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Paraguay Exports Cannabis Flower To Switzerland In Historic First

Written by Hazel Norman on . Posted in Business.

Paraguay first adopted a national industrial hemp legalization measure back in 2019, and the South American nation recently passed a historic milestone by making its first legal export of cannabis flowers to Switzerland.

“The Paraguayan Chamber of Industrial Cannabis proudly announced the first export of 100% Paraguayan industrial cannabis flowers, known as Kuñatai, to Switzerland. This flower, registered with specific cultivars, stands out for its high quality and purity, meeting the rigorous standards required by the Swiss market and opening doors for expansion to other destinations in Europe.” reported Sechat in its local coverage (translated from Portuguese to English).

“The export of Kuñatai to Switzerland represents a significant step forward for Paraguay on its path to internationalizing its cannabis industry.” the outlet also stated.

Paraguay’s international cannabis industry pursuits come at a time when nearly six dozen nations around the world have adopted medical cannabis legalization measures, many of which now import and export medical cannabis products.

Additionally, Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa have adopted adult-use cannabis legalization measures, although none of those countries currently permit the importation of recreational cannabis products and all adult-use cannabis is produced domestically either by individuals for personal use or by local companies.

Regional adult-use cannabis commerce pilot trials are also currently operating in the Netherlands and Switzerland. Pilot trials are also expected to launch in Germany soon. Two dozen states in the United States have adopted recreational cannabis legalization measures, although cannabis remains prohibited at the federal level in the U.S.

Analysts at Research and Markets estimate that “the global cannabis cultivation market was valued at USD 43.52 billion in 2023 and is anticipated to record steady growth over the forecast period, with a CAGR of 5.25% through 2029.”

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Paraguay To Issue First Medical Cannabis Production Licenses

Written by Johnny Green on . Posted in Medical.

Paraguay has become the latest South American country to announce that it will issue licenses for companies to cultivate medical cannabis. Medical cannabis is still prohibited in some countries on the continent, however, cannabis reform is sweeping across South America and tremendous business opportunities are being created.

Cannabis grows very well in many parts of South America, including in Paraguay. Medical cannabis could revolutionize the agriculture industry in the country. Initially, Paraguay intends to issue at least 5 licenses. Per ADN:

Arnaldo Guizzio, minister of the National Anti-Drug Secretariat (SENAD), said through his Twitter that the program will be coordinated with several government agencies.

The State will grant five licenses to those companies that meet all the requirements to carry out controlled planting and industrialization of medical cannabis.

The official said that in November there will be a documentary approval and once the licenses are awarded, they will have to verify if they comply with the security approaches to obtain the approval.

Paraguay is home to roughly 7 million people, with a per capita income of $9,826. Agriculture accounts for 20% of GDP and about 35% of employment in Paraguay, with the main crops being manioc (cassava), corn, cotton, tobacco, and sugarcane.

Cannabis could easily become one of the top cash crops in Paraguay eventually, however, that will take quite a bit of time if it happens. For now, the announcement of 5 licenses is a step in the right direction.

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Paraguay Legalizes Industrial Hemp

Written by Johnny Green on . Posted in Politics.

The global industrial hemp market is currently estimated to be worth nearly five billion dollars (USD). By 2025, it is projected to be worth over $26 billion dollars (USD).

For a number of years, the industrial hemp industry was significantly limited by prohibition policies all over the globe. Fortunately, things have changed in recent years.

A number of countries around the world still prohibit hemp production, however, a growing list of countries are allowing farmers to legally cultivate the versatile plant, with the latest being the nation of Paraguay. Per La Nacion:

On Monday, the Executive Branch announced that President Mario Abdo signed the regulatory decree for the controlled production of industrial hemp or cannabis. It establishes that family farming producers can grow it.

The policy change allows every family in Paraguay to cultivate up to a maximum of two hectares of low-THC industrial hemp. Two hectares equates to slightly under 5 acres.

How Much Money Can A Family In Paraguay Make From Cultivating Hemp?

Each hectare of industrial hemp in Paraguay is valued at roughly 10,000,000 Paraguayan Guarani, which converts to roughly $1,545.00 USD.

If a family in Paraguay can successfully cultivate and harvest 2 industrial hemp crops annually, that’s a significant income boost considering the per capita GDP in Paraguay ($9,826 USD).

Paraguay’s industrial hemp industry model is very interesting in that it is built on a cottage industry model.

Out of a population of roughly 7 million people, it is estimated that as many as 25,000 families will take advantage of the recent policy change.

How Popular Will Hemp Cultivation Be In Paraguay?

How widespread hemp cultivation ultimately proves to be will largely depend on how profitable it is for families.

For families who live in areas with rich soil and a climate that is suitable for proper hemp cultivation, the 2-hectare limit may prove to be too low. For families who live in less ideal areas, reaching the cultivation limit may never be a concern.

The hemp plant will grow just about anywhere, however, to grow in a manner that yields a desirable harvest the hemp plant needs good soil and a mild climate.

Technology can help increase yields and quality, although it may be tough for some families to afford sophisticated cultivation equipment and light deprivation greenhouses in Paraguay.

Demand For Hemp Will Continue To Increase

The hemp plant is one of the most versatile plants on earth, with tens of thousands of products being able to be made from it.

In recent years the popularity of CBD, which the hemp plant is rich in, has exploded all over the planet. 

Demand for CBD products is what is going to drive the hemp industry forward, in Paraguay and beyond. Consumer demand for hemp-derived CBD will definitely increase, including CBD derived from industrial hemp from Paraguay.

However, whether or not families in Paraguay will reap the rewards will have to be seen as time goes along. 

Comparatively, farmers in the United States are making tens of thousands of dollars per hectare from hemp. The estimated value for hemp in Paraguay is considerably less. 

Hopefully Paraguayan families get an equitable share of any profits generated by Paraguay’s hemp industry. If not, Paraguay’s industrial hemp industry will never reach its full potential.