What are the challenges in boosting the international cannabis market

In July last year, the President of Colombia, Iván Duque, signed the decree “Safe and informed access to the use of cannabis” which authorized the export of dried cannabis flower in Colombia. This measure, being a new source of income for industry, was celebrated by growers, who needed to start generating income for their operations to be viable and sustainable.

However, despite having regulatory endorsement, there are still some steps that the sector must take before it can consolidate itself in the competitive dried flower market. For this reason, and to prevent excessive commercial expectations from being generated, Avicanna, a Colombian Canadian company expert in, pointed out the five main challenges that the industry must address in the short term.

Building commercial bridges: as in any nascent commercial activity, it is necessary to create demand, build trust and publicize the qualities of the product. Until this happens, there will not be enough buyers that generate income for companies in the country.

“Inviting a potential customer to learn about the crops, send them a sample batch to familiarize themselves with the product, define an attractive pricing scheme and agree on a competitive delivery schedule are some examples of the pedagogy phase that must be carried out. All this, in the long run, leads to purchase orders in larger volumes,” explained Lucas Nosiglia, president of Avicanna Latam.

Consolidate logistics corridors: the logistics part, which is not always taken into account, is decisive in the final decision of the customer. Given that these aspects are barely being defined in Colombia, it is possible that there are other nations that ship at lower costs and in shorter times, which affects the attractiveness of domestic products. For this, it is important to establish aspects such as: a universal packaging system, a reliable logistics provider, a demand-driven production schedule and a streamlined flow of legal procedures, among others.

Regulatory frameworks of importing countries: It is well known that Colombia has one of the most advanced cannabis regulations internationally, which gives it a great competitive advantage. However, this is not the case for several importing countries, which still face regulatory difficulties in being able to import cannabis-based products. For this reason, it is necessary for companies and growers to adapt to the specific regulations of each country, in order to make their shipments viable.

Quality standards: another aspect, similar to that of the regulations, is related to quality standards in the cultivation and processing of the product handled by the purchasing country, which will require investments from the Colombian grower to meet these requirements.

Sustainable cultivation practices: competing in the international dried flower market is not only an aspect of supply and demand, it also implies taking into account the sustainability component. Multiple studies and analyses have shown that contemporary consumers, regardless of the good or service, prefer products made under environmentally friendly practices.

“From Avicanna we have consolidated an organic crop with optimal climatic conditions, which guarantee less intervention from external resources. This allows us to develop an efficient production capacity with high quality standards, which better meets environmental objectives”, concluded Nosiglia

KEEP READING: