Jersey Hemp is the first British company to get a licence to harvest hemp flowers for cannabidiol oil (CBD).
Hemp is part of the cannabis family that is grown specifically for its industrial uses.
The island's government has granted the company a licence to harvest, process and store the hemp flower for the production of CBD goods.
It will allow them to produce 30-40 tonnes of dry hemp a year.
Research from the Centre for Medical Cannabis shows that the market for CBD products is currently worth £300m a year and could rise to £1bn in 2025.
Jersey's Economic Development Minister has said he is very pleased the government has granted this licence to Jersey Hemp.
The Chief Executive of Jersey Hemp has said he is delighted the company is being given the licence.
CBD, unlike the other cannabinoids found in cannabis is legal and has been found to have no psychotropic properties.