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Ecuador Expanded Hemp Industry to Include More Industrial Uses

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1 year ago

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Most industrial hemp these days is produced for medical cannabis, whether for local use or to export from the country its grown in. More and more, however, we’re seeing different countries further embrace the other uses of industrial hemp, like for building materials, plastics, clothing, and so on. Ecuador recently joined in on this when it expanded its hemp cultivation and production industry, to cover more industrial uses.

Ecuador basics

Ecuador is a country in South America that borders the Pacific Ocean to its left, and Colombia and Peru to its northwest and southwest, respectively. Officially known as The Republic of Ecuador, it also includes the Galapagos Islands to its east in the Pacific, an island that became famous for its many varied birds, and Charles Darwin’s research into natural selection.

By the 15th century, most of the local indigenous groups of the area had converged into the Inca Empire, until it was colonized by Spain in the 16th century. The country declared its independence in 1820, at that time a part of Gran Colombia (a larger version of Colombia, which split off to form Ecuador, Panama, Venezuela, and parts of Peru, Brazil, and Guyana). It split from here, becoming it own sovereign nation, in 1830.

Ecuador is home to close to 18 million people, and while Spanish is the main language, it also has 13 other native languages recognized. Ecuador is considered a developing country, and relies on its farming and petroleum industries, mainly. It holds the 8th largest economy of South America, which puts it in the bottom half, though it did show high growth in the beginning of the century, and is considered an upper-middle-income country. Having said that, it struggles with extreme poverty, with numbers decreasing in the beginning of the century, just to rise to 34.60% in 2020.

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Cannabis in Ecuador

Ecuador might not be as far along as a country like Uruguay (the only Latin American country, aside from Mexico, which has legalized recreational cannabis), but it certainly has made great strides recently when it comes to cannabis; akin to other Latin American countries like Argentina, Colombia, and Costa Rica. In Ecuador, cannabis isn’t legal for recreational use, but there is a decriminalization policy that allows up to 10 grams for personal use. The 2008 Constitution of Ecuador was the first reform policy, and doesn’t stipulate drug use as a crime, but rather a health issue.

This was backed up in 2014 with the introduction of new policy by Attorney General Diego Garcia, who stated “the law allows use and does not consider it criminal, but cultivation, trafficking, and sale of little or large amounts of drugs continue to be prohibited.” He did stipulate that “according to the Constitution (article 364), we do not criminalise drug use. We consider it a health problem and not a crime.”

In 2014, new legislation passed called the Comprehensive Organic Criminal Code, which updated the section on criminal offenses under the previous Law 108, which was instituted in 1991. Law 108 was noted for it harshness, with punishments up to 10 years for cannabis sales; and the ability to slap crimes together to create bigger sentences of up to 25 years. So, say, you were caught selling, you might also be prosecuted for trafficking, which could mean years more onto the sentence.

These new laws set better parameters for the distinction of specific crimes, so that punishments could more correctly fit each crime. For example, it differentiates between large-scale, and small-scale trafficking; rather than prosecuting all trafficking crimes the same way. The law also decriminalized personal cultivation of cannabis, but specifically outlawed growing any psychoactive plants for commercial use.

Then, in 2019, the Reform of the Criminal Law, was published, and went into effect in June of 2020. This included reforms like the institution of medical cannabis: “decriminalization of possession of drugs that contain cannabis or derivatives as their active ingredient for therapeutic, palliative or medicinal ends, or for the practice of alternative medicine”. It also amended the Law of Control and Prevention of the use of Drugs, to exclude “non-psychoactive or hemp cannabis from control, extended to the cannabis plant or any part of the plant, whose delta-9-tetrahydrocannabinol (THC) content is less than 1%.”

Ecuador’s National Assembly passed the medical cannabis bill with a vote of 82 to 23 (with 23 abstentions). Then President Lenín Moreno had a month to veto the voted-in action, but did not, allowing these measures to pass into law. Together, these reforms regulate cannabis and derivatives for legal medical use. The law gave the Ministry of Agriculture up to 120 days to come up with regulations for the cultivation, importation, production, sale, and export of industrial hemp.

Hemp regulation in Ecuador
Hemp regulation in Ecuador

Ecuador and industrial hemp cultivation now

Ecuador’s hemp market kicked off in 2022 when it was announced AYA Natural and Medical Products became the first company to gain GMP certification to begin production. That was in March, nearly a year ago. Since then, the country has continued to catapult itself into the industrial hemp global market. However, recently, it made some interesting updates.

Reported in early 2023, the Ecuadorian government approved an initiative between two private companies (Green and Growth, Quito; and Nobis Holding de Inversiones) and the Latin-American organization Industrial Hemp Association (LAIHA). As a group, the three will grow between 100 to 1,000 hectares of hemp in Ecuador, at an expense of approximately $25 million, going up to $50 million, starting in 2025.

Executive Director of Green and Growth, Jaime Gómez, stated: “Among the main objectives of this initiative is to position the country as one of the economies that join the global commitment to the production of sustainable materials and resources,” and that it “will generate hundreds of jobs.”

What’s the difference between this, and what is already cultivated outside the program? Aside from this, pretty much all flower has been grown for export in a medical market. This new partnership is meant to grow hemp for fiber and grain production, to be used in “high-grade materials, such as technical fibers, biochar and other value-added products, for export and stimulation of the national market,” according to the group.

Ecuador sure jumped into the world of hemp quickly. Information released by the Ministry of Production, Foreign Trade, Investment and Fisheries last year, stated that up until October, 2022, there were already over 150 cannabis products on the market; all in line with regulation through the National Agency for Health Regulation, Control and Surveillance. Of the more than 150 products, 56% were for cosmetics, 25% for medicinal use, and 19% for food products. As of December 2022, according to the National Registry of Hemp Licensees of the Ministry of Agriculture and Livestock, 169 licenses were given out.

What else is Ecuador up to in the world of hemp?

This year from February 9-11, Ecuador hosted the Fourth Meeting of Expert Professionals in Phytocannabinoids, put on by Cannamerica. It happened at the Universidad de las Américas campus UDLA Park, in the capital city of Quito. These meetings are in line with the United Nations Sustainable Development Goals for 2030, regarding areas such as health and related issues, education, general industry, and innovation and infrastructure.

Convention speaker
Convention speaker

For its part, Cannamerica is an international organization that works to establish connections between companies and associations within the industry, with a focus on access and use of medical cannabis. Previous meetings were held in Peru, Chile and Argentina. The event had approximately 50 exhibitors from different countries, who represent expertise in clinical use, as well as research, and the industry in general.

The meeting showcased varied professionals within the field of cannabis. This included Eliana Eberle, the Undersecretariat for Productive Innovation Projects for the Ministry of Production, Science and Technology, who presented an agronomic model of cannabis cultivation for climatic conditions like winter; and the provincial Ministry of Health, which expounded on results for the very first survey about medical cannabis, which was administered to health teams.

Conclusion

As of right now, there are no specific plans for a recreational legalization in Ecuador, but it wouldn’t be surprising if one came up soon. For now, Ecuador maintains as one of the more forward-thinking countries when it does come to cannabis, with an eye on expanding its industrial hemp market even further.

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Astronauts to Test Cannabis Growth in Outer Space

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3 weeks ago

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April 1, 2024

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NASA‘s recent collaboration with the International Space Research Consortium to launch a mission testing the cultivation of cannabis in the microgravity of space has stirred a whirlwind of interest and controversy across the globe. This initiative aims to unravel the mysteries of how low-gravity environments affect plant growth, with cannabis serving as the pioneering subject. According to Dr. Alfred Terra, the esteemed lead scientist spearheading the project, the conditions in space present an “unparalleled opportunity” to push the boundaries of our understanding of botany and its applications in medicine and agriculture beyond Earth’s confines.

This ambitious endeavor aims to shed light on the potential for utilizing space-based agriculture to support long-duration space missions and future colonization efforts on other planets. The choice of cannabis as a research subject is particularly intriguing due to its complex biochemical makeup and its increasing use in medicinal therapies on Earth. Insights gained from how cannabis adapts to space’s harsh environment could lead to breakthroughs in growing food and medicinal plants in extraterrestrial colonies.

Despite the scientific excitement surrounding the mission, the announcement has been met with its share of skepticism and criticism. Some members of the scientific community and the general public question the allocation of resources toward cannabis research in space, arguing that more pressing scientific and exploratory questions merit attention aboard the International Space Station (ISS). These critics call for a focus on projects that directly contribute to our understanding of space travel’s impacts on human physiology or further our knowledge of the cosmos.

However, the space agencies involved have been quick to highlight the broader implications of this research. They argue that studying cannabis growth in microgravity could offer invaluable insights into plant biology, stress responses, and the possibility of cultivating a variety of crops in space, which are crucial for the long-term sustainability of space exploration and eventual human settlement on other planetary bodies.

Amidst the debates over the mission’s merits and the speculation spurred by its announcement date—April 1st—lies a deeper curiosity about the future of space exploration and the role of innovative agricultural research in that journey. The timing has led some to question the announcement’s authenticity, pondering whether it could be an elaborate April Fool’s Day jest aimed at sparking discussion or simply a coincidence that has amplified the public’s fascination with the project.

Whether viewed as a bold step into the future of space agriculture or a controversial choice of research focus, the mission symbolizes a growing intersection between space exploration and the quest to understand and utilize biological processes in unprecedented environments. As the launch date approaches and preparations continue, the world watches, eager to see what insights this venture might unfold about cannabis, plant science, and the potential for life beyond Earth.

*** This article is an April Fool’s Day joke ***



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A Hiring Wave on the Horizon

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2 months ago

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March 1, 2024

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The U.S. cannabis industry is on the brink of a significant hiring wave in 2024, spurred by a 12% increase in legal sales in 2023, reaching $29 billion. This growth, alongside potential federal reclassification of cannabis, is expected to create up to 100,000 new jobs, particularly in the retail sector, where 93% of companies plan to expand their workforce. The Vangst 2024 Cannabis Salary Guide highlights an industry ready to bounce back from previous economic stagnation, with a strong emphasis on experience, adaptability, and cultural fit in prospective employees.

The cannabis sector is poised for a massive expansion in employment opportunities in 2024, following a year of economic challenges and layoffs. This optimistic forecast comes from Vangst’s latest industry salary guide, which anticipates a hiring boom driven by increased legal cannabis sales and the potential for federal rescheduling. The anticipated move to reclassify cannabis to Schedule III could significantly reduce tax burdens, increase company valuations, and attract more investors, according to Viridian Capital Advisors.

Retail cannabis companies are at the forefront of this hiring surge, with nearly all surveyed indicating plans to bolster their teams in response to growing demand and market expansion. The focus is not just on filling positions but on finding candidates who can navigate the evolving legal and market landscape, prioritize cultural fit, and possess strong communication skills over traditional qualifications.

Salaries in the cannabis industry have also seen an uptick, with top-end wages growing by 4.7%, outpacing the national non-cannabis average. However, the sector still trails behind others in offering comprehensive benefits packages, a gap that affects employee satisfaction and retention. The demand for health insurance and better work-life balance is clear among job seekers in the cannabis space.

Diversity and inclusion are gaining traction within cannabis company hiring practices, with a significant portion of companies implementing strategies to create a more inclusive workforce. The industry’s employment of veterans and individuals with disabilities highlights its diverse nature, but there remains room for improvement.

Why It Matters: This hiring wave marks a pivotal moment for the cannabis industry, signaling a shift towards recovery and growth after a period of stagnation. It underscores the industry’s resilience and its potential to contribute significantly to the economy through job creation and increased sales.

Potential Implications: The anticipated hiring boom in the cannabis industry could lead to wider acceptance and normalization of cannabis use, further influencing policy changes and societal attitudes. Additionally, the focus on diversity and inclusion could set a precedent for other sectors, promoting a more inclusive workforce across industries.

Source: Green Market Report



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86% of Californians Support Legal Cannabis Markets

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2 months ago

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February 29, 2024

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A recent survey conducted by the California Department of Cannabis Control (DCC) and FM3 Research reveals that a significant majority of Californians, 86%, believe it’s important to purchase cannabis from legal markets. The survey also indicates growing support for Proposition 64 and highlights the need for consumer education on legal cannabis procurement.

California, a pioneer in legalizing medical cannabis in 1996 and later adult-use cannabis in 2016, has developed into the world’s largest cannabis market. The DCC’s Real California Cannabis Campaign, aimed at guiding consumers to licensed dispensaries, commissioned FM3 Research to survey over 1,000 California adults to gauge their attitudes towards the state’s cannabis market. Key findings include:

  • 62% view Proposition 64 positively, suggesting increased support for cannabis reform.
  • 86% of respondents stress the importance of buying cannabis from legal sources.
  • 72% feel consumers should ensure they’re purchasing from licensed retailers.
  • Despite the legal market’s size, illegal sales remain prevalent, with two-thirds of cannabis sales in 2022 coming from the illicit market.
  • The California Unified Cannabis Enforcement Taskforce (UCETF) reported significant seizures in 2023, including over $312 million in illegal cannabis and 119 firearms, showcasing efforts to combat illegal operations.
  • The survey uncovered education gaps, with 85% of respondents in areas where retail cannabis is banned either misinformed or unaware of local cannabis laws.
  • Opinions on identifying licensed retailers were divided, with 44% finding it easy and 42% finding it challenging.

Why It Matters: This survey underscores the growing acceptance of legal cannabis markets among Californians and the critical role of consumer education in supporting legal operations. It highlights the ongoing battle against illicit sales and the importance of regulatory efforts to ensure a safe, legal cannabis market.

Potential Implications: The findings could influence future cannabis policies in California, emphasizing the need for public education campaigns and stricter enforcement against illegal operations. It also suggests a potential shift in consumer behavior towards supporting legal cannabis sources, which could further legitimize and stabilize the legal market.

Source: High Times



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