4 Reasons Why Colombia Will Be A Global Leader In CBD Medical Cannabis
Medical marijuana has become the hottest crop in regards to treating a wide range of common ailments, from chronic pain to PTSD, and Colombia is expected to become a global leader in CBD medical cannabis in 2019. 100 million Americans suffer from chronic pain and medical cannabis is commonly prescribed to fight it in the form of non-psychoactive cannibidiol, or CBD. With the acknowledgement of the medical opioid epidemic in the United States, CBD cannabis for medical use is primed and ready to swoop in and fill the gap being left by users of who are wary of the addictive properties of opioid medication. These markets represent a combined worth of over $100B
With its large cannabis production quota, ideal climate, and long tradition of agriculture, Colombia is fast on its way to becoming a global leader in CBD medical cannabis, and one company presents an exciting opportunity for investors. Colombia wants to be the Saudi Arabia of cannabis, a lofty goal to be sure, but one many experts say is more than attainable.
Colombia has quota for over 44% of world cannabis production
In 2018, Colombia obtained the quota to legally grow 40.5 tons of medical cannabis for the second year in a row. This means that the country now has quote for over 44% of the world’s cannabis production. The country with the next highest quote is the US, with 33.4 tons, followed by Israel and Australia with significantly less. For reference, the global level of legal production is 91.9 tons.
This represents a massive demand for medical cannabis, way above previous estimates, and signals a major increase in medical cannabis demand and production. According to Colombia’s National Narcotics Fund, in 2018 there were already more than 20 companies with licenses to develop crops for non-psychoactive plants – that number has surely grown in the past year.
Colombia’s ideal climate means 4 harvests per year with consistent 12 hours of sunlight daily.
In 2015, many of countries with high demand for medical cannabis oil imported their product – 36.9 tons to the United States, Germany, Spain, and Italy. Cannabis is difficult to grow in these countries due to their climate, and Canada has one of the highest levels of demand for important product.
Colombia has the ideal climate to grow the plant as the country receives 12 full hours of sunlight daily, year round, allowing for 4 harvests per year. Colombians call this “12 hours light, 12 hours dark.” Farming remains a major source of income for Colombian citizens and contributes greatly to the Colombian GDP – a fifth of Colombia’s jobs are in the agricultural centre. Producing a gram of cannabis in Colombia costs five cents, versus $1.50 in Canada.
With this massive infrastructure already in place, and the country already set up to efficiently produce cash crops such as coffee and bananas, the addition of medical cannabis will be a major boon to Colombia’s economy. In fact,cannabis has been grown in Colombia since colonial times, when the plant was grown for hemp fibres. In 2015, legislation allowing cannabis and derivatives for medical uses was signed by president Juan Manuel Santos.
Itoco Camedco JV Positioned To Grow Into The Leading Company In Colombian Cannabis
Itoco Camedco JV is a joint operation between Itoco, a proven management company with over 100 years combined experience in business management and execution, and Camedco. Camedco has secured a 5 hectare nursery and propagation facility in Cachipay, Cundinamarca which has already been approved by Ministry of Health, Ministry of Justice and ICA to produce medical cannabis for transformation and export.
In addition to the nursery, Camedco has built a large extraction facility and drying facility, which is a short drive to the Free Port of Bogota, where exporting will take place. Camedco has entered into a partnership with many local farmers, providing additional acreage for farming and cultivation, and each site is irrigated by natural water sources, eliminating the need for costly and environmentally damaging systems. Itoco Camedco JV is committed to being a legally, ethically, and environmentally responsible producer of medical cannabis.
A Massive Opportunity For Growth
With the Colombian government far ahead of the global curve in legalizing medical CBD cannabis, responsible partnerships like the one between Itoco & Camedco are poised to radically alter the landscape of medical cannabis production worldwide. Given the 44% global quota in cannabis production, Colombia and companies like Itoco are set for massive growth in the coming years and as the demand for medical CBD cannabis meets and surpasses problematic opioids for chronic pain relief and the treatment of mental issues such as PTSD.