Govt-Owned Cannabis Company Exports Flower From Argentina To EU, Australia, Secures Purchase Orders Worth Millions

By Lucía Tedesco via El Planteo

The Argentine, state-owned company, Cannava, has successfully completed its first export of cannabis flowers to Europe and Australia. This milestone is the result of six years of research, development and production efforts to establish the province of Jujuy as a leader in the export of pharmaceutical-grade cannabis.

Under the direction of Gastón Morales, the Jujuy-based company has secured contracts to ship cannabis flower to Germany, Portugal and Australia. These flowers, with high THC content (ranging from 20% to 27%), are exclusively for therapeutic use. “Based on these contracts alone, we have received purchase orders for 730 kilograms of flowers for three destinations, representing an annual revenue of EUR 5 million ($5.4 million),” Morales told Infobae.

The Economic Impact Of Argentine Marijuana

The international advance in the use of medicinal cannabis is coupled with a significant economic impact on the province of Jujuy. Revenue is expected to grow to EUR 7.6 million in the second year, “with sustained demand growth of 5% annually,” Morales noted.

In 2023, a team from Cannava traveled to Switzerland and Germany to present its work at the Finca El Pongo. The team was “assisted by the embassy in Germany, which facilitated a series of meetings with European companies,” according to the company’s director. These commercial alliances secured long-term supply contracts for the organization.

This year, Cannava solidified its presence in Australia by signing a contract with Cannabas PTY, securing orders of 1,250 kilograms in the first year and 2,500 kilograms in the second. Australia’s regulatory model allows the sale of cannabis flower in authorized pharmacies. However, due to limited local production, Australia has become a key market for cannabis imports.

Morales announced that in November, a call for private-sector cannabis ventures will be launched, aiming to create a public-private production system that further strengthens the industry.

Regulatory Challenges For Cannabis in Argentina

Nonetheless, cannabis in Argentina is facing several regulatory challenges. Law 27.669 has not been fully implemented, the Regulatory Agency for Cannabis Research and Medicinal Derivatives (Ariccame) has been without appointments for seven months and delays in the patient registry (Reprocann) persist. If the future of cannabis in Argentina is so promising, why is it still challenging to recognize society’s right to this crucial plant for the international market?

This article is from an external unpaid contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.