Masaryk University Faculty of Social Studies

Department of Environmental Studies

Diploma Work

Šárka Roušavá, B.A.A.

Towards Environmental Sustainability: Hemp Enterprises in the Czech Republic

Study Advisor: Benjamin Vail, Ph.D. Brno 2011

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Thanks I would like to express my gratitude to Benjamin Vail, Věra Horáková, Michal Ruman, Jiří Vyhlídal, Nadia Johanisová, Dairel Pérez Santana, Helena Švédová, Vít Šindlář, Kateřina Sedláčková for all their inspiration, feedback and technical help. Thanks also to all the respondents for participating and to Hana Gabrielová for providing hemp paper, which this diploma work has been printed on.

Declaration I declare that I worked on this diploma work independently and with the use of the listed literature. Brno, 20 May 2011 Šárka Roušavá, B.A.A.

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Annotation A partial solution to some of the wide-ranging environmental problems of our time could be provided through the cultivation of hemp, one of the most resilient and diverse plants, and its implementation in the economy. Cannabis sativa is environmentally beneficial in its actual cultivation, contributing to soil health and climate change mitigation. Furthermore, hemp can be made into thousands of useful, non-toxic and easily recyclable or biodegradable products in the food, pharmaceutical, textile, paper, building, energy and other industries thereby offering environmentally-friendly alternatives to polluting materials and processes that are currently being used by petroleum- and synthetics-based economies. In addition to a description of the plant and some of its many uses, aspects of its historical and global context are described. On the premise that hemp use can have a positive impact on environmental sustainability, the main objective is to explore the state of hemp culture in the Czech Republic – to discover who have been some of the players in the Czech hemp industry, to determine what obstacles they face and what factors have made it possible for some of them to flourish. Through library, Internet and empirical research, a general overview has been made of hemp-related activities in the Czech Republic since the late 1990s, when the controlled cultivation of hemp was legalized. This study shows that small enterprises are leading the way in a variety of activities in emerging Czech hemp markets.

Key words: bioregional economics, Cannabis sativa, Czech Republic, environmental

sustainability, environmentally-friendly alternatives, hemp

Anotace Alespoň částečné řešení řady současných environmentálních problémů by mohlo přinést pěstování a hospodářské vyuţití technického konopí, jedné z nejhouţevnatějších a nejuţitečnějších rostlin. Samo pěstování Cannabis sativa (konopí seté) příznivě ovlivňuje ţivotní prostředí tím, ţe přispívá k udrţování dobré kondice půdy a zmírňování projevů změn klimatu. Technické konopí můţe být navíc vyuţito k výrobě nepřeberného mnoţství uţitečných, netoxických a snadno recyklovatelných nebo biologicky odbouratelných produktů. Můţe být vyuţito při výrobě potravin, léků, textilií, papíru, stavebních materiálů nebo energie. Řadě dalších odvětví, dnes závislých na ropě a jejích derivátech, technické konopí nabízí alternativu šetrnou k ţivotnímu prostředí. Vedle deskripce rostliny samotné a některých z mnoha jejích vyuţití jsou v práci zachyceny také historické a globální souvislosti jejího pěstování. Práce je zaloţena na předpokladu, ţe technické konopí můţe mít pozitivní vliv na udrţitelnost prostředí. Hlavním cílem je popsat konopnou kulturu v České republice – vyhledat významné představitele českého průmyslu spojeného s technickým konopím, identifikovat, s jakými překáţkami se setkávají a jaké faktory některým z nich umoţnily být úspěšní. Kontrolované pěstování technického konopí bylo v České republice legalizováno koncem devadesátých let. Obecný přehled o aktivitách spojených s legálním pěstováním je zaloţen na studiu literatury, internetových zdrojů a empirickém výzkumu. Výsledky ukazují, ţe český trh kolem technického konopí vzniká díky rozličným aktivitám malých firem.

Klíčová slova: bioregionální ekonomika, konopí seté, Česká republika, udrţitelnost

prostředí, prostředí přátelské alternativy, technické konopí

Word count: 26,830 + 1523 in notes = 28,353

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Table of Contents

1 INTRODUCTION .................................................................................................................. 6

1.1 Environmental Sustainability ......................................................................................... 7

1.2 Conventional vs. Organic Agriculture ............................................................................ 8

1.3 Climate Change and Carbon Sequestration ................................................................ 10

1.4 Benefits in Agriculture .................................................................................................. 10

1.5 Bioregional Solutions ................................................................................................... 11

2 METHODOLOGY ............................................................................................................... 14

2.1 Contacting Respondents ............................................................................................. 14

2.2 Qualitative Inquiry ........................................................................................................ 15

3 WHAT IS HEMP? ............................................................................................................... 16

3.1 Botanical Description of Cannabis ............................................................................... 16

3.2 Agronomic Characteristics of Hemp ............................................................................ 17

3.3 History of Hemp in the World ....................................................................................... 18

3.4 History of Hemp in the United States ........................................................................... 19

3.5 Demonization, Criminalization and Decline of Hemp Use ........................................... 19

3.6 Technology and Industry ............................................................................................. 20

3.7 Inconsistencies in Policy .............................................................................................. 21

3.8 Current Legal Restrictions ........................................................................................... 22

3.9 Resurgence of Hemp Culture around the World .......................................................... 23

3.10 Uses of Hemp ............................................................................................................ 23

3.10.1 Food and Medicine ............................................................................................. 23

3.10.2 Fibre Uses .......................................................................................................... 25

3.10.3 Other Industrial Uses ......................................................................................... 26

3.10.4 Fuel: Biofuel and Biomass .................................................................................. 27

3.11 Viability and Equipment ............................................................................................. 28

4 HEMP CULTURE IN THE CZECH REPUBLIC ................................................................... 31

4.1 History of Hemp in the Czech Lands ........................................................................... 31

4.2 Potential and State of Hemp Culture in the Czech Republic........................................ 32

4.3 Difficulties in the New Industry .................................................................................... 33

4.4 Agricultural Subsidies .................................................................................................. 34

4.5 Legal Status of Hemp and Cannabis in the Czech Republic ....................................... 36

4.6 The Situation of Medicinal and Non-medicinal Cannabis ............................................ 37

4.7 Hemp Organizations and Enterprises .......................................................................... 39

4.7.1 Konopa ................................................................................................................. 39

4.7.2 Hemp Association of the Czech Republic ............................................................ 40

4.7.3 Industrial Hemp Association ................................................................................. 40

4.7.4 Current and Past Hemp Enterprises in the Czech Republic ................................. 40

5 FINDINGS FROM RESPONDENTS ................................................................................... 41

5.1 Hempoint, spol. s r.o. ................................................................................................... 41

5.2 Hemp Production Cz, spol. s r.o. ................................................................................. 43

5.3 Rieter Cz, spol. s r.o. ................................................................................................... 46

5.4 Juta, a.s. ...................................................................................................................... 47

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5.5 Canabest, spol. s r.o. ................................................................................................... 47

5.6 OP Papírna, spol. s r.o. ............................................................................................... 50

5.7 Zemědruh .................................................................................................................... 50

5.8 Cannabis Pharma-derm, spol. s r.o. ............................................................................ 52

5.9 Propaganda Production, spol. s r.o. ............................................................................ 53

5.10 Lenorek ..................................................................................................................... 54

5.11 Václav Lapka ............................................................................................................. 55

5.12 Hliněný dům .............................................................................................................. 56

5.13 B&R Hemp Cosmetics, spol. s r.o. ............................................................................ 57

5.14 Parenteral, a.s. .......................................................................................................... 58

5.15 JLP Velkoobchod ....................................................................................................... 59

5.16 CNM Textil, a.s. ......................................................................................................... 60

5.17 Benátské těstoviny .................................................................................................... 61

5.18 Hemp Zone, spol. s r.o. ............................................................................................. 61

5.19 Tebeco, spol. s r.o. .................................................................................................... 62

5.20 J.O.D. Dvořákovi, spol. s r.o. ..................................................................................... 64

6 ANALYSIS .......................................................................................................................... 66

6.1 The Primary Sector ...................................................................................................... 66

6.2 The Secondary Sector – Primary Processing .............................................................. 66

6.3 Secondary Processing – Industry and Production ....................................................... 67

6.4 The Tertiary Sector – Wholesale and Retail ................................................................ 67

6.5 Marijuana Association and Legalization ...................................................................... 68

6.6 Environmental, Health and Bioregional Considerations ............................................... 69

6.7 Main Obstacles Facing Hemp Enterprises .................................................................. 69

6.8 How Could Things be Improved? ................................................................................ 70

7 CONCLUSION .................................................................................................................... 72

APPENDICES ......................................................................................................................... 74

Appendix 1: Area and Production of Hemp Cultivated in the Czech Republic ................... 74

Appendix 2: Proposed Changes to Current Laws .............................................................. 75

Appendix 3: Cover Letter and Questionnaire in English .................................................... 76

Appendix 4: Cover Letter and Questionnaire in Czech ...................................................... 79

Appendix 5: Current and Past Hemp Organizations in the Czech Republic ...................... 82

Appendix 6: Map of Hemp Activity in the Czech Republic ................................................. 85

Appendix 7: Photos of Visited Enterprises ......................................................................... 88

BIBLIOGRAPHY ................................................................................................................. 90

INDEX OF NAMES ............................................................................................................. 95

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“To plant a seed is an inalienable right.”

Gatewood Galbraith, lawyer, historian, civil liberties, hemp and cannabis legalization advocate

1 INTRODUCTION

One of the key characteristics of environmental studies is its immense multi-

disciplinarity – the fact that it can touch on practically every discipline in a substantial way. As

there is plenty of evidence that the environment is being over-exploited for the growing needs

of human civilizations – resource depletion, pollution and climate change, a plurality of broad

solutions is required. A partial answer to some of these wide-ranging problems could lie in

some equally multi-functional solutions – the reintroduction of the cultivation of Cannabis

sativa – one of the most resilient and diverse plants, and its reimplementation in the economy.

The reason why “re” is emphasised in reintroduction and reimplementation is that there were

many functioning and sustainable hemp economies around the world throughout history. It will

be useful to look at how they worked and why they contracted. The fact that today Cannabis is

banned or highly controlled in most parts of the world makes the use of this plant socially

problematic. Over the last few decades, however, there has been a renewed effort to

distinguish between psychotropic Cannabis and industrial hemp, so as to allow a resurgence

in the modern-day use of the latter without the social and legal stigma attached to the former.

Although the historical and global context of this issue is very important, I would

especially like to look at the current situation in the Czech Republic. On the premise that

hemp use can have a positive impact on environmental sustainability, the main

objective is to explore the state of hemp culture in the Czech Republic – to discover

who have been some of the players in the Czech hemp industry, both past and present,

to determine what obstacles they face and what factors have made it possible for some

of them to flourish. Trying to find the answers will hopefully result in a general overview of

hemp-related activities in the Czech Republic since the late 1990s, when the controlled

cultivation of hemp was legalized.

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In order to provide a context for the importance of these activities it will be useful to

discuss what exactly hemp is, how it is useful, the history of its utility, an explanation of its

sudden decline and its widespread criminalization from the 1930s onward. Furthermore, it will

be important to show how the cultivation of Cannabis and the use of hemp products can bring

about a reduction in resource depletion, pollution and climate change, thereby providing

benefits to the general population through environmental protection and sustainable

development.

1.1 Environmental Sustainability

One of the most important implications of this study is that the increased use of hemp

could make a significant contribution to environmental conservation, climate change

abatement and the development of greener economies. The versatility of the whole plant

means that the production of hemp could serve as a low-waste approach to resource use and

provide an efficient low-impact solution to many environmental problems. This begins with the

benefits hemp provides in its very cultivation to the numerous other industries where it can be

used – the food, pharmaceutical, veterinary, textile, paper, building, energy and automotive

sectors, where in addition to environmental services, hemp can be made into thousands of

useful, non-toxic and easily recyclable or biodegradable products. Thus, economically hemp

could be the basis of many environmentally-friendly business enterprises and a valuable

component of rural and bioregional development.

Before looking at what hemp culture can do to address issues of environmental

conservation and sustainable development, it would be good to define the terms. One of the

earliest official declarations stated that “sustainable development is development that meets

the needs of the present without compromising the ability of future generations to meet their

own needs” (UN 1987). This was important in its time as it was one of the first admissions by

an international body proclaiming the importance of the future in the context of global neo-

liberal economics, wherein the concept of the future as an economic variable is automatically

discounted. This under-appreciation of the future is one of the major criticisms of current

global economics (Johanisová 2005, Douthwaite 2000, Daly 1996). This is evident from the

extensive use of fossil-fuels in practically every sector of human activity as well as the

widespread use of synthetic chemicals, which have exacerbated complex environmental

problems. An increase in the use of hemp could make it possible for many toxic materials to

be replaced with natural ones and for Cannabis cultivation itself, especially if done organically,

to play a role in reducing greenhouse gases. This has far-reaching implications for all “three

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pillars of sustainability” (UN 2005), which involve the long-term maintenance of well-being with

consideration to environmental, economic and social dimensions.

Environmental protection entails the maintenance of healthy ecosystems and

environments so that they can provide vital goods and services to organisms including

humans. This involves the prevention of air, soil and water pollution and biodiversity loss.

Because the human consumption of resources, industrial production processes and disposal

of refuse have a great impact on the environment, the need for the management of these

activities requires rational economics which incorporates the above-mentioned three pillars, all

potentially employing hemp to a significant extent. Environmental sustainability seeks to foster

production without depletion (i.e. reducing depletion first), then by regeneration (Pimentel

2000). Hemp, due to its many beneficial properties and uses, can contribute to environmental

protection and sustainable development in numerous ways. One of the first contributions is

from its actual cultivation, especially when practicing at least a few of the main principles of

organic farming. A switch to hemp as an occasional rotation crop would guarantee a vast

reduction in the need for synthetic herbicides and pesticides, which is one of the main

problems with conventional high input agriculture.

1.2 Conventional vs. Organic Agriculture

Since today’s conventional agriculture is so heavily dependent on the petrochemical

industry, which could be said to be in direct competition with potential hemp economies, a

comparison between conventional and organic agricultural is relevant. Many authors agree

that high-input agriculture is environmentally unsound (Pimentel 2000, Pretty 1999) and that

conventional farming practices are one of the largest contributors to global warming (LaSalle &

Hepperly 2008). There are some valid environmental concerns about the long-term future of

modern agriculture:

“Farming increasingly dependent on unceasing inputs of fossil-fuels and hence inherently unsustainable on a civilizational timescale (103 years) is now a universal reality. Continuous intensive monocropping […] may be profitable on the short run and in narrow monetary terms, but it is surely not the best way to promote longevity and stability of agrosystems” (Smil 2000: xiii).

Although Smil reveals the many inefficiencies of modern conventional agriculture and food

production – from cultivation to consumption, he remains a proponent of conventional high-

tech agriculture, as long as it is practiced with the various efficiencies he describes. Although

the words organic agriculture do not appear in Smil’s Feeding the World (2000) and he

focuses on technology such as precision farming to optimize efficiency, it is interesting that

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many of his basic recommendations are common for organic agriculture1. The main practices

he mentions include 1) conservation tillage, to reduce nitrogen leaching and increase moisture

infiltration; 2) crop residue cover of soil surfaces, to control run-off and soil erosion; 3) crop

rotation, to enrich the soils with nitrogen; and 4) recycling nutrients, to renew soil organic

matter (Smil 2000: 138). In his view, these practices should form the basis to which

conventional synthetic chemical use can be applied (but in lower quantities as a result of the

improved practices). As it is, even these basics are often ignored in current conventional

agriculture. These principles could easily be satisfied by hemp cultivation, because of its quick

growth and the fact that its leaves fall continuously, providing good ground cover and nutrients

for top soil, thereby recycling much of the nutrients of the plant by harvest time (Benhaim

2005). If grown organically, hemp could provide even more advantages, because it requires

much less chemical input compared to other fibre crops.

A much less compromising proponent of conventional agriculture, Dennis Avery, goes

as far as to attempt to discredit organic farming on the basis that it is not viable and would

require the “plowdown of at least six million square miles of wildlife habitat to make up for the

lower yields of organic production” (Avery in Meadows 2000: 22)2. On the contrary, many

studies (Meadows 2000, Pretty 1999) have proven that organic agriculture can keep pace with

conventional agriculture, and can do so without destroying its natural capital of healthy soil

and clean water, not to mention the health of farmers, consumers and communities, as has

increasingly been the problem with industrial agriculture. Long-term studies conducted by the

Rodale Institute in the United States (about 60 years) and the Rothamstead Experimental

Station in the United Kingdom, one of the longest-running organic trials in the world (160

years), have also been able to prove that organic production can keep up to or even

outperform conventional agriculture on the long term3. Furthermore, Rodale research (LaSalle

& Hepperly 2008) showed that regenerative organic trials with corn yielded 30% more than the

petroleum-based method during drought years, because soils that are higher in carbon can

capture more water and keep it available for plants. Overall, the long-term effects of organic

1 The main methods of organic agriculture include 1) recycling crop / animal wastes, 2) crop rotation, 3) green manures and mulching, 4) careful crop choice and planning, 5) natural pest control, 6) natural genetic diversity, 7) careful water management and 8) animal etiology. (HDRA, 1998)

2 Avery works for the Hudson Institute, whose motto states ―growing more per acre leaves more land for nature‖ (its corporate sponsors include AgrEvo, Dow AgroSciences, Monsanto Company, Novartis Crop Protection, and Zeneca).

3 The Rothamstead Experimental Station reports wheat yields on manured plots of 1.58 tons/acre, as opposed to 1.55 tons for plots receiving synthetic fertilizers. Furthermore, soil organic matter builds up six times higher on the manured plots. The organic system assumes some acreage for feeding cows to provide manure; the synthetically fertilized plots assume some fertilizer factories consuming fossil-resources elsewhere. (Meadows 2000: 25)

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agriculture can be seen in improved soil and human health, increased biodiversity, water

conservation, river preservation and climate change mitigation.

1.3 Climate Change and Carbon Sequestration

There is scientific consensus that the symptoms of climate change (floods, severe

storms, droughts, etc.) will continue and perpetuate its causes, such as desertification. The

main problems that need to be dealt with from a socio-economic viewpoint are massive fossil-

fuel consumption and unsustainable land use conversions, both of which are intricately

connected to conventional agriculture and among the main causes of climate change.

Paradoxically, depending on the type of methods used, agriculture can be a liability in its

conventional specialized form (crops and animals farmed separately using high levels of

synthetic inputs); or conversely, farming can provide many eco-service assets (e.g. resource

recycling, natural pest control, pollination, carbon sequestration) when practiced in a holistic,

integrated and regenerative way (i.e. organic farming). Data from almost thirty years of

research at the Rodale Institute involving regenerative agriculture have shown that farming

methods could change agriculture from a “global warming contributor to a global warming

inhibitor – from a problem to a solution” (LaSalle & Hepperly 2008: 5). This involves the ability

of fertile soil abundant in mycorrhizae and glomalin to act as an effective terrestrial carbon

sink. A compost utilization trial showed that organic systems using crop rotation and

composted manure could result in carbon sequestration of up to 2000 pounds/acre/year as

compared to standard tillage relying on chemical fertilizers, which on the contrary lost carbon

at a rate of almost 300 pounds/acre/year. Furthermore, storing 2000 pounds/acre/year of

carbon means that 7000 pounds/acre/year of carbon dioxide are taken from the air and

trapped in the soil (LaSalle & Hepperly 2008: 5). In a more general context of carbon

sequestration, the Intergovernmental Panel on Climate Change (IPCC) stated that some of the

most effective carbon sinks consist of fast growing hardwoods. Putting this idea into an

agricultural context means that hemp could serve as a useful option for carbon sequestration

as its “chemical composition […] is comparable to that of a hardwood and [it has a] rapid

growth cycle compared to other high cellulose content organisms” (Deeley 2001: 134). As an

industrial, biomass or biofuel resource, hemp is one of the most interesting crops because of

its fast growth cycle and abundant cellulose output.

1.4 Benefits in Agriculture

The beneficial agricultural strategies mentioned above, such as crop rotation, crop

cover and residue management, could be well served by the use of hemp as a key rotation

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crop. Some of the most important direct benefits include the reduction of pesticides while

increasing the yield of crops following from it in rotation (Roulac 1997). This is because hemp

has long tough roots that aerate the soil and foliage that shades well, thus suppressing weeds

and serving as an effective herbicide. The cannabinoids in the plant, which serve effectively

against infectious diseases in medicine, also act as an effective pesticide protecting plants

from diseases and micro-organisms in agriculture (Ranalli 1999: 30). Furthermore, hemp can

be used as a “bioremediation crop to restore unproductive land […] back to agricultural

productivity” (Deeley 2001: 136). In this respect Ranalli (1999) states that Cannabis is “able to

extract heavy metals from the soil in amounts higher than many other agricultural crops” (in

Deeley 2001: 136). Under Czech conditions, a crop that is planted in soil following two years

of hemp cultivation has about 10% to 15% more abundance than cultivation following other

crops (Říha 2011). With extensive evidence that hemp has served as a natural rotation crop

all over the world throughout history (Benhaim 2005, Robinson 1997, Herer 1994), it would be

interesting to see what impact the wide-scale reintroduction of hemp could have for modern

organic agriculture and, in effect, on climate change.

1.5 Bioregional Solutions

The fact that hemp can grow well in many climates and can provide so many services

makes it a good candidate for bioregional solutions, which by definition include the

environmental, social and economic aspects of sustainability. A bioregional approach allows

natural factors such as the local ecology, climate and natural energy/nutrient cycles to

determine the way people live, even more than merely politics and trade. This involves 1) the

use of local renewable and waste resources to meet more everyday needs, 2) delivering

sustainability through the market for products and services, and 3) living within planetary

means, while leaving 10% of bioproductive land for wildlife and wilderness (Desai &

Riddlestone 2002: 12).

One of the main challenges of bioregional solutions is to achieve a two-thirds

reduction in current Western consumption levels through the development of sustainable ways

of living that are accessible and attractive to the mainstream of European society. As per point

3 above, one of the keys is to be able to provide sustainable products and services that can

compete within a market that does not disadvantage them (Desai & Riddlestone 2002: 12).

Because the harmful ―externalities‖4 caused by the exploitation, production, use and disposal

4 This term was first coined by A.C. Pigou in the 1920s (Johanisová 2002 ) to mean unaccounted costs (or benefits) for parties other than those taking the primary economically-driven action, therefore ―external‖ to economic calculations (e.g.

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of fossil-fuel products and processes are economically undervalued, it is difficult for renewable

energy sources and natural non-polluting products and processes to compete on a level

playing field in the market today. Fossil-resource related activities gain the benefit of not

having to count many of the complex externalities into their economic equation. They also

benefit from the continuity of already established institutions (car culture, travel-intensive

consumption, global trade, etc.) and the public attitudes that accompany them. In this respect,

many of the main barriers to sustainable development are institutional, arising from a

compartmentalized system of decision-making in both the public and private sectors where

there is a failure to act in a coherent manner that would serve society or the environment in a

comprehensive way.

One of the key principles of bioregionalism concerns economic localization. This

means that production using local resources and capital is consumed locally (Johanisová

2005). In economic terms, this results in a Local Multiplier Effect (LME), a valuable ―hidden‖

feature of economics that refers to how many times money is recirculated within a local

economy before leaving through the purchase of an import. This provides added value to a

community in proportion to the number of times that the money recirculates. Over the course

of the 20th century, the amount of local monetary recirculation has declined partly as a

consequence of economic globalization and fossil-resource based economies. Richard

Douthwaite and Andrew Simms state (in Johanisová 2005: 9) that “…the market economy

powered and subsidized by the „free income‟ of fossil-fuel expanded to take over many

activities which were previously done within community or at home.” Furthermore, many of

these activities were done in environmentally sustainable ways. Nevertheless, in light of Peak

Oil5 calculations and the projected shift to a need for renewable resources, it is predicted that

the cost of goods supplied through the current market system will rise as oil supplies contract,

due to the transport- and energy-intensive production modes they require (Johanisová 2005).

The expansive infra-structures for long-distance logistics and wasteful production and

packaging are evidence of the situation where, according to Douthwaite (2000: 5), the extra

resources that the economic growth has created are being “used to keep the system

functioning in an increasingly inefficient way.” For this reason, one of the most evident

bioregional principles would dictate that bulky and transport-intensive products be produced

environmental degradation or social disintegration resulting as a side-effect of economic activity). (http://www.econlib.org/library/Enc/bios/Pigou.html)

5 Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline, thus affecting the supply and cost of petroleum.

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and supplied locally, while other (but high-value) products could be traded internationally; this

could still result in high earnings, but lower environmental impact. This is reminiscent of the

often-cited words of John Maynard Keynes: “Ideas, knowledge, science, hospitality, travel –

these are the things which should of their nature be international. But let goods be homespun

whenever it is reasonably and conveniently possible, and, above all, let finance be primarily

national” (in Douthwaite 2000: 345). In disregard of these words and with the institutionalized

undervaluing of polluting processes, what has resulted is globalization, international

transportation and specialization that have become so extreme as to leave many regions with

very little economic stability or production diversity, especially rural areas.

Indicators such as the ecological footprint6 and FEET index7 have become valuable

for showing environmental impact, whereas generally used economic indicators have failed to

provide a sufficiently complete picture. Thus, for an increase in the sustainability of bioregions,

there is a need for the application of efficient yet relatively small-scale technology, production

and delivery systems to allow local products and services to enter the mainstream economy.

This idea is echoed in the writings of E.F. Schumacher who calls for technology to provide

tools that are suitable for small-scale application and, even more importantly, are compatible

with the human need for creativity – that is “technology with a human face” (Schumacher

1973: Chapter 2). The application of such values on a mass scale would be a magnanimous

form of progress. The inclusion of hemp in creatively solving modern environmental problems

is such a challenge. The implementation of small-scale (although possibly high- or medium-

tech) solutions in bioregional economies could prove to be promising once the initial

economic, technical and political barriers are overcome. One such solution is the MiniMill,

invented by British organization BioRegional, which could bring fibre crop processing

(including hemp) closer to farmers and other actors in rural communities (Toland 2008).

Finding such solutions is also the challenge for other creative entrepreneurs in their efforts to

expand hemp culture.

6 This is a measure showing the consumption of raw materials and fossil-fuels.

7 Foreign Exchange Earned per Tonne of Transport CO2

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2 METHODOLOGY

This work presents the role of hemp in contributing to aspects of environmental

sustainability and the way actual enterprises are using this material or are related to its use in

some way. Library and Internet research provide a background on world and Czech hemp history

and culture as well as the organizations and enterprises operating in the hemp industry.

Qualitative research involving email questionnaires, telephone inquiries and personal interviews

supplements the background information with facts on the current state of Czech hemp

enterprise. This involves looking at hemp from the production and supply sides (i.e. examining

business opportunities, practice and attitudes).

The participants of the research were selected on the basis of an Internet search for

hemp-related enterprises and organizations as well as extra input from Michal Ruman of the

civic organization Konopa to supplement the original list. From this basic set, the snowball

method was used to contact others. Any mention of hemp enterprise, either in the media,

through products in the marketplace or word-of-mouth, was traced back to the representatives

of hemp-related businesses. The qualitative research of these issues has been inspired by the

work of Nadia Johanisová (2002, 2005) and Hana Librová (1994, 2003), whose work I read as

methodological inspiration for gaining knowledge about acquiring data on environmentally-

related research.

2.1 Contacting Respondents

The methodology of this study involved the researching of potential respondents,

designing the questionnaire and sending it to the appropriate addresses. The first

questionnaire and cover letter to potential respondents was originally written in English

(Appendix 3), translated into Czech (Appendix 4), and then checked over by Ruman (of

Konopa) for their relevance to hemp entrepreneurs. The first round was sent out through a

mailing from Konopa on 11 February 2011 to 15 organizations. It was then modified slightly

and resent a week later from my university e-mail to those who had not responded yet. Over

the next several weeks – until about mid March 2011 – the questionnaire was resent to the

remaining 32 organizations as the list of respondents evolved. The texts are comprised of

information obtained from the questionnaires, email correspondence, telephone calls,

personal interviews and the company web sites. Of the 47 organizations that were contacted

(Appendix 5), 20 are presented in the section Findings in the chronological order in which they

responded.

15

2.2 Qualitative Inquiry

This qualitative inquiry method was chosen so as to provide some degree of structure

(the questionnaire) as well as the subsequent latitude in the follow-up that was necessary to

account for the diversity of the respondents and the various sectors they represent. In spite of

the effort to find all the enterprises that are in some way related to hemp, the snowball method

continues to bring new names that were not known before my cut-off date (15.4.2011),

therefore the list is obviously incomplete. The necessity for the cut-off date also means that

not all the respondents received follow-up emails (only those that had been obtained before

10.4.2011). Another shortcoming of the survey is that the absolute accuracy of the facts or

opinions cannot be guaranteed as people represent themselves subjectively. Furthermore, the

information they provide then goes through another filter of subjectivity (i.e. my interpretation

of what they said). In most cases, the final text was resent to the respondents to verify that my

interpretation of what they wrote, said or included in their web pages was accurately depicted.

This necessitated that they have a passive knowledge of English. I have tried to represent the

findings honestly and accurately and believe that this method has allowed me to obtain

information regarding hemp enterprises and those involved in a comprehensive way.

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3 WHAT IS HEMP?

This section presents a physical description of the plant and its main agronomic

characteristics. This is followed by a brief history, which will include a look at the distant past

and how the plant has been valued throughout the world for millennia. The history of hemp

and cannabis in the United States is important to reflect upon as the various laws and

resulting prohibition of both plants there have had great impact throughout the whole world to

this day. These consequences have been the result of social and political demonization and

criminalization and have continued to plague the acceptance and promotion of hemp as an

industrial material. The immense technical utility and potential of hemp is described through a

look at what would have been a resurgence of hemp culture in the 1930s and 1940s. Instead,

bans and technical barriers continued to prevent hemp from significantly becoming a part of

modern-day economies. This was the case until the 1990s, when information about hemp

started to gain popularity, at least at a sub-culture level, and various political and economic

paradoxes, inconsistencies in drug policies and long-thought-lost information about hemp and

cannabis began to be revealed. This historical and socio-economic background forms an

important context for understanding the fate of this plant.

3.1 Botanical Description of Cannabis

Hemp is the term that is often used to refer to varieties of Cannabis that are cultivated

for non-drug use. Cannabis is a genus of flowering plants that includes three species:

Cannabis Sativa, Cannabis Indica and Cannabis Ruderalis. The genus Cannabis is now

considered along with hops (Humulus sp.) to belong to the hemp family (Cannabaceae). The

three distinct types are based on various factors such as morphology, native range, aroma

and subjective psychoactive characteristics. Sativa is the term used to describe the most

widespread variety, which is usually tall, laxly branched and found in warm lowland regions.

Indica is used to designate shorter, bushier plants adapted to cooler climates and highland

environments. Ruderalis describes the short plants that grow wild in Europe and central Asia.

Believed to have originated in the mountainous regions northwest of the Himalayas, the plant

is characterized by its serrated long leaves, nutritious round seeds and strong roots and fibre.

Cannabis has a sturdy stalk that can be separated into long tough fibre (called bast), which

refers to the part that grows between the woody inner core (called shives) and the bark

(NAIHC 2009).

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Industrial hemp is harvested for fibre and seed, whereas marihuana and hashish are

derived from the flower buds, leaves and resins. Due to the nearly identical leaf shape, hemp

is frequently confused with marijuana and chemical analysis is required to distinguish the two.8

Although both plants are from the species Cannabis, hemp contains virtually no THC9, the

psychoactive molecule in marijuana, but contains a high level of CBD10. Hemp cannot be used

as a drug because it produces virtually no THC (less than 1%), whereas marijuana produces

between 5 to 20% THC (NAIHC 2009). Cannabis Sativa has traditionally been bred as a utility

plant and its modern-day breeding has allowed it to reach THC levels as low as about 0.3%,

which satisfies the United Nations Narcotics Convention11.

3.2 Agronomic Characteristics of Hemp

Hemp has long slender primary fibres on the outer portion of the stalk, which is

characteristic of bast fibre plants like flax and jute. An annual plant that grows from seed,

hemp can be grown in a variety of geographical areas from tropical to temperate climates and

at altitudes of up to 5000m above sea level; some extreme examples include the Himalayas,

were it originated, and in Russia up to the Arctic Circle (Sladký 2004). It can grow in a wide

range of soils; nevertheless, it tends to grow best in soil that is well drained, rich in nitrogen

and non-acidic. Hemp cultivation requires very limited amounts of herbicides, as it generally

out-competes weeds due to its fast growth; little pesticide is needed as it attracts few pests.

Although hemp can be attacked by some pests and diseases, this tends to happen after

mono-cropping for several years in a row. Hemp grows on average from 2 to 4 metres in four

months.

In northern latitudes, hemp is planted between early March and late May. Hemp crops

are harvested at different times for different products. Harvesting stalks for high quality

primary fibre occurs as soon as the crop is in flower. The fibre grows the length of the hemp

stalk and has exceptional high-absorbency, anti-mildew and anti-microbial properties (NAIHC

2009). For seed production, hemp is harvested 4 to 6 weeks after flowering. When cultivated

8 To illustrate this point, the Kentucky Hemp Growers Co-operative and the Hemp Company of America levied a lawsuit against the United States Drug Enforcement Administration (DEA) for failing to make a distinction between industrial hemp and marijuana (Vantreese 1998).

9 THC refers to Δ9 (delta-9) tetrahydrocannabinol.

10 CBD is cannabidiol-type cannabinoid, which has recently been found to have many medical uses, along with 5 other important substances in cannabis. (Urban 2011)

11 It is worth mentioning that many psychoactive strains are in fact mixtures of Cannabis Indica and Sativa, so the name “sativa” should not automatically connote only hemp. In cultures where the plant was traditionally grown for its psychoactive properties (e.g. India), the stalks and leaves also served as resources for fibre processing and green mulch, respectively (Ruman 2011).

18

for fibre, hemp is planted closer together than when grown for seed. For this reason, when

planted as a seed crop, the resulting fibre is not of high enough quality for some industrial fibre

uses; however, lower quality stalks also have many uses: energy briquettes, cellulosic ethanol

(CE) production, or green mulch. One risk that hempseed farmers face is that if they wait too

long to harvest the exceptionally nutritious seeds, they risk losing their crop to birds (Klvaňová

2007). In the Czech Republic, when hemp is planted for both seed and fibre, it is best to

harvest while the fibre is not too tough (for good textile use) and when about 75% of the seeds

are ripe; this is after about five months of growth, when the stalks are starting to yellow, but

the tops are still green (Říha 2011).

3.3 History of Hemp in the World

The oldest evidence of hemp use by humans dates back to the dawn of agriculture in

about 10,000 B.C. in China. According to some of the oldest Chinese writing (from Lu Shi),

Cannabis was already being cultivated for fibre as far back as 5000 years. In ancient Egypt, a

special procedure using hemp was used to break stones for the building of the pyramids

(Ruman 2008). The ancient Ayurvedic system of Indian medicine and the Arabic Unani Tibbi

made extensive use of hemp for healing (Robinson 1996: 45). The first findings of hemp in

Europe date back to 7000 B.C. in the Finnish province of Tavasia, where hemp pollen was

discovered. First century Greek physician Pedacius Dioscordes described the medicinal utility

of kannabis emeros. Hemp textiles, ropes and seeds have been found in various early

settlements of the Celts, Thracians and Vikings; this last group was able to develop their sea-

faring expeditions thanks to the resilience of hemp sailcloth and rope.

During the Middle Ages, hemp was a popular folk remedy and was also cultivated for

its fibre and seed. Hemp paper-making technology found its way from China to Europe around

the 12th and 13th centuries; hundreds of years later, high quality documents would be printed

on it, including the Gutenberg Bible. The age of exploration was largely made possible

because of hemp for sail material and ropes, as was evident from ships used by Christopher

Columbus in the 15th century and the Napoleonic expeditions in the 19th century. Other

traditional uses of hemp fibre included its use in netting, clothing and even painting canvases.

In addition to hemp canvas, masters such as Rembrandt and Van Gogh used hempseed oil to

mix paints (Ruman 2008). Hempseed oil was also traditionally used as lamp oil, in ritual

tinctures and in medication. By the late 19th century, hemp was included in the official

pharmaceutical repertoire in Europe and the United States (Robinson 1996: 46).

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3.4 History of Hemp in the United States

The attitude and legal stance that the U.S. has taken towards hemp and Cannabis

since the 1920s have been of great importance to the legal status of the plants worldwide. For

this reason it is important to look at the history of hemp and Cannabis in the U.S., its eventual

demise and recent resurgence. That the first president of the United States, George

Washington, was a hemp farmer (as was Thomas Jefferson), that drafts of the Declaration of

Independence were printed on hemp paper and that early American flags were made of hemp

fabric are three patriotic examples of facts that discredit Cannabis prohibition in the U.S.

(Herer 1994). The country had functioning and sustainable hemp production, which provided

many products such as rope, cloth, paper (e.g. for printing money, bonds and certificates) and

oils (for fuel and medicine). Nevertheless, by the end of the 19th century, the invention of the

steam engine (which resulted in a vast decline in the need for sailboats) contributed to a

decrease in hemp fibre demand, as did the cheap influx of cotton and flax, which had certain

harvesting and processing advantages that hemp was not yet able to compete with. In spite of

these economic changes, there was an existing hemp industry; however, its greatest

obstacles were yet to come.

3.5 Demonization, Criminalization and Decline of Hemp Use

In the late 1920s and the 1930s, a convergence of events led to the demonization,

taxation and prohibition of marijuana and, by extension, of industrial hemp. Writer and activist

Jack Herer (1994) argues that Cannabis was suppressed in the United States not just for

―moral‖ reasons, but for economic ones. Hemp products threatened certain vested financial

and industrial interests, who conspired to destroy the hemp industry by supporting drug law

―reformers‖. One important figure in this so-called reform was Harry J. Anslinger, the first

Commissioner of the Federal Bureau of Narcotics12, who saw to the prohibition of marijuana at

the national level. His efforts resulted in the Congress passing the Marijuana Tax Act of 1937,

in effect13 criminalizing all forms of Cannabis (marijuana/hemp), regardless of THC content.

Throughout the 1930s and leading up to the Marijuana Tax Act, one of the most

ardent opponents of marijuana was media mogul William Randolph Hearst, who used the

influence of his sensational newspapers to demonize Cannabis on the basis of racist fear-

mongering. His tabloids fomented the resentment and fear that Americans had felt towards

12 The Federal Bureau of Narcotics was formed in 1930, three years before alcohol prohibition ended.

13 Although hemp was not illegal per se (as marijuana explicitly was), it was practically impossible to obtain a ―permit‖ for its cultivation after the passing of this law. (Gabrielová 2011)

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Mexican immigrants since the Great Depression. Marijuana use was also deprecatingly

connected with African Americans, especially musicians on the jazz scene. These and other

media, most notoriously the feature film Reefer Madness (1936), spread rumours and false

reports linking marijuana use with murder and violence (Herer 1994). Hearst also incidentally

owned vast timber holdings and was deeply invested in the wood-pulp paper-making industry,

which used chemicals developed by DuPont. Prior to 1937, DuPont developed chemical

patents based on coal and petroleum to make paper from wood pulp and to make plastics.

The sudden emergence of competition in the form of natural cellulose-based plastics would

have been a threat to this company, which dominated the petrochemical market,

manufacturing plastics, paints, and other products from fossil-resources. The president of the

company, Lammont DuPont, was also an active proponent of Cannabis prohibition and the

Marijuana Tax Act would assure that petrochemical products could replace the many already

existing hemp products in the marketplace.14 Thus powerful players in “the petrochemical and

pulp-paper industries in particular stood to lose billions of dollars if the commercial potential of

hemp was fully realized” (Robinson 1996: 149). As such, they were spared competition from a

prohibited hemp industry that was on the verge of being revitalized thanks to new

technological developments.

3.6 Technology and Industry

In the period before the prohibition of Cannabis, new machinery and potential uses

had sparked a renewed interest in hemp. Already in 1915 George Schlichten had patented the

efficient and mobile stalk processor called the Schlichten decorticator, a machine that could be

used to separate the fibre from the core of practically any plant, especially hemp, which had

proved to be the most difficult plant to process. The machine promised to revolutionize the

hemp industry by removing the need for dew retting, a labour-intensive process for separating

the fibre from the stalk. Because his work fell into oblivion after some failed business deals in

1917, other practical decorticators did not become available until 1936 when Anton Burkardt

and Robert Cochrane patented their machine15. This is the basis of the 1938 article ―New

Billion Dollar Crop‖ in Popular Mechanics Magazine, which featured a hemp decortication

machine that would have revolutionized hemp processing if allowed to expand on a large

scale. The text claimed that there were 25,000 industrial uses for hemp and discussed how

14 Thus conspiracy theories link Anslinger and his familial relationship to Mellon Bank President Andrew Mellon, the Secretary of the Treasury, who appointed him, to DuPont and Hearst, who this bank had important business relationships with. (Herer 1994)

15 The Schlichten Papers at http://www.innvista.com/health/foods/hemp/schlich.htm

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this new industry was ripe for expansion. Thousands of acres had been planted for

commercial harvest to make paper and plastics16, and even Henry Ford’s hemp car was proof

of potential wide-scale uses. As it was, Cannabis had been outlawed by the time the article

was published in February 1938. As of the passing of the new law, these and any other

inventions or research projects related to hemp became problematic, in effect destroying the

competition that would have been possible for the natural substitutes of many petrochemical

products and their often environmentally harmful processes.

Surprisingly, the growing petrochemical and steel-based automobile industry was in

the middle of ground-breaking research employing natural fibres and plant oils, including

hemp. It is interesting that as late as 1941 Henry Ford was unveiling his hemp composite

automobile that ran on hemp ethanol – four years after the passing of the 1937 Marijuana Tax

Act. After twelve years of research, the Ford Motor Company had finally completed the

production of an experimental automobile that had a ―plastic‖ body whose tough moulded

panels were made from a recipe that called for 70% of cellulose fibres from wheat straw,

hemp and sisal plus 30% resin binder. The car was reported to withstand a blow 10 times as

great as steel without denting. Even the windows and windshield were made of hemp oil-

based ―plastic‖. The total weight of the ―plastic‖ car was about one-third (or 1000 pounds) less

than a steel automobile of the same size. The experimental model was pictured as a step

toward the materialization of Henry Ford's belief that some day he would “grow automobiles

from the soil” (Popular Mechanics 1941).

The emerging synthetic chemical industry was another significant sector that would

prosper from the prohibition of Cannabis: “some large pharmaceutical companies also stood

to gain by the illegalization of Cannabis, since their synthetic patented prescription

tranquilizers (such as barbiturates) would find room in the void left by prohibition of this natural

relaxant” (Robinson 1996: 150). At the time of the 1937 Marijuana Tax Act, Cannabis was

being widely used as a tincture and main ingredient in many natural pharmaceutical products

and medicines.

3.7 Inconsistencies in Policy

From 1937 onward, hemp production in the U.S. was stopped and Cannabis

continued to be demonized by the U.S. federal government, which has since then been able to

16 The Farm Chemurgic Council, which was interested in developing hemp as a raw material to make natural plastic, was particularly demonized by government restrictions even more than traditional fibre processors in the US. The premise of the agro-chemistry movement was that ―anything that can be made from a hydrocarbon can be made from a carbohydrate.‖ (Roulac 1997: 41, 49, 54)

22

influence international bodies to do the same around the world. This strong and seemingly

unilateral position has had its surprising and, until recently, secretive exceptions: in 1942

the United States Department of Agriculture produced Hemp for Victory, an educational film

promoting hemp farming in the United States17. Another interesting policy that contradicts

federal Cannabis prohibition is the national Investigational New Drug Compassionate Access

Program founded in 1978. The federal government was forced to allow some patients access

to medical marijuana after a ―medical necessity‖ defence was recognized in court, thus

allowing some patients to receive medical marijuana from the government directly. The

program was closed to new patients in 1992 after it was flooded by applications from AIDS

patients. Today, seven surviving patients still receive medical marijuana from the federal

government18.

3.8 Current Legal Restrictions

The United Nations International Drug Control Program officials estimate that about

200 million people use Cannabis and that global consumption of it continues to grow – in spite

of the multi-billion dollar ―war on drugs‖ initiated by the United States and internationalized by

the United Nations (Jelsma 2011). The UN Single Convention on Narcotic Drugs, signed by

180 parties in 1961, was the first international treaty to prohibit Cannabis, causing problems in

countries where marijuana use had a long cultural history, or in countries where no distinction

between marijuana and hemp was made. In the U.S., Cannabis sativa is classified as a

Schedule 1 Controlled Substance, meaning that it has a high potential for abuse and no

medicinal value. This refusal to differentiate between hemp and marijuana persists, regardless

of the narcotic (i.e. THC) content and in spite of several “international treaties signed by the

United States declaring that hemp with less than 0.3% THC shall be considered industrial

hemp and not marijuana” (Vantreese 1998: Section 6).

Although nine states in the United States have legalized hemp, they have not been

able to safely begin any cultivation, because they continue to face adversity from the federal

Drug Enforcement Administration (DEA), which prohibits hemp. “The DEA holds firmly that

industrial hemp and marijuana are indistinguishable and that hemp advocates have a hidden

agenda of legalizing marijuana” (Vantreese 1998: Section 6). For this reason, the DEA is

adamantly opposed to any kind of hemp cultivation in the U.S. and over seventy years later,

both hemp and marijuana are still demonized. The medicinal properties of marijuana continue

17 The film can be viewed at http://www.youtube.com/watch?v=W0xHCkOnn-A.

18 Drug Policy Alliance at http://www.drugpolicy.org/marijuana/medical/.

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to be denied to patients and the industrial potential of low-THC hemp remains prohibited in

many parts of the world to farmers and environmental entrepreneurs.

3.9 Resurgence of Hemp Culture around the World

In the late 1980s and especially the 1990s there was a resurgence of popular interest

in hemp. This may have been connected to the original 1985 publication of Jack Herer’s now

famous The Emperor Wears No Clothes: The Authoritative Historical Record of Cannabis and

the Conspiracy Against Marijuana. There was also Rowan Robinson’s often quoted

encyclopaedic The Great Book of Hemp: The Complete Guide to the Environmental,

Commercial and Medicinal Uses of the World‟s Most Extraordinary Plant, published in 1996.

Hundreds of other books, articles and films praising hemp’s utility have also been released.

Since the late 1990s, industrial hemp has been legalized in most industrial countries, most

significantly EU member states, Canada and Australia. Although both marijuana and hemp are

illegal in the United States under federal law, nine states of the U.S. have defied the federal

statutes and have made the cultivation of industrial hemp legal19. Since the late 1990s several

countries such as Canada and, surprisingly, 15 states of the United States (and the District of

Columbia) have even legalized medicinal Cannabis20.

3.10 Uses of Hemp

Having looked at the social and legal context and how hemp has served throughout

history as an important renewable resource for food, fibre, fuel and medicine, we can now look

more specifically at what all can be done with hemp. Although hampered by the institutions of

non-renewable resource culture, many advances have been documented in all four

fundamental areas of hemp use and are worthy of investigation. Even though there are still

many socio-economic barriers to the mass acceptance and implementation of hemp cultures,

numerous examples of the effort to find rational and environmental solutions for natural and

renewable resource development are being explored.

3.10.1 Food and Medicine

One of the greatest uses of hemp has been as a whole food for humans and feed for

animals, benefiting societies around the world (e.g. Asia, India, China, Russia and Eastern

Europe) for millennia: “This common seed was certainly used by prehistoric humans and

19 North Dakota, Hawaii, Kentucky, Maine, Maryland, Montana, West Virginia, California and Vermont — have not yet begun to grow hemp because of resistance from the federal DEA.

20 ―Fifteen Legal Medical Marijuana States and DC: Laws, Fees and Possession Limits‖, ProCon.org Medical Marijuana, viewed on 15.2.2011 at http://medicalmarijuana.procon.org/view.resource.php?resourceID=000881.

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probably earlier hominids as well” (Callaway 2004: 65). Hempseed contains about 30% oil and

25% protein, with considerable amounts of dietary fibre, vitamins and minerals. The oil is over

80% polyunsaturated fatty acids (PUFAs), has significant amounts of all the essential amino

acids (EAAs) and is exceptionally rich in two essential fatty acids (EFAs) necessary for human

life21; their ratios in hempseed are considered to be “optimal for human health” (Callaway

2004). This makes hempseed the most balanced and richest natural single source of essential

oils for human consumption, or “the most complete protein to be found in the vegetable

kingdom” (Robinson 1996: 55).

To prove the nutritional and medicinal value of hempseeds, one Czechoslovak

tuberculosis study came to the conclusion that hempseed is a nutritious food containing

edestin, cholin and trigonelin: “the first one is a perfect protein providing all the important amino

acids necessary for [the] treatment of tuberculosis and for growth” (Kabelík 1955). The EFAs and

other substances found in hemp have made it a worthy plant to consider in medical research.

Historically hemp has been known to treat a wide range of ailments: glaucoma, tumours,

asthma, depression, inflammation, opiate and alcohol addiction, insomnia, herpes, migraine,

ulcers and gynaecological and dermatological problems, because of its antibiotic, anti-

convulsant, anti-emetic and analgesic properties (Robinson 1996: 48). Paradoxically, the

resources put towards discrediting marihuana have had surprising results: “the millions of

dollars world governments have thrown into their war on hemp have backfired; these studies

now provide some of the best evidence of the myriad benefits of hemp” (Robinson 1996: 58).

One good example of a medical researcher who found benefits from marijuana when

researching its supposed ―harm‖ comes from renowned Harvard psychiatrist Lester

Grinspoon22. After much research and about a year after the publication of his book

Marihuana Reconsidered (1971), Grinspoon states that “it had become inescapably clear that

while marijuana was not harmless, its harmfulness lay not so much in any inherent

psychopharmacological property of the drug but in the social and legal consequences of our

firmly held misbeliefs” (Grinspoon 2009). Currently marijuana is most commonly known as a

treatment for relieving eye pressure from glaucoma and as an anti-nausea drug for

21 The two EFAs necessary for human life are linoleic acid 18:2 omega-6 and alpha-linoleic acid 18:3 omega-3.

22 Grinspoon (2009) describes his 1967 research as follows: “Because I had become concerned that so many young people were using the terribly dangerous drug marijuana, I decided to … review the medical literature so that I could write a … scientifically sound paper on the harmfulness of this substance… As I began to appreciate that what I thought I understood was largely based on myths, old and new, I realized how little my training in science and medicine had protected me against this misinformation. I had become not just a victim of a disinformation campaign, but because I was a physician, one of its agents as well.”

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chemotherapy patients. It is also used today to treat chronic pain, loss of appetite (AIDS

patients), muscle spasms (Multiple Sclerosis and spinal cord injury patients), motor and vocal

tics (Tourette’s Syndrome), asthma, arthritis, brain injury, stroke, epilepsy, schizophrenia,

migraine, eating disorders, Alzheimer’s, lung cancer, brain cancer, skin cancer and many

other ailments. For medicinal purposes, marijuana is smoked, vaporized, eaten, or used

topically as a tincture or oil. Today there is important AIDS and cancer research being done:

“Medical science is strongly in favour of the THC laden hemp oil as a primary cancer therapy”

(Sircus 2008: 1), not just in a secondary role against the side effects of chemotherapy. By

extension, the benefits that the substances in Cannabis and hemp have for pharmaceuticals

can be applied to a variety of bodycare products.

The Cannabis plant has many medicinal uses in the veterinary context as well

(Robinson 1996: 57). In addition, hempseed can be used as a high-grade feed for animals and

the roughage or shives of the plant can serve as highly absorbent and antiseptic stable

bedding for animals.

3.10.2 Fibre Uses

As hemp has one of the longest and toughest fibres in the plant kingdom, its fibre has

had wide application throughout history in the manufacture of paper, textile, building and

industrial products. Although the paper industry likes to portray itself as a sustainable industry

for the fact that its main resource is renewable, it has in fact become a chemical industry that

does great harm to waterways and air quality. Furthermore, when we look at the critical

consequences of deforestation (on which the pulp and paper industry has some impact) and

the fact that wood pulp is the most common material for paper products, it is useful to

compare that annual hemp yields could provide 2.5 to 4 times as much cellulose (the part

used for paper making) as a plantation forest. Compared to spruce (one of the most widely

used species in tree plantations), hemp is higher in cellulose (65% versus 42%) and lower

(4.3% versus 29%) in lignin (Castleman 2006) – this is the adhesive substance in vegetation,

especially wood, that requires a vast amount of chemicals to remove. Therefore, plants with a

low content of lignin allow for a more environmentally-friendly bleaching process that can use

hydrogen peroxide rather than chlorine and about ¼ or less of chemicals containing sulphates

(Herer 1994: 21). Hemp can be made into different qualities of paper and cardboard: the long

fibre can be used for high quality paper such as books, magazines, art paper, bank notes and

certificates; the shorter fibre paper can be made into cigarette, wrapping and toilet paper. Due

to its strength, hemp paper is more durable and can be recycled more times. In order to make

26

the pulp and paper industry more environmentally-friendly, the ASA (ammonia-sulphur-

alcohol) closed process paper-making method was invented in 1994. This process, which

includes hemp as a feedstock, has low environmental impact, because the alcohol and other

products are easily reused or recycled (Konopa 2011).

In terms of cloth making, cotton is the global leader in the textile industry for its

versatility and the fact that it spins easily. Unfortunately, this comes at a very high

environmental cost as cotton covers 2.5% of the world's cultivated land yet accounts for 16%

of global insecticide releases (EJF 2007) – more than any other single crop – thereby causing

untold damage to soil, ground water and the health of humans and ecosystems. Pest- and

weed-tolerant hemp could revolutionize the textile industry if widely implemented. Although

cotton currently dominates the textile industry, it is unlikely that it will continue to be able to

satisfy future demands for natural fibres due to its high water consumption and pesticide use

(Liberalato 2003). Any potential changes in fuel taxes or ―polluter pays‖ policies could impact

greatly on the viability and popularity of conventionally-grown cotton. This is especially true if

the quality of hemp fibre could be brought to a level acceptable for mainstream textile

production, which has been one of the main technical stumbling blocks until recently. Last

year, an organic enzyme bath process was developed which transforms hemp into fibre that

can be used in traditional cotton knitting systems, thereby enabling hemp to enter mainstream

apparel production (Bachara 2010).

Hemp fibre and shives can also be used as building material in architecture, furniture

design and in the automotive industry. Hemp shives, resin and lime can be compressed to

make durable hemp concrete or ―hempcrete‖, which can be used as a resilient, anti-bacterial

and fire-resistant construction compound. Hemp fibre can be used in the production of

composite boards, insulation panels and mortars, which “have excellent inherent thermal and

acoustic properties [allowing them to] compete with synthetic ones in respect to chemical,

physical and mechanical properties, especially in tensile strength, thermal and acoustic

insulation and bactericidal characteristics” (Eires et al 2005).

3.10.3 Other Industrial Uses

As mentioned earlier, many oils, paints, sealants, lubricants and such were historically

made of hempseed oil. Today, natural plastics and polymers made of hemp are referred to as

hempstone. Although this seems to be a very modern phenomenon, research into their

27

making began in the 1930s – Henry Ford, as a part of the chemurgical movement23,

manufactured a hemp polymer automobile that ran on hemp ethanol as late as 1941. Today,

the modern-day automotive industry is presenting itself as ―rediscovering‖ the potential of the

naturally durable, light-weight polymers and fibre composites in car design, as well as plant-

based fuels. According to Karus and Kaup (2001), natural fibre-reinforced composites have an

advantage in industrial design because their whole life cycle, recycling and disposal are less

problematic than that of synthetic compounds. Although there are sparks of interest in the

―environmental‖ market, the use of hemp in these sectors is still very marginal due to the

relative advantages of fossil-based resources and the political and economic minimization of

responsibility for any negative ―externalities‖ that may arise from fossil-resource exploitation,

processing, use and disposal.

3.10.4 Fuel: Biofuel and Biomass

Hemp has great potential as a source of fuel, either in the form of biomass or biofuel,

as it is a fast-growing plant that can produce an average of about 10 tons of dry matter/ha

(Benhaim 2005). The tonnage varies from six tons of dry matter/ha under Czech conditions

(Sladký 2004) to 15 tons/ha reported in arid Mediterranean areas (Ranalli & Venturi 2004).

The energy factor of hemp husk is about 18 GJ/ton, which amounts to 180 GJ/ha under the

above-mentioned conditions. Although there is considerable controversy over the use of

plant/food crops as fuel, there is research being done to evaluate its viability. Recently,

hempseed oil was used to create biodiesel using a standardized process called

transesterification, which with hempseed is easy to make24. The hemp biodiesel proved to

have a high efficiency of conversion – 97% of the hemp oil was converted to biodiesel – and

showed that it could be used at lower temperatures than any biodiesel currently on the market

(Buckley 2010), making this an ideal feedstock. Hempseed oil can be used as is in modified

diesel engines, or can be converted into biodiesel using a relatively simple automated

process. Several systems are being designed to produce biodiesel on a small scale for use on

farms cultivating ―home-grown‖ oil crops; one company calculated that hemp oil could be

produced for less than one Euro/litre,25 which could make small farms more self-reliant.26

23 See footnote 16.

24 This is the assertion of Richard Parnas, who leads a team at the Biofuels Testing Laboratory at the Center for Environmental Science and Engineering at the University of Connecticut. (Buckley 2010)

25 Fuel and Fiber Company, Sacramento, California (www.fuelandfiber.com) calculate that hemp oil could be produced at a production cost of about $5.20/gallon (i.e. 3.79 litres); that is, $1.30 US/litre or 0.94 Euros/litre.

28

Although hempseed can be made into a premium biofuel, the critical issue is that its

other uses could be more beneficial: the nutritional, lubricant and fabrication value of the seed

and its oil are more lucrative than that of a biofuel, except if the fuel were to be used directly

on hemp farms to reduce fuel costs and increase self-sufficiency (Robinson 1997). In this way,

hemp could ideally serve as a tool for creating a holistic farm plan, which could integrate the

use of hemp-based biofuel in machinery and biomass for other energy needs. If processed

and used very locally, hemp-based fuel could result in a significant reduction in fossil-fuel use

on farms.

There is also research in the use of cellulosic ethanol (CE) – that is, using a variety of

different feedstocks to generate energy, such as plant stalk rather than plant seed. The critical

difference of this technology to the currently established biomass-to-liquid fuel system (e.g.

corn- and sugarcane-based ethanol production) is that “CE can be produced from a wide

variety of biomass waste feedstocks including agricultural plant wastes.27 In other words, CE

does not compete with food products and brings added-value to waste generated in various

sectors” (Contreras and DeCuba 2010). In regards to efficiency for biomass production, hemp

comes out as one of the best options for energy cropping of the nine main biomass

contenders28 (Deeley (2001). Unlike the other eight, up to about 80% of the hemp plant can be

made into consumer goods, while the remaining 20% is a useful non-toxic ―by-product‖ usable

as a good compost or mulch, absorbent animal bedding, efficient heating briquettes, pellets, or

other biomass energy materials, which can be used to make CE or electricity from the shives

and dust from hemp stalk processing. However, to make electricity, only husks or processing

waste should be used, as the burning of the whole stalk or seed is inappropriate due to their

great utility. If subsidies were aimed at biofuel and biomass, this loss of valuable potential

could become an issue. In light of the high quality of hempseed and fibre, biofuel and biomass

made from the whole plant would spoil the potential of the plant’s immense utility.

3.11 Viability and Equipment

Although the cultivation of hemp is supported in the European Union and hemp

materials are starting to be promoted amongst consumers, the amount of agricultural land

26 This kind of self-sufficiency was common on U.S. farms prior to alcohol prohibition (1920), which banned all production of alcohol, including alcohol-based fuels made of plants, thereby making farmers dependent on petroleum. (Roulac 1997)

27 Some examples of this are corn stover, cereal straw and sugarcane bagasse, forest industry wastes, organic wastes from industrial processes (e.g. sawdust and paper pulp), the organic part of municipal solid waste, liquid waste originating from sewers and septic tanks and a wider range of alternative energy crops (non-food crops) grown specifically for fuel production.

28 The other eight contenders are rape seed, sugar beet, winter wheat, silage maize, miscanthus, poplar, willow and grass fallow.

29

being planted with hemp is still relatively low. About 10,000 ha are being planted in the EU

with France, the United Kingdom, Germany and Poland leading the way. Considerable

European subsidies resulted in an increase of cultivated areas in Europe going from 2762 ha

in 1989 to a peak of 41,682 ha in 1998, after which there was a decrease due to reduced

subsidies and stricter European policy regulations (Liberalato 2003). People are gradually

becoming aware that it is desirable to use natural materials in place of certain dangerous

synthetic materials, the disposal of which is also becoming increasingly problematic.

Nevertheless, because of the continuity of petrochemical products and industries, hemp

industries are still struggling. The dominance that the petrochemical industries have enjoyed

over the last 80 years is partly because many of their negative externalities have not had to be

accounted for as it is difficult to calculate their real costs. Thus it is hard to estimate the

handicap that renewable resources face in comparison. In traditional local economies, hemp

played an integrated, balanced and sustainable part of resource acquisition and the

production of multifarious goods. By contrast, today’s labour-intensive but environmentally-

friendly hemp is barely viable in spite of subsidies for its production in the EU, which vary from

country to country29. As the cost of just planting one hectare is estimated at 15,000 to 21,000

CZK, the subsidy makes up a fraction of the overall cost (Říha 2011). The value of hemp fibre

is quite stable: for paper processing it is about 10,000 CZK/ton; for higher quality fibre for

technical uses it is about 12,000 to 14,000 CZK/ton, although the processing is costly. The

value of hemp shives is increasing to about 10,000 CZK/ton.

Although there has been much technological progress, the sector is still just short of

wide implementation, or the serial production of hemp processing machinery, which has been

a major obstacle. Even though hemp in textile applications has been ―almost achieved‖

(Ranalli & Venturi 2004), at present it must still compete with the existing economic and

technological structures. In the EU, hemp machinery is still expensive because it remains a

specialized item and cannot benefit from the savings of line-production. Existing multi-purpose

machines often need to be modified as there is not enough of a concentration of hemp-

cultivated areas to warrant the purchase of a highly specialized machine that would simplify

the job of harvesting within a viable area. In terms of obtaining machinery to serve for hemp

processing inexpensively, some French farmers have put corn-processing machines into fairly

effective use (Ruman 2011: 59). Based on information from the Van Dommele company30, the

29 German farmers obtain about 300 Euros; French farmers, 600 Euros; Czechs, 180 Euros (5000 CZK).

30 Van Dommele Engineering (design and manufacturing of production lines for natural fibre processing – flax, hemp and kenaf) at http://www.vandommele.be/htmlENG/100year.html [viewed on 1.4.2011]

30

minimum investment needed for setting up a primary hemp processing plant is estimated at

about 500,000 Euros (12 million CZK). This would provide basic processing for up to 1000 ha

of hemp crop. By contrast, the high quality processing that is demanded by many industries

requires a sophisticated processing plant that costs about 40 million Euros, according to

Michal Carus, Managing Director of the European Industrial Hemp Association (Ruman 2011).

These are large high-tech machines affordable only by big businesses producing for mass

markets. For example, to be economically feasible, the British company Hemcore, which has

such a high-tech processing plant, must fill the capacity of the processing line (i.e. 15,000 ha

of hemp crop) to make it viable. This is a very high number, especially in consideration of the

fact that transporting bulky hemp material over long distances for processing also leads to a

decrease in viability. Finding less expensive and mobile primary decorticating technology

(such as the re-vamping of the Schlichten decorticator) would thus need to incorporate low- or

medium-tech solutions. This is currently being explored and is estimated at about 3 million

CZK (Ruman 2011).

Even in spite of the expense and complexity of the needed specialized machinery, it

would still be better to use hemp, rather than not subsidize and incorporate hemp into the

modern economy at all. Ranalli and Venturi (2004) suggest that the main considerations when

using hemp should be quality and environmental impact. They add that greater involvement

of farmers (who are usually the least financially rewarded of all parties) in the earliest phases

of processing would provide them with a larger portion of the added value that hemp can offer.

This could play a role in revitalizing rural enterprises. This would also need to involve more

decentralized access to machinery for farmers and access to local production units for hemp

energy and fuel directly on farms so as to optimize resources locally. The previously

mentioned Minimills (in section 1.5) produced by BioRegional are a good example of this local

potential. The establishment of this kind of facility in key locations is one of the main

challenges to overcome if hemp is to become a viable contribution to the economy.

31

4 HEMP CULTURE IN THE CZECH REPUBLIC

Like many societies in the world, hemp culture was an important part of local

sustainable traditional societies in the Czech lands as well. For the socio-economic reasons

described, the use of the plant fell into decline. Nevertheless, as the problems that fossil-

based energy and the pollution it causes begin to reach intolerable levels, attempts are being

made to find new benign technologies and ways to incorporate traditional natural resources

into new economies. Due to the existing social and economic structures, the search for new

production paradigms is riddled with obstacles. Although there is starting to be some

awareness of the potential of hemp industries, the structures, programs and business plans

for bringing hemp into wider use are still facing many handicaps. Knowledge of the positive

aspects of the plant and the reasons for using it widely are practically unknown in the social

consciousness. As this is a delicate process, the resurgence of hemp that was seen around

2006/07 is now undergoing a slight decline and is still in its inception as a co-ordinated

industry.

4.1 History of Hemp in the Czech Lands

In Central Europe the oldest evidence of hemp use has been found in Germany

around Eisenberg, dating back to 5500 B.C. In the Czech lands, hemp was commonly used

for its fibre, seed and oil during the Middle Ages, to such an extent that various places and

words borrow from the name for hemp, which in Czech is ―konopí‖. In fact, a town founded in

the 14th century was named after this plant: records of Konopiště date back to 1318. Quite

widely cultivated by the 19th century in the Czech lands, hemp was traditionally grown on a

rotational basis in gardens along with flax, pulses, beetroot and cabbage. It had many uses:

the seeds were made into porridge, the fibres into textiles (as can be seen from some of the

clothing of the time, including original folk costumes), rope and paper (Ruman 2008).

Around 1850 hemp had its biggest boom with processing plants in the regions of

Česky Krumlov, Kanovice and Přerov. By the late 19th century, the domestic production of

hemp began to decline due to imports of Hungarian and Romanian hemp and by the

introduction of cheap cotton imports. In spite of this, hemp continued to be produced in both

Moravia and Bohemia until the mid 1950s when hemp processing was centralized and moved

to the Nitra area in Slovakia, thus taking all the equipment east. During the time of the Velvet

Revolution in 1989, the cultivation of industrial hemp was still legal; however, due to the

advancement of labour-saving technologies in other sectors, the continued dominance of the

32

petrochemical industries and the close association of hemp with illegal marijuana, most of the

hemp machinery was sold or destroyed resulting in the loss of hemp traditions (Ruman 2008).

4.2 Potential and State of Hemp Culture in the Czech Republic

Hemp was reintroduced to Czech agriculture in 1998, at a time when hemp and

Cannabis culture was going through a revival in many parts of the world (see section 3.9).

That year only 2 hectares were planted in the Czech Republic on experimental plots to

determine which methods and strains would be optimal for Czech agronomic conditions.

Hemp could prove to be an important commodity in five or six regions of the Czech Republic

as long as the cultivation is accompanied by adequate processing plants (Sladký 2004). This

is because hemp is a bulky commodity that is impractical to transport over long distances. In

fact, hemp can be grown in most agriculture areas depending on the variety chosen (e.g. most

Polish varieties are adapted for sub-mountainous climates and can be grown up to an altitude

of 700m. Other varieties (e.g. French, Hungarian) prosper in warmer climates and richer soils,

such as those in the traditional cultivation areas of South Moravia. The difficulties that farmers

may face are connected mainly with the long maturity of some varieties, which may cause the

loss of seed and even stalk due to high humidity and the rotting of the material (Ruman 2011).

Generally, there are about 30,000 hectares of arable land that could be used for hemp

growing in this country (Široká 2011), especially if grown for fibre, which is less agronomically

demanding. By contrast, cultivation for hempseed can be effectively cultivated only in the

southern regions of the Czech Republic. Processing seed as a food product, however, is not

as difficult as processing fibre for industry, because the hempseed can be cleaned and sorted

in processing plants for cereals. Hemp product sales have been increasing on the Czech

market since the late 1990, especially food and bodycare products based on hempseed.

There is also potential in hemp for its non-food uses, especially as there has been a

grain surplus for the past two years in the Czech Republic. Making such agricultural land

available for industrial crops like hemp could increase employment opportunities in rural areas

by providing valuable raw materials for industry, animal husbandry and the production of

energy (Sladký 2004: 60). Several research institutes31 have been doing studies on hemp

textiles, accessories and processes on a small scale; however, this has had limited

commercial application so far32. Agritech Šumperk, one of the largest agricultural research and

31 The Cotton Research Institute (VU Bavlnářský – Usti nad Orlici) can produce hemp thread on a special order basis; INOTEX is doing research into the enzymatic separation of fibre for textile use; Bast Fibre Research Institute (VULV – Šumperk) can custom produce hemp textiles on a small scale for special orders (Ruman 2011).

32 The now defunct Grateful Hemp and Hempy had textiles custom made by VULV.

33

breeding institutes, is the biggest supplier of hempseed in the Czech Republic. Their research

has proven that “Cannabis sativa is suitable for cultivation in the Czech Republic as a

prospective industrial plant with a wide range of possibilities in various branches of industry”

(Šmirous in Ruman & Klvaňová 2008: 28).

Commercial hemp cultivation finally began in 2000 with a total cultivation area of 129

hectares. By 2007 it peaked at 1538 ha, but then steadily declined to 130 ha by 2010 (see

Appendix 1). Lenka Kácov, one of the largest flax processing companies, was the first to start

processing hemp, in 2005. They installed hemp processing machinery for which the Ministry of

Industry contributed about 10 million CZK (Ruman 2008). At around that time, the Hemp

Association of the Czech Republic (HACR) was formed to create a support network for the

special needs of the emerging hemp industry. In 2006 the company Hemp Production Cz

bought one of three original hemp field combines in Germany, allowing for improved stalk and

seed harvesting in the Czech Republic. The Canabia company introduced a harvester

developed by Czech agricultural machine manufacturer Tebeco and put a new processing line

into operation in the Hodonín area.

4.3 Difficulties in the New Industry

At the beginning of the decade, some of the main reasons for the slow start in hemp

cultivation were that the methods and equipment used for the harvest were inefficient: the

hemp stalks were too tough for the standard harvesters that were also being used for other

fibre crops. These obstacles were gradually overcome, as is shown by the boom in cultivation

in 2006 and 2007; however, the problem that remained was the insufficiency of post-harvest

machinery, packaging equipment and processing facilities. By the end of 2009 there were only

two accredited processing facilities for hemp stalk in the country: the companies Lenka Kácov

and Josef Benedict, whose combined capacity was 19,000 tons of stalk and 3852 tons of

hemp fibre (Buchtová & Tošovská 2010: 44). Since then, Lenka Kácov, Josef Benedict and

Canabia have all gone into receivership, thereby leaving a gap in the area of primary

processing. In the case of Canabia, the company purchased processing equipment that was

supposed to have fulfilled certain parameters regarding output and quality. As the company

was trying to save money on this very expensive machinery (e.g. a primary processing plant of

the kind can cost around 50 million CZK) and opted for a lower-cost prototype, these

parameters were not met and, consequently, the inadequately processed hemp material was

34

not possible to sell to industry in an amount that could keep Canabia in business33. This loss

of primary processing facilities has been detrimental to many companies in the hemp industry,

especially farmers.

Hemp has not become a wide-spread industrial crop largely because of the lack of

interest by the state in providing suitable conditions for cultivating hemp and developing

innovative hemp-related technology, which would thereby improve the position of Czech hemp

producers in relation to that of foreign competition. Just to illustrate, Czech hemp planting is

subsidized to the extent of about 180 Euros/ha while Germany provides 300 Euros/ha and

France 600 Euros/ha. To add, the French also give substantial subsidies for hemp processing

and, most importantly, have also had the National Federation of Hemp Producers since 1932,

representing and co-ordinating hemp production in France34. Through co-operation between

associated farms, both the French and Dutch have been able to produce a qualitatively

homogenous product that is suitable for industrial processing. By contrast, this lack of co-

ordination, resulting in inconsistent material, continues to plague both Czech and German

farmers in terms of finding buyers in industry for their hemp fibre.

The import of hemp material has increased slightly from 2062 tons in 2009 to 2080

tons by the end of 2010. The main importers were France (1672 tons), Italy (335 tons), Poland

(35 tons) and Germany (33 tons). By contrast, exports have all but disappeared from a peak of

347 tons in 2008 (Buchtová & Tošovská 2010: 44). Despite the fact that there is a growing

demand for hemp, cultivation of the crop is currently stagnating (See Appendix 1). The

reasons for this, which include the lack of technology and co-ordination, will be explained in

subsequent chapters.

4.4 Agricultural Subsidies

There are many species of the Cannabis sativa plant that have been specially bred for

industrial use; about 50 of these are on the List of Permitted Plant Species Varieties of the

European Union, most of which are eligible for agricultural subsidies35 (EC 2010:204).

Cultivating hemp for fibre and as an energy crop has been supported by the EU as well as by

the Czech government. The following information shows the main trends in subsidization since

33 The company was taken over by Agro-Měřín on 10 June 2008 (Czech Ministry of Justice Business Documents Portal viewed on 21.3.2011 at http://www.justice.cz/xqw/xervlet/insl/getFile?listina.@slCis=700313619&listina.@rozliseni=pdf&listina.@klic=219ad00f24cd71f089eff3ec6fd46847)

34 Fédération Nationale des Producteurs de Chanvre at http://kbpostscriptum.unblog.fr/2010/10/25/la-federation-nationale-des-producteurs-de-chanvre/

35 Finola and Tiborszallasi are the two exceptions.

35

2005. Subsidies for hemp fibre have been dispensed through the Single Area Payment

Scheme (SAPS). In 2005 the subsidy was 2110.70 CZK/ha and after gradual yearly increases

it reached 3710.00 CZK/ha in 2009. By contrast, the TOP-UP program for growing crops on

arable land went down incrementally from 2314.90 CZK/ha in 2005 to 1184.00 CZK/ha by

2009. In 2005, growing hemp for energy use was supported though SAPS at 2110.70 CZK/ha

as well as a special program called Support for Growing Plants for Energy Use at 2000

CZK/ha, resulting in an overall subsidy of 4111 CZK/ha. In 2007, the subsidies were increased

to 2751.50 and 3000 CZK/ha, respectively, providing a total of 5751.50 CZK/ha. In 2008, the

special program was discontinued and nobody applied for the SAPS or TOP-UP subsidies in

the area of energy crops. To summarize, in 2009 the figures were as follows:

Subsidies for Hemp for Fibre:

SAPS = 3710.00 CZK/ha

TOP-UP on agricultural land = 1184.00 CZK/ha

Subsidies for Hemp for Energy Use:

SAPS = 3710.00 CZK/ha

In 2010 farmers could apply for SAPS and TOP-UP subsidies for growing hemp on

agricultural land. There was also support available for the purchase of certified hempseed

through the program Support for Revitalizing Fields and Special Crops36. So that farmers can

obtain the subsidies, they must fulfil several conditions: they must be cultivating hemp on

agricultural land that is registered as per Law No. 252/1997 Coll. on Agriculture. They must

provide a licence for the seed (e.g. from Agritech) that states that the plant will have a THC

level of less than 0.2%. They also have to declare that they will report to the SZIF37 state

agriculture fund as soon as the hemp begins to flower. This is because the THC is contained

in the flowers, not in the stalks or seeds. EU member states are required to provide a system

in which the verification of THC can be done on at least 30% of the area cultivated with hemp.

From a national perspective, samples must be obtained from at least 30% of the farmers and

must include all of the varieties of hemp being farmed in the country (Buchtová & Tošovská

2010: 46). The farmer must also have a contract with a processor prior to obtaining the

subsidy.

36 This program has a national limit of 150,000 CZK, according to an article in BusinessInfo.cz entitled ―Minister of Agriculture Approved the Basis for a National Subsidy of 1100 Million Crowns in 2010‖ (in Czech ―Ministr zemědělství schválil zásady pro národní dotace 2010 ve výši 1,1 miliardy korun‖), 18 February 2010; viewed at http://www.businessinfo.cz/cz/clanek/zemedelstvi/mze-narodni-dotace-2010-ve-vysi-1-1-mld/1001664/56424/.

37 SZIF is short in Czech for Státní zemědělský intervenční fond (State Agriculture Intervention Fund).

36

Although hemp production involves only a few extra steps beyond that of other crops,

the complicated procedures involved in the registration and testing of hemp crops may have

played a role in the decline of the number of farmers cultivating hemp and applying for hemp

subsidies, in comparison with other crops that do not require such control. Generally, the

obtaining of agricultural subsidies is becoming more bureaucratic and the administration of

farming more complex, thus increasingly becoming manageable only by large businesses that

can absorb these costs.

4.5 Legal Status of Hemp and Cannabis in the Czech Republic

In 1996 a ban was placed on the cultivation of hemp; however, by 1998 it was

permitted once again. That year the Czech government passed a law (that was amended in

2004) that made the cultivation and use of industrial hemp legal, although with some

administrative obligations placed on farmers growing more than 100 hectares. Here are some

of the most important laws regarding Cannabis and hemp cultivation and production:

Law No. 362/2004 Coll., which replaced Law No. 167/1998 Coll. on Psychoactive Substances contains the following stipulations: Section 5 – permission is not required for obtaining, storing and processing hemp (fibre and seed) for industrial, research and entrepreneurial activities. Section 15, Paragraph E – it is prohibited to obtain hemp resin and THC substances from Cannabis. Section 15, Paragraph F – it is prohibited to concentrate any THC substances > 0.3%. Section 24, Paragraph A – it is prohibited to cultivate any species or varieties of hemp Cannabis that contain more than 0.3% of any THC substances. Section 29 states that it is obligatory to report the cultivation of poppy seed38 and Cannabis. Anyone growing these on an area of over 100 m2 must report to the local customs authorities three times a year as per the following information: a) by the end of May – information regarding the size of the planted area, or estimate of the planned cultivation area, (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); b) over the course of cultivation and within five days of harvest – information regarding the size of the property and method of harvest/liquidation, (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); c) by the end of December – (1) information regarding the size of the planted area, the size of the harvested area (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); (2) the amount of the

38 Although ―poppy seed‖ accompanies ―hemp‖ in some parts of the original text, it is omitted here for simplicity.

37

harvest of Cannabis and seed; (3) the volume of the harvested Cannabis sold or transferred, and the identification information of the party taking over the Cannabis (Ruman & Klvaňová 2008: 12).

Some proposed changes to the above laws would allow 1) the whole hemp plant of

<0.3% THC to be used without restriction and 2) exceptions for use in the medical context

when dealing with plants of >0.3% THC. These would enable the more practical handling of

hemp and medical research of Cannabis. The exact wording can be viewed in Appendix 2.

4.6 The Situation of Medicinal and Non-medicinal Cannabis

Although many people argue that Cannabis does not pertain to the hemp industry,

especially those in the hemp fibre sector, there are indeed many implicit psychological and

sociological factors related to the ―cousin‖ Cannabis plant that do have an impact on how

hemp is perceived. This social perception of the related plants has an influence on the sales

potential of hemp products, thus affecting the success of the entire industry. The acceptance

of medicinal Cannabis by the general population and the possible legalization, or at least

―decriminalization‖, of this plant in the medical context could play a large role in the

acceptance and popularity of industrial hemp. People would develop a more positive attitude

to the plant, rather than feel guilty about using products that they now associate with illegal

and harmful substances.

Furthermore, Cannabis (both hemp and marijuana) in the form of medicine would

certainly contribute directly to the overall economy, therefore explicitly becoming a business

issue. This is especially true for the pharmaceutical industry, which now recognizes Cannabis

seed oil as an official ingredient in medicine. Cannabis sativae oleum (i.e. Cannabis oil) was

included on the list of official pharmaceutical substances on 1 September 2010 under

Directive 98/34/ES, No. CZ: 0582/200939. Hemp oil, which is made of the seed of Cannabis

sativa, has no THC and has been used in bodycare products for years in the Czech Republic

and abroad. As of its inclusion on the list, this substance has been officially recognized for its

medicinal properties. Furthermore, on 13 April 2011, the medication Sativex, which uses

extract of cannabis (with THC), was the first medication containing cannabinoids to be

approved by the State Institute for Drug Control; the medicine is known to alleviate muscle

stiffness in Multiple Sclerosis patients40.

39 HACR report at http://www.konopi.info/default.asp?ch=466&typ=1&val=99165&ids=3113

40 Article available at http://www.novinky.cz/domaci/231163-v-cesku-byl-povolen-prvni-lek-s-vytazkem-z-konopi.html [viewed on 18.4.2011]

38

Although marijuana is otherwise explicitly illegal in the Czech Republic (whether for

medicinal use or not), the enforcement of the law is not so clear. There was a decision by the

Supreme Court of the Czech Republic in the case of Marie Brodská already in 2008 that

stated: “the growing of marijuana for medicinal purposes shall not be considered a punishable

crime.”41 The legalization of medicinal Cannabis has been undergoing serious review in recent

years, reaching a culmination at a seminar held by the Chamber of Deputies of the Parliament

of the Czech Republic in 201042. On 8 April 2010 a seminar entitled “The Prospects of

Medicinal Cannabis: Health, Legislation, Politics” was organized by the Addiction Prevention

Centre of the Psychiatry Department of Charles University and the General Faculty Hospital

Prague under the auspices of the Deputy Chamber Chairman, Ivan Langer, and the Dean of

the Medical Faculty of Charles University, Dr. Tomáš Zima43. More recently, Minister of the

Interior, Radek John, stated that he would like to have marijuana for medical use legalized;

this would involve strictly controlled production and distribution (only available with a doctor’s

prescription)44. It seems that changes to allow wider legal access (as opposed to mere

―decriminalization‖) to patients requiring Cannabis-based medicine may soon be on the

horizon.

To illustrate the general atmosphere of the Czech Republic concerning Cannabis, it is

interesting that the application of Cannabis laws for non-medical use has gradually been

shifting. Since 1 January 2010 the relaxation of the law has resulted in unofficial

―decriminalization‖ of the use of small amounts of Cannabis. According to the Wall Street

Journal, “Czechs can grow up to five marijuana plants or have several marijuana cigarettes in

their pockets without fear of criminal prosecution. Previously what constituted a small amount

was not specified and the police and courts loosely interpreted the penal code case by case,

often resulting in incarceration of home growers. The plant still remains illegal, however,

possession of five or less plants is merely a misdemeanour.”45 To be more exact, this means

41 The website of Legalizace.cz provides a Legal History of Cannabis in the CR at http://www.legalizace.cz/o-webu/historie-sdruzeni/

42 ―Parliamentary Seminar Showed Ways of Establishing Medicinal Cannabis in the Czech Republic‖, 14 April 2010, viewed on the pages of the Addictology Centre of Charles University on 15.2.2011 at http://www.adiktologie.cz/cz/articles/detail/68/2496/Parlamentni-seminar-ukazal-cesty-k-zavedeni-lecby-konopim-v-Ceske-republice; the proceedings of this seminar entitled ―Perspektivy léčby konopím: Zdraví, legislativa, politika― in Czech are available at http://www.youtube.com/watch?v=xNUKex_8Vbc in Czech.

43 The proceedings of this seminar, entitled ―Perspektivy léčby konopím: Zdraví, legislativa, politika― in Czech, are available at http://www.youtube.com/watch?v=xNUKex_8Vbc in Czech.

44 ‖John Wants to Legalize Marijuana for Medicinal Purposes― in the pages of Legalizace.cz viewed on 25.3.2011 at http://www.legalizace.cz/2011/03/john-chce-legalizovat-marihuanu-%E2%80%93-pro-lecebne-ucely/

45 ―Czech Govt Allows Five Cannabis Plants for Personal Use from 2010‖ in The Wall Street Journal, 8 December 2009, viewed on 15.2.2011 at http://blogs.wsj.com/new-europe/2009/12/08/czech-govt-allows-5-Cannabis-plants-for-personal-use-from-2010/

39

15 grams of marijuana in dry plant form, or 1.5 grams of Δ9 THC46. The reason why this is

significant is that if Cannabis can prove to be unproblematic in a state of unofficial

―decriminalization‖, this could have a positive overall impact on hemp as a related plant in the

mind of potential hemp product consumers. Nevertheless, the vast majority of hemp

entrepreneurs feel that the association between marijuana and hemp is harmful to the hemp

industry and prefer to keep the issues discreet.

4.7 Hemp Organizations and Enterprises

In the last decade, several organizations and dozens of entrepreneurs in various

sectors have been developing technologies that would enable the establishment of hemp-

related enterprises. These range from multi-national corporations developing high-tech

facilities – to small family businesses using traditional methods to bring natural hemp

resources into their communities. The enterprises range from the development of primary

resources (agriculture, primary processing) and secondary material processing (industrial

uses, manufacturing) to the tertiary sector (wholesale, retail, promotion, education and

research). These sectors have also been supported by several NGOs and together they cover

a vast range of experience to match the diversity of the plant itself.

4.7.1 Konopa

Konopa is a Czech environmental NGO civic association established in 1999 to

promote hemp in creating a more environmentally sustainable society. The organization,

which has about 100 members, focuses on the sustainable cultivation and processing of hemp

for everyday use (foods, textiles, building materials, energy, medicine, etc.) in the context of

various zero-waste solutions. The goal of Konopa is to cultivate a high but environmentally-

friendly standard of living for society at local, national and international levels. From 2007 to

2009 Konopa operated the environmental info-centre ―Zelená pumpa‖ (Green Filling Station)47

in Chraštice u Příbrami, through which it established a partnership with business, local

schools, municipalities, NGOs and the media. Konopa is also interested in establishing a

mobile multi-purpose primary processing machine for hemp. This would involve the revamping

of the Schlichten decorticator and setting up a prototypical machine that could be copied in

other regions on a relatively small scale (Ruman 2010)48.

46 Viewed on the pages of Legalizace.cz on 25.3.2011 at http://www.legalizace.cz/legislativa/aktualni-zakon/

47 This centre is mentioned in section 5.2 of Findings.

48 This project is being worked on in co-operation with Zemědruh (see section 5.7 of Findings).

40

4.7.2 Hemp Association of the Czech Republic

The non-profit Hemp Association of the Czech Republic (HACR) was established in

2005 by 60 active delegates of growers, processors and distributors of industrial hemp, along

with support from the Ministry of Agriculture and research institutes. They grouped together to

represent the interests of its membership and to co-operate with Czech legislation, ministries

and authorities in rural development through the diversification of production and by making

use of available funding. HACR is also endeavouring to develop the primary processing of

hemp through research and learning from foreign models.

4.7.3 Industrial Hemp Association

This is the international federation of bodies interested in hemp. The European

Industrial Hemp Association (EIHA), founded in 2005, is the European level of this

organization. With Michael Carus as its Managing Director, the organization publishes the

Journal of Industrial Hemp, organizes trade fairs, conferences and seminars and provides a

unified voice to represent hemp industries when dealing with national ministries and offices of

the European Union. The Czech Republic had the company Canabia as a member49, before it

went into receivership in 2008.

4.7.4 Current and Past Hemp Enterprises in the Czech Republic

The list of enterprises was compiled in the process of searching for companies and

organizations in the Czech Republic that have a role – big or small – to play in the hemp

sector, or have made a contribution in the past. They are listed in Appendix 5 in alphabetical

order by the name of the company; more information is sometimes included about companies

that have not responded or provided any feedback. Those who have responded are described

in greater detail in the Findings section that follows.

49 In 2010 there were 8 regular members, who pay 1000 Euros per year in membership fees, and 65 associate members, who pay 250 Euros per year.

41

5 FINDINGS FROM RESPONDENTS

This chapter reports information obtained from respondents through the

questionnaires (Appendices 3 and 4), email correspondence, telephone calls, personal

interviews and the company web sites. The questionnaire deals with the respondents’

motivation for working with hemp, their vision, their attitude to environmental issues,

community involvement, media reception and the legal issues surrounding hemp and

marijuana. The main obstacles faced by the business as well as what could be done to

improve conditions are also discussed. All of the respondents who use hemp as a substantial

part of their activity as well as most of those who are only marginally associated with hemp

value hemp for its health and environmental benefits. This first group is comprised of small

businesses. The difficulties faced by many of the respondents include the lack of a sound

business environment, the absence of co-ordinated integration of the whole sector and the

lack of knowledge about hemp in the public and among decision-makers. Possible solutions to

improve conditions include more amenable legislation, increased public awareness, improved

business skills and competence in public administration. The detailed responses are

presented below in the chronological order in which they responded. Of the 47 organizations

that were contacted (Appendix 5), the following 20 provided feedback.

5.1 Hempoint, spol. s r.o.

(represented by Bc.50 Hana Gabrielová, Co-owner)

Methodology: questionnaire, 5 follow-up emails and a 20-minute long telephone interview

Hana Gabrielová is the co-founder (with one partner) of Hempoint, spol. s r.o.51, a

wholesaler and retailer of hemp products and information outlet. Their shop is in the

Staročeský Dvůr complex, which is a collection of artisan, health and beauty shops located in

a traditional heritage building courtyard in the centre of České Budějovice. In addition to

selling hemp products and providing information on hemp, the shop also serves as a branch

office of the NGOs Legalizace.cz and Konopa. Gabrielová is the Director of Legalizace.cz, an

organization advocating rational cannabis laws, the legalization of medicinal marijuana and a

Seeds for Seniors program (which has already responded to 1500 requests from seniors for

medicinal cannabis seeds). She is also an active member of Konopa, which acts as a body for

the support of hemp for industrial uses. At the same time, she works with the Ministry of

Agriculture on their visions and plans for hemp cultivation.

50 Bc. is the Czech equivalent for Bachelor of Arts. 51 Spol. s r.o. is the Czech equivalent for Ltd. Co.

42

Hempoint buys predominantly from Czech distributors and imports about 20% (such

as textiles and paper from Germany). Their products include hemp-based foods (oil, seeds,

flour, pasta, health bars, beverages, beer, candy, chocolate); bodycare products (cream,

soap, shampoo); textiles (clothes, fabric, socks, hats, bags, belts, rope, baby diapers); paper

(printing, art, cigarette paper); inhalation and smoking accessories (e.g. vaporizers for the safe

inhalation of herbs); ceramics; wood oil and varnish; and samples of building materials (e.g.

insulation panels). The shop offers the unique opportunity to get acquainted with hemp by not

only providing extensive literature, but by allowing customers “to see, taste, smell, touch, try

on and generally experience the fact that cannabis is much, much more than a drug.”52

Based on the owners’ long-term experience in the NGO sector and their

environmental and ideological commitment to hemp, the shop was founded in 2010, but

actually opened its doors in January of 2011. Gabrielová is undoubtedly an environmentally-

minded person both in her work and personal life: she has worked as an agronomical

consultant in the areas of environmental alternatives, biomass, biofuels and hemp cultivation;

on the personal side, she has had her car converted to run on biofuel, has a vegetarian diet,

supports organic agriculture and uses the vast array of hemp products that she sells. The

hemp enterprise is a natural extension of her belief that hemp use in any capacity is generally

beneficial for the environment and should optimally be produced and used as regionally as

possible. In terms of community activities, Hempoint and its owners take part in events such

as Million Marijuana March (for the support of marijuana legalization), Cannafest (national

hemp trade fair), information forums through Konopa and Legalizace.cz and education

through regional initiatives.

As the business is just starting out, it is difficult to assess company turnover or

development trends. Some of the challenges that they have faced include bureaucratic

problems related to the import of hemp products, especially customs controls at the

Swiss/German border (i.e. on the German side, due to differences in legislation between these

countries). Generally, even Czech legislation presents obstacles to the use of hemp blossom

and medicinal marijuana products. As the wide potential of cannabis is ignored by the media

and education system, there is a lack of general knowledge about hemp. Gabrielová states

that for most people she comes across in the general public, “hemp is perceived only as a

drug, so people do not want to be associated with it in any way. It is connected to something

52 Hempoint website viewed on 25.3.2011 at http://www.staroceskydvurcb.cz/hempoint/

43

that is illegal and therefore also to problems.” Overall, for there to be an improvement in

conditions for hemp enterprises there should be (1) more amenable legislation allowing the full

potential of the Cannabis plant to be made use of, (2) simplification in the bureaucracy

involved in importing hemp products and (3) much more knowledge about the benefits of

hemp in the general public, ideally advanced by the mass media on a large scale.

5.2 Hemp Production Cz, spol. s r.o.

(represented by Václav Říha, Owner)

Methodology: 3 telephone calls, 2 follow-up emails and a 3-hour personal interview at HP

Hemp Production (HP), located in Chraštice u Přibrami (south of Prague) can be said

to have 100% involvement with hemp – from primary cultivation, through to secondary

production and tertiary sales. They primarily grow hemp for seed, which they make into

healthy hemp foods, or (if the quality of any of the seed supply should fall below the standards

needed for food production) they resourcefully make it into Naturol hemp wood stains, oils and

varnishes. HP process their own hempseeds, oils, naturally gluten-free hemp flour, fruit and

hemp compote. They have local companies use their hemp to make pasta, medicinal and

bodycare creams, energy bars, candy, chocolate). They supply a neighbouring shop with

hempseed for animal, bird and fish feed and they also import hemp foods (beer, wine,

chocolate, muesli, tea, energy drinks, roasted seed) and products (soap) from Germany,

Austria and Canada.

Although HP was officially founded in 2006, the origins of the idea for the company go

back much further: with a background in agricultural machine production, HP owner Václav

Říha has been interested in hemp since just after the Velvet Revolution, when a former

colleague at the Plant Production Research Institute provided him with access to some farm

machinery that was considered semi-obsolete. Through a hobby based on hemp idealism, he

eventually built a harvester that would undergo its first testing in 1998. In 2006 HP bought one

of just three original hemp field combines in Germany. More recently, this machine, made up

of 40% of the original machine and 60% modified parts for specialized hempseed and fibre

requirements, has been hired out for hemp harvesting in several countries of the EU (France,

Germany and Poland). HP is also currently developing Vicon, Deutz Fahr and various

combines from Canada to make a machine for the two-phase cutting of plants up to 2 metres

in height.

44

Today HP is a limited company with 6 employees, an annual turnover of about 5

million CZK and a share capital of 100,000 CZK53. It has holdings in properties including

several fields, a production hall and a retail outlet, which currently provides about 40% of the

turnover. HP is run alongside another two companies: one deals with natural gas and propane

butane and the other involves the operation of two OMV gas stations, one of which serves as

the location of the HP shop and factory. This peculiar location also explains why the Hemp

Info Centre ―Zelená Pumpa‖ (Green Filling Station) is located there. It has taken several years

for the hemp business to start becoming economically viable and the proceeds from the other

businesses were used to develop HP. At the start of HP in 2006, the gas stations were seen

as “a springboard for creating a local integrated system for renewable resource productions”,

without which HP would not have survived; it did not become profitable until 2009, from which

time profits have begun to escalate with an increase of about 1100% in the sales of oil, seed

and hemp food by the end of 2010. Before this profitable period, many large investments were

needed to start up the operations. Just to give an idea, 600,000 CZK is required just to plant

30 ha of hemp every year and 1.7 million CZK was required just for the R&D of the hemp

varnish alone.

HP harvests 30 hectares of their own fields, another 20 ha in the vicinity (within a 10

km radius) and another 120 ha in various parts of the country (within a 160 km radius); in 2010

this came to a total of 170 ha from 4 farmers in the Czech Republic (including HP).

Internationally, HP harvested 70 ha in Poland (through a Dutch company) and 200 ha in

France. The area of harvesting in Germany has declined from a peak of 400 ha in 2006/07. It

is interesting that in France there are sufficient subsidies to pay for the transport (by truck) of

the Czech harvester to the Lyon and Paris hemp fields (costing about 100,000 Euros). France

also has good subsidies for their processing plants and agricultural output: farmers are paid

600 Euros/ha for their hemp crops. To compare, German hemp farmers are paid 300

Euros/ha, while Czech farmers get about 180 Euros/ha in subsidies. HP also receives

subsidies, but the amount is not decisive for the company’s existence. Generally, the hemp

harvest usually results in about 900 kg/ha of seeds (although it can range from 600 to 1200kg)

and 6 to 12 tons/ha of stalk. HP imports about 5 tons of seeds for processing that come from

Germany, France and Poland (Poznan Seed Research Institute). The recent selling prices

have been 30 CZK/kg for seeds and 170 Euros/ton (i.e. 4 CZK/kg) for stalks, the latter of

which HP sells to companies in Germany.

53 All the share capital figures are from Kompass International Business Search Engine at http://cz.kompass.com/

45

In terms of national co-operation, France also has an active National Federation of

Hemp Producers, which helps co-ordinate activities between the various parties involved. This

kind of comprehensive national involvement is exactly what is lacking in the Czech Republic,

although the Agrarian Chamber of the Czech Republic does provide some limited assistance.

Apart from this, there is very little state support: at the government level (parliament, senate

and most of the offices needed for the co-ordination of hemp cultivation, harvesting and

processing), there is inadequate knowledge or competence needed to establish a cohesive

hemp industry. There is a great need for an integrated approach involving all aspects of the

supply chain. In order to contribute in this respect, Říha is currently a member of the Flax and

Hemp Association and Director of the State Agriculture Intervention Fund; his son is a member

of the Agrarian Chamber and they would also like to obtain membership in EIHA in the near

future.

In terms of the environmental aspects, the cultivation is not purely organic and some

synthetic fertilizers and chemicals are applied in moderation. In the ideal situation, compost

would be used; however, this requires 30 tons of compost/ha (at the moment HP has about 1

ton of compost ready for use). For the future, it is hoped that 100% of the supply will be

sourced locally, providing more employment to farmers, processors and manufacturers in the

region. At present 90% of materials and products are local; 10% are imported. One of the best

solutions would be a bioregional strategy allowing farmers within a radius of 60 km (ideally) to

100 km (at most) to process the hemp using a mobile primary processor to bring down the

initial bulk of the stalks. A project for such a plan is currently underway; however, the starting

cost of the most basic processing unit is 450,000 Euros (11 million CZK). The kind of

processing plant needed for more highly refined hemp for industrial uses requires equipment

costing about 10 million Euros (250 million CZK), which is why an integrated and co-operative

business plan would be essential, probably in co-operation with a large company. It is now a

difficult time for new businesses in the Czech Republic, as elsewhere, and entrepreneurs and

farmers in the Czech Republic are too conservative to try new ventures or different crops.

Farmers are especially afraid of co-operating because of their bad experience with the farm

collectives of the previous regime.

In terms of regional economies, HP harvests and buys hemp from 3 other farmers in

the surrounding area. Currently, the company buys finished products from several companies

in the CR – Carla (chocolate), Rupa (health bars), Pivovar Nová Paka (Hemp Valley Beer),

Cannabis Pharma-derm and B&R (bodycare creams); HP buys products especially made for

46

HP from For Merco (soap), J.O.D. Dvořákoví (candy) and Lubomír Doleţal (pasta). They also

sell seed and oil to numerous Czech companies that make hemp oil based cosmetics and

creams (Salvus, Hloušek, Detecha, B&R, Trompetol). As a part of HP’s commitment to local

community development, they also organize agricultural seminars for farmers and health

seminars for seniors. This is connected to the consumption of highly nutritious hempseed

based foods as well as the dissemination of information regarding cannabis as medicine. For

this reason Říha is in favour of the legalization of medicinal cannabis, but only under the

condition that it be strictly controlled.

The popularity of HP has continued to grow and they have had some positive media

coverage such as a Czech Television episode called ―Sejeme zelené zdraví‖ (Planting Green

Health), which was shown in the documentary series ―Barvy ţivota‖ (The Colours of Life); it

was so well received that there were 4 reprises of the episode as a result of audience

demand. American documentary filmmaker Melissa Balin also spent three weeks at HP to

research their production for a documentary short film on hemp. The filling station with a focus

on hemp products is still affectionately considered a ―local oddity‖ in the area, but it has also

become somewhat of an international attraction in its own right: to date there are 4 tour buses

from Russia that make regular stops there. In addition to the hemp related directly with his

business, Říha also likes to promote hemp culture by using hemp bags and wearing hemp

clothes, especially to meetings with state and ministry officials. (See photos in Appendix 7)

5.3 Rieter Cz, spol. s r.o.

(represented by Ing.54 Miroslav Štěpán)

Methodology: email and two follow-up emails

Rieter Cz is a part of the Swiss multi-national concern Rieter, which is involved in the

manufacturing of machines and integrated systems for the textile and automotive industries.

Rieter Cz (Components for Rieter Textile Systems) in Ţamberk, which has a share capital of

over 300 million CZK and over 1000 employees, is involved in the development and

production of textile machines and components.

Their involvement with the hemp industry is limited to the REA 120 machine, which

was tested in 2003 at the Institute of Natural Fibres in Poznan, Poland for loosening, cleaning

and extracting textile fibre from hemp, palm leaves, flax and other natural materials and

putting them through a process of ―cottonization‖ or softening for textile production. The results

54 Ing. is short for engineer in Czech and is equivalent to Master of Science.

47

of this research showed that hemp has antifungal properties, is highly absorbent and breathes

well. These qualities proved hemp to be optimal and the derived yarn was used to make socks

(on a test basis), which were presented at several seminars. The machine ended up being

sold to the factory in Steszew (where the testing took place). Recently this factory was sold

and the entire production line is to be moved to Ecuador, where it will be used to process

cotton. Only a few REA machines were sold, because the demand was not large enough for

production to be viable (not even for processing cotton or flax).

On a personal level, Štěpán believes that hemp clothing could have a future, but that

it would depend on the attitude of company executives towards hemp. Although hemp was

common for making ropes and cordage in this country, today there is a great deal of hysteria

towards hemp in society. Those cultivating hemp are ―punished‖ by the fact that a minority of

people smoke marijuana. These social biases do play a role in how hemp is perceived and

used.

5.4 Juta, a.s.

(represented by Ing. Zdeněk Janata, Director of Production)

Methodology: one email and one follow-up telephone interview

Juta, a.s. 55 (zavod 08 Turnov) is a joint stock company with a share capital of about

350 million CZK and between 51 and 100 employees. The company only considered hemp

processing in the past, but did not actually ever have a production line specifically for hemp.

They are satisfied with processing flax, which has a more reliable supply flow from farmers,

already has a processing line set up and is cheaper as a raw material. Flax is provided for

about 10 CZK (0.40 Euros)/kg, whereas hemp is uncompetitive at 18-20 CZK (0.74-0.82

Euros)/kg. Furthermore, at the time of considering hemp as a potential alternative material,

hemp farmers wanted Juta to provide a machine for chopping and processing raw hemp into

smaller more usable pieces. This kind of operation would involve millions of crowns of

investment with no promise of guaranteed future crops, as the farmers could also grow

various crops from season to season. Here again the lack of co-ordination between farmers,

primary processors and industry is evident. The absence of the expensive primary processing

equipment is creating a large obstacle.

5.5 Canabest, spol. s r.o.

(represented by Ing. Petra Horáková, Sales and Marketing)

55 a.s. is the Czech equivalent for Joint Stock Company.

48

Methodology: questionnaire, two follow-up emails and a 2-hour personal interview in Břeclav

Canabest, which has its factory and headquarters in Břeclav (and 5 other branches:

Prague (2), Brno, Uherské Hradiště, near Zlín), is the first and only company in the Czech

Republic producing thermo-insulation mats and panels made of hemp fibre. This means that

95% of the raw materials used by the company are comprised of hemp, amounting to the

processing of 1000 tons of hemp fibre per year, or 20 to 25 tons of material per week when

working one shift per week. The company is striving to increase sales as the factory is

equipped to handle a 2-shift operation, which would bring about a better economy of scales.

At present nine people are employed by the company, which had a turnover of 7 million CZK

in 2010 and a share capital of 20 million CZK. Approximately 50 million CZK was required to

start up.

The company was established in 2008 by Vojtěch Jelínek, who already had

experience using natural building materials such as clay and bamboo in his construction

company Renomix. With this background, the company’s low-waste approach and use of

renewable resources, it can be said that Canabest is based on environmental principles as

well as those of economic development. The inspiration to begin was based on the growing

trend of using natural materials and to offer healthy and environmentally-friendly options for

insulating – thus their company mottos: “Insulate intelligently and healthily” and “Insulation that

breathes.”

Some of the environmental qualities, which are lacking in Styrofoam, fibre-glass or

mineral-based panels, are that hemp panels can tolerate humidity and allow buildings to

breathe naturally. They are also fire-resistant for over 45 minutes (giving it a good fire safety

rating) as hemp does not catch aflame, but only smoulders. This makes the panels ideal for

insulating ceilings, roofs, indoor and outdoor walls and floors. In terms of its natural competitor

flax, hemp is tougher and more pliable, making it better to work with. The economic drawback

is that hemp panels cost about 25% more than their synthetic competitors. This front-end cost,

however, is compensated by hemp’s long-term durability and health benefits, especially for

those with asthma or allergies. This makes it suitable for the specialty market and those

interested in health or environmentally-related added value.

In terms of regional co-operation, Canabest originally intended to obtain raw materials

from Canabia, a regional hemp grower and primary processor that was based in Hodonín.

Unfortunately, in 2008, the year Canabest was starting out, Canabia went into bankruptcy.

49

After this, instead of transporting hemp 20 km from Hodonín, Canabest has ended up

importing cleaned and cut hemp fibre from the Netherlands, 1000 km away. Although this

defies environmental logic, the reason for this is that there are no processing facilities capable

of delivering adequately refined hemp material from any closer. Firstly, farmers in the Czech

Republic are not capable of growing a consistent quantity and quality of hemp and, secondly,

there has been a complete absence of processing facilities since the closure of Canabia.

There is a lack of finance and investment in quality primary decorticating technology, which

would cost about 50 million CZK. Such a facility could provide farmers with an outlet for selling

their hemp and consequently a domestic supplier of materials for businesses like Canabest. In

addition to these regional handicaps, Canabest does not receive any support from the region,

and has only small sales in Moravia, as builders here are more conservative. Most of the

Czech buyers are in Bohemia (and with Slovakia this makes up about 50% of sales); the other

50% are in Austria and Germany. Distances of over 500 km to the end customer make the

transportation costs too high to make purchases viable.

In the Czech Republic, the insulation panel market is about 6000 million CZK/year.

Canabest would like to gain about 1% of this share, which would mean a tripling of their

current sales of about 20 million CZK/year. The company works in co-operation with the

Association of Suppliers of Assembly Homes, the Omega Project (builders of regular, low-

energy and passive homes) and Renomix, which has a branch in the renovation of pre-fab

and regular apartment buildings, as well as a section dealing with traditional building trades,

low-energy building and healthy living. The company also benefits from some subsidies,

although the overall amount is marginal.

The level of information about the benefits of hemp is gradually increasing and

reaching potential customers and the general public, including the idea that hemp is not

marijuana. This has been helped by some positive news coverage, numerous awards,

certificates and the company’s presence at specific building events such as the Wood

Construction Trade Fair. By contrast, the company has limited its participation at events such

as Cannafest or Cannabiz, which highlight hemp in its full diversity and sometimes present a

closer link with marijuana than is desired by the company. In terms of supporting hemp culture

in other aspects, Sales and Marketing Manager Petra Horáková stated that personally she

does use hemp cosmetics and bodycare products; nevertheless, the company is trying to

cultivate the image of a reliable industrial operation – with environmental considerations, but

not “too alternative” as this could harm their reputation in the building sector. Overall, through

50

the bringing of efficient modern technology to natural renewable building materials, Canabest

is continuing to grow and prosper. (See photos in Appendix 7)

5.6 OP Papírna, spol. s r.o.

(represented by Ing. Petra Spáčilová, Assistant to Managing Director)

Methodology: one email

Since 2007 OP Papírna has been a division of the international concern the Delfort

Group AG, a developer and manufacturer of speciality papers. This mother company, based in

Austria, has over 1000 employees and a turnover of over 500 million Euros per year. The

daughter company, located in Olšany u Šumperka, specializes in cigarette paper production. It

has between 500 and 1000 employees and a turnover of 100-500 million Euros per year. The

company’s pages state that they use some hemp, flax and sisal in the making of tobacco, food

and technological papers. Petra Spáčilová confirmed that the company has 4 divisions, one of

which produces pulp from hemp. The amount or percentage of natural fibre used by the

company was not revealed. She did add, however, that they do not have any environmental

problems with hemp and that they purchase hemp in the Czech Republic and in Western

Europe. They did not wish to comment on whether they anticipate any growth in hemp use.

The company uses material that is FSC, PEFC, ISO 14001 and ISO 9001 certified, indicating

that environmental measures are taken into consideration – from the cultivation of trees to the

manufacturing of paper.

5.7 Zemědruh

(represented by Bc.et Bc. Michal Ruman, Project Manager)

Methodology: questionnaire, 6 follow-up emails and a 2-hour personal interview in Brno

Zemědruh is an agricultural co-operative for sustainable agriculture based in the

Telč/Dačice region of South Bohemia. Established at the end of 2008 with inspiration from two

closely associated NGOs (Dům u Michala and Konopa), the members focus on supporting

organic agriculture and sustainable development through the cultivation and use of hemp. The

co-op buys hempseed from its members, processes the seed into oil in the co-op’s press and

then sells and distributes to friends and markets. The members also distribute hemp products

and work on development projects and education/information campaigns. About 80% of their

activity is directly related to hemp.

The 14 members include small family farmers, a gallery curator, a building company

owner and university students. Their current projects include some cross-border co-operation

51

for the creation of new possibilities for sustainable organic hemp related activities. This

involves developing seed and planting services, processing facilities, product demand

structures, an advisory service, partner links and social support. Michal Ruman is working on

a project involving (1) the reconstruction of a prototype of a simple energy efficient

decorticator, (2) putting it into operation, (3) obtaining resources to develop the decorticator

and (4) researching various possibilities for using hemp material. Technical manager Petr

Kudrnáč is responsible for the engineering of the decorticator. Karel Šťastný is the chairman

of the co-op; he is also the owner of Trompetol, a manufacturer of hemp-based bodycare and

pharmaceutical products.

The motivation for the activities is based on the members’ long-term commitment to

an environmental and ethical lifestyle rooted in local and sustainable development using

natural renewable resources. For this reason 100% of the resources and materials are

obtained regionally and the members use hemp in a variety of ways: they consume foods

such as oil and seeds from their own crops, they use bodycare products made of their oil; in

addition, energy bars, clothing and other products are bought.

According to Ruman, the expansion of hemp culture can greatly contribute to the

environment in that hemp is a renewable, recyclable and bio-degradable resource that is

energy efficient and has a vast range of uses. By creating a regional structure for the organic

cultivation of hemp, its processing, distribution and the development of consumer demand

based on better information, the system comes full circle and can also create a support

network of co-operation with other related systems in other regions and countries.

In terms of the local community, they take part in local education and some cultural

events such as Prázdniny v Telči (Holidays in Telč), which give the ―bizarre group‖ some

public exposure. So far Zemědruh has participated at several hemp festivals like Cannafest

and Salon de chanvre in Brittany, France. They benefit from their association with partner

organization Konopa, which has had a lot of positive media coverage.

Currently, the co-op has a low but stable turnover of about 40,000 CZK per year, as

there is a lack of resources and processing capacity (i.e. approved facilities and machines).

The grants and subsidies they obtain for growing hemp are helpful, but the members do not

consider it wise to become dependent on them; in fact, one of their varieties, Finola, is not on

the list of subsidized plants. In order to improve conditions for hemp enterprises, several

conditions need to be met. There must be (1) better and more accessible harvesting and

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primary processing equipment available at reasonable costs for farmers; (2) a more positive

attitude towards hemp in the general public so as to create a demand for environmentally-

friendly and healthy hemp products; and most importantly, (3) an improvement in

entrepreneurial know-how, including a culture of fair play. If these conditions, along with the

legal complexity and bureaucracy, could be resolved, the potential for an environmentally and

socially beneficial hemp culture could be immense. Ruman also believes that the controlled

legalization of marijuana would also have a positive impact in that currently banned strains of

cannabis could be cultivated for their proven medical benefits and sold as medicinal herbs.

The attitude of the general public would also become more open to the various possibilities

and uses of hemp, thereby creating a greater demand for a large variety of hemp products.

5.8 Cannabis Pharma-derm, spol. s r.o.

(represented by Jan Janovský, Owner)

Methodology: questionnaire and three follow-up emails

Cannabis Pharma-derm (CP) was a pioneer in the area of hemp bodycare products

as they were already established in 2001 in Teplice (in north Bohemia). Starting with 4

employees and a turnover of 300,000 CZK/year, they have evolved into a leader in their field

with over 30 employees and a turnover of about 40 million CZK/year. They produce cosmetic

and bodycare products based on hempseed oil and use only certified organic ingredients,

which satisfy the demanding needs of people with dermatological conditions and sensitive

skin.

In terms of resource acquisition, 100% of the seed is imported from Canada, where

they guarantee that the hemp fields are untouched by synthetic pesticides and herbicides,

thereby providing a 100% organic product. In the Czech Republic this is very difficult due to

the approach of most farmers and the variation between cultivated areas. The use of hemp

makes the company eligible for certain grants and subsidies, which although not essential to

their survival, allow the company to develop more quickly.

In terms of regional development, the growth of the company has made it possible to

hire more people. The company has been able to expand due to the gradual improvement in

the promotion of hemp, the quality of their products and their subsequent growth in popularity.

They have had considerable positive media coverage such as ―Dvanáct odváţných‖ (The

Twelve Brave Ones) and ―Receptář prima nápadů‖ (Recipes for Great Ideas) on TV Prima and

some interviews and clips on Czech Television 24 and 2. In addition to the even wider

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promotion of hemp as an effective natural product, there are several other conditions that

need to be met in order to improve the situation for hemp related enterprises. The most

significant problems are the lack of fair play within the business community and the ill-fated

results of the politically motivated administration of the state economy, which affect all

enterprises negatively.

Although the company processes only hempseed oil and no other part of the cannabis

plant, Janovský is a supporter of the controlled legalization of medicinal marijuana, but only

under the strict supervision of doctors prescribing it for specific ailments. He doubts, however,

that any changes in the law would have any impact on his business. Nevertheless, CP is

currently researching the use of the green parts of the hemp plant (leaves and blossoms) for

their highly effective characteristics in treating patients with ailments such as asthma, some

forms of cancer and Chronic Fatigue Syndrome. In addition to using the hemp products made

by the company, Janovský also likes to wear hemp clothing.

5.9 Propaganda Production, spol. s r.o.

(represented by Ing. Michal Tőzsér, Co-owner)

Methodology: questionnaire and one follow-up email

Propaganda Production (PP) has various business activities, of which 30% involves

the wholesale and bulk distribution of hemp foods. Established in Košice in 2009, the

company has its main client base in the Czech Republic and Slovakia. Before the company

was started up, the owners ran an NGO called Prečo Nie Konope? (Why Not Hemp?), which

still exists but is not active at present. Although the reasons for establishing the firm were

pragmatic, the vision of the company is to create meaningful work that contributes to long-term

ethical, sustainable and environmental development, as the use of hemp has a positive effect

on the environment. Some of the partner associations that PP co-operates with are Konopa

Czech, EIHA and HACR. PP imports 99% of their products (mostly from the EU, especially

Romania and Germany, and also from Canada); 1% is sourced locally.

The company is growing in proportion to an increase in demand. In order to improve

conditions for hemp enterprises, it would be useful to standardize food related legislation for

the whole European market, as it is currently very complicated and bureaucratic. The lack of

awareness of hemp in the general public is also a barrier.

In addition to the products the company handles, Michal Tőzsér also likes to use

hemp bodycare products, wear hemp clothing and smoke cannabis. Although he supports the

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legalization of marijuana, both for general and medicinal purposes, he does not believe that

official legalization would have any impact on the business.

5.10 Lenorek

(represented by Lenka Melcherová, Owner)

Methodology: questionnaire and two follow-up emails

Lenorek is a Prague-based women’s designer clothing and home accessories studio

with the motto “hemp & hand-made fashion”. The pieces are made with the precision and

quality expected of a design house and the graphic designs on the fabrics are original designs

of Lenorek artists. They custom make denim-type skirts, dresses, shirts and tops in natural,

black or green material that is available in a 50%-50% or 45%-55% hemp-cotton blend. The

hemp clothing represents 100% of Lenorek’s sales. The company was established in 2001 on

idealistic principles combining high quality craftsmanship and artistic production. The shop

involves 2 people who work irregularly to meet a low demand. In addition to Lenorek, both of

them work in different areas completely unrelated to hemp, which make up the majority of their

income (over 95%). Recently, orders have declined and are steadily low (about 5000

CZK/year), as owner Lenka Melcherová is on maternity leave and has put the business on

hold for the time being.

In terms of her feeling for environmental issues, she considers herself to have a low-

impact lifestyle. Environmental considerations are also reflected in the fact that she offers

hemp at all, which is rare in the textile business in the Czech Republic. She buys all her

material from a domestic supplier, although the hemp material was made in Pakistan. In

addition to the hemp fabric she uses in her business, she also consumes hemp-based food

and oil and uses hemp cosmetics, bodycare products, massage oils, decorations and rope.

In terms of public image, Lenorek is perceived as an atypical company, although they

have not had any media attention. In order for the business to improve, Melcherová believes

that some kind of subsidies, technical improvements and the simplification of business

bureaucracy would make a difference; however, the most important change would be an

improvement in the general appreciation by the public – both of the benefits of hemp as an

environmental and durable material and of artistic originality. She also believes that the

legalization of marijuana (rather than just the ambiguous ―decriminalization‖) would create a

more hemp-positive public, which would maybe have an impact on her business.

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5.11 Václav Lapka

(represented by Václav Lapka, Organic farmer)

Methodology: questionnaire and two follow-up emails

Václav Lapka, who started his company in 2006 for environmental as well as

entrepreneurial reasons, practices organic agriculture on his small 25 hectare farm. On 15 ha

of the arable land he cultivates a monoculture of Cannabis sativa of the Bialobrzeskie variety,

which represents 90% of his income. (On the remaining 10 ha there are meadows, from which

he produces hay, and pastures, where he raises thoroughbred sheep of the French Charollais

mutton breed; these represent the remaining 10%.) The hemp is harvested for seed and stalk.

When doing a combined harvest of both, the output should amount to about 500kg/ha of seed

and 6 tons/ha of stalk; however, he usually attains about 2/3 of this amount. Both harvesting

and processing are done by him using accessible Czech equipment that has been modified so

as to be capable of handling hemp.

The turnover of the business amounts to about 1 million CZK per year. The demand

for the hempseed is good, including the ―organic‖ quality hemp, even though the price is

significantly higher. The product is sold all over the Czech Republic. By contrast, the demand

for the stalk is poor. To date, all the hemp processing companies in the Czech Republic have

terminated their operations. For this reason, hemp stalk is piling up and he has about 100 tons

in storage at present without any prospective buyers. In the past, he used to have the hemp

stalk made into energy briquettes.

Overall, his business activities are growing and this to a small extent is helped by

various agricultural subsidies that he is eligible for. Because a part of the subsidy application

involves the certification of a recognized planting seed, he buys exclusively from the

accredited seed provider Agritech. Using seed from his own field, although not illegal, is not

viable. This would usually result in plants being of inferior quality and quantity. Furthermore,

there is an additional subsidy from the Ministry of Agriculture for the purchase of seed for

planting.

He considers himself to be environmentally-minded as he is dealing with a renewable

resource in an ecological way. As a long-term local in his community, he has had some good

publicity in the local media. Whenever speaking about hemp, he always stresses the

difference between hemp and psychotropic cannabis. He likes to emphasize the benefits of

hemp as a very nutritious food and is also a proponent for the legalization of cannabis for

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medicinal uses. He is opposed to marijuana legalization and decriminalization, as the general

use of marijuana could easily be abused by the vast majority of people who could become

addicted and use it to escape from their problems. This proportion is much greater than those

who would grow marijuana for medicinal purposes and use it to alleviate their pain. The worst

thing is that there are always people looking to profit on other people’s addictions. In any case,

even if medicinal marijuana were legalized, he does not feel that this would have any impact

on his enterprise.

In order to improve the overall conditions for the hemp industry, Lapka feels that

better equipment is necessary for both hemp harvesting and primary processing, as well as a

more advanced industry for the further processing of hemp and greater demand for hemp

products.

5.12 Hliněný dům

(represented by Aleš Dorazil, Co-owner of eco-building company)

Methodology: 2 emails and a 40-minute personal interview

In 2001 Hliněný dům (HD) was established on the basis of traditional and

environmental ideals by Marek Vlček, who became interested in natural building methods

when he began the personal process of reconstructing an old heritage building using

traditional methods and materials. The main objective of HD is to design and build with natural

materials – primarily clay, hemp and reed. HD provides consultation on the use of natural

materials, energy-efficient housing and heritage building work. They are involved in the R&D

of natural building materials (clay, hemp, reed, wool, oil and wax), construction using

traditional trades and methods as well as building workshops. Hemp fibre and shives

represent about 25% of the total materials and are used in insulation paneling, in rough and

smooth plaster material, in mesh material (that is put between plaster layers) and compressed

(unfired) clay blocks.

While still a small company (with 2 employees, 10 external associates and a turnover

of about 2 million/year), Aleš Dorazil took over the running of HD a couple of years ago, when

HD also began to sell hemp materials. They buy about 95% of their material in the Czech

Republic and the other 5% in Germany (high quality hemp panels and colour stuccos, which

are either not available domestically or are more competitively priced). Generally the company

sources most of the materials (clay and sand) in the South Moravian Region. The hemp

comes from areas near Prague and Tábor.

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Although HD continues to find more clients and is gradually growing, they in principle

do not believe in using grants or subsidies of any kind to drive the business forward. Dorazil

stated that this is because once people have accepted the grant/subsidy process, they have to

tailor their work to fit the requirements of the grants and generally lose sight of the original

purpose of their activity. He added that the primary motivation of money does not work when

you are trying to reach long-term ethical and social goals. The use of regionally sourced

materials, local labour and traditional methods is a natural part of regional economic

development and heritage preservation. When a customer chooses to use the methods and

materials HD provides, the final price of the construction is competitive to that made with

conventional methods and materials.

In terms of marijuana legalization, Dorazil believes that it should be legal for medicinal

purposes, but that the state of decriminalization is adequate (he would not like to see

marijuana legalized for general use). He does not feel there would be any impact from this on

the use or perception of hemp, as they are quite distinct. Although he has a very

environmentally-friendly lifestyle and considers organic farming and the use of natural

materials in every part of life to be important, it is still difficult to say what could further the

cause for not just hemp, but all natural materials and methods. He feels that we are gradually

being educated into a ―risk society‖ where nature is hazardous: “Because we are told that ticks

and other insects in the forest are so dangerous, people will gradually prefer virtual visits to

the forest and try to solve all their problems with technical (or in the case of ticks,

pharmaceutical) solutions. We are becoming increasingly separated from nature in every

respect.” It is very difficult to say what can be done to reverse this, but certainly environmental

education at every level is the key.

5.13 B&R Hemp Cosmetics, spol. s r.o.

(represented by Ing. Robin Kazík)

Methodology: questionnaire

B&R is focused on the development, production and sales of hemp cosmetics,

bodycare products and medicinal creams. Their assortment includes facial, regenerative and

dry-skin creams, hemp oils, lip balms, mouth-wash and tinctures for joints, muscles and back

pain. They use hempseed of organic quality from plants that are harvested by hand. With the

acquisition of Bayer & Romsy in 2010, B&R was established on the basis of economics and a

passion for hemp. Today B&R has 13 employees, a turnover of about 1 million CZK/month, a

growth rate of about 15% monthly, a retail outlet in Olomouc and an e-shop.

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As is evident from the main activities of the company, the owners value environmental

principles and try to extend these into their lives. Their web pages feature the quote by

Hippocrates: “Those who cannot be cured with medicine will be healed by nature.” In respect

to regional development, B&R source 100% of their material in the Czech Republic, where

they are eligible for some regional planning grants (providing the company with some marginal

benefits). In terms of community activity, they provide sponsorship in the area of their target

group – senior citizens. As far as media attention is concerned, B&R were the winners of the

2010 European Product of the Year Award for their regenerative cream Cremcann56 and they

work in co-operation with hemp movements and research groups, including Rick Simpson,

internationally known medical marijuana proponent.

For the improvement of hemp enterprises, it would be useful to have higher subsidies,

better technology and a more educated general public with a positive attitude towards hemp.

Some barriers include needless bureaucracy and strict legislation concerning hemp and

cannabis. Robin Kazík, a representative of B&R, is in favour of the legalization of medicinal

marijuana as well as the decriminalization of marijuana generally, as he believes it would be

beneficial in several ways. The possibility of using more potent hemp or cannabis in medicinal

creams would mean that treatment could be more effective. This would in turn provide better

products for patients and possibly larger revenues for the company.

5.14 Parenteral, a.s.

(represented by MUDr.57 Jiří Skalický, Owner)

Methodology: questionnaire and a 20-minute long telephone interview

Established in 2002 in the Prague region, Parenteral has worked in the research of

natural resources for the cosmetic, bodycare, pharmaceutical and food industries. Its focus is

on the research, development, production (external), sales and distribution of hemp-based

bodycare creams. As the products may contain up to 20% hempseed oil, hemp represents a

large part (about 70%) of the production. The company has 6 people working in R&D, 3 in

sales and distribution, 250 in production (although this section is external to the main

company) and a share capital of over 2 million CZK. The company is able to benefit from

some subsidies and grants, but the overall contribution of these is not significant in relation to

the size of the company’s current growth. Most of the distribution of the products is done in co-

56 Soft Secrets magazine organized the contest where Cremcann won in the hemp creams section with the most votes from an international jury.

57 MUDr. is equivalent to M.D. or Medical Doctor in the Czech Republic.

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operation with selected leading pharmaceutical corporations. The brand CutisHelp features

the motto “the sign of healthy beauty” and focuses on products for sensitive skin, especially for

children and dermatology patients.

A medical doctor by profession, Jiří Skalický founded the company on ethical and

idealistic principles. He considers himself environmentally-minded; however, he is somewhat

sceptical about organic agriculture because of its economic non-viability and the problem with

the contamination of organic crops from neighbouring conventional farms, especially in the

Czech Republic. As far as local sourcing is concerned, he buys about 50% of his ingredients

domestically and the rest comes from Germany and China. He believes that the use of hemp

is beneficial for both the environment and regional economic development. The company is

positively accepted in the community as a provider of employment; it has also had favourable

representation in the media.

According to Skalický, some of the main barriers to improving conditions for hemp

enterprises are technical inadequacies and, most importantly, the lack of knowledge about

hemp in the general public. There is a lot of misinformation regarding hemp due to the general

perceptions of cannabis. In regards to the legal status of cannabis, he is opposed to the

legalization of marijuana, even for medicinal purposes; however, unofficial decriminalization is

acceptable. The danger of smoking marijuana for any purpose is that the cigarette paper is

harmful. Skalický vehemently supports the industrial processing of THC and especially CBD

for medical development. He was a part of the lobby group that promoted the inclusion of

hempseed oil in the official list of Czech pharmaceutical substances in 2010. He would like to

pursue this area in his lobby for legislation that would allow THC in hemp to be at 0.5% for

medicinal use. Nevertheless, the level of CBD, which occurs in reverse proportion to THC

levels, is in fact more important for dermatological use.

5.15 JLP Velkoobchod

(represented by Jaroslav Pospíšil, Co-owner)

Methodology: questionnaire, one follow-up email and 20-minute long telephone interview

Centrally based about 70 km east of Prague, JLP Velkoobchod started out in 2002 as

producers of manually compressed hay packages. In about 2005/2006, the owners (brothers

Jaroslav and Luděk Pospíšil) ventured forth into the production and wholesale distribution of

pellets made of hemp shives as cage bedding for domestic rodents (rabbits, hamsters, gerbils,

etc.); later they used more refined hemp shives as stable bedding for horses. At their peak

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they were buying about 50-60 tons of hemp material in the region and having it processed by

Canabia. These products were promoted on the Czech market for about 3 years; however,

when Canabia (the only Czech producer of hemp pellets) went into bankruptcy in 2008, the

hemp part of their business was destroyed. In that year, the brothers formed a co-operative

that purchased a machine for compressing and packing hay for about 1 million CZK, but this

machine is in no way applicable to any hemp shive processing.

Although Pospíšil contacted many pellet-making companies, none that were within

viable proximity were willing to accept hemp material into their machines. The nearest hemp

pellet production plants are in Germany and the Netherlands, where the similar use of hemp is

much more expensive in comparison to Czech pellet production. This results in very high end-

product prices and subsequently a very low demand, especially in the Czech Republic, where

it is difficult to place a high priced alternative on the market. Although Pospíšil is not willing to

risk starting up a hemp enterprise that necessitates long distance travel and international co-

ordination, he believes that hemp does have a future in the long term, but that it requires some

organized infrastructure to make it viable. The hemp pellet processing machine alone costs

from around 5-10 million CZK. There is a little hope that he may resume some form of hemp

enterprise in the distant future, as there is a company in Poland that has a hemp shive press

and pellet-making machine, but probably not in the current economically unstable times.

Hemp as a specialty product today requires customers to have a knowledge of its

advantages. Although still very low, this has been helped recently as medicinal marijuana is

gaining increased support, thus turning a demonized substance into a beneficial herb in the

mind of the general public. Furthermore, Pospíšil believes that the legalization of marijuana

per se would also be a beneficial trend, as the costs of the product would eventually decline

and it would be under the control of state authorities rather than the black market. This would

not necessarily impact on the prices of hemp, but would certainly create an environment of

appreciation for both varieties of the cannabis plant.

5.16 CNM Textil, a.s.

(represented by Ing. Jaroslav Zachariáš, Director)

Methodology: one email

Although this medium-sized (100-250 employees) joint stock company was mentioned

in some literature as having tested hemp or flax in their production development, the director

of the company stated that they do not use hemp in their production and have never done so.

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Founded in 1998, today CNM is the last textile producer in Moravia; they produce textiles

made of cotton and flax.

5.17 Benátské těstoviny

(Lubomír Doležal, Owner)

Methodology: 10-minute telephone interview

Lubomír Doleţal is the owner of Benátské těstoviny (Benátské ―Venetian‖ Pasta), a

family business located in Benátky in the Havlíčkův Brod Region (in the north-central part of

the Czech Republic). Established in 1991, the company now makes 15 types of egg pasta,

some of which are made with the addition of hempseed flour (2% of the total production

includes hemp pasta). Doleţal has a sense for regional development as all his main

ingredients, egg and flour, are sourced regionally. The hemp flour is supplied by Hemp

Production Cz, which special orders the hemp pasta as a specialty item that is sold under its

brand name.

5.18 Hemp Zone, spol. s r.o.

(represented by D.I. Otmar Pusch58, Co-owner)

Methodology: a 1-hour personal interview at Hemp Zone

Hemp Zone (HZ) is a cannabis and hemp shop that gives support to growers and

users of cannabis, that is people from all walks of life, by providing seeds, grow boxes, lights,

ventilation, fertilizer, smoking and inhalation equipment, various accessories, hemp bodycare

products, nutritional supplements, hempseed oil, foods and an array of hemp literature. The

shop on Orlí Street in Brno was opened in December 2010 by four partners from Austria, who

have a similar shop in Vienna. Although they have just recently started up, they have 3

employees and a turnover of about 80,000 CZK/month so far59. Apart from economics, one of

the reasons for establishing HZ was ethical – the owners feel that people should be able to

decide for themselves about what kind of natural medication or relaxant they use. It is a

question of civil liberties as well as an attempt to bring a truthful and balanced picture about

the benefits and drawbacks of cannabis. Bringing the underrated message of the complex

advantages of cannabis and hemp is expressed in the company motto “Hemp Soon”, which is

a play on words with the company’s name, Hemp Zone.

58 The degree D.I. (Diploma Engineer) is roughly equivalent to a Master’s of Science degree.

59 Unfortunately, half of this amount is spent on rent, which is 40,000 CZK per month in this central location.

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Although Otmar Pusch, one of the co-owners, considers the sale of cannabis related

goods an ethically-motivated enterprise, he also emphasises that this is an environmental

issue as well, and considers himself environmentally-minded. He does various activities such

as biking, supporting organic agriculture, using sustainable renewable resources and hemp

products and generally tries to make environmental decisions a part of an integrated natural

lifestyle. He studied Environmental Studies in Austria specializing in eco-building technology

and management, which lead to projects such as ―Home of the Future.‖ Then he changed

direction and spent the next ten years working with patients using cannabis as a therapeutic

herb.

In terms of the local factor in sourcing products for the shop, HZ buys only 5% locally

and imports about 95%, usually from Austria, Germany, the Netherlands and Spain. The local

sourcing will hopefully be increased in time as HZ becomes better established. So far HP has

been growing as a result of promotion through ads, flyers, word of mouth and their association

with several local bands. They are also involved in national hemp fairs such as Cannabiz and

Cannafest.

The most important factor that would bring about growth for HZ is the education of the

general public: awareness of all the benefits that hemp and cannabis have to offer and the

realization that the drawbacks of the plants are greatly inflated. All that is needed is “to simply

tell the truth about the plants.” The mainstream exaggeration and fear-mongering related to

cannabis and hemp go hand in hand with continued lobby pressure on governments from

large pharmaceutical, petroleum and chemical corporations that maintain an advantage for

themselves by blocking any initiatives to make drug laws more rational. Pusch’s stance on

medical marijuana and general marijuana legalization is of course liberal. Because of this and

the nature of the business, HZ is periodically visited by under-cover police officers. For this

reason he states that there is absolutely nothing illegal in their operation: “If you‟re going to go

to the trouble of opening a shop, there is no way you would jeopardize this by doing anything

illegal,” so they follow the law to the letter. He adds that unofficial decriminalization of

marijuana in Switzerland has resulted in less crime and more tax revenue for the government,

which can then be spent on more education and a balanced approach. Such a position is

generally accompanied by a more educated and liberal-minded stance towards cannabis and

hemp, which would certainly benefit any hemp-related business.

5.19 Tebeco, spol. s r.o.

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(represented by Ing. Petr Bednář, Owner)

Methodology: questionnaire and four follow-up emails

Founded in 2003, the Prague-based Tebeco is a heavy-duty low-speed transporter

manufacturing company, which has an overall turnover of about 1 million Euros/year (25

million CZK) and a staff of 13 people. It became an important player in the hemp sector in

2006, when they began to research and develop hemp harvesting machinery. The Hemp

Technology Division, which makes up about 2% of the company’s business, is oriented to the

development, construction and production of hemp harvesters, which can cut plants that are

up to 5 metres tall. The machines are especially made for fibre (not seed) harvesting, where

the tall tough stalks can be cut into 1 to 1.5 metre-long sections using 1, 2 or 3 cutting bars.

The first prototype was put out to harvest 1000 ha of hemp in autumn of 2006 for

Canabia, although some smaller cutters were used before to test the principles. After a few

years of development and field trials, the Clipper was launched in 2007 as a top-of-the-line

large-capacity hemp harvester, today priced at about 60,000 Euros (i.e. about 1.5 million

CZK). In the Czech Republic, Canabia used the Clipper 4.3 in their harvesting, thus gaining

some positive news coverage that year on television and in the print media for its innovative

hemp activities. Under Czech conditions, to make the Clipper viable the recommended

harvest area is about 600 ha/season, although the machine can handle up to 1000 ha /season

(i.e. 2 ha/hour) under ideal conditions. At that time the only other hemp harvesters were being

made in Germany and the Netherlands, but with lower capacity than that of the Clipper. At

present one company, Agro Měřín, owns this machine, but negotiations with other companies

in the Czech Republic are under way.

The Panther 3.1 H, with a single cutting-bar, was designed for smaller-scale

harvesting of hemp and similar plants on smaller farms with more varied terrain. The machine

is best for cutting hemp for fibre alone and not ideal for harvesting hemp stalk after a combine

harvests seeds, due to tangling resulting from the fibre left behind on the ground by the

combine. The Panther costs about 8500 Euros (i.e. just over 200,000 CZK). A new machine

that offers a compromise between the above-mentioned cutters is the recently introduced

Beagle 3.2 MM, which is one ton lighter than the Clipper, has 2 cutting bars and costs 47,000

Euros (i.e. 1.1 million CZK). This machine has recently been exported to Latvia. Other

destinations of export for the company’s various machines have been Slovakia, Poland,

Bulgaria, France and Malaysia. Purchases are usually made by investment groups or large

firms, as this equipment is prohibitively expensive for small farmers; however, renting is

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possible at a rate of 50 Euros (1250 CZK)/ha for the Panther to 100 Euros (2500 CZK)/ha for

the Clipper.

Tebeco conducts research in co-operation with the Czech Technical University in

Prague, the Institute of Natural Fibres in Poznan and various hemp institutes around the

world. Owner Petr Bednář began his company for economic reasons, but branched out into

the hemp sector out of interest in this material when opportunities began to appear about 5

years ago. In order to bring about an optimal product, the comprehensive industrial design of

the machine must be considered: the construction, universality of components, mobility and

compactness; in addition, the impact of the production on the natural environment, the

efficiency of the materials used and packaging involved are also important. Herein lie some

environmental concerns, although Bednář does not explicitly consider himself

environmentally-minded. Although an increase of hemp culture would bring environmental

benefits, this expansion is currently stifled by the lack of economic thinking and financial

literacy of farmers in the Czech Republic.

5.20 J.O.D. Dvořákovi, spol. s r.o.

(represented by Ing. Ondřej Dvořák, Owner)

Methodology: questionnaire

Established in 1991 near Louny (North Bohemia), J.O.D. Dvořákovi specialize in the

wholesale of health foods (including special foods for diabetic, gluten-free and low-cholesterol

diets) made of conventional and organic ingredients. They produce their own dried fruit, nuts,

seeds, grain products, sesame snacks and hemp candy. This candy is made with hempseed

supplied by Hemp Production Cz, which special orders the candy as a specialty item that is

sold under its brand name. This recent addition of a hemp food represents only 0.5% of their

production, but they believe that the cultivation and use of hemp is beneficial to the

environment. Ondřej Dvořák has not had any problems with using hemp in his production,

though he does not have any suggestions for improving conditions for increasing hemp use.

He supports the legalization of medicinal marijuana, but does not think it would have any

impact on his business.

Although the reasons for starting the business were rational, the fact that they use

products of organic agriculture signifies that there is an environmental reason as well. In terms

of their commitment to regional economies, they purchase 100% of their products in the

Czech Republic. The company enjoys some benefit from various subsidies and grants,

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although their contribution has been marginal and the business has been stable in the last few

years. Their motto is to supply “high quality but low priced health foods to customers for

maximum satisfaction.”

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6 ANALYSIS

Some of the largest problems concerning hemp enterprises in the Czech Republic are

related to the lack of integrated communication between related sectors and the limited

knowledge about the benefits of hemp – both in the general public (who still relate hemp to

marijuana) and among those responsible for long-term business investment and co-ordination

of infrastructure. A great amount of investment is needed to establish basic conditions for

hemp enterprises to flourish. At present most of the activity is being initiated by small and

medium-sized businesses (i.e. 10 firms have up to 10 employees and 6 have up to 30); the

large companies (i.e. 4 firms of 50+ employees) have backed away from hemp completely, or

include it in a marginal way only. For this reason, we could say that current Czech hemp

activity is focused in the small business sector60.

6.1 The Primary Sector

Although there is a growing demand for hempseed, the demand for hemp stalk, by

contrast, has declined considerably. This is because of the complete lack of decortication

facilities needed to separate the fibre from the core. As such, the overall cultivation of the crop

is currently stagnating. Even though hemp product sales have been increasing recently, they

are often derived from imported resources, due to inconsistencies in domestic cultivation.

Primary cultivation is being undertaken by three respondents61 (small businesses – Hemp

Production, Zemědruh and Lapka). The first two also work in processing and retail, where the

added-value has made it possible for them to develop. The latter two consider the subsidies

relatively important, while all the others saw them as marginal and indecisive to their

development. The levelling of Czech subsidies with those of the western EU states would

create much better conditions for this sector, as would the establishment of a body that would

co-ordinate the purchase and sale of hemp commodities between the sectors.

6.2 The Secondary Sector – Primary Processing

This is the most problematic area to date and the two firms undertaking this (Hemp

Production and Zemědruh) have various levels of processing equipment that prepares

hempseed; hemp stalk processing is in the developmental stages in both cases. As such,

there is no facility in the country for primary hemp stalk processing, leaving a large gap in the

hemp fibre production chain. This loss of primary processing facilities has been detrimental to

60 Most of the firms that did not respond to this study also belong to this group of small or medium-sized businesses.

61 There are 2 other organizations (Agritech and Biofarma) involved in cultivation that did not respond.

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many companies in the industry, especially hemp farmers. Hemp stalk is currently exported or

warehoused; conversely, adequately processed hemp fibre must be imported. This missing

production link is one of the main reasons why hemp has not become a wide-spread industrial

crop. In addition, there is also a complete lack of interest by the state in providing suitable

conditions for developing innovative technology that would improve the position of Czech

hemp producers compared to that of their foreign competitors. The facilities can cost

anywhere from 3 million CZK for the absolutely minimal primary processing mill to 50 million

CZK for high-tech processing that would interest a wide range of secondary level producers.

These would require either the interest of a large firm or investment group, or the co-operation

of existing enterprises and co-ordinated government support.

6.3 Secondary Processing – Industry and Production

Secondary processing or production has been practiced by 12 companies: Hemp

Production (HP), Canabest, OP, Zemědruh, Cannabis Pharma-derm (CP), Lenorek, B&R,

Parenteral, JLP, Doleţal, JOD, Rieter and Juta; in the case of the last two, production was

only proposed or tested. These are both large companies which found that setting up hemp

textile production machinery was economically unviable. Textile production generally is

moving abroad as is shown by the sale of the Rieter test machine to Ecuador or by Lenorek

sourcing hemp cloth made in Pakistan. This trend is further illustrated by the fact that Tebeco

has sold a hemp harvester to Latvia recently, but none have been sold in the Czech Republic.

Although production machinery is expensive, HP and Zemědruh have managed to set up seed

and oil processing facilities; Cannabest has set up a 50 million CZK production line for

insulation panels; CP, B&R and Parenteral produce pharmaceutical and bodycare products

from hempseed oil; and HP, Doleţal and JOD make food products from hempseed. Again, the

loss of a secondary processor, such as Canabia, has had an impact on JLP, who was forced

out of the hemp business, and Canabest, which now needs to import refined hemp fibre from

abroad. CP imports all of its hempseed and Parenteral imports about 50%, for lack of

domestic quality and quantity, respectively. Here again the expense of the necessary

equipment and the lack of co-ordination between hemp processors and industry are evidently

the largest obstacles.

6.4 The Tertiary Sector – Wholesale and Retail

Irrespective of the hemp cultivation and processing sectors, hemp product sales have

been increasing on the Czech market since the late 1990s, especially food, fibre and bodycare

products. This sector is represented by 13 companies: Hempoint, HP, Canabest, OP,

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Zemědruh, CP, Propaganda Productions (PP), Lenorek, B&R, Parenteral, Doleţal, Hemp

Zone (HZ) and JOD. For them the largest setback, although slowly improving, is the lack of

knowledge about hemp in the general public. As many people still fail to distinguish between

hemp and marijuana, the demonization of marijuana may have had a negative effect on

potential hemp product buyers. Most businesses are based on the fact that hemp provides a

health and/or environmental advantage compared to competing products, but communicating

this to the general public has been slow. Although 7 firms have had very positive media

exposure, these are still only novelty items in the news. The wide and profound potential of

both hemp and cannabis is ignored by the mass media and educational system. Hemp is still

seen by many as synonymous to marijuana (i.e. an illegal drug connected to problems) and

Cannabis generally continues to be demonized in spite of its proven medical benefits.

6.5 Marijuana Association and Legalization

Although most respondents believe that a more hemp-informed public would have a

positive impact on business, only 50% believe that any change in the legal status of marijuana

(medicinal or other) would have any effect on their business. Of those responding to this

issue, 50% support the strictly controlled legalization of marijuana, although this was

answered on a personal basis and not usually as a representation of the company. Several

supporters (35%) felt that this controlled legalization would make it possible to use some

currently banned strains of cannabis, which could be cultivated for their proven medical

benefits and sold as medicinal herbs. Legalization was also perceived as beneficial, as the

costs of the product would eventually decline and it would be safer under the control of state

authorities rather than the black market. This would not necessarily impact on hemp prices,

but would certainly create an environment of appreciation for both varieties of the Cannabis

plant. Nevertheless, most business representatives feel that any association with marijuana is

damaging to the hemp industry.

Legalization of medicinal marijuana is supported almost unanimously; the one

exception is a respondent who believes that marijuana has many potential dangers if used

incorrectly, that legalized medicinal marijuana would be largely abused by people using it for

non-medical purposes and that any treatment involving marijuana should remain exclusively in

the hands of medical experts and not accessible to members of the general public.

According to several respondents, the mainstream emphasis on Cannabis’ harm and

the minimization of its benefits runs parallel to the continued lobby pressure on governments

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from large industrial corporations, such as those in the pharmaceutical industry, which can

maintain an advantage by preventing rational changes to drug laws. The affect that the status

of marijuana has on the perception of hemp in the general population is debatable, but worthy

of mentioning because of the persistent associations made between the two.

6.6 Environmental, Health and Bioregional Considerations

All of the respondents who use hemp in a substantial way62 (i.e. 65% of the

respondents) as well as most of those who have only marginal63 hemp association (i.e. 35% of

the respondents) value hemp for its health and environmental benefits. Most of them also

have some degree of environmental consciousness varying from extremely committed (35%

of respondents) – to those who acknowledge the environmental benefits, but consider them as

merely incidental to their economic enterprise (65% of respondents). The first group

expressed a long-term and comprehensive commitment to an environmentally ethical lifestyle

rooted in primarily local and sustainable development using natural renewable resources. The

second group showed fewer or none of these features and obtained materials from outside of

the region and without consideration to non-economic factors. About 50% of the respondents

expressed a preference for organically grown hemp.

Over half of the active companies are involved in some kind of local community

development ranging from buying local resources and organizing educational seminars. One

of the companies provides agricultural seminars for local farmers, 3 engage in hemp

awareness activities and another 3 have special outreach to seniors regarding health issues –

the nutritional value of hempseed-based foods as well as information regarding hempseed

and cannabis as medicines.

6.7 Main Obstacles Facing Hemp Enterprises

There are still numerous legal, political, financial, technical and social factors

preventing the expansion of hemp culture. There are legal and bureaucratic problems related

to the import of hemp products and some obstacles in Czech law that prevent the full potential

of the Cannabis plant to be made use of (i.e. hemp blossom and medicinal marijuana

products). Many of the respondents criticized the lack of national co-ordination between the

related sectors and the absence of competent support in public administration. As an

example, domestic hemp growers have not been capable of growing a consistent quantity

62 ―Substantial‖ means those who use hemp in 25-100% of their production.

63 ―Marginal‖ means those who use hemp in less than 2% of their production.

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and/or quality of hemp required for producers. Even if they had been capable of this, the most

pervasive complaint is the complete lack of finance and investment in primary decorticating

technology and secondary processing facilities capable of delivering adequately refined hemp

material to industry. This is partly because the most basic available decorticating equipment

starts at 450,000 Euros (11 million CZK). For more refined processing, a firm producing

directly to the needs of a particular industry requires equipment costing from 2 to10 million

Euros (50 to 250 million CZK), which is why an integrated and co-operative business plan

would be essential, possibly with the help of an industry co-ordinator. Some basic attitudes

were criticised by several respondents, who mentioned that there is a lack of economic

thinking, financial literacy and a sense of fair play within the business sector generally. With

the recent financial crisis, it is now even more difficult for entrepreneurs to start new ventures,

for farmers to try different crops, or for public administration to provide more funding and co-

ordination, especially with their lack of knowledge about hemp.

6.8 How Could Things be Improved?

From the supply side, there needs to be an integrated approach in the hemp sector

with support from a comprehensive national strategy that could help co-ordinate the primary

aspects of the supply chain. Increasing subsidies for farmers (to the level of other EU

countries) and providing financing for the currently absent primary processing sector would

stimulate activity in cultivation and secondary processing, especially of the currently dormant

fibre production sector. Even a very basic processing facility (11 million CZK) could provide

farmers with an outlet for dealing with their crop and at the same time ensure a domestic

supply of materials for certain industries (e.g. paper, insulation panels and energy briquettes).

To help stimulate interest in natural fibre, the government could also more vigorously promote

natural materials through campaigns such as Green Savings, a program in which housing

insulation is subsidized to reduce energy costs; however, most consumers still choose

synthetic polystyrene or mineral materials, even though plant fibre, especially hemp, is proven

to provide long-term health benefits. The use of fibre crops for energy use could also be

promoted, but within a program of energy and resource conservation (i.e. not subsidizing the

use of the whole plant for energy briquettes, but ensuring that the material is used to maximize

the utility of different parts of the plant). One of the best solutions for this would be a

bioregional strategy allowing an association of farmers to process hemp using a mobile

primary processor, which could cost from 450,000 Euros (11 million CZK). The by-product of

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such a processor would be made into locally-used energy either in the form of briquettes or

CE conversion.

From the demand side, in order to significantly improve conditions for hemp

enterprises, there should be much more knowledge about the benefits of hemp in the general

public, ideally advanced on a large scale through the education system and by the mass

media in popular programs. The curricula of elementary/secondary schools could include

more facts on the history, utility and nutrition of hemp/seed. At the secondary school level the

positive advancement of hemp could run into conflict with current drug-prevention education,

so a careful distinction would have to be made. At the tertiary level, hemp and cannabis could

certainly be addressed more positively at medical faculties.64 Economic faculties could provide

more information for eco-business possibilities, perhaps in co-operation with environmental

departments, both at the natural science and humanities faculties. The schools of agriculture,

architecture and technology would also have a role to play. In order to enhance the public

profile of hemp, organizations such as Konopa are using campaigns like 100 Flowers and

Konop-ar to create a long-term network of people interested in cultivating hemp and

developing a system of profitable small-scale cultivation, in addition to their immeasurable

educational activities.

Overall, for hemp to have both an environmental and economic impact, several

conditions must be met: there must be (1) better and more accessible harvesting and primary

processing equipment available at reasonable costs for farmers on a regional level; (2) a more

positive attitude towards hemp by the general public so as to create a demand for

environmentally-friendly and healthy hemp products; (3) the simplification of legal complexity

and bureaucracy; and most importantly, (4) an improvement in entrepreneurial know-how,

including a culture of fair play in business as well as competence, co-operation and

transparency at the public administration level. If these conditions could be resolved, the

potential for an environmentally and socially beneficial hemp culture could be immense.

64 Today, Dr. Lumír Hanuš, formerly of Olomouc University, is leading ground-breaking cannabis research in Jerusalem, Israel.

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7 CONCLUSION

The fact that there is a wide range of hemp enterprises all over the Czech Republic

that are successful and growing indicates that there is hope for the sector, even though some

areas such as fibre processing are currently dormant. Although cultivation and primary

processing peaked in 2006/07, several small businesses are preparing to set up operations

that could fill this void in the near future, thereby initiating a renewal in this key sector. If the

adequate financing and technical plans come together to establish a regional primary

processing facility, the few companies that have reduced or terminated their hemp activities

could conceivably restart. This could in turn have a catalytic effect on new ventures and

provide advantages to existing companies that would be able to benefit from more local

resource acquisition.

Several businesses in secondary processing and sales, from food and bodycare

products to insulation panels, have expanded considerably in the last few years. This indicates

that they have developed niche products for increasingly knowledgeable customers. These

companies and organizations are making progress in educating consumers about the health

advantages of hemp; however, environmental awareness (especially the role that hemp can

play in this) is practically unknown to most people – both in the general public (as consumers)

and among specialists (ranging from policy-makers to potential investors).

In terms of providing maximum environmental impact, hemp enterprises and

consumers would ideally opt to support organic (or at least lower-impact) agriculture systems

(involving crop rotation, efficient biological resource use and low synthetic chemical input). In

this way hemp cultivation could achieve long-term environmental sustainability – providing

regenerative natural services locally and potentially affecting such global conditions as climate

change. Even if cultivated using conventional agricultural methods, an increase in the use of

hemp would still provide environmental benefits as hemp cultivation improves soil quality and

requires significantly less herbicide. Furthermore, there are many other advantages in that

hemp can replace materials and products that are less environmentally-friendly or bio-

degradable, such as petroleum-based products.

If an accountable system of ―polluter pays‖ were really enforced (i.e. penalizing

polluters or taxing fossil-fuel use), organic (or lower impact) hemp production would become

more economically viable. As it is, hemp faces unfair competition from environmentally-

unfriendly alternatives (not to mention the social stigma of its continued association with

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marijuana). The agricultural subsidies that the government provides for hemp cultivation could

thus be thought of as a counter-measure to insufficient market signals resulting from the

disregard of negative externalities – in other words, the subsidy is aimed at compensating for

a market failure (Johanisová 2002). In the 1920s when the term ―externalities‖ was coined by

A.C. Pigou, the exploitation of the environment was not as massive as it has become today on

a global scale. Especially in the last decades, the impact of resource depletion and

environmental degradation (including climate change) has grown to such an extent that their

relative effect compared to 90 years ago is on a different scale and thus should be accounted

for. Returning to natural renewable materials with the help of some new technical solutions,

such as those proposed by some of the hemp industries, could play a role.

Living in the modern world means that we live in an age of extreme specialization and

dependence; therefore vulnerability and risk. This specialization is equally true for the hemp

sector, as can be seen by its need for highly specialized and expensive machinery. It seems

that in order to reduce our dependence on the global transportation of materials and products,

a kind of simplification of technology would have to take place so as to allow regional

enterprises to be able to afford the necessary equipment, probably on a medium-tech level –

allowing wider access to primary processing. Perhaps the prospective rise in petroleum costs

will necessitate a more regional form of trade and production; however, that will also have to

be coupled with consumers choosing to support regionally-made natural products.

Hemp was an exceptionally useful plant all over the world at various times preceding

the modern age. Today its use has become complicated by the need for a high degree of

technical specialization, by environmentally-harmful competition and a lack of knowledge from

all sides. Nevertheless, with some structural support to start up medium-tech solutions

regionally and a more informed public to create greater demand, hemp could become an

environmentally-friendly resource for modern living. Because of its resilience, ubiquity and

diversity, it could play a role in a prospective, post-modern future where some of the highly

globalized structures could give more space to increasingly regional and diverse solutions

regarding environmental and economic sustainability. The start of this ideal can be seen in the

ideas that have lead to the expansion of a variety of small hemp-related enterprises operating

in the Czech Republic. Most of them have been initiated from the entrepreneurial spirit and/or

progressive environmental thinking of their founders – by people who are conscious of the

health, environmental or other benefits that hemp has to offer.

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APPENDICES

Appendix 1: Area and Production of Hemp Cultivated in the Czech Republic

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cultivated area

ha 129 29 91 115 307 156 1155 1538 518 228 130

Seed volume

t/ha 0.8 0.8 0.85 0.7 0.7 0.6 0.6 0.6 0.7 0.6 -

Stalk volume

t/ha 9.0 9.0 9.5 9.0 9.0 9.0 8.6 6.0 8.0 8.0 -

Fibre volume

t/ha 2.25 2.25 2.35 1.55 1.45 1.50 1.90 1.80 1.60 1.60 -

Material for energy use

t/ha 10.0 10.0 10.5 10.0 10.0 8.5 9.5 8.5 6.5 7.5 -

Source: SZIF, Flax Association of the Czech Republic (in Buchtová & Tošovská 2010)

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Appendix 2: Proposed Changes to Current Laws

The changes/recommendations are written in italic into the original text from Section 5.5. The suggestions are from a document being prepared by Konopa (21 April 2011) for the Ministry of Health.

Law No. 362/2004 Coll., which replaced Law No. 167/1998 Coll. on Psychoactive Substances contains the following stipulations: Section 5 – permission is not required for obtaining, storing and processing hemp (fibre and seed) for industrial, research and entrepreneurial activities. [the words “fibre and seed” should be removed, thereby allowing permission for the whole plant] Section 15, Paragraph E – it is prohibited to obtain hemp resin or THC substances from Cannabis, except for substances obtained from plants with a THC level of less than 0.3% or those on the list of approved varieties [should be added] Section 15, Paragraph F – it is prohibited to concentrate any THC substances above 0.3%. [an exception should be made here for medical research] Section 24, Paragraph A – it is prohibited to cultivate any species or varieties of hemp Cannabis that contain more than 0.3% of any THC substances, except for medical research [should be added] Section 29 states that it is obligatory to report the cultivation of poppy seed and Cannabis. Anyone growing these on an area of over 100 m2 must report to the local customs authorities three times a year as per the following information: a) by the end of May – information regarding the size of the planted area, or estimate of the planned cultivation area, (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); b) over the course of cultivation and within five days of harvest – information regarding the size of the property and method of harvest/liquidation, (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); [the word “liquidation” should be changed to “usage”] c) by the end of December – (1) information regarding the size of the planted area, the size of the harvested area (and information on the use of a registered variety, property parcel number, the name and number of the cadastral area); (2) the amount of the harvest of Cannabis and seed; [the word “Cannabis” could be changed to “hemp biomass”] (3) the volume of the harvested Cannabis sold or transferred, and the identification information of the party taking over the Cannabis.

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Appendix 3: Cover Letter and Questionnaire in English

Dear Hemp Entrepreneurs, I am a Czech-Canadian student at Masaryk University working on a master’s diploma work entitled Towards Sustainable Development: Hemp Enterprises in the Czech Republic. I have been interested in the potential of hemp enterprises/organizations and the people involved in them for some time. I have done several translations regarding this topic for Michal Ruman at Konopa (civic organization), who has been very kind to provide me with support. Now I would be very pleased to learn as much as I can about your involvement in hemp related enterprises. I would like to ask if you could spare a few minutes of your precious time to fill in the attached questionnaire with any comments you see fit and return to me at rousava@fss.muni.cz. To make this easier, I would like to get in touch with you by telephone, or perhaps conduct a personal interview. The information you provide will not be used for any other purpose other than my diploma work, which must be compiled by 15 April 2011. The work is being written in English, but of course the research is being done in Czech. The final diploma work will be available for you to read in the Information System of Masaryk University. I hope this topic interests you and, in spite of my flawed Czech, that you decide to participate in the project.

Your interest is greatly appreciated. Kind regards, Šárka Roušavá email: Telephone: Skype:

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Questions for Hemp Entrepreneurs

1. Name of business: Contact person: Telephone:

email: Web address:

Address/location in Czech Republic:

2. Nature of business: To what extent is hemp a part of your business? (____%)

3. How large is the business (e.g. number of employees:___, turnover:______, Ltd. Co.:___)?

4. Do you have a company mission statement or motto?

5. In what year did you start your business?

6. What were some of your reasons for starting your business? □environmental,

□ethical, □idealistic, □profit, □other; explain?

7. Do you consider yourself environmentally active / conscious? □Yes □No

If so, how?

8. Do you use other hemp products, besides those needed in your business? □Yes □No If so, what?

9. Can you buy your hemp supplies / products locally, or do you have to import? ___% local ___% imported

10. Is your business □growing, □declining or □stable at present?

What may be some reasons for this?

11. What benefits can your business obtain? (□subsidies, □grants, □association membership?)

12. If you obtain benefits (subsidies or other assistance), how important are they for your

business? □no impact, □marginal, □decisive

13. Do you believe that the expansion of hemp businesses/culture is good for the environment or for your local economy? (□Yes □ No) How?

14. How is your business involved / perceived in your local community? (□employment

provider, □accepted in community, □cultural participation, □an unusual enterprise, □negative responses because of marijuana association?) Comments:

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15. Have you had any media coverage or public reception? □Yes □ No If yes, was the response □positive or □negative? Comments:

16. What measures could be taken to improve conditions for hemp businesses?

□subsidies, □technical solutions, □positive public attitude, □other? Comments:

17. What is impeding the growth of hemp business or hemp culture generally? □climate, □legislation, □bureaucracy, □technical problems, □negative public attitude, □other? Comments:

18. What is your opinion on

a) medical marijuana legalization? □Yes □ No b) general marijuana legalization? □Yes □ No c) unofficial ―decriminalization‖ of marijuana? □Yes □ No Do you think changes in these would have an impact on your business? □Yes □No; How?

19. Any other comments?

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Appendix 4: Cover Letter and Questionnaire in Czech

Vážení podnikatelé v oblasti technického konopí, jsem Čecho-Kanaďanka studující magisterské studium na Masarykově univerzitě v Brně a pracuji na své závěrečné diplomové práci, jejíţ téma je Towards Sustainable Development: Hemp Enterprises in the Czech Republic (K udržitelnému rozvoji: podniky s technickým konopím v České Republice). Jiţ delší čas se zajímám o organizace a moţnosti podnikání s technickým konopím. Také se zajímám o lidi, kteří v oblasti zpracování technického konopí pracují. S tímto tématem jsem se jiţ setkala při překladech pro Michala Rumana z Konopy. Byl velice laskav a v této oblasti mi pomohl. Ráda bych se dozvěděla co moţná nejvíce, jak jste Vy zapojeni v podnikání s konopím. Chtěla bych Vás poţádat, abyste mi laskavě věnovali pár minut svého drahocenného času a odpověděli na otázky v přiloţeném dotazníku, popřípadě je doplnili komentáři a zaslali zpět na rousava@fss.muni.cz. Pro usnadnění komunikace bych Vás chtěla oslovit telefonicky, případně přijít k Vám do firmy na krátký rozhovor. Vámi poskytnuté případné informace nebudou pouţity pro ţádné jiné účely neţ pro tuto diplomovou práci, která musí být odevzdána do 15. dubna 2011. Práce bude napsána v angličtině, ale výzkum je prováděn v češtině. Práci si můţete posléze přečíst v Informačním systému Masarykovy univerzity. Doufám, ţe toto téma Vás zaujme a ţe se zapojíte do tohoto projektu, i kdyţ moje čeština není dokonalá. Velice Vaši pomoc ocením a předem Vám děkuji. Šárka Roušavá email: Telephone: Skype:

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Otázky pro podnikatele s technickým konopím

1. Jméno firmy: Kontaktní osoba: Telefon:

email: Webová adresa: Adresa/oblast vaší firmy v České republice:

2. Předmět podnikání:

Jaké procento vašeho podnikání představuje konopí? (___%)

3. Informace o firmě (typ firmy např. a.s., spol. s r.o., počet zaměstnanců : , obrat:?

4. Máte firemní motto, slovní vizi?

5. Kdy firma vznikla?

6. Jaké byly důvody k zahájení vaší činnosti? □ekologické, □etické, □morální, □ziskovost,

□idealistické, □další, uveďte jaké :

7. Povaţujete se za ekologicky smýšlejícího? □Ano □Ne Pokud ano, vysvětlete, jak:

8. Pouţíváte další produkty z konopí kromě těch, které pouţíváte v podnikání? □Ano

□Ne Pokud ano, vysvětlete:

9. Nakupujete produkty / zásoby z konopí z ČR, nebo je musíte dováţet? kupuji v ČR ____% dováţím____%

10. V současné době vaše aktivita □roste, □klesá nebo je □stabilní? Jaké mohou být příčiny?

11. Jaké výhody můţe vaše firma získat? (□dotace, □granty, □členství v asociaci?)

12. Jestliţe získáte určité benefity (dotace nebo jinou pomoc), nakolik jsou důleţité pro

vaši firmu? □nerozhodující, □marginální, □rozhodující

13. Domníváte se, ţe nárůst podnikání / kultury s konopím je dobrý pro ţivotní prostředí nebo místní ekonomiku? □Ano □Ne Jak?

14. Jak je vaše firma zapojena do místní komunity? (□jste potenciálním

zaměstnavatelem, □jste přijat místní komunitou, □účastníte se kulturního dění, □nebo je na vaši firmu pohlíţeno jako na jednu z netypických firem, □máte negativní odezvy kvůli marihuaně?) Váš komentář :

15. Dostalo se vaší firmě někdy mediální pozornosti nebo se o ní mluvilo na veřejnosti? □Ano □Ne Pokud ano, jaká byla odezva? □pozitivní □negativní. Váš komentář :

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16. Jaká opatření by měla být učiněna, aby se zlepšily podmínky pro podnikání s

konopím? □dotace, □technické řešení, □pozitivní povědomí veřejnosti, □další … Váš komentář :

17. Co ztěţuje podnikání s konopím? □klima, □legislativa, □byrokracie, □technické

problémy, □negativní povědomí veřejnosti, □další … ? Váš komentář :

18. Co si myslíte o

a) legalizaci marihuany pro lékařské účely? □Ano □Ne b) všeobecné legalizaci marihuany? □Ano □Ne c) neoficiálním přehlíţení t.j. ―dekriminalizaci‖ marihuany? □Ano □Ne Myslíte si, ţe jakákoliv změna situace týkající se bodů a), b), c) by měla dopad na Vaše podnikání? □Ano □Ne Váš komentář :

19. Vaše podněty, připomínky.

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Appendix 5: Current and Past Hemp Organizations in the Czech Republic

The list of enterprises / organizations is listed in alphabetical order. 1. Agritech Šumperk, Research, Breeding and Services, a.s. is the largest supplier of hempseed for the Czech Republic. The company is involved in field research and the breeding of hemp varieties. In addition to the company’s main research centre in Šumperk, there are research fields in the Teplice, Rakovník and Chomutov regions. 2. B&R Hemp Cosmetics manufactures and sells hemp cosmetics, creams and ointments. 3. Benátské těstoviny is a family business that makes 15 types of pasta, some of which are made with the addition of hempseed flour supplied by Hemp Production Cz, which special orders the hemp pasta as a specialty item that is sold under its brand name. 4. Benešov Farm (Bukovice nad Teplicky) installed a hemp processing line in 2007. They produced hemp energy briquettes; today they are in the process of selling off their machinery and closing down the production. 5. Beneu, s r.o. (owned by Josef Benedict) was involved in the construction of a primary hemp processing plant, but is no longer in business. 6. Biofarma Sasov (located near Jihlava) is owned by Josef Sklenář. The organic farm, established in 1993, today offers an informative look at organic farming, in addition to crop and livestock production. The cultivated areas include about 500 ha (250 ha arable soil, 250 ha pastures and meadows) and crops consist of grain/legume mixtures, buckwheat, potatoes, oil seed rape, soya beans, peas, lupin, mustard and energy plants. The livestock production includes 100 cows for beef (not milk) production, 100 pigs, 100 pigs, 30 sheep, 2 goats (for milk and meat) and 30 horses (for riding lessons, recreation and hippotherapy). In addition to a sales outlet on the farm, they also operate an e-shop and deliver regularly to Prague, Brno and České Budějovice. Although hemp is a very small part of the operation, the fact that they have used hemp as a part of a multi-functional organic farm operation, their inclusion of hemp as a crop is interesting. Even if the crop was only partially harvested, it may still serve well as a rotation or soil regeneration crop. Hemp has been used as animal feed and bedding. They have received positive media coverage of their activities on numerous occasions. 7. Biom is a professional NGO founded in 1994 to support the development of renewable resources such as biomass (pellets), phytoenergy, composting, bio-gas and biofuels. 8. Biosféra is one of the largest e-shops for organic food, nutritional supplements, health foods and eco-products in the Czech Republic. They import organic hempseeds and oil from Austria. 9. Borgers Rokycany makes composite hemp panels and non woven materials for automotive industry use; supplier to the Škoda car company. 10. Canabest, s r.o. is a producer of insulation panels made of hemp fibre and shives. 11. Canabia, a.s. was a pioneer of new trends in hemp use. In addition to the cultivation and processing of hemp, they were involved in the production and sales of electrical energy and were providers of material for many sectors – the building, food, cosmetics, pharmaceutical, automotive and textile industries. In 2006, the company processed hemp cultivated in the Hodonín area (440 ha), the Rakovník area (390 ha) and the Příbram area (90 ha). Canabia introduced a harvester developed by the Czech company Tebeco and had a new processing line into operation in the Hodonín area until 2008. 12. Cannabis Pharma-derm, s r.o. was one of the first companies in the Czech Republic to use hemp for special cosmetic and food production purposes.

83

13. Carla, s r.o. is a medium sided company that produces chocolate. They have from 100-199 employees and a share capital of 30 million CZK. Hemp Production Cz supplies the company with shelled hempseed to make specialty chocolate for their line. 14. CNM Textil produces natural fibre textiles. 15. Dr. Omega sells hempseed oil, seeds, flour and fibre. It is a Czech-Slovak business with an office in Brno and works in co-operation with Propaganda Productions65. 16. Ekooko is a wholesale distributor of hemp food, textiles and building supplies. It also serves as a growshop that deals with hemp cosmetics and clothes; works with the organization Bohemicanna in the area of consulting regarding cultivation, processing and usage of hemp; and designs and implements eco-architectural building projects. 17. Faurecia Lecotex manufactures composite panels using hemp and non-woven materials for the automotive industry; supplier to the Škoda car company. 18. For Merco, owned by Jaroslav Červinka, produces soap and bodycare products using natural ingredients including hempseed oil. Hemp Production Cz supplies the company with this ingredient to make specialty hand and face soap for their line. 19. Grateful Hemp was an e-shop for skate and snow-boarding clothes (of hemp material) and accessories; founded in 2002. 20. Grow Mania was a Prague-based growshop and seed retailer that has recently gone out of business. 21. Hemp Association of the Czech Republic promotes hemp culture. 22. Hemp Production Cz, s r.o. is an important hemp company which cultivates hemp, makes a variety of hemp-based products, such as wood varnish and various foods, and distributes and sells its own and other companies’ hemp products. 23. Hempoint is a wholesaler and retailer of a large variety of hemp products and a hemp and Cannabis information outlet. 24. Hemp Zone is a hemp products outlet and growshop. 25. Hliněný Dům is a design and building company that specializes in eco-architecture and the use of clay and other natural materials, including hemp. 26. Inotex is doing research into the enzymatic separation of fibre for textile use; formerly the Research Institute of Textile Improvements (VUTZ), founded in 1992. 27. JLP Velkoobchod used hemp to make pellets for animal bedding. 28. J.O.D. Dvořákovi, s r.o. specializes in the wholesale of health foods made of conventional and organic ingredients. They produce some of their own products such as hemp candy made with the addition of hempseed supplied by Hemp Production Cz, which special orders the candy as a specialty item that is sold under its brand name. 29. Juta a.s. (zavod 08 Turnov) produces textiles of natural materials such as flax. Hemp was considered in the past as a potential textile resource. 30. Vaclav Lapka is an organic farmer who cultivates hemp primarily for seed. 31. Lenka Kácov Přádelny was the largest processing plant for flax and also started processing hemp in 2005 for the production of fibre, thread and yarn. In 2009 the company went out of business. 32. Lenorek is a fashion house that designs clothing with abstract prints on fabric made of a hemp/cotton blend. 33. OP Papírna, s r.o. produces special papers such as cigarette paper from annual agricultural crops such as hemp, flax and sisal (Agave sisalana). 34. Parenteral, a.s. produces hempseed-based pharmacological and bodycare creams and products.

65 This company is included in the Findings section, as Dr. Omega, an associated organization, passed on the questionnaire to the owner of Propaganda Productions.

84

35. Pivovar Nová Paka, a.s. is a medium sized company (50-99 employees) that produces Hemp Valley Beer, which is brewed in the Czech Republic with hemp from Switzerland. 36. Pro-bio purchases and processes organically grown food and plant products. 37. Procyon Manufacture produces and sells natural hand-made products. One of their hemp-related items is a heatable hemp bag, which can be used therapeutically. 38. Reiter Cz, s r.o. did some research in the production of machinery that was to be used for the processing of hemp fibre. 39. Rupa, s r.o. specializes in the production of health foods and special food products. One of these include snack bars made with hempseed supplied by Hemp Production Cz, which special orders the hemp bars as a specialty item that is sold under its brand name. 40. Step Trutnov manufactures heating and energy generators and boilers using biomass. 41. Tebeco is an agriculture machine manufacturer that makes heavy-duty low-speed transporters, including hemp harvesters. 42. Trompetol, owned by organic farmer Karel Šťastný, produces hempseed creams, ointments and bodycare products. 43. Urbanshop was an e-shop specialized in the sale of hemp products and street fashion, but is no longer in operation. 44. VUB (Bavlnářský) Cotton Research Institute (Ústí nad Orlicí) can produce hemp thread on a special order basis. 45. VULV (Lýkových Vlaken) Bast Fibre Research Institute (Šumperk) can custom produce hemp textiles on a small scale for special orders. 46. Zemědruh is a co-operative that supports organic agriculture and sustainable development through the cultivation and use of hemp. It is a certified hempseed distributor for the Czech Republic. 47. Petr Ţáček is a hemp enthusiast who has been building a hemp house in Podviní na Litoměřicku for the last six year and has received considerable media attention.

85

Appendix 6: Map of Hemp Activity in the Czech Republic

Legend

Historical Locations

Respondents

Other Enterprises / Organizations

Historical Locations Český Krumlov, Kanovice, Přerov, Konopiště

Locations of Respondents 6.1 Hempoint České Budějovice 6.2 Hemp Production Cz Chraštice u Příbrami 6.3 Rieter Cz Ţamberk 6.4 Juta Turnov 6.5 Canabest Břeclav 6.6 OP Papírna Olšany u Šumperka 6.7 Zemědruh Telč, Dačice 6.8 Cannabis Pharma-derm Teplice 6.9 Propaganda Production Slovakia 6.10 Lenorek Hustopeče nad Bečvou 6.11 Václav Lapka Chlum u Rakovnika 6.12 Hliněný dům Brno 6.13 B&R Hemp Cosmetics Olomouc 6.14 Parenteral Prague

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6.15 JLP Velkoobchod Kraskov u Seče 6.16 CNM Textil Baška 6.17 Benátské těstoviny Benátky in Havlíčkův Brod Region 6.18 Hemp Zone Brno 6.19 Tebeco Zábřeh na Moravě 6.20 J.O.D. Dvořákovi Louny Locations of All the Contacted Organizations 1. Agritech Šumperk Šumperk, Teplice, Rakovník, Chomutov 2. B&R Hemp Cosmetics Olomouc 3. Benešov Farm Bukovice nad Teplicky 4. Beneu Kladno 5. Biofarma Sasov Sasov 6. Biom Prague 7. Biosféra - 8. Borgers Rokycany Rokycany 9. Canabest Břeclav 10. Canabia Hodonín, Rakovník, Příbram 11. Cannabis Pharma-derm Teplice 12. Carla Dvůr Králové nad Labem 13. CNM Textil Baška 14. Benátské Těstoviny Benátky 15. Dr. Omega Brno 16. Ekooko Ústí nad Labem 17. Faurecia Lecotex Tábor 18. For Merco Mladá Boleslav 19. Grateful Hemp Brno 20. Grow Mania Prague 21. HACR Vlašim, Prague 22. Hemp Production Cz Chraštice u Příbrami 23. Hempoint České Budějovice 24. Hemp Zone Brno 25. Hliněný Dům Brno 26. Inotex Dvůr Králové nad Labem 27. JLP Velkoobchod Kraskov u Seče 28. J.O.D. Dvořákovi Louny 29. Juta Turnov 30. Konopa České Budějovice 31. Vaclav Lapka Chlum u Rakovnika 32. Lenka Kácov Měřín, Kácov 33. Lenorek Hustopeče nad Bečvou 34. OP Papírna Olšany u Šumperka 35. Parenteral Prague 36. Pivovar Nová Paka Nová Paka 37. Pro-bio Šumperk 38. Procyon Manufacture Prostějov 39. Reiter Cz Ţamberk 40. Rupa Prague 41. Step Trutnov Trutnov 42. Tebeco Zábřeh na Moravě

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43. Trompetol Telč 44. Urbanshop Prague, Brno, Ostrava 45. VUB Cotton Research Institute Ústí nad Orlicí 46. VULV Bast Fibre Research Institute Šumperk 47. Zemědruh Telč, Dačice 48. Petr Ţáček Podviní na Litoměřicku

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Appendix 7: Photos of Visited Enterprises

A)Hemp Production Cz – store display

B) Hemp Production Cz – product assortment of HP products

C) Hemp Production Cz – product assortment of other companies’ products sold at HP

D) Hemp Production Cz – wood varnish display

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E) Canabest – processed hemp fibre

F) Canabest – hemp insulation panel processing

G) Canabest – hemp panel processing output

H) Canabest – trade fair exhibit showing uses of hemp in building

90

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Personal contacts: DORAZIL, Aleš, Co-owner of Hliněný dům, 2011: Interview at Brno Trade Fair Centre on

12.4.2011.

HORÁKOVÁ, Petra, Sales Manager of Canabest, 2011: Interview at Canabest in Břeclav on 22.3.2011.

PUSCH, Otmar, Co-owner of Hemp Zone, 2011: Interview at Hemp Zone in Brno on 29.3.2011.

ŘÍHA, Václav, Owner of Hemp Production Cz, 2011: Interview at Hemp Production Cz s r.o. in Chraštice u Příbrami on 12.3.2011.

RUMAN, Michal (2010). Hemp as the Perfect Example for Universal Renewable Resources. Lecture at Block of Experts, Faculty of Social Studies, Masaryk University, 16.11.2010.

RUMAN, Michal, Representative of Konopa, o.s. and Zemědruh Co-op, 2010/11: Interviews on 16.11.2010 and 27.2.2011 in Brno.

Selected films relating to hemp, Cannabis and regional development: BETTS, Nick (2011): Cannabis: What is the Harm? BBC Bristol

CLARK, Anthony (1996): The Hemp Revolution. Conscious Light Productions

EVANS, Raymond (1942): Hemp for Victory. US Department of Agriculture

GASNIER, Louis (1936): Reefer Madness. G & H Productions

HARVEY, Brett (2008): The Union: The Business Behind Getting High. Score G and BKS Productions

HOLOWACH, John (2008): High: The True Tale of American Marijuana. J&J Productions

LAURETTE, Christian (2008): Run From the Cure: The Rick Simpson Story. Tidal Lake Productions

MANN, Ron (1999): Grass: The History of Marijuana. Sphynx Productions

McNEESE, Patrick (1998): Hemplands. Fine Twine Pictures and McNeese Productions

RICHMOND, Len (2010): What if Cannabis Cured Cancer? Richmond Productions

ŠKRDLANT, Tomáš (2010): Local and Global: A Sense of Proximity. Economy and Society Trust, Brno

TELLES, Raymond (2008): Marijuana Nation. Telles Productions and National Geographic

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INDEX OF NAMES

—A—

Anslinger, H.J., 19, 20 Avery, D., 9

—B—

Bachara, M., 26 Balin, M., 46 Bednář, P., 63, 64 Benhaim, P., 9, 11, 27 Brodská, M., 38 Buchtová, I., 33, 34, 35, 74 Buckley, C., 27 Burkardt, A., 20

—C—

Callaway, J.C., 24 Carus, M., 30, 40 Castleman, T., 25 Červinka, J., 83 Cochrane, R., 20 Columbus, C., 18 Contreras, R., 28

—D—

Daly, H., 7 DeCuba, K., 28 Deeley, M., 10, 11, 28 Desai, P., 11 Dioscordes, P., 18 Doleţal, L., 46, 61 Dorazil, A., 56, 57 Douthwaite, R., 7, 12, 13 DuPont, L., 20 Dvořák, O., 64

—E—

Eires, R., 26

—F—

Ford, H., 21, 27

—G—

Gabrielová, H., 19, 41, 42 Galbraith, G., 6 Grinspoon, L., 24 Gutenberg, J., 18

—H—

Hanuš, L., 71 Hearst, W.R., 19, 20 Hepperly, P., 8, 9, 10

Herer, J., 11, 19, 20, 23, 25 Horáková, P., 47, 49

—J—

Janata, Z., 47 Janovský, J., 52, 53 Jefferson, T., 19 Jelínek, V., 48 Jelsma, M., 22 Johanisová, N., 7, 11, 12, 14, 73 John, R., 38

—K—

Kabelík, J., 24 Karus, M., 27 Kaup, M., 27 Kazík, R., 57, 58 Keynes, J.M., 13 Klvaňová, L., 18, 33 Kudrnáč, P., 51

—L—

Langer, I., 38 Lapka, V., 55, 56, 83, 85 LaSalle, T., 8, 9, 10 Liberalato, D., 26, 29 Librová, H., 14 Lu Shi, 18

—M—

Meadows, D., 9 Melcherová, L., 54 Mellon, A., 20

—P—

Parnas, R., 27 Pigou, A.C., 11, 12, 73 Pimentel, D., 8 Pospíšil, J., 59, 60 Pretty, J., 8, 9 Pusch, O., 61, 62

—R—

Ranalli, P., 11, 27, 29, 30 Rembrandt, 18 Riddlestone, S., 11 Říha, V., 11, 18, 29, 43, 45, 46 Robinson, R., 11, 18, 20, 21, 23, 24, 25,

28 Roulac, J., 11, 21, 28

96

Ruman, M., 14, 17, 18, 30, 31, 32, 33, 39, 50, 51, 52, 76

—S—

Schlichten, G., 20, 39 Schumacher, E.F., 13 Simms, A., 12 Sircus, M., 25 Široká, M., 32 Skalický, J., 58, 59 Sklenář, J., 82 Sladký, V., 17, 27, 32 Smil, V., 8, 9 Šmirous, P., 33 Spáčilová, P., 50 Šťastný, K., 51, 84 Štěpán, M., 46, 47

—T—

Toland, J., 13

Tošovská, M., 33, 34, 35, 74 Tourette, G., 25 Tőzsér, M., 53

—U—

Urban, P., 17

—V—

Van Gogh, V., 18 Vantreese, V., 17, 22 Venturi, G., 27, 29, 30 Vlček, M., 56

—W—

Washington, G., 19

—Z—

Ţáček, P., 84 Zachariáš, J., 60 Zima, T., 38