ireland. It almost grew threefold to 275,000 ha, with China, Canada, the USA, Europe and Russia being the main growers. Of note is a drop in area sown in the USA from 2019, where it was almost 60,000 ha, to 2020, where it was 20,000 ha. These areas are also small in an international context and show hemp is currently very much a niche crop.

On the legislative position, I mentioned earlier hemp was governed under the Misuse of Drugs Regulations 2017. Current legislation in Ireland does not allow for the growing of hemp unless a specific license has been granted by the Health Products Regulatory Authority, HPRA, which operates under the auspices of the Department of Health. That licence contains strict conditions, including, for example, the location where the hemp crop can be grown. It cannot be grown in a roadside field. It must be a number of fields in from the road. In addition, the cultivation of hemp is restricted to varieties having less than 0.2% content of THC. It should be noted this limit will be increased from 0.2% to 0.3% for eligible crops under the next Common Agricultural Policy, CAP. We have conveyed that information to the Department of Health.

By way of additional information, in 2018 this Department carried out a broad consultation with relevant stakeholders as part of an examination of growing hemp commercially in Ireland. This consultation was conducted following a request from the Oireachtas Joint Committee on Public Petitions. The consultation included the Departments of Health and Justice, the HPRA, Teagasc and the two representative bodies for hemp in existence at that time. A clear view arising from respondents involved in regulation during that consultation was that the domestic hemp industry should continue to be controlled and regulated by the Department of Health and that the stringent controls in place on growing hemp should continue. This strict regulation is in line with the situation in many other countries. Detailed analysis of the economics of hemp and its ability to provide a meaningful income all along the supply chain was lacking in that consultation. The detail on how scalable an Irish hemp industry would be was also lacking in the responses received at that time.

I again thank the committee for the opportunity to come before it to discuss the development of the hemp sector in Ireland, and I or my colleague will answer any questions members may have.