The potential of the hemp industry in Poland

6 March 2021 | Knowledge, News

Piotr Kochanski, Senior Managing Partner and Founding Partner at Kochański & Partners, speaks to My Company Polska on hemp market developments:

“The global hemp market is one of the fastest growing sectors, with Cannabis sativa being a driving force for the economy in a number of EU Member States. It can be grown almost anywhere, regardless of climatic conditions,” says Piotr Kochański, Senior Managing Partner and Founding Partner at Kochański & Partners.

So why has the hemp industry share in the Polish economy been so marginal up to now?

Regulatory aspects are a fundamental barrier to its growth. Although Cannabis sativa is characterized by a low concentration of psychoactive THC (unlike Cannabis indica), its cultivation in Poland currently entails numerous restrictions. To grow Cannabis sativa, one needs to obtain a cultivation permit and enter into a cultivation contract. Such plantations are subject to constant inspections; failure to comply with the regulations may result in a fine or even imprisonment of up to 8 years. Strict legal regulations and ambiguity in their interpretation may lead to domestic processing being crowded out by product imports from EU Member States where the industry status has been fully regulated.”

We need to sort out the legal status and consolidate Cannabis sativa regulations. The U.S. hemp boom has already reached the Warsaw Stock Exchange. Euromonitor experts forecast that the CBD market in Poland may reach PLN 5 billion by 2025. This is a considerable amount of money that domestic processors could generate for the economy, if only they were provided with a favourable regulatory environment,” stresses Piotr Kochański.

The industry has found hemp very versatile – it is inexpensive and literally the whole plant can be used for industrial purposes. Apart from traditional textile use, hemp is also used in the paper, cosmetics, pharmaceutical, chemical, automotive and construction industries and even in the power generation sector. Hemp products are also fully biodegradable and therefore environmentally friendly,” adds Piotr Kochański.


Latest Knowledge

Slim VAT 3.0 | Tax Focus

On 8 March this year, the first reading was held of the bill amending the Value Added Tax Act and certain other acts – i.e. the so-called SLIM VAT 3 (print no. 3025).

The Ideas Powered for business SME FUND

The SME Fund is a project supported by the European Commission and the European Union Intellectual Property Office (EUIPO). Applications can be submitted continuously until 8 December 2023.

Earn-out: a win-win

The valuation of a company is the cornerstone of any M&A transaction. Naturally, sellers want to achieve the highest possible price, while buyers do not want to overpay.

Shareholders’ agreements – what is their purpose

The articles of association of a limited liability company or a joint-stock company cover corporate governance issues and mutual relations between shareholders. Sometimes, however, these are not detailed enough.

Contact us:

Piotr Kochański

Piotr Kochański

Attorney at Law, Senior Managing Partner

+48 602 218 217