A hemp crop can be sold as fibre, as seed or as CBD extract, and each pathway needs its own machines, licences and buyers before planting. Of the three, extraction needs the most capital and the strictest licence. Quality testing and the legal rules apply to all three pathways.
This part covers CBD extraction and refining, quality control, the rules in Thailand, the European Union and the rest of Southeast Asia, trade documents, and the openings for hemp businesses in this region. It ends with a short checklist.
This is Part 2. Part 1: Hemp Products and Processing: From Stalk to Extract, What Each Stage Requires
3. Extraction and Refining
Licensing comes first
In Thailand, producing cannabis or hemp extracts requires a licence. The Ministerial Regulation on Cannabis or Hemp Extracts B.E. 2569 came into force on 26 April 2026 and tightened that licensing. Extracts with more than 0.2% THC can now be licensed only to three kinds of applicant: Thai juristic persons that are not “foreign” under the Foreign Business Act B.E. 2542, state agencies, and the Thai Red Cross Society. The 2026 changes are explained in Thailand’s Two Ministerial Regulations of B.E. 2569.
Nothing in this section is a guide to home or unlicensed extraction.
Translator’s note: Before you price any equipment, check whether your company structure can hold the licence at all. If the company counts as “foreign” under the Foreign Business Act, the >0.2% THC route is closed to it.
Extraction methods compared
| Method | Solvent | Typical output | Indicative CAPEX* | Key consideration |
|---|---|---|---|---|
| CO₂ supercritical | CO₂ | Clean crude for refining | High (tens to hundreds of thousands USD) | Complex high-pressure equipment; no residual organic solvent |
| Ethanol | Food-grade ethanol | Crude oil | Low–medium (roughly ten thousand to low hundreds of thousands USD) | Needs solvent recovery and residual-solvent testing |
| Hydrocarbon (BHO) / rosin press | Butane/propane / none | THC concentrates | — | Outside the hemp/CBD scope of this article |
*CAPEX means capital expenditure: the up-front cost of buying the equipment. The figures are indicative only. Real quotes depend on capacity, automation and local certification requirements.
Two terms in the table:
- Supercritical CO₂: carbon dioxide held at high pressure and temperature, where it behaves partly like a gas and partly like a liquid and can dissolve cannabinoids. More in CO2 Extraction of Cannabis.
- BHO (butane hash oil): an extract made with butane or propane. It and the rosin press (heat and pressure, no solvent) are used for THC concentrates, so they are not covered here.
For CBD, CO₂ and ethanol dominate commercial production. Both give a clean crude oil that established workflows can refine further. Ethanol extraction is covered in Ethanol Extraction of Cannabis, and the methods are compared in Cannabis Extraction Explained.
Refining the crude, step by step
Each step removes something or converts something:
- Winterization – removing waxes. The crude is dissolved in ethanol and chilled to about −20 to −40 °C. Waxes and fats (lipids) turn solid and are filtered out.
- Decarboxylation – activating the cannabinoid. The plant makes CBDA, the acid form. Heat converts CBDA to CBD by releasing CO₂. Commonly reported settings are about 110–130 °C for 45–90 minutes on dry material. Validate your own time and temperature by testing, because overheating breaks down cannabinoids. The chemistry is explained in Edibles and Decarboxylation.
- Distillation – concentrating. Short-path or wiped-film distillation (two designs of vacuum still) concentrates the cannabinoids into a distillate, commonly 80–90% or more. It also removes most terpenes and chlorophyll.
- Chromatography – separating single compounds. Preparative HPLC (high-performance liquid chromatography, run at production scale) or centrifugal partition chromatography separates CBD from the minor cannabinoids, including leftover THC. The result is isolate: CBD of 99% purity or more.
Translator’s note: Winterization needs freezer capacity that holds −20 to −40 °C. In a power cut the batch warms up and the waxes dissolve again, so plan backup power or schedule that step around outages. Ethanol vapour also catches fire easily; in a room at 30–35 °C more ethanol evaporates, so ventilation and fire safety matter even more.
Finished products
Finished formats include:
- oils and tinctures, in MCT oil (medium-chain triglyceride oil, usually made from coconut) or hemp seed oil
- capsules
- topicals (products applied to the skin)
- edibles
Each format is regulated differently. Vape products are not an option in Thailand, where the import and sale of e-cigarettes are banned.
What to do: before buying any equipment, choose one finished format, find out which Thai rule covers it, and confirm your company can be licensed for it.
4. Quality Control
Quality checks run at three points: on the raw material, during processing, and on the finished product.
Raw material – what to test in the biomass:
- Cannabinoid profile (CBD, CBDA, THC, THCA). It decides both legal compliance and how much the batch is worth to process.
- Moisture.
- Pesticide residues. Extraction concentrates them, so a small residue in the plant becomes a larger one in the extract. See Pesticide Residues on Cannabis.
- Heavy metals. Hemp is a bioaccumulator: it draws metals out of the soil into its tissues. It is even studied for phytoremediation, which means using plants to clean polluted soil (Rheay et al., 2021).
- Microbials, with Aspergillus and Fusarium moulds the main concerns. The mould toxins and the rainy-season risk are covered in Mycotoxins on Cannabis Flower.
In process – what to measure along the line:
- yield per kg of biomass
- how much wax was removed after winterization
- THC in the distillate
- purity of the isolate
Finished product: a Certificate of Analysis (COA) from an independent, accredited laboratory. It should cover potency, THC, heavy metals, pesticides, microbials and, where relevant, residual solvents. How to read one is explained in How to Read a Cannabis Certificate of Analysis.
Translator’s note: Because hemp pulls metals from the soil, test the field’s soil before planting, especially land near roads, factories or old mines. In Thailand, use only pesticides registered with the Department of Agriculture (กรมวิชาการเกษตร), exactly as the label says. When you choose a laboratory, ask for its accreditation certificate and check that its scope lists each test you need. Thai laboratory options are discussed in Testing Cannabis Flower Before Export: Moisture, Thai Laboratories and the Final Certificate Check.
What to do: test a sample of your first harvest for cannabinoids, heavy metals and pesticides before you sign any processing contract.
5. The Rules
5.1 Thailand
Flower. Cannabis flower is a controlled herb under the Notification of the Ministry of Public Health Re: Controlled Herbs (Cannabis), B.E. 2568. The notification was issued under the Thai Traditional Medicine Protection Act B.E. 2542 and has been in force since 26 June 2025. What it means for growers is explained in Cannabis as a Controlled Herb in Thailand.
- Flower may be dispensed only against a prescription on form PT 33 (ภ.ท.33) from an authorised practitioner. Each prescription covers no more than 30 days, with no refills. See The PT 33 Cannabis Prescription.
- Flower that is sold or exported must come from a GACP-certified cultivation site. GACP (Good Agricultural and Collection Practice) is the standard for how a farm grows, harvests and records a medicinal plant; see Good Agricultural and Collection Practice for Cannabis.
- Online sale and advertising of flower are prohibited. Recreational use is not allowed.
- Unlicensed research, export, sale or processing of a controlled herb carries a penalty under Section 78 of the 1999 Act: up to 1 year in prison and/or a fine of up to 20,000 baht.
- How flower and extract are treated differently: Raw CBD Flower Versus Extract.
Licensing in 2026. Two Ministerial Regulations of B.E. 2569 tightened licensing:
- Cannabis or hemp extracts, in force 26 April 2026 (see section 3)
- Controlled Herbs (No. 2), in force 30 April 2026, which tightens the licence criteria for cannabis flower
Neither regulation changes the PT 33 prescription rules.
Food. THC and CBD limits in food are set by Ministry of Public Health notifications:
- No. 425 B.E. 2564, covering hemp seed, seed oil, seed protein and foods containing them; amended by No. 437 B.E. 2565
- No. 427 B.E. 2564, covering foods that contain parts of the cannabis or hemp plant
Limits differ by product type and serving size, and labelling rules apply. Check the current Thai FDA text before you design a recipe. Labelling is covered in Cannabis Product Labeling in Thailand.
Cosmetics. Hemp-derived ingredients are allowed within Thai FDA cosmetics rules. Any claim that a product treats a disease requires drug registration.
Export. The B.E. 2568 notification governs flower as a controlled herb. It is not an export permit; exporting needs a separate licence. What hemp products can leave the country is covered in What Can Actually Leave Thailand as Hemp.
Draft law. The Cannabis Control Act is still a draft and is not law. The Cabinet approved the draft on 22 September 2026 and sent it to the House. See The Draft Cannabis Control Act.
5.2 European Union
Novel food status. A novel food is a food that was not widely eaten in the EU before May 1997 and therefore needs safety approval before sale. Novel foods fall under Regulation (EU) 2015/2283. In January 2019 the EU Novel Food Catalogue was updated:
- Cannabis extracts and cannabinoids, including synthetic ones and products they are added to, are novel and need authorisation.
- Hemp seed, seed oil, hemp seed flour and defatted seed have a history of consumption in the EU and are not novel foods. National rules may still apply.
The EFSA position in 2026. EFSA is the European Food Safety Authority, which gives the scientific opinions the EU uses to approve foods.
- On 9 February 2026, EFSA set a provisional safe intake of 0.0275 mg per kg of body weight per day. That is about 2 mg a day for a 70 kg adult. It applies to CBD of at least 98% purity in food supplements.
- EFSA said safety could not be established for people under 25, pregnant or breastfeeding women, or people taking medication.
- In September 2026 EFSA issued its first positive opinion on a CBD novel food application (synthetic CBD, up to 2 mg a day).
- Selling on the market still requires a decision by the European Commission.
Cosmetics. Cosmetics fall under the EU Cosmetics Regulation, not the novel food rules. A product with hemp seed oil and a product with CBD still need separate compliance checks.
5.3 Elsewhere in Southeast Asia
- Singapore: The Central Narcotics Bureau states that importing, exporting, possessing, selling or consuming products that contain controlled drugs, even in trace amounts, is an offence. The Singapore Food Agency does not allow food containing hemp seeds to be brought in for personal consumption.
- Malaysia and Indonesia: Cannabis is controlled under national narcotics law: Malaysia’s Dangerous Drugs Act 1952 and Indonesia’s Law No. 35/2009 on Narcotics. Check the status of seed and fibre products with a local lawyer.
- Vietnam: Hemp seed and fibre are traded, but no clear registration pathway for CBD products could be confirmed. Check with a local lawyer.
5.4 Trade documents
- Fibre and hurds usually need a phytosanitary certificate (an official document stating that the plant material is free of pests and diseases) and sometimes a THC declaration.
- Customs codes. Customs classify goods with HS (Harmonized System) codes. Hemp seed is commonly classified under HS 1207.99 and hemp seed oil under HS 1515.90. Confirm the national tariff line with a customs broker, because a wrong code can cause delays, inspection or rejection.
- Extracts. Get a legal opinion for each destination country before you commit to production volumes. Write contract clauses that cover changes in the rules: a shipment that was legal when the contract was signed may face new restrictions when it arrives.
What to do: before you sign an export deal, ask a customs broker for the exact tariff line and document list for that destination, and get it in writing.
6. Openings in Thailand and Southeast Asia
Hemp supply chains in this region are at an early stage. Practical openings include:
- Licensed processing: licensed extraction and refining capacity for locally grown biomass. Thailand grows some hemp, mainly in the north.
- Fibre and hurds: decortication and hurd processing for construction and technical uses.
- Ingredient supply: hemp seed food ingredients (protein, oil) for local health-food makers.
- Testing: accredited laboratories to support the COA requirements in section 4.
Translator’s note: Each of these is a business serving other hemp businesses. If you are a grower, the first question is not which opening is biggest, but which of these services already exists within reach of your farm. That service decides which pathway you can actually sell into.
Summary and Checklist
Hemp processing is not one industry. It is several parallel industries sharing one raw material. Fibre, seed and CBD extract each need their own capital, licences, quality control and buyers. Hemp businesses in Southeast Asia last when they start with one clearly defined product and one known market, not with a plan to make everything from hemp.
Before you plant or invest:
- Choose one product and name its buyer, its processing machine and its licence.
- For extracts, confirm your company can hold a Thai extract licence under the B.E. 2569 regulation.
- Test your field soil for heavy metals and your first harvest for cannabinoids and pesticides.
- Check the food, cosmetic or export rule that covers your finished product.
- Start with a small trial lot and a written agreement with one buyer.
Have you run hemp through any of these pathways in Thailand or the region, or are you stuck on a licence or testing question? Post it as a reply below this topic so other growers can answer.
References (Part 2)
- Central Narcotics Bureau, Singapore. FAQs about hemp and CBD oil products. https://www.cnb.gov.sg/educational-resources/myths-and-facts-about-drugs/cannabis/faqs-about-hemp-and-cbd-oil-products
- EFSA Panel on Nutrition, Novel Foods and Food Allergens (NDA), Turck, D., et al. (2026). Update of the statement on safety of cannabidiol as a novel food. EFSA Journal, 24(2). https://doi.org/10.2903/j.efsa.2026.9862
- European Parliament and Council. Regulation (EU) 2015/2283 on novel foods. Official Journal of the European Union, L 327, 11.12.2015. Regulation - 2015/2283 - EN - EUR-Lex
- Fike, J. (2016). Industrial hemp: renewed opportunities for an ancient crop. Critical Reviews in Plant Sciences, 35(5–6), 406–424.
- Ministry of Public Health, Thailand. Notification No. 427 B.E. 2564: Food products containing parts of cannabis or hemp. https://ockt.dtam.moph.go.th/images/กฎหมาย/34._พรบ_อาหาร_ฉ427.PDF
- Ministry of Public Health, Thailand. Notification No. 425 B.E. 2564: Hemp seed, hemp seed oil, hemp seed protein and food products containing hemp seed (amended by No. 437 B.E. 2565). Royal Thai Government Gazette.
- Ministry of Public Health, Thailand. Notification Re: Controlled Herbs (Cannabis) B.E. 2568 (signed 23 June 2025; published in the Royal Thai Government Gazette 25 June 2025; in force 26 June 2025).
- Rheay, H. T., Omondi, E. C., & Brewer, C. E. (2021). Potential of hemp (Cannabis sativa L.) for paired phytoremediation and bioenergy production. GCB Bioenergy, 13(4), 525–536.
- Schluttenhofer, C., & Yuan, L. (2017). Challenges towards revitalizing hemp: a multifaceted crop. Trends in Plant Science, 22(11), 917–929.