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Cannabinoid sales boom in Austria is canceled

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The government's program regulates the use of only two medical cannabis drugs (dronabinol and sativex), so many Austrian patients use over-the-counter (OTC) drugs with CBD, primarily foodstuffs banned by the Minister of Health and cannabinoid cosmetics. 

The pages of the specialized electronic edition of Ukrainian hemp growers have already described more than once Mechanisms by which lobbyists of large pharmaceutical companies use administrative methods to drive clients to buy prescription drugs from hemp produced by these companies. This paper will describe a similar mechanism initiated by the Austrian Minister of Health.

The Austrian Minister of Health has issued an order prohibiting companies from selling foodstuffs and cosmetics that use cannabidiol (CBD) as ingredients. The basis for such prohibitions is the fact that, in his opinion, the products manufactured using CBD fall within the definition of the European Union

Cannabidiol is included in the new EU Food Catalogue in such a way that individual EU member states may restrict its sales or may require special permission to sell it. According to Stefan Volynec, the head of the Austrian Horse Breeders Association, the process of obtaining a permit for new products with CBD can cost up to half a million euros.

Austria's Minister of Health has given a similar notice to companies selling food and cosmetics containing CBD by surprise. For example, Aida, a popular chain of express bars and pastry shops, whose outlets are mainly located in Vienna, has announced on its social networks that it will distribute the remaining products containing cannabidiol in its stores rather than destroy them, as prescribed by the country's Minister of Health. In order to comply with the order of a government official, the company will have to stop not only the sale of popular products, but also to terminate existing contracts with contractors who manufactured these products for Austrian buyers. In parallel, the company's lawyers will challenge the actions of government officials as they make no sense, incur significant losses to the company and hinder Aida's legitimate business activities.

Absurdity ban on the sale of products containing CBD is also because cannabidiol sold as essential oils or rich CBD leaves and inflorescences are not affected by the ban, provided that the amount of tetrahydrocannabinol in them does not exceed 0.3% after decarboxylation and compliance with certain labeling requirements.

At the same time, the Austrian Food Safety Authority visited another company dealing with the sale of foodstuffs made with the use of cannabidiol and, citing the order of the country's Minister of Health, requested that all products containing CBD (confectionery, food additives, teas, etc.) be stopped immediately. In order to continue selling cannabis leaves and inflorescences rich in cannabis, the management of the trading company was asked to change the label on the products sold. According to the head of the firm, Ms. Sophie Sagmeister, "We have packaging materials that are outdated overnight and cost my company € 40 thousand. However, following the Agency's recommendations, we should change the previously built sales system and re-qualify for the sale of aromatic products.

The political party represented in the lower house of the Austrian parliament, NEOS & mdash; New Austria and the Liberal Forum, plans to challenge the order of the Minister of Health and find out the real reasons why it was adopted. This is primarily due to the fact that a completely unclear legal document that came out of the bowels of the Ministry of Health has a negative impact on a large number of companies operating in this sector of the Austrian cannabis industry. 

Association Commentary on Ukrainian Technical Hemp

According to analysts of the European hemp market, about 250 stores specializing in products containing CBD legally operate in Austria. There are thousands of consumers of these products in the country, and the annual turnover of this sector of the Austrian hemp industry alone is about € 150 million. Currently, the state program regulates the use of only two medical cannabis products (dronabinol and sativaex), so many Austrian patients use over-the-counter drugs with CBD, primarily prohibited by the Minister of Health food and cannabis cosmetics. It is quite obvious that the Minister of Health lobbies pharmaceutical manufacturers, and the order of the Minister of Health is aimed at localizing sales of products containing CBD exclusively in pharmacies, making them exclusively prescription drugs in the future.