Cannava S.E., a government-held cannabis company based in the Jujuy province of Argentina, has announced that it is making the country’s first exports of high-CBD, low-THC flower to other nations. The government-held company is reportedly exporting 200 kilos of flower to Australia, 400 kilos to Portugal, and 130 kilos to Germany.
“Gastón Morales, the company’s president, said the hemp buds will be sold in authorized pharmacies and will not be processed into CBD oils.” stated Hemp Today in its original coverage.
“Morales said contracts with customers in the three countries are expected to bring total turnover of €5 million ($5.4 million) this year, and estimates “sustained growth” in demand of around 5% annually. He projected the state company will generate €150 or €200 million “over the next 15 to 20 years.”” Hemp Today also reported.
In April 2024, Argentina’s emerging cannabis industry made its first legal harvest in half a century. Late last year regulators in Argentina approved new cultivars for the nation’s industry, although it’s unclear what exact genetics were involved in the recent harvests.
Starting in 2019, Argentina has made a concerted effort to boost its domestic cannabis industry, particularly as it pertains to science and research. In 2019, Argentina’s Ministry of Science and Technology signed an agreement with a local government, the National University, and other entities.
That was followed by a Presidential decree issued in 2020 which provided a way for medical cannabis patients to, in theory, sign up for a government program in order to be able to cultivate their own medicine.
In May 2022, lawmakers in Argentina passed a measure that created the framework for a more robust medical cannabis industry in the South American nation, including provisions for boosting exports around the world. Later in 2022, the government established a public company to provide seeds, testing, and training to the nation’s medical cannabis industry.
The planned exports to the German medical cannabis market from Argentina may be a short-lived partnership, with Germany’s new CanG law having removed cannabis from the nation’s Narcotics List, and with it, the removal of domestic medical cannabis production caps. Germany imported roughly 34.6 tons of medical cannabis products in 2023.
The global cannabidiol (CBD) market was worth an estimated $7.6 billion in 2023 according to a previous market analysis by Market.us, and will climb to a projected $36.6 in value by 2033.
“Between 2023 and 2032, this market is estimated to register the highest CAGR of 27%.” the researchers stated.