What’s happening in Latin-America’s cannabis industry, and why are so many companies looking to Colombia for green opportunities?
When contemplating investments in the “Green Rush”, most people would immediately point their noses towards Canada and the US, or maybe Europe. And they wouldn’t be wrong, per se, business is booming (or should we say “blooming”). But, fixating on those continents might be a big mistake. They stand to overlook one part of the world that could very well become the biggest exporter of legal cannabis worldwide: Latin America and Colombia in particular.
The best conditions possible for successful Cannabisness
Colombia is blessed with the ideal conditions for growing cannabis. It has the perfect climate to produce top-notch cannabis plants that can compete with virtually any strain on the planet. The country’s skilled labour costs are low, making a venture there likely to be profitable. Not to mention a legal framework that is in a positive state of flux, opening the door for potential future export. Colombia has already begun exporting small amounts of cannabis this year, and as more companies increase their production, it stands to reason that this quota could be much higher for 2020.
The country itself has legalised the consumption of cannabis for medical purposes, and cultivation for personal use. As of May this year, Colombian opposition parties have begun working on proposed legislation that would regulate the production and consumption of cannabis for recreational purposes. Time will tell when this legislation will pass, but the fact that even President Ivan Duque’s party recognises the massive potential that cannabis has to offer makes investors see a bright and green future for Colombia’s cannabis export possibilities.
Breaking ground on Colombian soil
Many Canadian cannabis behemoths like Canopy Growth, Khiron Life Sciences, Tilray Inc., and Aurora Cannabis have already staked their claim on Colombian soil, but the Latin American market is far from saturated. Consider this, nearly half the countries on the Latin American continent allow or partially allow the consumption of medical cannabis, making the projected total market access, in terms of population size, 640 million potential customers. No wonder more and more companies are looking to start-up operations in Colombia.
Canadian Cannaverde Pharma is one such company. After acquiring Colombian licensed medical cannabis company Green Health Colombia, cultivation for scientific evaluation began in January 2019 and plans are in motion to begin commercial cultivation of CBD rich strains by the end of this year, and THC rich strains, following approval, at the beginning of 2020.
(Source: Cannaverde Pharma)
The question is, how does a company find solid footing amongst the movement of green giants? How does one navigate Colombia’s legal framework? Or how can a company acquire and maintain licences for the international export of cannabis? Cannaverde’s CEO Michael Nistorescu will answer these questions and more on October 30th during the second Cannabis Capital Convention (3C) which will take place in Amsterdam. Reserve your tickets today. The ticket also grants you access to great networking opportunities with cannabis investors, influencers and up and coming entrepreneurs.
Register now and take advantage of the Early Bird discount for the 2019 edition of the Cannabis Capital Convention, in Amsterdam on October 30th.
Article by Herbert M. Green