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Author: Marguerite Arnold

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Brazil May Legalize Medical And Industrial Cannabis By Year’s End

Written by Marguerite Arnold on . Posted in Politics.

The Bolsonaro government has been pushed, like many other governments before it, to move the goalposts for medical and industrial cannabis

The largest country in South America, Brazil, is about to consider medical and industrial cannabis reform (probably in the last two weeks of November).

This is big news especially as it clears the way for not only private companies to embark on a cannabis cultivation plan, but the government and non-profits as well.

Cannabis with high levels of THC will require strict security measures, such as a 2-meter wall around such cultivations, along with biometric-only access. Hemp cultivation permission will be given, if the bill is passed, by the Ministry of Agriculture, Livestock and Supply.

However, even if the legislature approves the bill, it may still hit snags at the President’s desk for signing. Jair Bolsonaro has been steadfastly against the bill – even calling it “crap” in public.

That said, it is unlikely, especially given the tide of reform that is also hitting South America of late, and the opportunity for a domestic crop with a high value as an export, that Bolsonaro will veto the bill.

A Brief History of Brazilian Cannabis Reform

All cannabis is still illegal in Brazil. However, as of 2019, the government passed reforms allowing the import, manufacturing, and sale of cannabis products (but not cultivation). Since then, particularly Canadian companies like Canopy Growth and Clever Leaves have imported and sold cannabis products to the locals. The Brazilian marketplace is one of the most valuable in Latin America – with up to 13 million people as potential customers.

Why This is Significant

Brazil is headed by a far-right leader. Most people (and parties) of this political persuasion, all over the world, are broadly opposed to cannabis reform. However, Bolsonaro is also supported by the farming caucus in the Brazilian Congress, which currently holds just under half of the seats in both chambers. A new law merely requires a simple majority to pass it.

If reform passes, it is also likely that Brazil will become a leading supplier of both hemp and medical cannabis to the rest of the American continent, if not further afield (see Europe), particularly given the example of Columbia.

The world’s most valuable agricultural crop is increasingly overturning even the most die-hard opponents – and Brazil may be the latest example, but it won’t be the last.

For more news about the global cannabis industry, be sure to follow the International Cannabis Business Conference blog.

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South Africa Examines Hemp Production To Clean Up Gold Mining Areas

Written by Marguerite Arnold on . Posted in Science.

As part of an overall plan of including cannabis in its economic development plan, the government is currently examining how (and if) cultivation of hemp can restore land blighted by gold extraction

The University of the Witwatersrand is currently funding a study to determine if the cultivation of hemp might be able to restore land that has been blighted by the highly toxic and destructive practice of mining gold.

A master’s degree candidate, Tiago Campbell, is examining the suitability of several different crops for their phytorestorative properties. This includes Indian mustard, water hyacinth, alfalfa, and sunflowers. However, he is also including hemp in the list. According to his research so far, hemp appears to be a “heavy metal hyper accumulator” – and beats all the other plants he has so far studied. This is not a new finding; however, it is further confirmation of the same. In the 1990s, the Ukrainian government also documented the plant’s ability to absorb heavy metals like nickel, zinc and chromium which were present thanks to the meltdown of the Chernobyl nuclear power plant.

Campbell has planted 1,000 cannabis plants in soil collected from the area. The plants have all grown normally.

The land he is targeting is near Johannesburg, in Gauteng Province, an area blighted by more than a century of irresponsible and unsustainable gold extraction. The area is known for one of the world’s largest gold deposits. There are also about 380 abandoned mining areas in this zone, containing elevated levels of toxic and radioactive materials – which includes arsenic, cadmium, cobalt, copper, zinc, and uranium.

The pollution in the area is a result of mine drainage which includes heavy metals known to be hazardous to both humans and wildlife.

The cultivated crops could not be used for consumption however they could be used for other purposes – such as hempcrete.

The New Green Gold

The focus on hemp to clean up the damage done to the land is just one of the efforts now well underway in South Africa to focus on the cultivation of the plant as a form of economic development.

While gold mines have long been a source of wealth for the country, the practice of extracting gold is highly destructive to the environment – rendering it unsuitable for both man and beast.

By cleaning up such areas, the land would be reopened for resettlement – and redevelopment.

For more news on the global cannabis industry, be sure to stay tuned to the International Cannabis Business Conference blog.

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Argentinian Police Make Formal Distinction Between Medical And Recreational Cannabis

Written by Marguerite Arnold on . Posted in Politics.

The chief of police in the province of Corrientes has signed orders that direct local police to avoid investigations of legitimate medical cannabis crops.

As of the last week in October, Commissioner General Félix Barboza, the chief of police in Corrientes, has signed an order officially limiting police in initiating follow-ups and investigations of legitimate medical cannabis cultivations. 

Per internal agenda No. 6636, and dated October 27, the resolution is to “avoid the initiation of sterile criminal cases and the ineffective expense of processing a process.”

This does not mean that those growing crops for recreational purposes are off the hook. They will be prosecuted according to existing law. The current regulations for citizens with a special registration with REPROCANN (the registry of the domestic cannabis program), allow the cultivation of up to 9 flowering plants, 30ml of cannabis oil, and up to 40 grams of dried flowers.

A Necessary Step

The police are on the hook just about everywhere right now to distinguish between different kinds of use – and most of them know, at least on a small scale, that this is wasted effort. In Argentina, cannabis is decriminalized for personal use in small amounts and has been since 2009. Medical cannabis has been legal since September 2016. Almost exactly at the same time that the German government voted unanimously to mandate cannabis be covered under public health insurance, Argentina’s Senate approved the medical use of CBD cannabis oil. Since November last year, self-cultivation has been legal as have regulated medical sales.

This recent police initiative, in other words, is an attempt to create state-wide definitions of what the limits for personal use and possession are.

It is exactly this kind of definition that advocates in Germany (for example) are trying to put in front of the new coalition to enact some kind of cannabis reform. So far, aus Deutschland, this kind of statement has not occurred. Indeed, patients continue to get arrested, both for possession and for growing their own.

Towards A Global Tolerance of Home Grow?

The issue of home grow is a sticky one just about everywhere. In Canada, the government has considered limiting the right of patients to grow their own, although such efforts have repeatedly failed. Canadians, just like Argentinians, must register to grow such crops, but the right is constitutionally guaranteed. Other countries and regions (including in Europe) are now wrestling with precisely the same kinds of issues. And this kind of debate will not be over soon.

In the meantime, state and regional if not national police are left to interpret the law – and patients if not recreational consumers continue to pay the price.

For the latest news, trends and analysis about the global cannabis industry, stay tuned to the International Cannabis Business Conference blog!

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Malawi Government Urges Cannabis Farmers To Form Collectives

Written by Marguerite Arnold on . Posted in Politics.

The country’s minister of Agriculture has urged cannabis farmers to form cooperatives to increase their bargaining power.

In yet another sign that the African continent is shaping up to be a power player in the world of international cannabis, Lobin Lowe, the Minister of Agriculture, has urged domestic cannabis cultivators to work together to increase their leverage (and pricing). Lowe is supportive of including cannabis as a critical part of the country’s agricultural export strategy to help build domestic development.

The Minister’s remarks came during a training workshop for farmers.

The focus here will be to create regulated products that can be exported to markets that require certifications (like the European medical market). Uncertified cultivations, however, will still be illegal.

Ready, Set, License?

So far, the government has issued 72 licenses to both local and international companies. 

However, the government is also considering issuing special licenses to local farmers so that Malawians can benefit from the crop locally.

The differentiation between cannabis for export and that grown domestically for local consumption is one that has been growing steadily over the last couple of years – and is a global phenom.

Holland is one example of the same in Europe, as is the Czech Republic. In Thailand, medical crops for domestic use are grown by farmers who are not complying with EU-GMP standards but are delivering it direct to domestic hospitals.

This dichotomy may become more widespread in places where capital is scarce (such as the developing world) and as another issue enters the room – namely recreational reform.

Regardless, the idea of cannabis as both export crop and domestic cultivar for the benefit of local citizens is one that is spreading, particularly as cannabis access becomes normalized.

Democratic access to the plant, regardless of resources to pay, is a discussion that is also clearly in the room. This is not a drug of the 1%, even if patients must grow their own illicitly.

This realization, in fact, particularly in places like Africa where cannabis has been traditionally and illegally grown.

Which Certifications Count?

This distinction, and not just from crops from Africa, is likely to continue to grow with the increasing tide of cannabis cultivation internationally. 

However, it is unlikely that the pharma standards of GMP will disappear from the medical discussion in places like Europe. Even in places like South Africa, where cannabis is still considered a drug of last resort, the only way that companies can distribute through the medical system is to have the drug licensed in Europe.

Regardless, the African discussion is throwing new themes into an already complex global discussion about cannabinoids, generally, and how they should be classified.

In the meantime, countries like Malawi are creating a domestic infrastructure to support both.

Be sure to stay tuned to the International Cannabis Business Conference blog to learn about global trends affecting the cannabis industry.

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Luxembourg’s Recreational Market Reform Includes Home Grow

Written by Marguerite Arnold on . Posted in Politics.

What does this mean for the entire discussion across the EU?

Adults in Luxembourg will be permitted to grow up to four cannabis plants in their homes and gardens as part of the emerging details of the country’s legalization program.

The announcement in mid-October certainly blew a breath of fresh if not cannabis-scented air through a debate in Europe which has also seen the European Commission begin to ponder, publicly, if they should rescind their last decision about CBD (namely that it is not a narcotic).

In Luxembourg, however, seed sales will also be permitted with no limit on the level of THC in the same. Sales will also be permitted both in shops and online (which is also no doubt, going to be a boost for the online seed businesses in Europe, starting with Holland.)

Plans also include a system for domestic production of seeds for commercial purposes – but both a national supply chain as well as state-regulated distribution have been repeatedly slowed down by Covid.

Until such plans have been drafted, it remains illegal to consume and trade in cannabis products or plants themselves. The consumption of the same in public and transport of more than three grams still remains a criminal offense. Fines for possession of under three grams will be reduced to about €25.

Legislation to formalize the market is now expected to be introduced in the fall of 2023, with work on the draft law beginning this autumn.

Among the expected issues to be discussed (based on measures already introduced) are a maximum sale amount per month (30 grams), age limits (over 18) and deliveries and online sales are prohibited. Beyond this, purchases will be limited to residents of Luxembourg who have resided in the country for more than 6 months.

There will also be a strictly controlled point of sale infrastructure. Right now, it is expected that there will be 14 points of sale across the country. Products to be sold also must be produced in Luxembourg (in a page out of the Swiss trial).

While the country is a very small one, even for Europe, the impact of the forward motion of this domestic market will be felt throughout the EU. Switzerland is not in the EU (even though it is in Europe). While it is part of a trading alliance with two EU countries (Austria and Germany), regulations here are not tied to approvals by regional authorities. Luxembourg, however, is another kettle of fish.

As a result, progress in Luxembourg is also likely to drive the recreational discussion in other parts of the continent – starting of course in Portugal, but hardly staying there – including of course, pending discussions now underway in Germany as the coalition parties who won the election continue to move towards governing.

Be sure to stay tuned to the International Cannabis Business Conference for more cannabis news from Europe (and beyond).

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Polish Hemp Production Is Down – Because Of Government Stays On Incentives

Written by Marguerite Arnold on . Posted in Business.

Hemp production fell about 36% this year because many farmers found their state-derived incentives blocked due to supposedly illegal levels of THC

Here is the good news. The Polish government is providing government incentives to the domestic hemp industry. 

Now here is the kicker. The domestic Agency for Restructuring and Modernization of Agriculture (ARiMR) which supports such efforts reduced the amount of money allocated for this activity on the basis that the hemp grown had a level of THC that is verboten.

As a result, hemp fields in cultivation for 2021 numbered just 2,300 hectares, down from 3,600 in 2020 as subsidies have been blocked for the FINOLA oilseed variety (the most popular crop).

The Finnish-based FINOLA is fighting back against this decision as well as the European Commission’s Standing Committee on Plants, Animals and Feed after the EU level agency issued a decision in late July allowing Poland to prohibit the marketing of its seeds.

There is an ongoing battle right now at the European level – namely about how and whether to proceed on a previous decision that CBD was not a narcotic or take a giant step back and reverse its earlier decision.

This hemming and hawing on a regional level is absolutely at play in Poland – particularly because the EC has already signed off on allowing a regional increase of THC from 0.2 – 0.3%. 

However, the domestic government’s stance on the issue creates yet another snag in the pipeline – namely that a regional body and one country in the region (Finland) have already proceeded with the understanding that a higher level of THC would be allowed – and a local one dug in its heels on standing precedent.

This kind of whipsaw is of course not limited to either Poland or hemp. Much of the battle for legalization reform over the next few years will absolutely be to create regional standards and then get these clearly implemented in individual countries. Both strategies will have to be followed – one is not enough. 

Beyond this, of course there are pending lawsuits that also may help change the landscape – but this strategy also has its drawbacks.

Cannabis Reform Is a Hot European Issue

Despite general intransigence and local skirmishes like this one (which have nonetheless proved to be a setback for the thriving Polish hemp industry), there is a new sense on a political level that cannabis reform is coming to Europe and will not be held back. This has been reinforced in the last month with both Switzerland and Luxembourg announcing the next steps to their own recreational markets.

Nonetheless, forward motion is going to be a hard-fought proposition – regionally and locally. This latest contretemps is just one more example.

Be sure to stay tuned to this blog for more trends and analysis of the European cannabis market.

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Switzerland And Luxembourg Firm Plans For Recreational Markets

Written by Marguerite Arnold on . Posted in Business, Politics.

Two European countries, one in the EU and one surrounded by it are, after many stutters and false starts, moving concretely towards recreational markets next year.

In the last week, both Switzerland and Luxembourg have made concrete plans to formalize their recreational plans for 2022. This may indeed prove to be Europe’s tipping point year, much akin to 2014 in the US when both Colorado and Washington State defied US federal law and moved forwards with their own recreational markets.

With Holland formalizing its recreational market, and Portugal also now at a tipping point, even if much delayed, the conversation about recreational cannabis has hit Europe. 

What this will mean, however, is a different conversation.

Most if not all investment funds (for example) are still publicly at least, only talking about medical cannabis investments. 

In a blended market like Switzerland, however, this may make increasingly little difference.

Medical Vs. Recreational Production and Certification

One thing is for sure. The level of certification issued for such markets will be done at a federal level. This means, by definition, that the level of quality will be much higher than what was initially seen in the US.

In Switzerland, pharmacies will carry both kinds of products. This means that even recreational products will have to pass federal quality tests still unseen in America.

Impact on Other EU Markets

All this is happening of course at a time when Germany, still Europe’s largest medical cannabis market, is now considering the next course of cannabis reform. It is highly likely in the next two years, that the coalition government that seems to be formalizing, will at least decriminalize the plant. 

However, with trial projects going on all around it, it is also unlikely that Germany will be able to resist the clarion call for a recreational trial within the next four years. The FDP, for one, are clear about their desire for tax money that could come from the market. This will become an increasingly interesting proposition as the ravages of both Covid and the subsequent supply chain discussions now hitting the world.

Beyond this, there are clearly other EU countries hovering around this discussion even if they have not formally announced the same. This includes the Czech Republic. It may also include places like Italy and Malta where home grow is now legit, not to mention Spain.

The future indeed seems to look brighter and brighter, and it is very clear that this time it is not just another train.

Stay tuned to the International Cannabis Business Conference blog for developments about the global cannabis industry.

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Uganda Cannabis Exports To Germany

Written by Marguerite Arnold on . Posted in Medical.

The African country is ramping up production for not only exports but also intra- African trade

The African cannabis scene is not only heating up, but so is the path from the “Dark Continent” to Germany. Indeed, Uganda is the next country to achieve GMP export status for its crops. In this case it is particularly significant as the majority of product produced in Uganda so far has been bound for the Israeli market.

What is even more interesting about this development, however, is that there is increasing interest and focus on registering medical cannabis products in the Ugandan market for local use.

A Strong African Cannabis Market

There is every indication, both in terms of the early market movers and what is clearly coming, that Africa, generally, is going to be a strong entrant into the global cannabis market. Even more than South America, it is both geographically and culturally closer to Europe (for starters). Beyond this, the difference in labour costs is already creating cannabis that is making EU-GMP starved flower markets in Europe, starting with Germany, wake up and pay notice. 

It is entirely possible, in other words, for African producers to hit a production cost per kilogram that is highly competitive with the German government reference price for flower. Beyond this, the world of extracts looms large.

The appetite for imported flower for burgeoning recreational markets in Europe may also prove to be a strong one. While Switzerland is limiting its initial recreational market to product sourced domestically, it is likely that at least Luxembourg, and almost certainly Holland will be open to exotic new breeds – many of them landrace or landrace crosses.

A Systematic Approach to Cannabis Reform

While it is not all smooth sailing, the powers that be in Africa, certainly in Uganda and even more strongly now in the tip of the continent, are starting to realize that cannabis reform is going to be very good for African economies. Governments are starting to offer incentives, and many are beginning national cannabis councils to advise on how to make cannabis a sustainable, economic development crop. 

African doctors are also starting to support the use of medical cannabis – particularly as a medicine that, beyond export, can vastly help a country’s healthcare bottom line.

One thing is for sure. African cannabis is on the map, and its influence is being felt, already, in medical markets in both Israel and Europe.

Be sure to stay tuned to the International Cannabis Business Conference blog for more developments in the world of international cannabis.

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South African Producer To List On Johannesburg Stock Exchange

Written by Marguerite Arnold on . Posted in Business.

In a first of its kind, a Gauteng based cannabis producer has listed on the Johannesburg Stock Exchange (JSE)

Tuesday October 12 last week was a red-letter day of sorts for the South African cannabis industry (not to mention the regional discussion beyond that plus destination markets). Cilo Cybin Pharmaceutical, based in Gauteng, listed on the JSE.

Partnered with the Vaal University of Technology, the company has received massive interest from investors so far. Product validations are on target for the South African summer season.

The Africans Are Coming

The cannabis industry in the southern tip of Africa is certainly starting to come into its own. The first GMP cannabis has now shipped to Germany (from several firms) and at prices that are making everyone impressed (along with high quality). This includes cannabis from Lesotho as well as South Africa. But there are others lining up to follow (see Zimbabwe).

Cannabis from Africa is starting to make a splash, in other words, in many places in Europe (and not just Germany). With prices that make exports even to low-income European countries feasible, cannabis production from this part of the world is on track to have a major impact in the highly competitive medical market across the EU and in the UK.

In turn, this will also begin to make a serious dent on pricing, which has started to go down, but not by much. News, however, of 100 euro a gram cannabis sold wholesale to any European country is not likely to surface again as a result.

The Growing German Medical Market

While patient counts are still hard to nail down for sure, the German cannabis market continues to grow. The latest estimates are that there are 130,000 German patients right now – and of course, as most in the industry know, this is only going to increase.

Beyond this, there is a general interest in medical cannabis now that the Covid Pandemic is at the stage where it is. This includes scientific inquiry (and by some of the best-known names in the industry like Rafael Mechoulam) about the impact of cannabis on Covid.

Bottom line? You are likely to see some African-grown cannabis in a pharmacy near you – and as recreational markets open in Europe, no doubt some intriguing brands that are off the charts in terms of taste and stability.

African Queen cannabis anyone? The journey is just beginning.

Stay tuned for more regional and international cannabis updates.