Cannabis in Uruguay: World’s leading hemp exporter; tons of flowers in 6 months; over 160 companies created

RIO DE JANEIRO, BRAZIL – ExpoCannabis 2021, the trade show of the growing cannabis industry in Uruguay, joined over 160 companies that are developing products, from dog food, gin, cosmetics or medicines containing cannabis, to fertilizers or smoking accessories, with more than 150 stands displaying their products in the 8th edition of this 3-day event that started on Friday (4).

The cannabis industry in Uruguay “is growing exponentially,” said the event’s founder and organizer Mercedes Ponce de León, adding that this year “more than 30% of the stands are foreign,” with companies from Brazil, South Africa and Canada, among others.

HEMP

“We are the world’s leading hemp exporter,” a product that “is proving to be the cornerstone to launch the development of a sector with a great productive potential,” Ponce de León said.

In addition, she pointed out that hemp flowers “are only one of many products and raw materials” that can be developed from the plant.

DOMESTIC MARKET: OVER 65,000 CONSUMERS

In 2013, Uruguay became the first country in the world to legalize the production, distribution and consumption of cannabis.

Since then, the country granted 151 licenses for cultivation, of which the vast majority (more than 80%) are for hemp plantations, according to figures from Uruguay XXI public-private investment promotion agency. The remainder are for the cultivation of psychoactive or medicinal cannabis. Additionally, there are 17 licenses for industrialization and 7 for research, covering 164 companies dedicated to the industry.

In the domestic market, 5 grams of cannabis costs 370 Uruguayan pesos, about US$8.

MARIJUANA: THREE WAYS TO ACQUIRE IT

• Grow it at home for personal consumption;
• Access it through a club; or
• Acquire it in a pharmacy.

Registration is required in all cases and for the moment purchase is not available to tourists, although the government has stated that the plan is under consideration for 2023.

The sale in pharmacies, enabled since 2017, is limited to 40 grams per month per user.

There are currently 5 companies authorized to produce and distribute marijuana to the 46,375 people registered for purchase. There are also 12,902 home growers and 213 clubs with 6,452 members, according to the latest figures from the Cannabis Regulation and Control Institute (IRCCA) updated through November.

EXPORTS ON THE RISE

Uruguay made its first cannabis export in 2019 and in 2020 posted sales exceeding US$7.5 million, with some 10 tons of flowers marketed, according to Uruguay XXI data.

LEGAL FRAMEWORK

Although many countries have decriminalized the consumption and possession of marijuana, exempting consumers from prison sentences, few provide a legal framework for its cultivation and consumption.

So far, only Uruguay and Canada have national regulations covering both medicinal and recreational use.

Chile, Colombia, Argentina, Mexico, Peru and Ecuador are other Latin American countries that have legalized the therapeutic use of cannabis.

According to a report by English consulting firm Prohibition Partners, it is estimated that of Latin America and the Caribbean’s 655 million inhabitants, 35 million (5.4%) are cannabis users in the legal and illegal market.