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Canadian Study Arrives At Obvious Conclusion Regarding Cannabis Purchasing Decisions

Written by Johnny Green on . Posted in Business, Policy.

I am one of those lucky people that lives in a legal cannabis jurisdiction, and in my opinion, I live in the best legal market for cannabis consumers on earth. The State of Oregon in the U.S., where I reside, passed an adult-use legalization measure in 2014, with regulated sales beginning in 2015. Since the start of regulated sales, Oregon’s unregulated market as it pertains to domestic consumers has progressively shrunk, so much so that it’s virtually non-existent these days. That has resulted in me often being asked by cannabis observers around the world how Oregon did it?

Oregon is obviously not the only place to allow regulated sales, and yet, most other legal markets struggle with competing with the unregulated market. To be sure, unregulated cannabis is still cultivated in Oregon, however, none of it stays within the state’s borders from what I can tell, which is not a coincidence in my opinion given that Oregon has the lowest prices for legal cannabis products in the nation. Presumably, unregulated Oregon cannabis goes to other jurisdictions that have yet to legalize sales, and in some cases, some of it likely even goes to other legal markets where the price of legal cannabis is exponentially greater.

Price Matters

I have read my fair share of theories and expert analysis pertaining to ‘what needs to be done to combat the unregulated cannabis market’ and while much of it provides some level of insight, at the end of the day it’s an extremely straightforward ‘riddle’ to solve. As with anything, price matters, which is what yet another recent study determined, this time out of Canada.

“Higher prices and inconvenience of legal sources were common barriers to purchasing legal cannabis,” researchers concluded. “Future research should examine how perceived barriers to legal purchasing change as legal markets mature.”

A previous study from 2018 determined that cannabis consumers are willing to pay a bit more for regulated cannabis from licensed outlets compared to the regulated market, however, there’s a limit to how much more they are willing to pay. Every dollar that gets added to the price of legal cannabis results in some percentage of customers choosing to go the unregulated route, and thus, lawmakers and industry regulators should strive to do what they can to keep prices low.

Reasonable Taxes And Regulations

When people think of the government’s involvement in the cannabis industry, they often seem to oversimply it. After all, there’s more to operating in the industry than just initial licenses and taxes. Every regulation that is added to the cannabis industry contributes to a higher final price at the point of purchase. Evolving packaging requirements, security requirements, and many other regulatory components make operating a cannabis business expensive.

Current tax provisions for cannabis businesses are such that those business have to pay considerably higher taxes compared to other legal businesses, and for those that have banking access issues, additional security expenses may also be involved, such as armored transport services. Then there’s also, of course, the taxes on purchases themselves, which also adds to the final price for legal cannabis. Collectively, all of the costs and taxes can add up.

Meanwhile, nearly all of those aspects of the legal cannabis industry that drive up prices for legal products do not exist in the unregulated market, and as such, prices for regulated products will never be equal to prices for unregulated products. The goal is to get legal prices as low as reasonably possible so that the other benefits of regulated cannabis (testing, convenience, wider selection, etc.) are worth the extra cost. If lawmakers tax legal cannabis to death and regulators fearfully implement regulations that are obviously overkill, the unregulated market will always thrive, and it doesn’t have to be that way.

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Argentina Adds New Cannabis Varieties To National Catalog Of Cultivars

Written by Hazel Norman on . Posted in Business, Policy, Science.

Argentina has experienced a lot of cannabis industry and policy activity in recent months. For instance, right before the start of last summer lawmakers in Argentina passed a measure to boost the nation’s emerging cannabis industry.

Weeks later, Argentina’s Supreme Court rendered a decision that permitted medical cannabis patients to cultivate their own cannabis in some instances. Roughly a month ago, Argentina’s government issued its first domestic production license, shortly after which the government launched a public company to provide seeds, testing, and training to the emerging domestic industry.

The most recent activity out of Argentina involves new cannabis genetics being added to the nation’s cultivar catalog. Per Minuto Ya:

New varieties were incorporated into the National Registry of Cultivars of INASE , thus expanding the supply of propagation materials destined to supply the R&D projects approved by the Ministry of Health and the users registered in REPROCANN .

The new varieties are ANANDA001, from Anandamida Organic SAS; JEALOUS 10 by Diego Di Maggio; Polaris, by Lucia de Souza Madeira; and TROPICANA WFC, by Facundo J. Meligene.

Any time that growers have more cannabis genetics to select from it’s a good thing. And with that in mind, while it is great that four new cultivars were added in Argentina, it is not nearly enough.

Several countries around the world now permit medical cannabis to be cultivated for industry purposes. Many of them do not limit the types of cannabis strains that can be cultivated, and yet, they have experienced no issues related to strains (and why would they?).

Argentina’s medical cannabis industry is starting to make strides, however, there’s obviously still a lot of unnecessary restrictions and limitations in place. Hopefully Argentina’s program continues to expand, and at a more rapid pace, so that as many suffering patients can be helped as possible in the near future.

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Why Other European Countries Need To Be Like The Czech Republic

Written by Johnny Green on . Posted in Business, Entertainment, Policy.

Ever since the dust settled on the 2021 federal election in Germany cannabis observers around the globe have kept a close eye on the cannabis policy discussions going on inside of Germany’s borders. The new governing coalition made it clear that they would work towards legalizing cannabis for adult-use in Germany, and that effort moved one step closer last month when Health Minister Karl Lauterbach (SPD) made a formal presentation to the federal cabinet. The German prohibition domino is the largest in Europe, and thankfully, it appears that the Czech Republic may be on the same timeline.

As we previously reported, leading up to to the formal presentation in Germany the national anti-drug coordinator for the Czech Republic, Jindřich Vobořil, held a press conference to announce that he would be pushing for his nation to legalize cannabis for adult use, including regulated sales. Jindřich Vobořil also indicated in a social media post that the Czech Republic will proceed alongside Germany and seek to follow a similar timeline.

Coordinated Effort

As many cannabis observers have speculated, myself included, legalization in Germany will open up the floodgates to similar reform measures being adopted across the continent, if not the globe. We are now seeing some proof of that via what is going on in the Czech Republic.

“Germany and the Czech Republic go to a regulated market at the same time.” Jindřich Vobořil stated on his Facebook page. The post was made the same day that Minister Lauterbach made his formal presentation in Germany.

“Today, Germany announced through the mouth of its Minister of Health that it is launching the legislative process. It won’t be quite the free market, as some would expect. For example, colleagues from Germany talk about the allowed amount, they do not have cannabis clubs that we are supposed to. I’m pretty sure I want to hold on to cannabis clubs until my last breath. I find this model very useful, at least for the first years.” Vobořil went on to state in his post.

“However, we are in live contact with our colleagues from Germany and have repeatedly confirmed that we want to coordinate ourselves, even practically by consulting each other on our proposals. I will also want their expert assessment of our proposals, which we will prepare in the above mentioned working expert group.” Vobořil also stated in his Facebook post.

A Growing Coalition

The push in the Czech Republic is significant beyond just the nation’s own borders, and beyond the borders of Germany as well. As we discussed in a prior article, Germany’s next step in the process is to try to gain approval from the European Union (EU) for its legalization plan, and that the approval would need to be granted prior to a measure being officially introduced. From that perspective, every EU nation that pursues legalization alongside Germany is significant, including the Czech Republic.

I am hopeful that with the winds of change picking up in the Czech Republic that it will encourage other European countries to get on the same path. It’s reportedly the goal for legalization measures to be introduced in both Germany and the Czech Republic in early 2023, and hopefully that will be followed by regulated sales being launched in both nations in 2024.

As I have repeatedly pointed out in my articles, there is an opportunity cost for every European nation that drags it feet on legalization, and that will become more apparent as the legalization process goes along. As Germany continues to inch towards launching the world’s largest regulated adult-use market, the publishing of industry projections will increase and the numbers are sure to be staggering.

It’s being reported that Germany will not be able to import cannabis for the adult-use market, and that creates opportunities in other countries to stand up their own regulated adult-use industries, which is something that the Czech Republic has apparently already picked up on. Hopefully they are not alone among European countries in recognizing that a sensible approach to cannabis policy is better than the failed prohibition status quo, and that Germany’s robust legalization model is a better fit for countries compared to Malta’s current limited legalization model.

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Thailand Department Of Agriculture Gives Green Light To Cannabis Seed Imports

Written by Frank Schuler on . Posted in Policy.

Prior to last week, the only way that cannabis seeds could be imported legally to India was via air transport, and even then, imports were greatly restricted and involved considerable hurdles. That is changing, with many provisions related to cannabis seed imports being eased to some degree.

Thailand’s Department of Agriculture announced late last week that the import of cannabis seeds would now be allowed via other means than just air transport. The policy change involved various other provisions as well. Per Thai PBS World:

A new edict has been issued by the Department of Agriculture to ease restrictions on the import of cannabis and hemp seeds.

Effective today (Saturday), cannabis and hemp seeds can be shipped to Thailand from abroad by air, sea or overland, instead of by air alone, as previously stipulated.

There is no longer a requirement for the seeds to be treated with fungicide and, hence, there is no need to specify the fungicide or the amount used in the disinfection process in the plant safety certificate.

All imported cannabis seeds must not be genetically modified, cannot contain organic or inorganic contaminants, and be must be licensed by authorities. All seeds still have to go through the customs process before they can be legally imported to Thailand.

It’s unclear how popular the new policy will prove to be, as Thailand is presumably home to a number of amazing cannabis genetics already, and many people have reported on social media that acquiring seeds and clones is actually quite easy in Thailand.

With that being said, there are always advantages to cultivating certain cannabis genetics compared to others, and having a wider selection of cannabis genetics for domestic cultivators to choose from is almost always a good thing.

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Cannabis Pilot Program In The Netherlands Continues To Experience Delays

Written by Hazel Norman on . Posted in Policy.

Cannabis pilot programs are becoming more popular in Europe. For those that are unaware of what an adult-use cannabis pilot program entails, it’s a public policy concept that allows certain cities to allow limited adult-use cannabis sales, and for approved entities to cultivate the cannabis that is eventually sold via those pilot programs.

Pilot programs are ramping up in Switzerland, and Demark is working towards expanding its pilot program to several more cities. The Netherlands is another European country that is pursuing plans to launch pilot programs, however, the program has experienced a series of delays and the setbacks appear to keep coming.

The pilot program in The Netherlands was originally slated to begin in 2021, however, the launch date was pushed back previously, and per recent reports out of The Netherlands, it’s likely to be pushed back yet again. Per excerpts from Dutch News:

Marijuana growers who have been selected to take part in the government’s controlled cultivation trials have told the cabinet that they will not be ready to start early next year as the government intends, the NRC reported on Thursday.

Nine of 10 firms have written to ministers about the problems and some have spoken to the paper directly about the issues, the NRC said.

The experiment should have begun to 2021 but is now due to start in the second quarter of 2023. But the growers now say the end of next year is a more likely date.

It is obviously no secret that The Netherlands has served as a top international cannabis tourism destination for decades, with cannabis consumers coming to The Netherlands from all over the globe to partake in coffeeshop offerings, particularly in Amsterdam.

The nation’s pilot program would not be nationwide and would not be open to everyone, however, it would serve as an intermediary step towards finally getting some level of regulation in place which would hopefully then be adopted at the national level and include provisions for allowing sales to tourists.

The Netherlands, particularly Amsterdam, is well-suited to become the undeniable top legal international cannabis tourism destination and to reap the related economic rewards. Yet, the longer the nation drags its feet the more it concedes ground to other cities and countries around the world, and there is clearly an opportunity cost involved.

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Where Does The German Cannabis Legalization Effort Go From Here?

Written by Johnny Green on . Posted in Policy.

As the month of October draws to a close it is safe to say that it was one of the most eventful months for cannabis policy in Germany’s history. Unless you have been living under a rock without WIFI, then you are obviously aware that Germany’s Health Minister Karl Lauterbach made a formal cannabis legalization presentation to the federal cabinet last week. The presentation came a week after points of a prior version of the legalization plan were leaked to the public, with the leaked version resulting in various levels of pushback from the public and some lawmakers.

Multiple components of the legalization plan were improved upon as October progressed, including the apparent scrapping of THC percentage limits for products sold to people 21 and older, as well as a 50% increase in home cultivation limits (from 2 plants to 3 plants). As we previously pointed out, the current legalization plan involves removing cannabis from Germany’s narcotics law entirely.

Minister Lauterbach’s presentation to the federal cabinet was truly historic and cause for celebration inside and outside of Germany. Now that the ‘excitement dust’ is settling a bit, many within the global cannabis community are wondering where things go from here?

What Happens Next?

One of the biggest takeaways from last week’s presentation comes at the macro level in the form of Germany’s government making it clear that cannabis legalization is inevitable. It’s not a matter of if, but when.

“The presentation of the key points paper by Health Minister Lauterbach was a historic date. The German government leaves no doubt that cannabis legalization is politically desired by it and will also be pushed through against all odds.” points out German cannabis policy expert Kai Friedrich Niermann.

Kai and his law firm KFN+ advise major CBD and medical cannabis companies around the globe. Kai is also legal advisor to the European Industrial Hemp Association (EIHA), and a regular speaker at International Cannabis Business Conference events.

It is expected that early next year legalization legislation will be formally introduced in Germany. However, prior to a legalization measure being formally submitted, the nation’s government will continue to seek approval from the European Union. With that in mind, the conversation regarding cannabis legalization in Germany will now shift focus beyond Germany’s borders towards the larger continental discussion.

Will The European Union Prevent German Legalization?

It is no secret that Germany is a party to various treaties, both at the continental and international level. As I have previously stated, I do not think that international treaties will be an issue, if for any reason because Uruguay and Canada have both passed legalization measures and the sky is still in place over both of those countries the last time I checked.

Just as pushback from the international community and international treaties did not derail legalization efforts in those two countries, the same will presumably prove to be true when Germany legalizes. The European Union is a somewhat different matter, although, the final result will likely prove to be the same in that the German legalization effort will ultimately prevail.

“In order to comply with its obligations under international drug treaties and EU law, Germany has opted for an interpretative declaration to the monitoring bodies of the UN treaties, referring to its own constitutional principles, the case law of the Federal Constitutional Court and the interpretative declaration already issued on the 1988 treaty. According to the German government, the plan to legalize cannabis in Germany is in line with the purpose and legal requirements of the conventions, as the focus of the reform is the protection of health and young people, and not the promotion of cannabis consumption.” stated Kai Friedrich Niermann.

“The EU Commission and the other EU member states are to be informed of this in a notification procedure. Minister Lauterbach assumes that the EU will comment on this approach in the short term, so that the legislative project can be introduced in the Bundestag as planned from January.” Kai went on to say.

“I assume that preliminary talks have already been held with the European Commission, and that no fundamental reservations are to be expected in this respect. Particularly in view of the fact that a number of member states are also already making preparations for a reform of their national cannabis policies. Minister Lauterbach also assumes that if the EU Commission gives its approval in principle, lawsuits from other member states pursuing a more restrictive cannabis policy will have no chance of success.” he concluded.

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Large Drop In Cannabis Possession Prosecutions In Jersey

Written by Frank Schuler on . Posted in Policy.

The topic of cannabis is arguably the most popular topic on earth right now. Momentum for international cannabis reform has never been greater since the dawn of prohibition, and the emerging cannabis industry continues to expand across the globe at an ever-increasing rate.

One place that probably doesn’t come to mind for many people involved in the ongoing international cannabis discussion is Jersey. Jersey is the largest of the Channel Islands located between England and France. It’s a self-governing dependency of the United Kingdom, with a mix of British and French cultures.

Cannabis is prohibited in Jersey, however, prosecutions there have experienced a steady decline over the last handful of years. Per Jersey Evening Post:

The data formed part of a response from Home Affairs Minister Helen Miles to a States written question from Deputy Sam Mézec.

A recent Freedom of Information request also revealed that the number of convictions for class B drugs, which includes cannabis, in 2021 had almost halved when compared with 2020 – falling from 65 to 35. Class A drug convictions also fell by almost a quarter – from 30 in 2020 to eight in 2021.

Simon Harrison, co-ordinator for the End Cannabis Prohibition Jersey campaign group, said he believed the reduction in prosecutions and convictions could be due to the growth of the medicinal cannabis industry in the Island.

What is going on in Jersey is reflective of a more sensible approach to cannabis policy compared to policies found in some other countries where cannabis is not only prohibited, but also carries hefty prison sentences and/or fines.

Currently, if someone is caught with less than 15g of cannabis in Jersey (non-medical patient), it leads to a ‘parish hall inquiry by way of a written caution.’ Anything involving over 15 grams results in a criminal court case, as well as if someone is caught with less than 15 grams of cannabis more than twice in Jersey.

It’s an approach to cannabis enforcement that is clearly not as good as outright legalization, however, it is better than what is in place in many other parts of the world.

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Seven Years In Prison For Possessing CBD?

Written by Hazel Norman on . Posted in Business, Policy.

At a time when many parts of the world are trending in the right direction in regards to cannabis policy, Hong Kong is going in the opposite direction. Cannabidiol (CBD) is very popular in Hong Kong, with many CBD-based businesses operating in Hong Kong in recent years. Yet, despite the cannabinoid’s popularity and thriving industry surrounding it, Hong Kong is proceeding with plans to outlaw CBD.

As of the posting of this article, a search on PubMed.gov for the term ‘CBD’ yields over 10,000 results of peer-reviewed studies, many of them demonstrating that CBD is indeed effective at treating various ailments and conditions. PubMed houses the results of peer-reviewed studies from all over the globe and is accessible to anyone with internet access.

Many of the studies on PubMed involving CBD have also found that the cannabinoid does not induce intoxication, unlike its cannabinoid counterpart tetrahydrocannabinol (THC). Despite the growing body of research, Hong Kong’s government is still set to ban CBD, with plans to categorize it at the same level as heroin. Per Bangkok Post:

Hong Kong will outlaw cannabidiol (CBD) by February, the government announced on Thursday, placing it in the same category as heroin, cocaine and methamphetamine with users facing hefty jail time.

The move is expected to wipe out businesses in the Chinese finance hub that had, until now, been able to sell CBD-infused products such as beers, coffee and health supplements.

The changes to Hong Kong’s drug control laws, pending a final round of vetting by the city’s rubber-stamp legislature, will take effect from Feb 1.

To describe the future penalty for CBD possession as being ‘hefty’ is likely not enough to properly put into context how horrific the penalty actually will be starting in February. According to Bangkok Post’s reporting, “anyone who possesses or consumes CBD faces up to seven years in jail and fines of up to HK 1 million (US $127,000).”

Seven years in prison for just having consumed CBD? That’s inhumane. What CBD prohibition enforcement as it pertains to individual patients and consumers will end up ultimately looking like in Hong Kong is something that we will all have to wait to see. Given how Hong Kong enforces many things, it’s likely a safe bet that invasions of privacy will occur, and that is unfortunate.

One thing that is seemingly guaranteed at this point is that the emerging CBD industry in Hong Kong is about to experience an enormous crackdown, and it would likely be wise for people that have CBD products to dispose of them in a manner that is safe. Otherwise they run the risk of serving many years in prison, in addition to having an enormous fine levied against them.

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Germany’s Legalization Plan Includes Removing Cannabis From Narcotics Law

Written by Johnny Green on . Posted in Policy.

Cannabis legalization efforts in Germany received a huge boost yesterday, with the nation’s Health Minister Karl Lauterbach (SPD) making a formal presentation to the federal cabinet regarding the most up-to-date plan for a German adult-use cannabis legalization measure. The presentation was truly historic, in part due to the fact that it happened in the first place, and also in part due to what was included in the plan itself.

As we previously reported, points from the plan were leaked last week, including some points that yielded significant pushback from the public and even some lawmakers. Many felt that some of the provisions, especially provisions involving THC percentage limits, were too restrictive. Fortunately, the plan that was presented yesterday by Health Minister Lauterbach addressed many of the components that were largely the focus of negative feedback.

One provision of the current legalization plan in Germany will no doubt prove to be extremely significant if/when it is implemented. Point 5 on page 4 of the Eckpunktepapier contains a key sentence, “Genusscannabis, Medizinalcannabis und Nutzhanf werden vollständig aus dem Anwendungsbereich des BtMG ausgenommen und die jeweiligen rechtlichen Rahmenbedingungen werden in einem gesonderten Gesetz festgelegt.”

That sentence can be translated to English as, “Recreational cannabis, medical cannabis and hemp will be completely removed from the domain of the narcotics law (BtmG) and the individual legal frameworks will be determined in a separate law.”

Minister Lauterbach was specifically asked about this provision of the plan during his presentation to the federal cabinet, as described below:

Obviously, removing cannabis from Germany’s narcotics law would have enormous ramifications, and would affect nearly every aspect of cannabis policy, industry, and research. The benefits of removing cannabis from Germany’s narcotics law would not only benefit adult-use cannabis efforts; it would also benefit the nation’s emerging medical cannabis patients, program, and industry.

“Regulating cannabis not as a narcotic anymore has extremely positive implications particularly for medical use. This step opens the door to electronic cannabis prescriptions and immediate transfer to the pharmacy which can then ship the medication to patients. We are already preparing for a fully digital pathway for patients with 24h between video consultation and cannabis medication delivered to your doorstep.” stated Dr. med. Julian Wichmann, Geschäftsführer/CEO of Algea Care. Algea Care is Germany’s leading platform for therapy with medical cannabis.

“We also expect the conditions for cannabis research to be drastically improved. It will probably also be much easier for academic institutions to obtain national or EU-provided funds for specific research projects, as there will be a rapidly increasing demand for research on both medical and recreational cannabis intake.” Dr. Wichmann went on to say.

How countries have historically classified cannabis, including Germany, has created tremendous hurdles for cannabis research and the emerging cannabis industry. That, in turn, makes it extremely tough for patients who are at the mercy of what conditions qualify for medical cannabis and what safe access options they have in their area. Unfortunately, due to limitations in research many patients are left on the outside looking in. Removing cannabis from Germany’s narcotics law would provide a compassionate boost to suffering patients all over the country and increase safe access.

“Our goal is to make medical cannabis treatment as accessible and seamless for anyone with a medical condition suitable for treatment. Deregulation away from narcotics can facilitate that. Research from the U.S. shows that up to 40% of recreational customers are actually trying to mitigate symptoms but often don’t achieve the results they’re hoping for. The different tax treatment may potentially lead to a situation in which medical cannabis is cheaper than at recreational stores and accessible with a better digital journey.” described Dr. Wichmann.

The discussion regarding cannabis’ classification status is not limited to Germany. The United States is currently ‘examining’ the classification status of cannabis at the federal level, per a recent directive from U.S. President Joe Biden. However, unlike Germany, the discussion in the United States involves whether cannabis should be descheduled or rescheduled. Germany’s plan seems to have already landed at descheduling, or as it was more properly described by reporter Alfredo Pascual’s tweet embedded above, cannabis is ‘to be removed from the narcotics law,’ which is effectively the same as descheduling.

The significance of what is being proposed in Germany cannot be overstated. In addition to the expressed desire to remove cannabis from Germany’s narcotics law, it is a welcomed sight to see that home cultivation was not only included in the plan presented yesterday, but also that the home cultivation plant limit was raised from 2 plants that was part of the leaked points last week, up to 3 plants this week.

For perspective, Washington State in the U.S. still prohibits home cultivation for adult-use purposes despite having passed a legalization measure back in 2012. Illinois and New Jersey also prohibit adult-use home cultivation despite having also passed legalization measures. And all the while cannabis remains prohibited at the federal level in the U.S. With all of that in mind, the sensible proposal in Germany is great news for consumers, patients, researchers, taxpayers, entrepreneurs, investors, and just about everyone else in German society, whether they consume cannabis or not.