May 10, 2023

From Farm to Market: CBD Policy and Its Impact on the Supply Chain


From Farm to Market: CBD Policy and Its Impact on the Supply Chain


The rise in popularity of CBD or cannabidiol products has led to a surge in demand from consumers. However, as the market becomes increasingly saturated it is important to understand the policies and regulations surrounding the production and distribution of CBD products.

What is CBD?

CBD, known as cannabidiol is one of the cannabinoids found in the cannabis plant. Unlike THC, it does not produce the psychoactive effects typically associated with marijuana. CBD has been shown to have potential therapeutic benefits, including alleviating pain and reducing anxiety.

Policy and Regulation

The legalization of hemp in the 2018 Farm Bill removed the plant from the list of controlled substances under federal law. This opened the door for the production and distribution of CBD products derived from hemp.

However, the FDA has yet to provide clear guidelines for the regulation of CBD products. While the agency has approved a CBD-based medication for the treatment of epilepsy, it has not yet established clear safety standards for CBD products sold as supplements or in food and beverages.

This lack of regulation has caused confusion and uncertainty for manufacturers, retailers, and consumers alike. Some states have taken matters into their own hands by establishing their own regulations for CBD products.

Impact on the Supply Chain

The current regulatory environment has had a significant impact on the supply chain for CBD products. Manufacturers are tasked with navigating a complex and often confusing set of regulations, which can increase the cost and time associated with production.

Retailers are faced with the challenge of marketing and selling CBD products in a legal and ethical manner, while also ensuring the safety and quality of the products they offer.

Consumers are left to navigate a sea of products with varying degrees of quality and safety. Without clear regulatory standards, it can be difficult for consumers to determine which products are safe to use and which ones may pose a risk.


The CBD industry is quickly evolving, and there is still much uncertainty surrounding the policies and regulations that will ultimately shape the market. As the industry grows, it is important for all stakeholders to remain informed and engaged in the policy-making process in order to ensure the safety and sustainability of the supply chain.


Categorized as Policies
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