For US cannabis businesses and investors eager to make bets on the cannabis industry’s future, Colombia currently offers an appealing option to Canada. In the past, the US has looked to Canada because it provided a special and nearby potential for investment outside the US cannabis market. Colombia currently appears more appealing as a competitive cannabis player due to Colombia’s tight cannabis regulations, strict regulation, and lack of development by the Canadian federal government. The expansion of Colombia’s cannabis industry is mostly due to favorable cultivating settings, decreased production costs, and strong R&D. Public companies operating in Colombia have entered the fray and demonstrated incredible performance, and are currently a sleeping giant, whilst Canada has garnered the most of the headlines and financial coverage on TV news.
A large portion of Colombia’s market expansion can be attributed to advantageous governmental policies. Ivan Duque, the previous president, issued a crucial decree in the summer of 2021. By lifting export restrictions on dried cannabis, the order accelerated the nation’s potential for cannabis revenue and was viewed as a signal that Colombia’s cannabis market was prepared to take off. That claim is coming to pass, with some observers believing that Colombia has an advantage on the global market.
The small number of active operators in Colombia is another strong market factor. This is because both domestic cannabis growers for medical purposes and those seeking to export their products internationally must pass a rigorous government approval process. The medicinal cannabis industry in Colombia is unlimited, but laws prevent the majority of companies from entering the sector. Although these restrictions can appear onerous in a developing market, they serve Colombian patients who need constant, precisely dosed cannabis medicine.
The Ministries of Justice, Agriculture, and Trade approved the import and licensing rules in April 2022. About 700 cultivators and operators have received permits since 2016 in the nation. Ten of the licensed individuals are currently actively employed in the nation. The small number of active operators demonstrates how seriously the government takes product quality. A company’s harvested crops must pass a government-run certification procedure for industrial or medical cannabis before gaining full clearance.
Before the most recent rulings, Colombia has already begun to create the groundwork for a significant cannabis reform. The administration asserts that the nation has already gotten $250 million in foreign capital for the cannabis industry. A portion of the revenue was obtained through years of regulatory reform, including the passage of a law legalizing medical marijuana in 2016. Senator Juan Manuel Galán proposed the legislation, which permitted licensed growers to produce medical marijuana. Since then, and particularly in the last four years, leadership has continued to take actions that place Colombia at the forefront of the cannabis market. Examples include allowing for the export of both recreational and medical cannabis and mandating that domestic cannabis prescriptions be fully covered by insurance.
The nation has a position on the distinction between cannabis that is psychoactive and cannabis that is not. The government has promised to collaborate with businesses to further the industrialization of hemp and increase the productivity of goods including building materials, textiles and apparel, plastic composites, biofuels, and more.
Such choices show the nation’s complex position and all-encompassing strategy toward the plant. It is safe to assume that Colombia has a solid hunger for cannabis education along with industry development based on their behavior. establishing alliances with other institutions to aid in the advancement of knowledge of the plant and the subindustries it is capable of producing.
Additionally, cannabis brands are advancing education. In order to discover new uses for the plant and create a market for high-quality, prescribed, and dietary supplement-based goods, Flora is happy to collaborate with a number of academic institutions. Flora is working with INVIMA to determine the safest quantities of particular compounds in nutritional supplements among other things. Additionally, we have collaborated on genetics research and product development with the Industrial University of Santander.
At the same time, Flora is collaborating closely with the government to highlight how the nation is becoming a cannabis metropolis capable of controlling the world’s supply chain.
World-Class Growing Environments
When compared to its neighbors in North America, Colombia’s biodiversity, natural abundance, and cultivation cost savings are unmatched. This is in addition to the country’s remarkable regulatory framework. Colombia is the world’s top location for outdoor, sun-grown marijuana because it offers a terroir that is unmatched anywhere else in the world. Cannabis is produced there at 1,500 meters above sea level, close to the equator, using natural water deposits. Even the top professionals in the industry find it difficult to duplicate Colombia’s inherent advantages.
Due to the country’s favorable agricultural conditions, businesses can avoid paying the high production and equipment costs connected with indoor and hybrid farming. Colombia provides many of the environments that other places want to imitate, despite the fact that manufacturing and transformation processes demand significant investment. The skilled workforce available locally is also hard to beat. Colombia’s farmers have a deep understanding of the land and its best techniques after years of working in the region’s soil with diverse crops, including the cut flower industry (think bouquets).
Ideal labor and land conditions lead to lower production costs and savings for global partners. Colombian businesses like Flora frequently manufacture cannabis for $0.06 per gram when a North American manufacturer charges $1.25 per gram.
Setting the Example for Cannabis’ Future
Colombia keeps becoming as a market leader for medical cannabis worldwide. The government and businesses are making investments for the future of the economy and the welfare of Colombian citizens. Colombia has gained a thorough understanding of the cannabis plant, its users, and how its products could assist treat medical ailments through cutting-edge research and worldwide collaborations. At the same time, Colombian marijuana seems ready to spread over the world and provide a more cheap option for both the medical and recreational markets.
While we can be proud of our accomplishments, we must also keep in mind the challenges the business still faces. To better understand plant medicine, laws, and how legalization can address the repercussions of the drug war, there is still considerable work to be done. The Colombian government, authorized businesses, and locals all have a role to play. Although the work won’t be simple, as we have already shown, Colombia may reap the rewards of our efforts for many years to come.
