Federal Prohibitions Perturb Global Success of US Cannabis
The legalization of cannabis on the federal level has been an enormous issue concerning US cannabis export. As of now, the produced cannabis can’t be exported internationally and the surplus is only used for supplying other US states where cannabis is legalized.
Medicinal cannabis growers in the US count at least 20 years of experience and the techniques used, the scale, and the innovation in all levels of the cannabis industry contribute to a spotless reputation of American cannabis, which, according to some, is the best in the world.
American cannabis is grown with the help of state-of-the-art technology and is tightly controlled for its safety and quality. These regulations are in the hands of the government, which is not the general practice in the rest of the world.
According to Michael Sassano, the chief executive of the largest hybrid cannabis greenhouse in Nevada, Solaris Farms, the world is hungry for American technology used in producing cannabis products. In addition to the scientifically-based cultivation, the genetics and sophistication of American plants put American cannabis products at the very top in terms of quality and potency.
Nevertheless, in 2019, Canadian cannabis growers dominated the global export market along with the UK and the Netherlands. Canada is topping the charts in global cannabis production and, despite its unlikely climate, it has become a cannabis production hub.
The cannabis industry contributed an incredible $8.26 billion to Canada’s GDP in the year of its legalization, back in 2018. What’s more, Arcview Market Research and BDS Analytics evaluated the Canadian export market sits at $14.9 billion for 2019 alone. This is what the American economy is missing out while struggling with legalization.
Ever since the legalization of cannabis, Canada hastened to secure the licenses to sell it internationally, even though the market stays limited to around 30 countries including Mexico, Italy, and Germany, among others. 19 European countries have legalized the use of cannabis in some form, which means more opportunities for cannabis growers.
Consequently, Canadian cannabis firms are building large cultivation infrastructures overseas that will eventually serve to meet the country’s international shipments. For the time being, these are placed in Denmark, Israel, and Portugal.
The change in the US cannabis legalization climate has prepared companies for possible export. American cannabis is ready to conquer new markets and awaits its chance. The scaling up of cannabis production in Colorado and Oregon is a clear indicator of optimism and hope of American producers that they will soon be able to export.
There is no doubt that the regulatory riddle, in which American cannabis growers have to work in, presents a huge disadvantage in the face of an emerging industry that has the potential to be one of the most important for the US economy. Many believe that the US will soon eradicate this cannabis prohibition, even though, currently, America is 17 states short of country-wide legalization.