Updates blog: How did the cannabis industry perform in July 2021?
Updates blog: How did the cannabis industry perform in July 2021?
1 Jul.
While July was one of the least eventful months in terms of legislative developments, the cannabis industry presented some important good news on the commercial and technology development side in 2021. For example, Apple authorized the Eaze app to be available in the App Store. Through Eaze, which to date has 2 million registered customers, cannabis consumers in Michigan, USA, will be able to access legal cannabis (1). At the same time, the Senate of the Argentinean Nation finalized the text of the initiative to establish the mechanisms for the regulation, promotion and development of the productive activity of cooperatives and SMEs (2). The U.S. industry did not want to be left behind and Unrivaled Brands Incorporation joined forces with Terra Tech Corporation and Umbrla Corporation to expand its presence by adding brands and opening more dispensaries in that country. According to Unrivaled Brands representatives, this merger has the potential to generate a profit of 41.5 billion dollars (3).
Colombia moves forward to make the cannabis industry an even more profitable sector with employment opportunities
On July 23, 2021, the President of Colombia, Iván Duque Márquez, signed the Decree on Safe and Informed Access to the Use of Cannabis. The presentation and approval of this document took place at the Clever Leaves facilities.
Through this Decree, the President authorized the export of dried flowers for medicinal purposes, one of the most substantial modifications with respect to the 2017 regulations. In order to carry out this change, very important objectives were set. Among them are the incentive to the pharmaceutical industry and access to a greater supply of derived drugs. It is also intended to position and expand the cannabis industry as a field of job opportunities. During the announcement of the decree, Duque Márquez mentioned that Clever Leaves alone had already considered "17 jobs per hectare" (4).
These are some of the factors through which Colombia can meet and exceed its expectations. According to expert estimates, by 2024 the country could reach a value of US$62 trillion. In this regard, Duque assured that:
"This allows Colombia to play big in the international market. It does so with dried flowers with medicinal uses in mind and, therefore, the entire traceability chain is aimed at fulfilling that purpose. We are opening up space for dried flowers to be inserted in the chain of use of the free trade regime concept" (5).
According to international media reports, this decision was taken after representatives of the Cañamonte company sent a letter to the executive on July 14 stating that the ban on the export of dried flowers hindered efforts to make cannabis a profitable sector with significant competition in the market (6).
Another piece of good news that shook the Colombian cannabis industry in July was an announcement by the Ministry of Agriculture and Rural Development and the Colombian Agricultural Institute. The country will continue to position itself as a regional reference thanks to the favorable diplomatic relationship with Switzerland. Through The Swiss Federal Plant Protection Service (SPPS), the Government of this Southern European country made official the opening of the market for the export of cannabis seeds. During the press conference held on July 8, 2021, the head of the Ministry of Agriculture and Rural Development, Rodolfo Zea Navarro, stated that "this highlights the excellent work being done together with the producing companies" (7). As pointed out by the manager of the Colombian Agricultural Institute, Deyanira Barrero León, such progress is also the fulfillment of one of the clauses of the National Development Plan 2018-2022.
Peru opens the door to the cultivation of medical cannabis
Thanks to the work of the entire sector, 2021 is turning out to be a good year for Peruvian cannabis. In February, the pharmaceutical companies Anden Naturals and Inkafarma began marketing medical cannabis in Lima (8). Likewise, in the middle of the year, the first medical cannabis dispensary in the district of Miraflores came into operation (9). As required by Andean legislation, the establishment operates thanks to permits issued by the General Directorate of Medicines, Supplies and Drugs (Digemid, Ministry of Health) and the Anti-Drug Directorate (Dirandro, National Police).
In July, members of the Peruvian Congress approved a series of regulatory provisions to modify the law regulating the therapeutic use of cannabis and its derivatives. While the 2017 legal body was a great advance for the importation, production and commercialization of the plant's components, patients who base their treatment on medical cannabis were demanding improvements so that they could see their right to health guaranteed.
Faced with this, in October 2020, civil society initiatives -such as the association Cannabis Drops of Hope- presented a project to promote resolutions regarding self-cultivation. The normative proposal was taken up by the lawyers until July 2021. Two votes were held. In the first round the results were: 100 votes in favor, 0 against and 4 abstentions. For the second round, 98 votes were obtained in favor, 1 against and 4 abstentions (10). Once the bill was enacted by the Executive, the persons registered in the National Registry of Cannabis Users Patients will be able to form associations to obtain a license to cultivate and process the plant. Two types of licenses will be granted: one for scientific research and the other for the production of derivatives for therapeutic purposes (11). According to specialists in the sector, the amendments to Law No. 31312 will benefit more than 50,000 patients. It should be noted that the changes in this Law are not only significant because they open the door to cultivation, but also because they include provisions to strengthen informed use, pharmacological production and the registration of natural or legal persons interested in importing.
References
1. Rodríguez, R. (2021) Apple aprueba una app para comprar marihuana desde sus iPhones. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
2. s/a. (2021) Cannabis medicinal: el Senado dejó listo para votar el marco regulatorio. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
3. Jackson, A. (2021) Tras fusión, empresa de cannabis busca mayor expansión en los Estados Unidos. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
4. Europa Press (2021) Colombia permitirá la exportación de flor seca de cannabis para uso medicinal. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
5. Leal, K. (2021) Colombia reactivó la exportación de flor seca de cannabis. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
6. s/a (2021) Colombia autoriza exportar flor de cannabis con fines medicinales. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
7. s/a. (2021) Apertura del mercado suizo para la importación de semilla de cannabis de origen colombiano. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
8. Diario Gestión Perú. (2021) Farmacias de Perú inician comercialización de cannabis medicinal. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
9. Redacción Gestión. (2021) Miraflores: abren primer dispensario que pone a la venta cannabis medicinal. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
10. EFE. (2021) El Congreso de Perú da luz verde al cultivo asociativo de cannabis medicinal. Recuperado de <sitio web>, última consulta 24 de julio de 2021.
11. s/a. (2021) Publican ley que permite el cultivo asociativo de cannabis medicinal en Perú. Recuperado de <sitio web>, última consulta 24 de julio de 2021.