International Cannabis Business Conference Blog – Page 115 – International Cannabis Business Conference

Germany Or The U.S.: Who Will Go First On Federal Cannabis Reform?

Written by Marguerite Arnold on August 1, 2022. Posted in Policy.

The Cannabis Administration and Opportunity Act introduced in the U.S. Senate in late July, removes cannabis from the Controlled Substances Act and allows states to legalize recreational cannabis. How are American developments stacking up to current events aus Deutschland?

Ironically, just two days after Burkhard Blienert addressed the International Cannabis Business Conference in Berlin about pending German reform and outlined a rough schedule for legislative passage, a cannabis reform bill was introduced in the US Senate by Senator Chuck Schumer (D-NY).

A Side By Side Comparison

While German politicians are still unwilling to unveil details of the pending legislation until later this fall, the US version is now available for review and debate. The American bill specifically proposes removing cannabis from the Controlled Substances Act – an issue still of some contention in Germany. Beyond this, it would create a tax on cannabis product sales, expunge the records of those with past cannabis convictions, and allows federal prisoners serving time for nonviolent cannabis convictions to petition for resentencing. The legislation, if passed, would also establish a national regulatory framework to protect public health and safety.

In Europe, things are still less specific, although first-of-their-kind multilateral talks have now been launched between Malta, Luxembourg, and Germany. Beyond the information gleaned from the hearings in June, European lawmakers are now considering how to proceed not only on a national but regional level.

One of the standing questions on this side of the pond is how individual countries and the region itself will handle the actual legalization itself, including removing cannabis from sovereign narcotics laws as well as regulations at the EU level. There seems to be less interest in dealing with issues like racial justice, although there will clearly be a discussion about how to handle those with both convictions and those who are currently in jail for nonviolent cannabis offenses.

The discussion about taxing cannabis based on the levels of THC found in products and plants appears, for now, to be just a European debate.

The Likely Path To Passage

Right now, the US Senate is the main battleground for cannabis reform. Various bills have passed the House over the last decade only to be shot down in the Senate. It is also unclear whether Schumer has enough bipartisan support to carry the bill through to passage this time – and whether, once also passed in the House, the reconciliation between both bills could happen before the midterm elections.

On the other hand, the German timetable for reform is more likely to create a bill that passes both the Bundestag and Bundesrat, and further on a timetable now alluded to by national politicians.

For these reasons, while it is also very plausible that both debates will drive each other, it seems that Germany (and beyond that Europe) is likely to take the plunge into recreational reform on a schedule ahead of the US.

Switzerland Legalizes Medical Cannabis And Allows Exports

Written by Marguerite Arnold on August 1, 2022. Posted in Policy.

The Swiss government has joined other European countries in fully legalizing medical cannabis for domestic use, and export

Switzerland is moving forward on its own path to full legalization. With a federal recreational trial pending, the country has now fully and formally legalized medical cannabis use. This has been achieved by amending the Swiss Narcotics Act to change the status of cannabis.

As a result, as of August 1, Swiss patients can obtain medical cannabis via a simple prescription from a regular doctor. Up until now, patients had to obtain special permission from the Federal Office of Public Health. The government has justified this new development by stating that the demand for authorizations has created a huge administrative burden and slowed down medical treatment.

There are currently about 3,000 authorizations for medical cannabis use in Switzerland, issued for patients suffering from cancer, neurological conditions, and MS. The authorization for exceptional use was authorized in 2019. Beyond this, there are an untold number of patients who have also obtained cannabis from the illegal market.

The Transition to Cannabis Normalization

The University of Geneva published a study in June that estimated that the economic impact of legalization in Switzerland would generate an estimated $1 billion in revenue and create about 4,400 full-time jobs. An earlier study published two years ago estimated that the value of the national cannabis market would be about half that.

Obviously, both figures are just guestimates. There is really no way to understand both recreational and medical demand until both are fully normalized.

The Impact on European Legalization

Switzerland is located in Europe but is not a member of the EU. Regardless, the steady progression here towards a normalized market has clearly helped drive the conversation elsewhere. This starts with Germany. However, it also includes countries like Malta, Luxembourg, and Portugal on the recreational side of the debate, and beyond this, Spain, Greece, Italy, and the Czech Republic on the purely medical side.

The path to legalization in Switzerland is also being achieved through a slow normalization of medical use while beginning a limited trial in key cities later this year.

As a result, it is obvious that the Swiss example will be studied and considered as other countries begin to make moves in this direction. One of the more interesting aspects of the same is that Switzerland has also effectively lifted some kinds of regulation that are applied to the industry elsewhere – including GMP and Novel Food. How this will work externally is another question as Swiss products are exported across international borders.

Regardless, the small steps Switzerland is making now will certainly forward the entire debate, both here, and in their immediate surroundings.

The future is increasingly now.

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The End of Israeli Public Cannabis Companies?

Written by Marguerite Arnold on August 1, 2022. Posted in Business, Policy.

Before the pandemic, the Tel Aviv Stock Exchange was bubbling. Now the Tel Aviv Exchange is dropping the Cannabis Index. What gives?

In what is going to be a blow to the idea of a public cannabis company in Israel, if not beyond, the Tel Aviv Exchange has dealt another blow to the public cannabis company model. Namely, it is dropping the so-called Cannabis Index.

Just three years ago, both celebrities and public figures were being avidly recruited by Israeli cannabis companies to promote themselves to investors and raise their stock value. Much like in Canada, many Israeli companies that went public did so by merging with an existing shell company already listed on the exchange. After their debut on the exchange, at least initially, stock values soared. 18 months ago, the exchange then created its own Cannabis Index, although many doubted how useful this would be. The biggest reason for such early doubts? There were actually very few companies listed on the exchange, and as a result, it was dominated by just a few companies. In fact, the value of the exchange was mainly based on the valuation of just one company.

After soaring in value, the cannabis bubble burst, and the worth of the index has now dropped 70%, leading to the decision to delist it, as of this Thursday, August 4.

Are Public Companies the Future of The Cannabis Industry Anywhere?

While there are successful public cannabis companies, the continued roil of their worth on the public markets continues to be controversial. For example, Canopy Growth, by far the market leader both domestically and during the first expansion overseas, to Germany, was just delisted in Canada.

Part of this painful arc is the huge costs that have been required to both build certified facilities as well as gain market share. The largest companies have gotten this way by acquisition rather than organic growth.

Part of this is the growth of the industry, in all places, almost simultaneously.

In Israel, the Pandemic is also surely partly to blame.

Not all public cannabis companies are doing badly. But the reality is as the industry goes into its next iteration that public companies are not necessarily the only model, or the best one, to create a profitable company.

The Israeli exchange may be headed for extinction, but the idea of a public cannabis company is not.

For all the excitement about recreational legalization, one thing is increasingly abundantly clear. The structure of cannabis companies themselves is far from a given – and public companies may not (yet) be the best or ideal way to raise cash and conduct global operations.

While there are increasing numbers of public pot companies globally, it is also clear that there have been some gigantic missteps too.

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Hemp Increases Cow Health – and Reduces Bovine Stress

Written by Marguerite Arnold on August 1, 2022. Posted in Science.

A federally funded study published in Scientific Reports suggests that hemp has similar effects on humans and cows

A US Department of Agriculture-funded study of hemp-based cattle feed, which has been underway since 2020 has begun to deliver intriguing results. Cows can completely digest all parts of the hemp plant, including stems, stalks, and other “waste” parts not used for other purposes.

Giving industrial hemp to cows appears to help them feel less stressed and may even be good for their overall health. The effects of the plant, in other words, may be similar in both humans and cattle. Furthermore, this is a very efficient use of parts of the hemp plant that are not normally used – creating a highly efficient end-use product.

This study examined 16 Holstein steers, split into two groups. One group was fed nothing more than their normal feed for a period of two weeks. The other group consumed their feed, mixed with hemp that gave each cow a daily dose of 5.5 mg of cannabidiolic acid per kilo of body weight. Blood samples were taken from all cows to understand how hemp affected each study participant.

The cows that ate CBD began to show lower cortisol and prostaglandin levels in their blood. Both of these chemicals are common markers of stress. They also spent more time lying down than the control group.

Cows who suffer elevated levels of stress, either from early weaning or cramped quarters, are more prone to developing respiratory infections or other diseases.

Despite these encouraging results, American farmers are still not allowed, by mandate of the USDA, to feed hemp to any livestock bound for human consumption. The reason is that the US government is still concerned that minute amounts of THC might linger in meat or milk from cows who have consumed the hemp plant. This latest study shows that these concerns are not valid.

Animals and Hemp

While still in its early stages, feeding animals hemp and hemp products is clearly a growth industry. Multiple studies have been conducted on dogs, with good effect. Beyond domestic animals, however, farm animals also are positively affected. A recent Thai study has found that chickens who are fed hemp-based food also need fewer antibiotics to stay healthy.

As more conclusive studies are conducted, it is becoming apparent that cannabis is not just a wonder plant for people, but for all kinds of animals as well.

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Recapping A Historic International Cannabis Business Conference In Berlin

Written by Johnny Green on August 1, 2022. Posted in Business, Entertainment, Policy, Science.

Whether you are a passionate cannabis enthusiast or just a passive cannabis industry observer, you are surely well aware of the fact that Germany is trending towards implementing adult-use cannabis legalization, and with it, a regulated adult-use industry. Germany may not be the first nation to pursue such a nationwide public policy and industry evolution, however, it is the most significant effort of its kind to date.

Germany is home to the fourth-largest economy on planet earth, with only the economies of the United States, China, and Japan ranking higher (as measured by GDP). Cannabis may be legal at the state level in some parts of the U.S., yet federal legalization still remains out of sight and nationwide cannabis sales are even further out of reach. China and Japan have no current plans to legalize cannabis, and for that matter, the rest of the countries on the list of ‘top ten economies on earth’ will maintain prohibition for the foreseeable future with the exception of Canada.

Canada is currently the only G-7 nation that allows regulated adult-use sales and has served as the top ‘legal cannabis economy’ on the planet since launching nationwide adult-use sales in late 2018. Once Germany launches nationwide cannabis sales, which could come as early as 2023, it will instantly take over the title of being home to the largest cannabis market in the world.

Germany’s economy is over twice the size of Canada’s economy, and the same is true when comparing the two nations’ populations. Canada only shares a physical border with one country, the United States, and many border states now have their own adult-use industries. Germany, on the other hand, shares physical borders with nine countries – the most in Europe. Barring any unforeseen policy changes, Germany will be an adult-use sales oasis in the region to a large extent, with Germany and the surrounding countries’ populations adding up to roughly a quarter billion people. The significance of legalization in Germany cannot be overstated.

Given the context of what is going on in Germany right now, Berlin served as an amazing backdrop to the International Cannabis Business Conference which took place on July 19-20th at the Hotel Estrel. It was the fifth installment of the B2B conference in Berlin, the largest of its type in Europe, and with so much excitement about what is going on right now in Germany, it proved to be an experience of a lifetime.

The attention of virtually every member of the emerging global cannabis industry has been squarely on Germany this year, and it was very evident throughout the conference that the excitement level was off the charts with so many people finally meeting in person to discuss everything. You could really sense that everyone was eager to get back to attending events in person, to learn more about what is going on in Germany and Europe, and to share what is going on in their own respective jurisdictions.

A major theme of this year’s historic conference involved cohorts representing over 85 countries traveling to the event, creating almost a ‘United Nations of cannabis’ environment. One thing that we have always strived to do at the International Cannabis Business Conference is to connect people from all over the globe, and it was exciting to see that on full display at this year’s Berlin conference on such a grand scale.

Germany, for obvious reasons, is a very exciting place for cannabis and what is going on there will have a butterfly effect on the rest of the world. However, there is plenty of other significant things happening elsewhere on the planet, and that was evident in much of the networking that occurred throughout the two-day B2B conference. Entrepreneurs, policymakers, investors, and industry service providers from nearly every corner of the world were comparing notes, striking deals, and discussing plans for the future.

It was very inspiring to see each and every time, and it was truly symbolic of the current state of the cannabis industry. The cannabis industry is going global. Historically, legal cannabis markets were entirely confined by national borders. Exports and imports have slowly ramped up in some nations over time, but make no mistake – the future of the cannabis industry will largely play out on the world stage and the cannabis plant is going to go mainstream at a global level in the coming years, which was talked about over and over at the Berlin conference by participants in discussions that often included representatives from multiple continents.

The most historic moment of the conference, and arguably the most historic moment of any cannabis conference to date, came via the day one keynote address provided by Mr. Burkhard Blienert. Mr. Blienert currently serves as Germany’s top drug policy official and is overseeing the nation’s adult-use cannabis legalization and industry implementation process. It is the first time in history that a currently-serving official at that level has ever spoken at a cannabis conference, and right in the middle of the public policy reform process no less. Hearing from Mr. Blienert in the midst of everything that is going on in Germany and Europe was truly special and an experience that attendees will no doubt cherish for years to come.

The two-day conference was packed with other world-class speakers and panels, videos of which can be found on the International Cannabis Business Conference YouTube channel. Topics for panels and presenters included, but are not limited to:

Ongoing activism and advocacy
Medical cannabis policy
Cannabis policy in Germany
Shifting cannabis policies in Europe
Evolving industry standards and regulations
Emerging markets
Supply chain and logistics
Legalization models
Cultivation
Sustainability
Consumer trends
Investing opportunities

If you have been involved in cannabis for any significant duration of time, then you know firsthand that there are certain times and places when you realize that you are in the midst of history being made. For people in attendance at the International Cannabis Business Conference B2B event in Berlin this summer, it was absolutely one of those times. The networking and learning opportunities were unmatched, and never before has such a wide array of cannabis industry representatives from so many different countries come together under one roof at the same time.

As always, it isn’t an International Cannabis Business Conference event without an amazing after-party, and this year’s after-party was particularly epic. Multi-Grammy awarding-winning reggae band Morgan Heritage kicked off their European tour at this year’s after-party event in Berlin. They were joined on stage by reggae pioneer Rocker-T, and collectively they rocked the house. The concert in such an intimate setting was the perfect way to unwind and celebrate after networking and learning. International Cannabis Business Conference founder Alex Rogers also rocked the mic on stage with the crew for a time, proving once again that the International Cannabis Business Conference works hard and plays hard.

The International Cannabis Business Conference team is already working hard on the next conference in Berlin which is currently slated to take place June 29-30, 2023. It’s quite possible that it could be the first conference in the new adult-use legalization era in Germany, which is an extremely exciting thought. With so much going on in the emerging global cannabis industry right now, particularly in Europe, the 2023 conference in Berlin is a must-attend. We look forward to seeing you there!

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Cannabis Smuggling Continues To Decline Along US/Mexico Border

Written by Frank Schuler on August 1, 2022. Posted in Policy.

Cannabis advocates have long pointed out that when cannabis is prohibited, people still consume it. That may seem obvious, however, cannabis prohibitionists try very hard to pretend that it’s not the case.

Under prohibition, cartels largely control cannabis sales. That is not to say that every single piece of cannabis is cartel controlled. Surely there are people cultivating small amounts where cannabis is prohibited and presumably some of them are selling it to other people.

In a regulated cannabis system, many consumers and patients will gladly make their purchases at licensed outlets, even if it is a little more expensive compared to unregulated sources.

That is on full display along the border shared by the United States and Mexico where cannabis seizures continue to decline year after year as legalization continues to spread north of the border. Below is more information about the latest numbers via a news release from NORML:

Washington, DC: Federal officials report a significant drop in the quantity of marijuana they are seizing at the US international border, according to data compiled by the US Department of Homeland Security.

According to reporting provided by borderreport.com, “Department of Homeland Security agencies in FY2021 seized 160 tons of marijuana, an average of 874 pounds a day. With three months left in the current fiscal year, agents have seized 56 tons, an average of 408 pounds a day.”

The year-over-year decline in marijuana-related seizures at the border is in stark contrast to more generalized data showing a 25 percent increase in overall drug-related seizures. However, it is consistent with longstanding trends previously reported by the US Drug Enforcement Administration that determined, “In US markets, Mexican marijuana has largely been supplanted by domestic-produced marijuana.”

Separate data provided earlier this year by the US Government Accounting Office reported that “most drug seizure events [at the US border] involved only US citizens (91 percent), of which 75 percent involved the seizure of marijuana and no other drugs.” Of those seizures, 69 percent involved only personal use quantities of cannabis.

Additional information on drug-related border seizures is available from the US Customs and Border Protection agency.

License Process To Cultivate Cannabis In Ghana Deemed Unconstitutional

Written by Frank Schuler on August 1, 2022. Posted in Policy.

Ghana is one of several countries on the African continent that is working towards making a meaningful impact in the emerging global cannabis industry.

In 2020 policymakers in Ghana passed the ‘Narcotic Control Commission Act’ which, among other things, created a process by which entities could obtain licenses to cultivate low-THC cannabis for industrial and medical use.

The measure was far from revolutionary, in that low-THC cannabis is already cultivated for industrial and medical use in a growing number of countries around the world. Thailand, for instance, allows any household in the country to obtain government permission to cultivate low-THC cannabis.

With that in mind, it was very defeating when Ghana’s Supreme Court recently deemed the new licensing process in Ghana to be unconstitutional. Per Ghana Web, the decision seemed to hinge on a procedural technicality.

Ghana’s Constitution was implemented in 1992 and stipulates that any measure that is passed by a committee must also go to Parliament for full debate and passage before coming into law.

It’s nuanced, but four out of seven justices apparently felt that the licensing process gave too much decision-making power to the newly formed Commission and Minister, with the three remaining justices dissenting.

It was a very close decision, decided by only one vote, and given the fact that cannabis is not going anywhere, it’s very likely that this isn’t the last chapter in this licensing saga in Ghana.

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Survey Finds Majority Support For Medical Cannabis In Brazil

Written by Frank Schuler on August 1, 2022. Posted in Policy.

Medical cannabis is technically legal in Brazil, however, the country’s medical cannabis program is extremely limited. For most patients, safe access does not exist, and for the limited number of patients that do have safe access, it’s almost entirely based on imported medical cannabis products.

Back in June 2022, Brazil’s top Court ruled in favor of three patients that sought to cultivate their own cannabis. The Court at the time seemed to indicate that it felt that Brazil’s government was purposefully trying to hinder safe access. Per prior Associated Press coverage of the decision:

Judge Rogério Schietti said the top court’s panel acted because the government had failed to take a scientific position on the issue.

“The discourse against this possibility is moralistic. It often has a religious nature, based on dogmas, on false truths, stigmas,” Schietti said. “Let us stop this prejudice, this moralism that delays the development of this issue at the legislative, and many times clouds the minds of Brazilian judges.”

PoderData recently surveyed voters in Brazil to gauge their level of support for medical cannabis. It’s not the first time that the company surveyed voters on the issue, and while there was a decline in support compared to their last survey conducted in January, the results still demonstrated that a majority of voters support medical cannabis. Per UOL:

A survey by PoderData , released this Tuesday (26), pointed out that the approval of the use of cannabis for medical treatments has decreased . In January, 61% of those surveyed were in favor of legalizing the medical use of marijuana. In July, this index dropped to 54% .

Those who were against the release in January were 26% , a number that grew to 37% in July.

Every suffering patient around the world deserves to have safe access to medicines that they find to be effective at treating their condition(s). That is true when it comes to cannabis as well as every other form of safe, effective medicine.

Patients shouldn’t have to rely on court decisions for safe access protections, if for any reason because not every court decision pertains to every patient. Just because three patients can cultivate medical cannabis doesn’t necessarily mean that it applies to every situation.

Suffering patients in Brazil need lawmakers to stop the footdragging, to step up, and to pass legislation that will yield permanent safe access solutions.

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Thailand’s Public Health Minister Does Not Support Recriminalizing Cannabis Again

Written by Frank Schuler on August 1, 2022. Posted in Policy.

Earlier this year Thailand implemented a historic law that dramatically changed the nation’s cannabis policies. Low-THC cannabis became legal nationwide, and literally, every household in Thailand became eligible to apply to cultivate cannabis.

It would be a major shift for any country, however, it was particularly impressive for a nation located in a region where people can still receive the death penalty for cannabis-only offenses.

A grim reminder of that fact happened recently when Singapore executed someone who was caught with cannabis. The ultimate penalty came after the person served seven years in prison.

Thailand’s new cannabis law is significant, and will hopefully serve as an example for the rest of the region to follow. Unfortunately, there has been some pushback in Thailand with calls to pull back the new cannabis policy, although it appears that those naysayers do not have a very sympathetic audience with Thailand’s Public Health Minister.

Below is a social media post from Khaosod English:

Public Health Minister Anutin Charnveerakul vowed on Tuesday to not allow anyone to criminalised marijuana again. Speaking at a marjuana, spa and tourism promotion event, Anutin said there will be a chain reaction affecting many businesses if marijuana is criminalised again as many business contracts to produce and market marijuana for medical purposes have been signed.

The minister added that even though the Marijuana Act has yet to be enacted, public health regulations restricted the use of marijuana for recreational purposesabd it must be regulated like tobacco as it causes adverse effects to health. Anutin said officials at the Public Health Ministry listen to those, including medical professionals, who oppose the decriminalization and will use their inputs in revising the draft Marijuana Bill.

Cannabis prohibition does not work. It is an inhumane public policy and a complete waste of limited public safety resources. Law enforcement should be fighting real crime, and the judicial system reserved for prosecuting actual criminals.

Thailand’s new approach to cannabis policy is still very young by public policy standards, and hopefully as more time goes by and the unfounded fear-mongering claims by prohibitionists will prove to be just rhetoric, hopefully then the calls for reinstituting full prohibition will subside.