Zetlers at forefront of Ramaphosa’s cannabis revolution

Just days before President Cyril Ramaphosa devoted a section of his State of the Nation Address (SONA) to the opening up of the cannabis industry in South Africa, two Jewish entrepreneurs achieved a first for the country by exporting cannabis tissue culture to Israel. Though the Zetlers are most well-known for farming strawberries, they have now branched out – literally – into the booming field of medical cannabis.

In his SONA, Ramaphosa said, “The hemp and cannabis sector has the potential to create more than 130 000 new jobs. We are therefore streamlining regulatory processes so that the hemp and cannabis sector can thrive like it is doing in other countries such as Lesotho. Our people in the Eastern Cape, KwaZulu-Natal and elsewhere are ready to farm with this age-old commodity and bring it to market in new and innovative forms.”

Four Zetler generations have worked the land in Stellenbosch, and now brothers Barry and Leslie Zetler are taking the business into the 21st century and beyond. In 2017, their medical cannabis company, Felbridge, applied to become a licensed cannabis producer. The move came soon after the landmark Constitutional Court ruling which decriminalised private, personal use of cannabis.

Felbridge’s licence to grow cannabis on 14 000 square metres of farmland was granted by the South African Health Products Regulatory Authority in 2019. The Constitutional Court ruling has played an important role in drawing the roadmap for the commercialisation and industrialisation of cannabis, and now Ramaphosa’s promise to formalise the industry means the “green economy” should explode in the months to come.

And the Zetlers are first out of the gate. “Cultivation is our heritage – it’s in our blood,” said Felbridge Chief Executive Leslie Zetler, the day after the SONA. “This is just another crop. Like all crops, it needs fertiliser, water, and sunlight. At the same time, it’s new and interesting and is a difficult, technical crop.”

They knew they wanted to get into the industry as soon as the regulations changed, and submitted the application as soon as they could. “We were first through the door. I think we were the fifth company to be licensed in the country,” Leslie says. “It’s not straightforward, as there’s a lot of documentation required and you need a lot of extra security. This is a long term play. You don’t get returns on day one.”

So, what exactly is cannabis tissue culture? “There are three ways to grow a plant,” says Leslie. “The first is with seed. This is the cheapest and easiest, but the quality is uneven because each seed is slightly different. Even in the same strain, there’ll be variety. So it’s not the best way for medical cannabis, which needs absolute consistency and stability to get the exact same result. A seed can’t guarantee this.

“The second way is to take a cutting from a ‘mother plant’, which is also a good way to farm, but the quality can deteriorate over time.

“The third option is to take tissue culture from the plant, which is then grown in a laboratory under artificial light, in a sterile environment, and using artificial intelligence. “Tissue culture is the gold standard in propagation of any plant,” says Barry, chief financial officer of the company.

“Working with tissue culture creates a genetic library that’s of the highest biological quality. These cultures grow exponentially – so from one to two, two to four, and four to eight. It’s a complete genetic copy, and is completely consistent, free of viruses, disease, or pathogens. Tissue culture also allows cultivators to reproduce harvests at a lower cost than alternatives such as rooted clones or seed, which can be inconsistent and time consuming.”

Leslie notes that to get agricultural produce through international borders is extremely difficult. “There’s no other commodity more difficult to ship than cannabis,” he says. It has to go through customs, agriculture, and health departments. And in Israel in particular, where the market is highly regulated and incredibly bureaucratic, it’s a significant achievement – especially because it was shipped without any delay.”

The shipment to Israel was in partnership with Perfect Plants, a leading biogenetics company based in the Netherlands, and it’s the first time that cannabis tissue culture has been exported from South Africa to a licensed producer in Israel. They have also shipped thousands of tissues to producers in Spain, North Macedonia, Switzerland, and Lesotho.

Though the Boycott, Divestment, Sanctions movement may be disappointed that South Africa is exporting to Israel, the venture “has created 40 jobs from scratch, which we hope to double within the next year, and has created a very positive image of South Africa. In addition, we’re working with the Western Cape agriculture department to grow the industry. We’re assisting in training people from previously disadvantaged backgrounds,” says Barry.

They feel that Ramaphosa’s comments are “promising, and we hope to be part of that growth”.

“There’s a lot he can do to open up the industry quickly, that will really accelerate things,” says Leslie. For example, changing regulations around hemp farming would open up many new avenues for production and job creation, and could even be used to create bioplastics that are biodegradable.

“Because we have an agricultural economy already, we’re well-positioned to do this,” he says. “This could be the answer to the country’s unemployment woes. Agriculture is the perfect entry point to employment. We’re optimistic about South Africa, and we want to be the driver of positive change.”

Another entrepreneur in the medical cannabis industry, who asked not to be named, says regulating the industry will also have benefits for people consuming cannabis in South Africa.

“Civilised societies don’t criminalise mildly dangerous activities. Tobacco, alcohol, and gambling are legal and regulated, and each is more dangerous and harmful than cannabis – by a fair distance. We need a regulated market in South Africa in which the government plays an important role in ensuring quality and safety, just as it does with food and medicine. That way, adults will be able to know the dosage and effect of any cannabis they put into their bodies. If the government can see its way to doing this, as has been done in Canada and various states in the United States, it will weaken organised crime, increase tax takings, and create jobs. Let’s hope it does it quickly!”