Tag: Colombia

63% Of Colombians Support A Sales Tax On Cannabis Products According To Survey

Written by Frank Schuler on September 3, 2022. Posted in Business, Policy.

Colombia has served as ground zero for the war on drugs in many ways for many years, largely due to the nation’s cocaine industry. It is obviously no secret that Colombia has served as the world’s top source for cocaine for decades, with the United States being a particularly popular market for the illegal substance.

The war on drugs in Colombia has made things harder for the nation’s emerging legal cannabis industry for various reasons, not the least of which is the stigma that comes with trying to legalize a historically banned substance in a nation like Colombia, even though cannabis is not cocaine.

A big part of boosting Colombia’s emerging cannabis industry involves changing the hearts and minds of citizens in the South American country, and according to the results of a recent poll, efforts appear to be gaining traction on that front. As highlighted in a recent article from Portafolio, the survey, which was conducted by Jaime Arteaga y Asociados, found the following:

91% of survey participants that have used cannabis-based products would recommend it to other people
37% of survey participants have frequented a store where medical and/or cosmetic cannabis products are sold
63% of Colombians believe that ‘sales taxes on cannabis products would improve social investment’

The survey results provided a lot of insight into not only the level of support for Colombia’s emerging cannabis industry, but also insight into consumer trends. For instance, the survey found that nearly half of the survey participants (46%) that reported consuming cannabis reported using it in topical form.

Due to its favorable climate, Colombia is uniquely positioned to cultivate an enormous amount of raw cannabis at a price that is literally impossible to replicate in most other parts of the world.

The nation would be wise to expand its emerging cannabis industry and take its rightful place as a legal global cannabis leader, which according to the recent survey results, appears to be a very popular issue that most Colombians seem to support.

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Colombian President Considers Removing License Prerequisite For Cannabis Cultivation

Written by Marguerite Arnold on August 15, 2022. Posted in Business, Policy.

Newly sworn-in President Gustavo Petro is on the cusp of a revolutionary new national stance on cannabis cultivation – namely removing the requirement of licenses for the same

Gustavo Petro, the newly sworn-in, left-leaning President of Colombia, has made clear that ending the drug war will be a priority of his administration.

He even highlighted the same in his inauguration speech saying, “It is time for a new international convention that accepts that the drug war has failed, which has left a million murdered Latin Americans during these 40 years and that leaves 70,000 Americans dead from drug overdoses each year.”

Last week, he discussed his vision of a legal industry in Colombia at a summit of mayors.

Petro stressed the economic potential of a fully legal cannabis industry – and in a revolutionary move not often seen at the federal level – proposed removing the requirement to have a license for domestic cannabis companies.

He has also called for the release of prisoners held on non-violent drug charges.

As a former member of M-19 a guerrilla group, Petro is no stranger to violence, including over drugs.

Where Does Legalization Stand in Colombia?

Senator Gustavo Bolivar introduced new legislation last month which has a good chance of passing now that the country has a majority of liberal lawmakers. The position has also been recognized internationally, including by US Representative Jim McGovern (D-MA) who said that he looked forward to working together with such a forward-thinking executive to “rethink drug policy.”

How Would Unlicensed Cannabis Fit into International Standards?

Petro is suggesting a potentially radically new approach to the regulation of the cannabis industry – namely turning it into a regular commodity crop – like soybeans and corn. This does not mean that he is suggesting the cultivation of the crop without any oversight. All such food crops must comply with international standards on everything from pesticide use to the kind of soil they are grown in – even if not sold as “organic.”

This approach is a truly different one that the model that currently stands – thanks in large part to the approach adopted in Europe’s medical markets. Currently, the only high THC cannabis that can cross international borders is GMP certified (medical, pharmaceutical grade).

However, the debate about this is now starting to be heard across a much wider spectrum of debate given the pending legalization of recreational use aus Deutschland. It could be that Petro is angling to become first in line to import Colombian-grown cannabis into the new recreational market in Germany.

Whatever happens, however, Colombia is now at the forefront of an international discussion about regulation that will undoubtedly have an impact on the status quo. Globally.

Push For Adult-Use Legalization Gains Momentum In Colombia

Written by Johnny Green on July 30, 2022. Posted in Policy.

Colombia is not new to the international cannabis scene. For many decades Colombian cannabis has served as a top source for cannabis consumers around the world, albeit in an unregulated fashion.

The South American country is most associated with a different intoxicating substance, cocaine, however, Colombia also cultivates tons and tons of cannabis.

I don’t know who was the first person to smuggle cannabis out of Colombia, but I do know that international smugglers such as Robert ‘The Tuna’ Platshorn went to Colombia as early as the 1970s to purchase cannabis by the boat load and sailed literal tons of cannabis back to North America.

Sun-grown cannabis grows very well in Colombia’s climate with far less effort and inputs compared to industrial cannabis cultivation operations found elsewhere on the planet.

A cultivation expert that I know and who travels to Colombia often once told me that a pound of cannabis can be cultivated in Colombia for just $7. That puts Colombia in a very advantageous position to reap the benefits of the emerging international cannabis industry.

That is a sentiment that appears to be shared by an increasing number of lawmakers in Colombia, including President-elect Gustavo Petro, who has served as a vocal critic of the war on drugs.

Petro recently met with the Biden administration to discuss, among other things, drug policy reform. Per excerpts from Reuters:

Colombian President-elect Gustavo Petro on Friday met with representatives of U.S. President Joe Biden’s administration in Bogota, the Colombian capital, where they discussed topics including drug trafficking, the environment and economic development.

Petro, a 62-year-old economist who will become Colombia’s first leftist leader next month, has been roundly critical of the U.S.-led war on drugs and was elected on promises to tackle deep inequality and climate change and to seek peace with remaining leftist rebels.

An adult-use cannabis legalization measure was recently introduced in Colombia by Colombian Sen. Gustavo Bolivar, and hopefully it gains support.

With cannabis reform on the move around the globe, and Colombia uniquely positioned to gain a huge share of the international market via exports, the time is ripe for reform in the South American nation.

Colombian Government Passes CBD Regulation

Written by Marguerite Arnold on February 22, 2022. Posted in Business, Politics.

Regulation 227 aims to make the country’s cannabis industry more competitive by allowing the export of dried flower and other CBD based products

Colombia is positioning itself as a comer in the global cannabis market. The latest move, allowing GACP certified CBD producers to export their product globally, is just another sign of the same. It also comes almost 8 months after the government also allowed the export of GMP grade medical cannabis flowers.

This now positions Colombia as a country poised to export other Central and South American countries and north (to Canada). The country is already a player in the European market, shipping cannabis to the UK and multiple countries in the EU, including Germany.

How legitimate is the CBD Market for International Export?

Colombia and other countries in Central and South America may be price competitive when it comes to the EU-GMP conversation, however, the jury is still out when it comes to CBD of the GACP kind.

On one hand, the fact that CBD regulations are on the normalization side (see both France and Germany), imported CBD flowers and extract is still a dodgy proposition. There is currently a de facto ban on the import of CBD in Germany right now because of this. Hemp is also a subsidized crop here, so entering this part of the market remains a ferociously competitive and regulation-strewn proposition.

That said, there is always France.

However, Colombia is not the only country, in or outside of Europe now gunning for these markets.

The question, as it always is, is one of price.

What the entre of Colombia into the global cannabis really means is that prices, in both GMP quality and that bound for “other” purposes, are headed down.

And that, both for the medical market and the budding recreational one, is actually very good news.

Cannabis As Global Commodity

This is not to say that the entire cannabis commodity supply chain is suddenly de-kinking. Companies have been built in the German market alone by knowing how to arbitrage this most fickle of commodities. Those days are far from over yet.

However, knowing that Colombia is open and ready for business and where to talk to the manufacturers (in Europe) means that suddenly sourcing cheaper, regulated, and registered cannabis is no longer such a pain, much less expensive.

Bottom line? Colombia has made the transition from “illicit drug capital” to “cannabis exporter to the world” in a few fairly easy and smooth jumps.

Be sure to book your tickets to the upcoming International Cannabis Business Conference events in Barcelona, Berlin and Zurich!

First Patients In Colombia Receive Domestically Cultivated Medical Cannabis

Written by Johnny Green on March 30, 2020. Posted in Medical.

The South American nation of Colombia has cultivated cannabis for many, many years. A lot of that cannabis was exported illegally to international markets. While that is presumably still the case to some extent, the cannabis scene is evolving rapidly in Colombia.

A legal cannabis industry is emerging in Colombia, with legal cannabis exports ramping up. However, exports are not the only thing that is ramping up in Colombia. The country’s domestic medical cannabis program is ramping up as well, and a significant milestone was recently passed. Per Dinero:

In full emergency for the coronavirus and during the first day of isolation ordered by the District and some departments of the country, 7 patients received in Bogotá the first doses of medicinal cannabis cultivated and processed in Colombia.

It is a milestone for the local legal cannabis industry and a critical step for this industry eager for real and practical results.

The firm that developed this masterful formulation (medication and with personalized doses and components) is Khiron Life Sciences, which obtained the certificate of good manufacturing practice from Invima.

Cannabis grows very well in Colombia. Unlike other countries, where a significant amount of labor and resources are needed to cultivate quality cannabis, the cannabis plant thrives naturally in Colombia’s environment.

Labor is cheap in Colombia, which combined with how well the cannabis plant grows in the South American nation, producers in Colombia will be able to sell cannabis for cheaper compared to producers in other countries.

Colombia will no doubt take its rightful place as a global cannabis producer and will supply cannabis to legal markets around the world, just as it has for unregulated markets for so many years. But it’s very encouraging to see that suffering patients within Colombia’s borders will receive safe access to medicine too.

Technology Will Revolutionize Colombia’s Cannabis Industry

Written by Johnny Green on December 8, 2019. Posted in Business.

Colombia’s cannabis industry is expanding at a slow but steady pace. Colombia has served as an unregulated source for cannabis for many decades and is in the process of transitioning to a legal cannabis industry.

The South American nation is home to a climate that is ideal for cannabis cultivation. The nation’s ideal climate combined with cheap labor puts Colombia in a prime position to become a major international supplier of cannabis.

Despite Colombia’s natural advantages, its cannabis industry will never reach its full potential without the help of cannabis industry technology. Read about some examples of technologies that can be harnessed by Colombia’s emerging cannabis industry to help boost the nation’s chances of becoming a top cannabis exporter in our recent article on Cannabis & Tech Today.

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Colombia Enters Cannabis Oil Production

Written by Marguerite Arnold on December 6, 2019. Posted in Business.

Colombia has been on the map, certainly when looking at the cannabinoid world from Europe, for the last two to three years. Judging by the number of participants who show up at International Cannabis Business Conferences, at least from this part of the world, this is also not a casual discussion.

As of November, the game has clearly changed. For all of the talk about production in the country, up until now, all the licensed grows were for plants with less than 1% THC.

This has now changed. The country has issued its first license for the commercialization of “psychoactive” cannabis, in other words containing higher levels of THC. The recipient of the same, Khiron Life Sciences Corp. also announced that it would use the license to produce high THC extract to treat 15,000 patients via the Latin American Institute of Neurology and the Nervous System (or ILANS).

Beyond domestic distribution, what does this development bode for international markets?

While Germany is clearly on the minds of Khiron, a shrewd international operator with operations that already reach to the UK and Germany (including helping to supply cannabis for the British Project2021 project) this opens up other discussions a little closer to home in the same hemisphere. Namely, how long will it be before such companies also begin to look to both the Canadian and US markets?

Khiron, in particular, also has plans to supply Uruguay with whole-plant export, which is an ambitious move considering the country is the only one in Latin America and still one of less than a handful globally to legalize recreational use.

Nevertheless, it is this play alone which signifies that Khiron, along with others that clearly establish themselves in such geography, is looking at markets with high need and cost sensitivity.

How cost-effective cannabis oil from Colombia is in the European hemisphere as more local production begins to ramp up is another matter. See Greece, Portugal, and of course North Macedonia in the short term.

This question is still in the room of course, along with the acceptance of medical GMP standards for anything coming out of the American hemisphere in general, particularly in the aftermath of CannTrust.

Regardless, it is clear that as another early mover Canadian decides to revamp and retool, including putting both European and Canadian plans to expand on indefinite hold that Latin America will play an increasingly bigger role in the global cannabis market.

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Will Colombia Dominate The Legal Cannabis Export Market In The Future?

Written by Johnny Green on September 8, 2019. Posted in Business.

The South American nation of Colombia has been a major exporter of cannabis for many decades, albeit in an illegal fashion. The country is more commonly associated with the illicit cocaine industry, however, Colombia has also long been home to a vibrant cannabis cultivation community.

Colombia is now poised to be a major legal exporter of cannabis to countries around the world due to a number of reasons, not the least of which is its climate which is ideal for cultivating cannabis. Per NPR:

Colombia sits near the equator, giving it 12 hours of daily sunlight year-round. By contrast, countries with seasonal variations require the extensive use of artificial lights, which drives up production costs.

As an emerging venture it’s unclear how the medical marijuana business will play out. For example, it remains illegal to import marijuana-based products into the United States. Due to government bureaucracy in Colombia, it can take months or years for startups to secure the proper permits and licenses.

Yet the uncertainty hasn’t stopped companies from betting big on cannabis.

Land and labor are cheap in Colombia compared to other countries that permit the legal production of cannabis. That, combined with the country’s ideal cultivation conditions, makes the nation the perfect place to cultivate an enormous amount of cannabis that can be supplied to other countries around the world.

To get an idea of where Colombia will likely rank in the global cannabis industry in the future, consider the fact that sungrown cannabis can be cultivated at a cost of roughly $7 per pound in Colombia. Virtually no other nation can match that cost of production, especially at a quality level that matches Colombian cannabis.

Colombia is still dealing with a large amount of stigma due to the drug war, and while a lot of that is born out of Colombia’s cocaine trade, the country’s cannabis industry gets caught in the crossfire. That, in turn, makes Colombian lawmakers and regulators hesitant to open up the industry in a more significant fashion.

However, as time goes by Colombia’s leadership will no doubt see the global demand for legal cannabis increasing, the stigma surrounding the cannabis plant diminishing, and will recognize that Colombia is uniquely positioned to take advantage of the opportunities in the global cannabis market.

When that happens Colombia may very well become the top cannabis exporting nation on the planet.

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