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Victory for hemp industry

09-Feb-2004

Related topics: Regulation, Phytochemicals, plant extracts

The multi-million dollar hemp food industry welcomed a ruling from the US appeals court that blocks the US government from stopping the sale and possession of food products made from hemp plants.

Victory for the Hemp Industries Association (HIA) that pulled in over $10 million in food product sales last year came last week when the San Francisco-based 9th Circuit appeals court judged that the US Drug Enforcement Agency (DEA) does not have authority to bar the sale or possession of all hemp-based food products.

The DEA may regulate marijuana and synthetic forms of the substance that gives the plant its narcotic powers but cannot stop the sale or possession of food products made from hemp plants with small amounts of the substance that makes marijuana, an illegal drug.

 

Ending a two-year lawsuit, the decision allows the hemp industry to build on market share in the natural products arena.

 

"We've experienced double-digit growth in the last two years and I believe we will continue to see the same pace in growth," Adam Eidinger at the HIA told NutraIngredientsUSA.com.

 

Two years ago a SPINS tracking survey saw the hemp food products taking $5 million in sales. The industry is really underdeveloped with strong potential, added Eidinger.

 

According to Eidinger, the DEA could challenge the appeals court decision by taking the issue further to the Supreme court. "But this is unlikely," he said. "I don't think the Superme court [that has the choice to accept or not] would take the case," added Eidinger, claiming that the initial decision by the DEA to challenge the hemp industry has actually helped sales.

 

On March 21 last year the Drug Enforcement Agency (DEA) issued a final rule regarding the legality of hemp foods. The new rule sought to ban the sale of all hemp food products and prohibit the importation of hemp oil for cosmetic manufacture. But the appeals decision last week overturns the attempted ban.

 

Leading hemp food manufacturers in the US include Nature's Past, Dr Bronner and French Meadow Bakery. This last produces a hemp bread, a line that cashed in over $1million in sales last year.

 

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