How long will exports of therapeutically active cannabis from Canada continue to increase?
Over
time, medical cannabis will become like any other high-margin agricultural
crop, with individual countries producing a “raw crop” of the plant at a much
lower cost than Canada. Until this happens, companies from the country of the
“maple leaf” will continue to benefit maximally from the many restrictions
imposed on the domestic markets of countries importing Canadian therapeutically
active hemp raw materials, as well as its derivatives.
The specialized
association of national hemp growers not only closely monitors lobbying for the
adoption of changes to the current regulatory framework of Ukraine initiated by
foreign pharmaceutical companies that exploit the therapeutic properties of the
hemp plant. To understand what is happening in the global hemp market, the
discussion of our Canadian colleagues that unfolded in the specialized media of
the “maple leaf” country about how long this kind of situation will last will
be extremely instructive. The main points of the discussion boil down to
several key postulates, which are reflected in the material published below.
Canada was not
the first country to adopt the necessary changes to the current regulatory
framework aimed at regulating the use of therapeutically active cannabis. This
title will always belong to Uruguay, which is ahead of Canada in this matter.
However, Canada was the first G7 country to enact the necessary regulatory
changes and has since been an international leader in the legal trade of
therapeutic cannabis.
In addition to
the fact that therapeutically active cannabis is permitted for cultivation and
use throughout Canada, the country actively exports a significant amount of
medical cannabis, as well as its derivatives, to other countries.
The
international export of therapeutic cannabis is arguably the most complex
business operation in the world, and the sector is still in its infancy.
However, Canadian medical cannabis companies are exporting it, as well as the
plant's therapeutically active derivatives, at an increasing rate, and Health Canada
data provides some insight.
According to the
report, since the beginning of the fiscal year (April 1, 2023), Health Canada
has received 1,211 applications from organizations wishing to export medicinal
cannabis or its derivatives, and of the applications received, 1,147 have been
approved. It should be separately noted that the number of issued applications
and permits for such operations in Canada increases annually: in 2022–2023,
1805 permits were issued, in 2022–2021 – 1421, in 2020–2021 – 1267, in 2019–2020
– 1213 and in 2018–2019 – 272.
Health Canada's
data raises questions about how long these trends will continue. As in many
areas of the business world, being first to market is paramount, and Canada is
already an established exporter to key markets such as Australia and Germany.
Canadian medical
cannabis and derivative companies and companies in other countries that legally
export therapeutically active varieties of the plant internationally will
continue to benefit from the imbalance created by bans on the cultivation of
medical cannabis in the domestic markets of importing countries. Many countries
have yet to modernize their policies regarding therapeutic cannabis, with only
a small number of countries having reformed their laws to allow the import of
medicinal cannabis.
Conversely, only
a few countries are able to legally export therapeutically active cannabis to
meet current demand. As countries with total bans are slow to reform their
laws, allowing imports, at least initially, makes them easier to implement. All
this contributes to a bright future for Canadian exporters of medical cannabis,
as well as its derivatives, at least in the near future.
However, a storm
is brewing and Germany is a perfect example of what is to come. Germany
currently imports a significant amount of medical products from the hemp plant
from Canada. However, domestic German production will eventually displace much
of the supply currently coming from the Maple Leaf country.
Germany is not
the only one seeking to adopt the necessary regulatory framework regulating the
possibilities for growing therapeutically active varieties on the domestic
market. A number of economically developed countries are already pursuing the
same goal, and all of them are likely to eventually allow domestic production
in one way or another. Some countries will take longer than others, but in the
long run, indoor growing will win out in most parts of the world.
Commentary
from specialists of the Association “Ukrainian Industrial Hemp”
Over time, medical
cannabis will become like any other high-margin agricultural crop, with
individual countries producing a “raw crop” of the plant at a much lower cost
than Canada. For example, Colombia is currently striving to become a leading
producer of therapeutically active cannabis leaves and inflorescences, thanks
to its climate and the efforts of the country's export community. Until this
happens, companies from the country of the “maple leaf” will continue to
benefit maximally from the many restrictions imposed on the domestic markets of
countries importing Canadian therapeutically active hemp raw materials, as well
as its derivatives.
