From 2017 to July 2024, 2511 licenses have been granted for the Cannabis industry in Colombia[1], of which 61 licenses are canceled, 104 licenses are expired and 2346 licenses are valid. These licenses have been granted to 1319 registered companies. Of the licenses that are in force, 1242 (53%) correspond to licenses for the Cultivation of Non-Psychoactive Cannabis and 1104 (47%) correspond to licenses for the cultivation of Psychoactive Cannabis. 45 licenses have been granted under the category of small producers, that is, only 2% of the licenses in force correspond to small producers. Within this group of small producers, 21 licenses correspond to Associations and 24 licenses correspond to individual individuals.
It is important to note that only 1% of the total licenses in force correspond to Associations of Small Producers, of which 14 licenses are for Non-Psychoactive Crops and 7 licenses for Psychoactive Crops. This data is important if we take into account that the legalization of cannabis cultivation had as one of its objectives to benefit vulnerable communities of small producers in regions affected by drug trafficking and the production of illicit crops[2]
It is clear that only 1% of the current licenses are in the hands of Small Producers' Associations and it is possible that some of these organizations are not operating, generating income or financial transactions. We may think that the normative and regulatory model has not really been designed for vulnerable communities and small producers to benefit from the legal cannabis business. One of the great challenges for the Cannabis sector is to give an important participation to small producers and vulnerable communities not only as agricultural producers but also as processors and marketers[3], in an environment where about 70% of licenses are in the hands of foreign-owned companies[4].
According to Camilo Guzmán, president of the Board of Directors of the Colombian Association of Cannabis Industries Asocolcanna, out of 1000 licensed companies only 40 can export, 22 of which do so for scientific purposes and only 18 carry out commercial operations and of 9977 licensed hectares only 14 were planted. 6 hectares in 2023. According to Miguel Samper, Executive President of Asocolcanna, 70% of the licensed companies did not report activities in 2023 and of those that did, most did so in order not to lose the permit and according to the National Department of Statistics DANE, in 2023 exports worth 10.7 million dollars were made.[5]
Currently the Cannabis industry is based on the production of Cannabis for Medicinal and Scientific purposes, with some large organizations that can export pharmaceutical-grade flowers, extracts and genetic material. There is a great opportunity in other sectors such as Cannabis for veterinary use and industrial production of other hemp derivatives such as fibers and grains for the textile and food sector. Sectors such as the textile industry, construction, food and veterinary applications may have greater opportunities for development and growth, taking into account factors such as regulation, international market and sustainability.
From the time of the implementation of licenses in 2017, until September 2023, 91640 kg of flower have been used (17% of the total granted), of which 81% under export mode, 15% for national use, and 4%[6]
REFERENCES
[1] Ministry of Justice and Law. General List of Licensees July 2024.
[2] Zuleta, P., Tocua, B., Martínez, T. (2023). Legal Cannabis: Challenges of the Cannabis Industry for Medical and Scientific Uses in Colombia. [Issue Paper]. Universidad de los Andes, Center for Security and Drug Studies CESSED https://cesed.uniandes.edu.co/cannabis-legal-desafios-de-la-industria-de-cannabis-para-usos-medicos-y-cientificos-en-colombia
[3] Ramírez, J.M. (2019). The Medical Cannabis Industry in Colombia. Fedesarrollo https://www.repository.fedesarrollo.org.co/bitstream/handle/11445/3823/Repor_Diciembre_2019_Ramírez.pdf?sequence=4isAllowed=y
[4] Martínez, N. (2019). The challenges of medical cannabis in Colombia. A look at small and medium-sized growers. Drug Policy Report: Transnational Institute. https://www.tni.org/files/publicationdownloads/policybrief_52_web.pdf
[5] Medina, M. (May 15, 2024). About 70% of companies in the sector did not report operations during 2023. La República. https://www.larepublica.co/empresas/cerca-de-70-de-empresas-del-sector-cannabis-no-reporto-operaciones-durante-2023-3861310
[6] National Narcotics Fund FNE (2023). CANNABIS UP TO DATE: Report of monitoring and control data on Cannabis, its derivatives and finished products. https://fne.minsalud.gov.co/sustancias-fiscalizadas/Informes/FNE-Informe-Cannabis-al-dia-Septiembre-de-2023%20(2).pdf