In 2016, the Colombian government made history by writing the 1787 bill into law. The legislation, which regulated the use of cannabis for scientific and medicinal purposes, allowed access to medicinal cannabis for patients who may benefit from the many healing properties linked to the plant. By 2017, lawmakers created the legal foundation which allows for the cultivation, extraction, and export of cannabis-related products.
Located along the equatorial belt, Colombia is an ideal location for robust cannabis cultivation. The hot climate and 12-hours of sunlight year-round is desirable to growers because they can cultivate up to 4 crop cycles a year without the need for artificial light (and its high energy costs). Colombia is also positioned in the middle of the South American continent, with close access to the US and many other export destinations.
With ideal growing conditions, it’s no surprise that there are roughly 70 companies in the country with licenses to legally cultivate medicinal marijuana.
For example, Canadian-based PharmaCielo Ltd. (TSXV:PCLO) recognized the significant role that Colombia’s ideal location would play in building a sustainable business in the medical cannabis industry, and the company established cannabis operations in Colombia as the first licensee in the Latin American country. Today, PharmaCielo is focused on supplying the international marketplace with naturally grown and processed medicinal-grade cannabis oil and related products. In fact, the Colombian government granted its first CBD isolate export permit to PharmaCielo, and as a result, the firm quickly made a move to ship its first batch to Switzerland.
Tom Adams, managing director at BDS Analytics believes Colombia is poised to become the “it” hub for cannabis exportation.
“To date in the legal cannabis industry, it’s largely been all about the indoor, high-end flower as a key product category. Going forward, the growth of concentrates, edibles, and pharmaceuticals means that this will less and less be the case. Colombia’s advantages as a low-cost, outdoor growth venue will place the country’s cultivators in good stead in worldwide markets,” he says.
Although the properties and effects of medical marijuana are continually being researched, medical science has found that there are proven benefits of using cannabis as an alternative treatment of diseases. Patients who suffer from multiple sclerosis, nausea as a result of chemotherapy, chronic pain, anxiety, and post-traumatic stress can all benefit from cannabis’ medicinal properties.
Investment in Colombian cannabis has increased significantly in recent years, and companies within the industry are growing at an accelerated pace. And since medicinal cannabis seems to be the biggest economic milestone for this developing country, without a doubt, Colombia will continue to become a powerhouse in the cannabis space.