With the federal, recreational legalization of cannabis, Canada removed a sizeable chunk of the obstacles to becoming one the world leaders in the cannabis sector.
We’ve talked about how the United States are behind as far as the cannabis markets around the world go, simply because there are no federal laws that legalize making trades and deals between various cannabis companies around the world.
On the other hand, it’s neighbor to the north is now in a position to become one of the biggest legal producers of cannabis because it took the exact opposite way out and legalized recreational cannabis on the federal level.
The US has hundreds of cannabis companies operating in the states that legalized recreational and/or medical marijuana, but they can’t even trade and make deal between states.
This imbalance between the state and federal laws is hampering the United States’ ability to expand and assert dominance over the global markets in the future.
There’s room to improve
The United Nations Office on Drugs and Crime (UNODC) recently released its yearly market analysis of plant-based drugs and their effects around the world.
In that report, the UNODC lists Canada as the 8th biggest producer of cannabis flower in the world, preceded by the likes of:
- United States – Federally illegal
- Morocco – Illegal
- Afghanistan – Illegal
- Mexico – Legal medical
- Colombia – Legal medical
- Paraguay – Illegal, decriminalized
- Jamaica – Legal medical
Of the countries listed, only 3 states have federal laws allowing for use of medical cannabis.
The other 4 countries are not even allowed to talk to other countries around the world about the possibilities of trading and making cannabis deals.
So, Canada is currently #8 in the world when it comes to the amount of cannabis produced and the numbers coming from countries that haven’t legalized are estimates, so there’s definitely room to improve in that field.
A report released in 2017. by the International Narcotics Control Board (INCB) noted that in 2016. Canada was behind several countries when it comes to the production of cannabis flower.
According to that report, Canada produced a total of 80.7 tons of cannabis and was only behind the UK, which produced 95 tons.
In comparison, in 2000. the total legal production of cannabis around the world was 1.4 tons, but by 2016. it had increased to nearly 210 tons.
We know that the Canadian cannabis market in 2018/19 will be several times bigger than that, as estimates have it being anywhere from 450 tons, to over 800 tons for both the recreational and medical market.
Seeing how many licensed producers are in the process of increasing their production capacity, we will definitely see Canada become the biggest producer of legal cannabis in the world, possibly even in the next 2-3 years.
According to some estimates, just Canopy Growth and Aurora Cannabis alone will be able to put out over 1100 tons of cannabis yearly from their many facilities.
Luckily for Canada, its laws made it so that companies can trade with other companies abroad, and make deals to supply foreign programs with high-grade medical cannabis.
Currently, the biggest competition in the cannabis sector is Israel, who has an even longer cannabis tradition than Canada and very remarkable tech, and the other competitor is, of course, the black market.
This ability to make deals outside their borders, along with the ever-increasing production potential of Canadian licensed producers will very soon put Canada on top of world of cannabis.