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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Medicinal cannabis industry (FOI)

Medicinal cannabis industry (FOI)

Produced by the Freedom of Information office
Authored by Government of Jersey and published on 14 July 2021.
Prepared internally, no external costs.

​Request

The head of biosecurity at the Environment Department recently was reported as saying that:

A

The medicinal cannabis industry could bring increased technology into horticulture, with the prospect of more highly skilled jobs in the Island.

B

In the next few years, the NHS looks likely to become the biggest customer for medicinal cannabis in Europe, if not the world.

Please provide information on possession of government indicating what will be the nature of the highly skilled jobs, the necessary qualifications and the likely related salaries, along with the expected tax take from future hemp / cannabis farming.

Please provide the information used by government as the source of the second statement.

Response

A and B

There is no direct source regarding the second statement made since this, along with the following information has been gleaned from business plans received from a number of organisations, personal communications with leading external industry professionals and professional opinions gained since 2016.

Staffing numbers

Estimates regarding the staffing levels required for medicinal cannabis operations vary, however, the most recent data indicates the staffing requirement for a fully operational four hectare (ha) site would be 51 people, therefore, approximately 13 staff per ha.

Annual taxable salary

The total annual salary in relation to a four hectare site is circa £1,905,000, approximately £476,250 per ha.

It is estimated that a combined salary of circa £46,286,489 could potentially enter the Jersey economy based on a four hectare operation over a 20 year period allowing a 2% rate for inflation.

This salary would be taxable based on individual employee circumstances.

Technological and investment opportunities

The current technological and investment developments in the emerging agri-tech sector provide great employment opportunities.

Many of the roles are specialist by nature with horticulture, BASIS and FACTs qualifications being required for some staff.

Other qualifications include those associated with the storage of agri-chemicals, energy management, compliance, security and maintenance, IT and engineering.

Also peripheral services such as accountancy, law, real estate and banking services may be drawn upon.

Tax on business profit

It is estimated that tax on the business profit would be £4.9m per ha per year based on the currently anticipated four hectare of cannabis production in Jersey.

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