By Nicolas Jose Rodriguez and Rolando Garcia.
In the early 2000s, the people in Argentina's Chilecito Valley became a symbol of environmental resistance with their rally cry of "Agua sí, oro no" (Water yes, gold no). The area's residents vehemently opposed a large-scale mining project that sought to use millions of cubic meters of glacier water. The mining company finally abandoned its plans in 2007.
Then in 2018, the people in the Chilecito Valley turned their focus towards sustainable cannabis cultivation, embracing an environmentally friendly economic alternative to mega-mining.
The Best Wine...And The Best Cannabis
In an exclusive interview with Benzinga Cannabis, Benjamin Enrici, CEO of Agrogenetica Riojana talked about how cannabis is transforming the Valley. Founded in 2009, this mixed-capital company is part of a network of local greenhouses that provide plants and training to local farms.
“We are in La Rioja, a small province, with a dry climate and lots of sunshine which is excellent for growing and processing pharma-grade cannabis. We see medical cannabis as an alternative for local producers, to command higher prices for their goods,” says Enrici as we walked through the numerous greenhouses filled with experimental cannabis genetics from around the world.
Benjamin Enrici - Photo Courtesy of Agrogenetica Riojana.
“We already make some of the best wines in the world, why not cannabis?” said the agronomist referring to Argntina's world-renowned wines like Torrontes, Malbec, Tempranillo and Cabernet Franc, among others.
Made In The Chilecito Valley
Rather than centralizing production, the company connects a network of small and medium enterprises in the Valley with cannabis companies and investors, looking to conduct genetic experiments in controlled conditions.
Growing, processing and testing cannabis in controlled environments is hard, but being in the desert makes it a bit easier. Between the average temperature, humidity and absence of rainfall give mold, yeast, bacteria and plagues a hard time. Add those conditions to the skillset of local agronomists, farmers and organic cultivation methods, the result is a giant cannabis lab.
Condors, parrots, finches and earthcreepers swirl around the greenhouses and lab where plants are reproduced in-vitro, dried and tested. The background sets the scene of a cowboy movie or a cactus convention as plants line up with shrubs, up and down the hills surrounding the Famatina glacier.
Chilecito’s Problem
The Chilecito Valley is undergoing a process of extensive mechanization of olive and nut production, which requires less labor resulting in less jobs.
In addition, and counterintuitively, mechanization is making operations more expensive for small and medium farmers who end up renting their small plots of land to global food corporations, with operations that can span up to 13,000 acres.
Although commodity output is higher now than ever, profits are not necessarily shared by local producers.
“The problem is not automation, the problem is the lack of access to credit, and the low market value of some of the commodities we produce here. If our farmers can produce a high-quality specialty crop, in smaller plots of land, then they may have a chance to thrive here,” Enrici explained.
An Agronomist Goes To California And Discovers Gold
In 2012 Enrici traveled to Davis, California, looking for pistachio seeds for Chilecito farmers. While there, he learned about the cannabis industry. The idea of bringing this crop to Argentina began to percolate.
It was not until 2021 that Agrogenética Riojana was able to register a cannabis genetic variety with the National Seed Institute, responsible for promoting the production and commercialization of seeds, ensuring their identity, and protecting the intellectual property. In 2024, the company became GMP and GFP certified, ensuring that high standards and farming practices are sustainable and socially responsible.
Growing Medicine In The Andes
To Chilecito workers and residents, cannabis was like a new thing.
Everyone knew about olive and nut cultivation, but cannabis was a different ball of wax.
Once viewed as the devil's lettuce, taboos fell by the wayside and the new crop pulled in the younger generation.
For 22-year-old Belen, whose college friends moved to Buenos Aires, cannabis became an opportunity to work in something different, where “protocols are required, there is always something to learn.”
As Belen puts it: “I am in charge of cloning plants, I learned a lot working with the company. Many of my college friends work either in government or have left town to bigger cities to work and study.”
For Roxana and Analia, who work with cannabis plants in their vegetative cycle, the industry became an alternative to providing care for others, working in the olive fields or cleaning houses for a living.
Chill, It's Just Medicinal Marijuana
Cannabis raised a few eyebrows at first. However, news of the benefits spread quickly and people’s acceptance was in crescendo.
Santos, who works as a trimmer put it simply. “I am a fourth generation agricultural worker in the Valley. I've done this job for almost 30 years now. There's a lot I've learned over the years that applies to cannabis...and what we don't know, we learn from the company’s agronomist.”
He added that attitudes soften when people realize it's medical. “People sometimes raise their eyebrows when they hear the word cannabis, but everybody in town knows this is medicinal.”
A Revolutionary Plan
What's happening in Chilecito is cannabis innovation, but it can be viewed as a plot or a plan to subvert history and change the equation for the town's people.
How you ask? Enrici explains.
“What we do is work with companies who are willing to invest in research and development of cannabis genetics for medicinal purposes. We provide advice, technology and some infrastructure, while private capital builds out the cultivation site and associated services,” he told Benzinga.
“We collaborate in the design of experiments and pheno-hunting programs with private companies. We allow global companies to conduct research at a fraction of the cost of doing the same work in Europe, Canada, or anywhere else in the world. Companies pay a fee to operate in the area and have full disposition of their production.”
Why Argentina?
“Most of the companies here are on their way to register their cannabis genetics. Why? Because Argentina is one of two, if not the only country in the world, where you can patent a legal cannabis variety, at a fraction of the cost,” Enrici said.
A Regional Supply Chain
Sipping mate from a straw, Enrici sits in his office looking at a map of Brazil. He sees the neighboring market as an opportunity for local cannabis producers to sell their goods at a higher price.
Agrogenetica has already launched a brand of pharmaceutical cannabis oil named “Federal,” which is sold by prescription.
Now their goal is to bring high-quality and efficient cost structures across the border between the two countries.
With a population of 215 million, Brazil has the largest cannabis market in South America. The government has started to ease regulations of hemp-derived products that contain CBD.
Crunching Numbers, Looking Inward
Beyond global markets, Enrici foresees a bright green future for local farmers if Argentina regulates the market of CBD flowers for patients enrolled in the Health Ministry's medical marijuana program.
“We can produce a high-quality flower, tons of it, without impacting the environment and we can place it on the shelves of patients throughout the country," Enrici said. "We have the scale, quality, and consistency to outprice non-regulated products and protect public health.”
And indeed, he seems to be right. Once these two Benzinga journalists wrapped up their interview and crunched the numbers, we found that a pound of cannabis flower can be produced 26 times cheaper in Chilecito Valley than by illegal grow operations in Argentina.
Read Next: EXCLUSIVE: This Puerto Rican Cannabis Company Breaks The Mold And Is Ready To Take On The World
These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
Cover photo: Roxana - Rolando Garcia - 2024.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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