The handover of hemp seeds to 26 budding Eastern Cape farmers for mass cultivation is set to place the province in the highest echelons of the cannabis industry in SA.
The Eastern Cape Rural Development Agency and Medigrow ZA have joined forces to establish a network of medicinal cannabis producers that will supply the multimillion-rand extraction facility at Coega’s special economic zone.
The network will create employment and boost the economy through exports.
On Thursday, farmers signed offtake contracts with Medigrow ZA, which means all the products they grow will be bought and processed at the Coega facility.
An offtake agreement is a legally binding contract between a buyer and a seller that outlines the terms of a future exchange of goods or services.
Medigrow chief executive Edgar Adams said the Eastern Cape was an easy choice for them to work with the government due to the people’s passion for the “national flower”, the dagga plant.
“Many people in SA don’t know the importance of this plant, and apart from its medicinal use, it has fed families in this province,” he said.
“This facility, with the help of the farmers, will save cannabis in Africa.”
Adams said for the programme to thrive, compliance had to be their main priority.
“This building has been empty for months because we want to get things right and produce quality products for export.
“We already have the equipment to commence the processing once our produce is ready, and based on our projections, we will require additional machinery to fast-track the process and one more machine has already been ordered.”
Adams said their long-term goal was to work not only with farmers, but to rope in individuals to grow hemp in their backyards with Medigrow ZA as an available buyer.
The 26 beneficiaries were among more than 100 emerging farmers who went through a selection process and were assisted in getting permits as hemp producers in the province.
They will be trained and supported financially to ensure their farms are equipped to grow the plant.
Indyebo Estate Co-operative co-owner Treasure Ntoto said they had enough land to work with the government in its aim of becoming the leaders in hemp production.
It is based in St Albans.
“We are excited to be among the pioneers of the cultivation of hemp in our province,” Ntoto said.
“The fact that there’s an offtake agreement with Medigrow assures us that there’s an opportunity to make money.
“The agreement means that whatever we produce, Medigrow as our client is there to purchase it.
“The programme will assist many emerging farmers to commercialise their operations and will create jobs which are most needed especially in the Nelson Mandela Bay area.”
Ntoto said they had since learnt of the many benefits and business opportunities associated with hemp production.
“We understand hemp can also be used for the fortification of food crops as the plant is richly nutritious, it can be used for industrial purposes such as in construction and that’s what we hope to explore as we grow as a business.”
Agriculture MEC Nonceba Kontsiwe said the province had a competitive advantage in the cannabis industry as it grew naturally in some areas.
“I’m glad that we’re finally at this stage of the programme where we are implementing more than we are talking,” Kontsiwe said.
“We have such rich land and as the premier [Oscar Mabuyane] would usually say, our time to thrive is now.
“With the help of Medigrow, the farmers and other stakeholders involved, we are to see an improved economy that will yield job opportunities.
“The export prospects and the demand of this product for medicinal use will place us as a country among the best producers and we couldn’t be happier that all of this will unfold in our so-called poorest province.”
The Herald
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