Is Argentina The Next Green Frontier? Here's Why It's Bound To Become A Global Player In Cannabis

Global integration across the cannabis supply chain is inevitable and just a matter of time. Countries with natural and competitive advantages could potentially play a role in the global weed market due to their favorable climate, location and salaries.

But, is it only about producing large amounts of cannabis cheaply for overseas markets, such as the EU? What is the benchmark for these countries? Where should investors be looking?

Let's look at three variables to gauge cannabis market viability South of the Equator: compliance, agribusiness environment and human development. And let's focus on Argentina, which is well-known for its agriculture and is weeks away from issuing rules for the local marijuana industry that could turn it into a global cannabis hub.

Are you interested in gaining a smart positioning in the emerging global cannabis supply chain? Find out more about global integration opportunities at the upcoming Benzinga Cannabis Capital Conference, in Miami Beach in April 2023. The conference will feature events on two stages at the Fontainebleau Hotel and will celebrate individuals and organizations as it features various experts on the global cannabis supply chain.

A Case For Argentina

In May 2022, Argentina legalized the production of cannabis products. The government, which views marijuana as an exportable commodity to attract foreign investments, is preparing to issue the first set of industry regulations for producing and exporting at an industrial scale.  

Regulatory Compliance

Argentina complies with Good Manufacturing Practices (GMP), which evaluates cannabis facility operations and raw materials used as well a company's structure, hygiene, staff, storage, transportation of materials and control of processes and documentation, thus adding value to the country's products. 

With a population of nearly 48 million, Argentina is a member of the Pharmaceutical Inspection Cooperation Scheme (PIC/S), which includes 54 countries around the world.  

Agribusiness Environment

A recent Enabling the Business of Agriculture study conducted by the World Bank Group measures whether governments make it easier or harder for farmers to operate their businesses. The study ponders countries on an index (EBA) that ranges from 0 to 100, based on their performance such as access to technology, regulations, infrastructure, and human and natural resources. Argentina's EBA score is 76 out of 100 possible points, higher than the regional average of 60/100.

Argentina, one of the top 10 countries that supports the timely release of seeds for domestic farmers, has an official registry for cannabis seeds, ranks 83 out of 100 in terms of access to high-quality supplies for farmers, just below the US. In terms of mechanization, Argentina ranks 89 out of 100, the trading food indicator, 83 out of 100 and 80 in access to finance, making it one of the top 20 countries.

Human Development

Qualified human resources, educational institutions, connectivity and a vibrant tech community are key to conducting a sound business. Argentina rates 0.842 on the Human Development Index (HDI), which assigns values between 0 and 1, second in the region behind Chile.

To hear more about what's happening in the up and coming Latin American cannabis industry, join us in April at the Benzinga Cannabis Capital Conference and stay at Miami Beach’s historic Fontainebleau Hotel. Don't miss out on a chance to hear about future market forecasts and worldly advice on cannabis investing from those embedded in the cannabis industry. 
Buy your tickets HERE before prices go up. Book your room HERE.

Photo Credits: Argentina Messi Cannabis (A.RICARDO on Shutterstock and elplanteo.com).