Marijuana Business Magazine - May-June 2018

S ince Colombian President Juan Manuel Santos signed medical marijuana legislation in 2015, the country’s MMJ industry has developed rapidly and is considered ripe for business, with opportunities for overseas entrepreneurs in the cultivation, manufacturing and ancillary sectors, such as consulting, legal and security. However, retail offers fewer business opportunities because prod- ucts are sold through pharmacies. Colombia is positioned to become a global leader in cannabis production, serving both domestic and international markets. Chalk it up to a supportive federal gov- ernment and low labor costs. Also, a temperate climate and 12 hours of both light and darkness make the country suitable for outdoor cultivation. “I see Colombia becoming the next major producer in the next four or five years – to supply the world, as long as they get quality control under control,” said Deepak Anand, a Vancouver, British Colombia-based consultant for Canadian and U.S. companies. With an expected 3 million-6 million patients, Colombia’s domestic medical marijuana market could be sizable. Another attractive market feature is the easy access to non-psychoactive MMJ products – defined in Colombia as below 1% THC – which can be sold over the counter in pharmacies. The country, however, prohibits flower sales and requires that MMJ products be sold only as extracts made in specially certified labs.This requirement creates an opening for manufacturers. Here’s how the licensing process works: • There are no license caps. • The Ministry of Justice will issue MMJ businesses two types of culti- vation licenses: one for psychoactive plants, and another for non-psycho- active product. • The Ministry of Health and INVIMA, Colombia’s equivalent to the U.S. Food and Drug Admin- istration, will issue a license that permits MMJ distribution. • The health ministry will issue a license that allows for the fabrica- tion of extracts for domestic use, export and research. COLOMBIA Industry: Medical Marijuana Colombia A GOING GL BAL 62 • Marijuana Business Magazine • May-June 2018