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Italian hemp sector keeps growing despite legal uncertainties

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Despite the initial boom and great promises of great opportunities, the hemp sector is struggling in many countries around the world. From the recent hemp ban in the US, to a similar ban in Italy, which has effectively halted the growth of this industry.

Effects of hemp prohibition
Among the 3,000 companies associated with Canapa Sativa Italia (CSI) – the Italian hemp industry association – 10% closed after the hemp ban amendment was signed. Another 10% are preparing to go abroad. Numbers can be interpreted in many ways, one of these interpretations paints a space under pressure. The reality is that the Italian hemp market continues to expand despite a regulatory structure that struggles to treat it as agriculture.

Research commissioned by CSI and conducted by MPG Consulting in April 2025 shows a very detailed picture. The flower market is worth 1,960 million euros, with 22,379 full-time employees in the supply chain. The study of the economist Davide Fortin and the lawyer Maria Paola Liotti, presented in the Chamber of Deputies on April 2, portrays an area that already behaves like modern agriculture. “It creates value, it supports jobs, and it does so with a sustainability profile that many other crops would envy. What it still lacks is institutional recognition,” they say.

Mattia Cusani, one of the first members of CSI and now its president, farms legal hemp on the Sila plateau. For him, potential is not an abstraction. He describes the hemp chain as a ready-made model of the circular economy. “Production methods, crop variability, use of residues from crop lines. It all exists,” he says. “All that is missing is a technical desk for operation and the removal of several long-standing legal knots. At the center of this stalled system sit workers between the ages of 25 and 40. They form one of the few agricultural sectors that is expanding rapidly in the country. Moreover, they belong to the generation that has experienced the worst economic shocks in recent years.”

Along with other associations, the CSI also demands a basic alignment from Brussels. “The express inclusion of flowers among the plant parts authorized for use. Treating open field and greenhouse cultivation equally. Maintaining the full legality of industrial uses such as seeds and fibers. And unifying police controls through a single ministerial decree, because today’s practices vary a lot and create uncertainty and pressure on farms.”

© Azienda Agricola Vamperti

Stories from the field
Two entrepreneurs who built their businesses legally now face confiscations caused by changes to the hemp ban.

In Rome, Noemi closed her shop at the beginning of November. He is 34 years old, with a degree in archaeology. For years he worked paid shifts at restaurants to cover expenses. In 2017, he and a flatmate invested what little they had to enter the hemp market. They opened a small shop selling Carmagnola and Futura 75, two of the varieties allowed for cultivation. Over the years, that store became a reference in a difficult neighborhood without a real meeting place. They refused to expand the franchise of foreign chains and focused on a single local store. A few days of legal confusion erased all that.

In Sardinia, the agricultural company Orti Castello seized more than 8,000 plants at the end of October 2025. The intervention report lists 2,467 items, even counting already cut stems mislabeled as sprouts. Each plant was grown from certified seed and was low in THC. Now the company is waiting to release its crop. For Massimiliano Quai and his colleagues, the shock is not limited to the lost inventory. The farm has already had thefts in the field despite the presence of guards. All this within a company that has grown continuously since 2018, through biological methods and consistent demand.

Massimiliano repeats the same idea. “Our best year has always been the next,” he says. “The store moves about 500 euros a day. Tea and honey sell fast. Only since the beginning of 2025, purchases have reached 62,910 euros. In all these years, we have had 6 months of flat or negative results. Everything else has been a constant upward movement. The plan is simple. Stay in Sardinia and consolidate. We only have to be open once, we have chosen a second site abroad. In Italy, in 2018, the political climate seemed favorable.”

MPG Consulting research places these stories within two possible futures. “According to the current model, the diverse ecosystem of shops, e-commerce platforms and tobacco shops keeps the market close to 1,960 million euros. Employment remains high, the supply chain remains diverse. The alternative is a state monopoly controlled by tobacco shops, with a tax burden of 56.5. In this scenario, the market would have a direct and indirect impact of more than 144,000 million euros. evaporate, and employment would fall to around 6,000 workers.”

However, demand grows. “The lack of commercial communication is not slowing down the market. Many are choosing hemp flowers as a substitute for tobacco rather than a substitute. It becomes part of the process of moving away from one of the most harmful and addictive substances available.”

A bunch of growers
MPG Consulting also maps the crop side. Small growers sell everything directly. Medium producers divided between retail and wholesale. Large growers rely on standardized varieties and volumes. Medium plants are the innovative key of the whole chain. They test varieties, refine phenotypes and drive the system forward. They are also the weakest link if a monopoly model becomes a reality, unlike large growers who can operate in a rigid centralized environment. “The Italian hemp sector grows anyway. The question hanging in the air is not whether it can grow, but whether the rules will ever grow with it.”

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“Steady coco peat demand expected ahead of key planting seasons”

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India’s supply of coir for export remains stable despite processing hiccups due to heavy rains, says Krishna Patil of Maharashtra-based produce export consultancy Krishna International Trade. “Availability is now stable due to improvements in coconut processing infrastructure in southern India. The flow of raw materials is now better managed than before, supporting both domestic consumption and export commitments.”

According to Patil, this year’s production has increased by 5-8% over last year, backed by better processing efficiency, mechanization and planning, with manufacturers also meeting export requirements. He said, “Supply generally appears balanced, but commodity fluctuations, container shortages and strict quality controls on EC, pH and moisture keep India’s coco peat exporters on the lookout. Strong process controls are essential to convert domestic grade material into export-matched quality.”

© Krishna International Trade

Patil’s coco peat export markets include Europe, particularly Spain, the Netherlands and Italy, as well as the Middle East, including the UAE and Saudi Arabia. As he explains, “these markets are in regular cycles of planting and regeneration, so demand remains stable rather than sudden. Importers go beyond spot deals to find long-term partners. Domestically, local buyers often encounter quality differences and do not fully meet export specifications, although more users are now looking for export quality and standards.”

© Krishna International Trade

Coir peat is now more expensive to source, which Patil attributes to processing rather than demand. “Prices are 10% higher in recent months, mainly due to raw material shortages, higher logistics costs, slower drying due to two years of erratic rains, and not due to increased demand. Even if demand is stable, limited materials available for shipment and longer processing times are putting upward pressure on prices in the short term.”

Looking ahead, Patil sees demand growing steadily in the coming weeks and months as planting ramps up in key markets in Europe and the Middle East. “Prices may remain firm in the short term due to ongoing processing delays and limited ready stock due to the prolonged rain pattern. A gradual stabilization is expected over the next month or two. Once the weather normalizes, production lead times and material availability should improve, leading to a smooth return to balance.”

For more information: © Krishna International Trade
Krishna Patil
Krishna International Trade
Telephone: +91 90 22 810 343
Email: (email protected)
www.patilinternationaltrade.com

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Wisconsin GOP Lawmakers Are Divided On How To Regulate Hemp THC Products

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“We would like to work together … to make sure – in my humble opinion – that we protect our constituents, but also I think it’s necessary to protect an industry.”

Isiah Holmes, to the Wisconsin Examiner

Wisconsin lawmakers are pushing for competing visions for the state’s hemp future.

One proposal, (SB 682), was discussed at Thursday’s meeting of the Senate Agriculture and Revenue Committee.

The bill would create a regulatory framework for hemp-derived cannabis products that would keep the state’s hemp industry afloat despite a federal ban that takes effect in November. Without state intervention, or the federal government choosing to reverse course, hemp growers and distributors fear Wisconsin’s $700 million industry and about 3,500 jobs will disappear.

Sen. Patrick Testin (R-Stevens Point), chairman of the Agriculture and Revenue Committee, introduced the bipartisan hemp bill to his committee, which he authored with bipartisan support.

Testin’s legislation would define hemp as any cannabis plant that contains no more than 0.3 percent delta-9 THC (or the maximum concentration allowed by federal law of up to 1 percent, whichever is greater) and would define “hemp-derived cannabinoids” as compounds extracted from the hemp plant. THC concentrations would be determined using specific high-throughput test methods.

The bill would require Wisconsinites to be at least 21 years old to purchase hemp-derived cannabinoid products, which would require the products to undergo independent laboratory testing to ensure they contain the amount and type of cannabinoids described on the product label. This practice, known as true labeling, is something the hemp industry has called for in recent years.

The products could not be sold based on the invoice including contact information for the manufacturer or brand owner, serving sizes for each container of the product, including allergens, ingredient lists, labeled potency in milligrams, and required warnings. According to the bill, hemp-derived products could not contain more than 10 milligrams of THC in a single serving.

Testin said Thursday that the industrial hemp market was worth about $11 billion in 2025, and would grow to $48 billion by 2032.

In Wisconsin, such products are “generally allowed legally but unregulated,” Testin said.

“There is no state law that restricts sales to minors, regulates the potency or content of (hemp-derived cannabinoid products), or imposes labeling or packaging requirements.” Minnesota, Kentucky, Tennessee and other states have enacted their own regulations, Testin said. “Regulations are needed (to remove the current uncertainty about the cannabinoid status of hemp-derived products), to provide stability and certainty to companies looking to enter this segment of the economy, and to enforce public safety regulations.”

Testin and Republican Rep. Tony Kurtz (R-Wonewoc) have worked on hemp laws for Wisconsin since the federal Farm Bill passed in 2018.

“I actually grew hemp,” Kurtz said, recalling that in 2019 “it was kind of an open market.”

Kurtz and others who called him “bad actors” also rode the hemp wave throughout the hearing, seeing it as a “get-rich-quick scheme.” Kurtz said the hemp industry today is full of people who want to do the right thing, but the “bad actors” have persisted.

said Kurtz SB 682 It’s designed so Wisconsinites “know they’re getting the best product and what they’re getting.”

“If we do nothing, hemp will be illegal at the federal level … but it’s still going to be legal here in the state of Wisconsin. So it’s in our best interest to work together, to get a good compromise, to get some common sense legislation to make sure that — in my humble opinion — we protect our constituents, but also I think it’s necessary to protect an industry.”

While hemp would be illegal at the federal level, a state-level industry could operate similarly to the way some states have recreational or legalized cannabis programs, largely because the federal government has not cracked down on these industries.

Testin added, “Regardless of anyone’s thoughts on cannabis and cannabinoids, it’s here. And obviously, we have a lot of different perspectives on how we should move forward.”

He repeatedly blasted the “stupidity” of what he described as “our gentlemen” in Washington DC, but also criticized other hemp-related bills in Wisconsin. While some Republicans want to ban hemp products outright, others have different ideas about how a legal industry should be regulated.

Bill introduced by Sen. Eric Wimberger (R-Oconto). SB 681It would require licenses for manufacturers and distributors of hemp-derived cannabinoid products. The products would be sold under a three-tier system and would be regulated like alcohol under the Division of Alcoholic Beverages, a component of the Department of Revenue, which would be renamed the Division of Intoxicating Products.

Although Testin and Wimberger’s bill have garnered bipartisan support, Testin described Wimberger’s bill as a “dead bill” and “more dead than dead.”

Testin argued that SB 681 would over-regulate the hemp industry and lead to a monopolization effect where a small number of entities control who gets hemp permits, creating a competitive market and acting as a “good boys’ club.”

Sen. Sarah Keyeski (D-Lodi) highlighted the division among state Republicans over hemp and cannabis products, noting that Democrats are not the ones who support legalization and regulation.

The committee room was filled with people from across the hemp industry who listened to the conversation. When lawmakers asked how to ensure children don’t get intoxicating cannabis products, distributors and manufacturers pointed to age-verification software even for online sales, which require a photo and image of a driver’s license to accept an order.

Marketing of children’s products using cartoon-like advertising and attractive candy wrappers was discussed.

Some veterans have testified how hemp has helped them relieve pain, kick addictive pain killers, soothe PTSD symptoms, and help them relax their bodies to sleep.

Other testimony focused on the risk of crossing state lines into Michigan or Illinois to obtain cannabis to treat various medical conditions.

Hemp farmers insist they now need to know how a federal ban will affect them as they decide when or if to plant this spring.

Much of the public testimony was in favor of Testin’s bill, although some speakers said it should protect farmers and growers and expand the types of products to include beverages and gummies.

“Yes, we are now in a scenario where there are intoxicating hemp products,” Testin said. “But not just anything like beer, wine or alcohol, we need to put some sensible regulations in place, which is what this bill aims to do.”

“In terms of concerns about smoking or getting fat from these products,” Testin added, “it’s no different than people consuming too much stale fish fry or drinking too much beer on a Friday night. It’s one’s choice and responsibility, but at the same time, making sure we have some regulations in place.”

The hemp industry deserves to “grow and grow,” Testin said, adding that the public deserves protection and knowing that “this stuff isn’t falling into the hands of people it shouldn’t be, like children.”

This story was first published by the Wisconsin Examiner.

Brendan Cleak’s photo.

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New Global Sales Director announced for Rock River Laboratory

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Rock River Laboratory, an international provider of agricultural analytics, data management tools and model development, today announced the hiring of David Williams as Global Sales Director to lead its expanded agronomy sales team. In this new role, Williams will integrate and lead representatives from A&L Canada Laboratories in London, Ontario; Auburn, Ind., Agri-Labs; and Frontier Labs in Clear Lake, Iowa, with the Rock River Laboratory team based in Watertown, Wisconsin.

© Rock River LaboratoryDavid Williams

“David’s diverse and dedicated leadership experience stands before him, and we have complete confidence in his ability to form cohesiveness in the expert teams we are assembling,” shares Zachery Meyer, CEO of Rock River Laboratory. “Customer service remains a top priority for our organization, and David’s work will ensure our commitment to customer success, strengthening the value our team members bring to our customers’ challenges and opportunities.”

Williams attended Southern Illinois University, where he earned a Bachelor of Science in Animal Science, Food and Nutrition, specializing in livestock production, and a Master of Science in ruminant nutrition. His experience includes nearly a decade in sales management and production oversight, most recently with Land O’Lakes – Purina Animal Nutrition. Prior to joining Purina, Williams managed a large beef-calf operation and served as assistant farm manager at the university’s beef and pork center, building on a production farming background that began on his family’s farm in southern Illinois.

A decorated infantry veteran, Williams has completed a combat deployment to Iraq, served in the Commanding General’s Mountain Color Guard out of Fort Riley, and continues as a chaplain in the Illinois Army National Guard.

For more information:
Rock River Laboratory
https://rockriverlab.com/



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