Supply has always been in excess of demand; since October 17 when Canada legalized recreational marijuana, though, there has been zero excess.
There is demand, and simply, no supply. The CD Howe Institute of Toronto, a group of experts specializing in specific political and economic issues, reported in early October that the supply allotted (legally) will only be able to meet between 30-60% of total demand. There are also reports on a shortage of medical cannabis, which was legalized in Canada in 2001.
Health Canada grants licenses to producers and urges those seeking cannabis to remain patient. Using the United States as an example, removing illegal suppliers will take time, which leads to the concern of consumers seeking cannabis via illegal outlets.
“It is important to note that October 17 marked the end of nearly a century of criminal prohibition of cannabis and the launch of an entirely new regulated industry in our country,” Health Canada said in a statement.
However, for Anthony Wile, CEO, and co-founder of PharmaCielo, a company committed to becoming the world’s leading supplier of naturally grown and processed, standardized medicinal-grade cannabis oil extracts and related products, the move to grow cannabis in Colombia and supply a global market in need was prescient.
Colombia legalized medical marijuana for export and domestic use two years ago has issued 33 licenses for scientific research and is anticipated to grow over 40 tons of medical marijuana per year. The first license Colombia issued was to PharmaCielo, and Colombian-Canadian Anthony Wile doesn’t take that for granted.
In addition to helping Colombia emerge from the darkness of years of illegal drug trafficking, Wile believes that the profits will directly help Colombians who’ve witnessed the destruction of their country. The company also sources ten percent of the site’s production from the region’s natives.
“The nation has an opportunity to see the benefits derived from this plant through scientific research and to be on the right side of the current trend,” Wile said.
A quality product will always prevail, which is why so many are looking to companies who naturally grow and process medicinal-grade cannabis. Colombia has an ideal climate, as well as the solid foundation for medical cannabis licensing.
Canada can serve as a great example for Colombia in the medical cannabis industry; in June 2015, medical marijuana users totaled 24,000 and jumped to 200,000 by 2017. PharmaCielo has fully operational cultivation at its Rionego site in Colombia with plans for commercial production in 2019.