Will Latin America Be The New Hotspot in the Cannabis Industry?| 07 January, 2021
As the legalization of marijuana moves forward all around the world, with every time more and more countries allowing its use, whether for medical or recreational use, it is a matter of time, perhaps only a couple of years until the cannabis industry finally booms on a worldwide scale. And since this sort of new industry is yet to be completely exploited, there isn’t yet one major country that could be considered as the leader in the industry. And while some people might feel tempted to set their cards on places such as California or Barcelona, both known for being providers of the best cannabis seeds, yet there are still other countries that could also be suitable for the race.
It sounds a little too much saying that a whole continent could be promising for the cannabis industry, Latin America could indeed become a big player in the cannabis game.
Quite recently a couple of Latin American countries have taken a step closer to getting rid of the old barriers. For instance, not too long ago in Argentina, they have decriminalized the cultivation of cannabis at home and the medical use for uninsured patients. Other neighbor countries, such as Ecuador and Paraguay have also recently opened the doors to further investment concerning the marijuana business.
At the same time, there are already some South American countries that have been working with this industry for a couple of years now. This is the case for example for Uruguay, which legalized the medical and recreational use of marijuana back in the year 2013 and has been selling it in pharmacies ever since. And now Uruguay will even land in Brazil to start commercializing their different marijuana-based products there by January 2021.
But why is it that the cannabis industry could be so promising in Latin America, and what differentiates it from the rest of the world?
In the first place, the weather is a great ally for the South American countries, especially for those nearer to the Ecuador line. What is an “allied” weather? Well, marijuana plants sure like warm and damp environments, quite tropical, which Latin America definitely doesn’t lack. How do 12 hours of daylight and lots of rainfall sound?
This basically means that cannabis plants in south America would grow almost by themselves, (not really but in a metaphorical way).
At the same time, the costs of production in such places are way lower than in most of the rest of the countries around the world. This is mainly due to the lower wages for wages. For example, according to the Colombian Association of Cannabis Industries, in Colombia a gram of cannabis costs around 50 cents, while the same gram in Canada would cost an approximate of $2,14 U.S dollars.
It’s numbers like these that pop the investors’ eyes out and drag them like magnets to the region, even more in a time where the cannabis’ business stocks are dropping elsewhere. With the demand growing on an exponential level, when it finally reaches its peak, these Latin American countries could switch from their only export economy into a huge industry that targets mainly the local market opportunities.
It wouldn’t be surprising if in the near-future bigger cannabis seeds and cultivation companies, such as Fast Buds, started setting their eyes and investing in Latin American countries to take part in the boom of these countries.
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