Since the legalization of adult and recreational marijuana use in 2013, the cannabis industry sector grew remarkably. today a new marijuana day internationally find Uruguay in full expansion of licenses to cultivate, surface in greenhouses, pharmacies allowed to sell, companies seeking to go public, new varieties on the market and millions of dollars of annual income for the country.
On the other hand, a recent report from the United Nations Organization (UNO) stated that the legalization of cannabis did not reduce the illegal market nor consumption in Uruguay, where the illegal supply still reaches fifty% of the total marking.
Cannabis cultivation licenses doubled in 2022
According to the Ministry of Livestock, Agriculture and Fisheries, in 2014 only two licenses had been granted to cultivate 20 hectares of cannabis outdoors. In 2021, the process accelerated and 80 licenses had already been granted. But the significant change came last year, when 167 new licenses were granted, more than doubling the number of growers and growing more than 500 hectares of cannabis.
On the side of legal sales, the Institute for the Regulation and Control of Cannabis (Ircca) reports that, since the sale of marijuana in pharmacies was allowed, 14 establishments of this type have registered, and today there are almost 40.
The government wants companies based in Uruguay to produce their own varieties
Currently, the country has three varieties of cannabis in circulation: Alpha and Beta, with a percentage of tetrahydrocannabinol (THC) —the psychoactive substance in marijuana— of 9%; and gamma, presented in December, with a percentage of 15%.
The first day of the latter – which is sold in 5-gram packages at 450 pesos each – in pharmacies was a success. Of the 114 kilos that pharmacies requested in advance of the official launch, the twenty% in 24 hours. That is to say, 22.8 kilos Likewise, Ircca confirmed that it is working on a fourth variety that would be called E Pluswith an even greater presence of THC.
On the other hand, the agency is studying the possibility that cannabis companies that carry out their activity on land near the Freedom Penalty they can begin to produce their own varieties, with the aim of evolving the local market and achieving a more interesting and attractive system both in terms of competitiveness and offer for consumers.
The measure would reach companies Jabelor and phaiseswhich already operate in those properties, and legalwhich plans to start work on the site in mid-2023.
Cannabis exports increase every year
In 2020, the country exported almost 11 tons of cannabis, mostly to Europe. In 2021, that figure increased slightly – to around 11,300 kilos; and while the official numbers for 2022 are still unknown, the total is expected to be similar to previous years.
In February, Uruguay completed the largest export of cannabis worldwide, with a shipment of 553 kilos to USAvalued at $2.5 million.
Although this is not the first export of this product from the country, it is the largest scale of legal cannabis with low THC content to the North American country. The business was conducted through the company C-ENDa global provider of custom infrastructure, while the receiving company was Low Gravitya high-end hemp firm.
In turn, last November, Brazil authorized its first import of cannabis for medicinal use from a company based in Montevideo. The authorization provided by the National Health Surveillance Agency (Anvisa) Brazilian will govern for two years and it could mean a huge door for the sector since it would represent around $600,000 a year income for the country.
Problems in the local medical cannabis market
The use of medical cannabis is an aspect of the legalization of marijuana that was relegated to the background when it was discussed, ten years ago, the Law 19,172 which would end up authorizing and regulating the adult and recreational use of this crop. Only in 2019, with Law 19,847, the medicinal use of cannabis was enabled, and Decree 56/023 allowed access to master formulas.
Currently there 19 companies authorized for the production of medical cannabis and, particularly, drugs with cannabidiol (CBD), the non-psychoactive component of the marijuana plant. However, the situation in this subsector is not the best.
The authorities of the irca and of the Ministry of Public Health (MSP) related to cannabis medicinal recently exposed the state of the local market before the Special Commission on Addictions of the Chamber of Deputies; and explained that it is going through a difficult time in terms of investments. Specifically, they recognized that “investors have had several problems”; At the same time that patients demand that civil associations be regulated to access medicines at the best price.
However, in parallel, some medical cannabis startups stand out, such as the case of PucMed, which is trying to take its first steps in the stock markets with plans to go public in Toronto Canada; and also to the B3 of sao paulo
The legalization of cannabis did not reduce the illegal market or consumption
Last month, a report from the International Narcotics Control Board (INCB)the body within the UN that oversees compliance with the international drug conventions, measures linked to the legalization of cannabis have failed to deter young people from consuming, and illicit markets persist.
“The data shows that the illegal offer of cannabis continues at high levels in all jurisdictions in the process of legalization, reaching 40% in Canada, almost the 50% in Uruguay and even 75% in California”, indicated the INCB from its last annual report.
It also points out that in 2022, “more than 69,400 people accessed the regulated cannabis market” in Uruguay through legal channels: pharmacies, self-cultivation and membership clubs, but stresses that this figure is “a relatively small part of all those people who consume cannabis in the country.”
Source: Ambito
