Not so fast, Colombia! – Argentina plans to export $50 million worth of medicinal cannabis by 2025

Argentina’s newly formed cannabis regulator is overseeing numerous research and development initiatives aimed at entering the potentially profitable cannabis export market. By 2025, the Argentine government aims to generate $500 million in domestic cannabis sales and $50 million in exports.

Although recreational use of cannabis is prohibited, individuals in Argentina can grow their plants for medicinal purposes. The government is considering expanding the number of private companies licensed to manufacture cannabis, as the industry has significant potential. The director of the newly formed cannabis regulator, Gabriel Gimenez, explained that 51 research and development initiatives are being overseen across the country. In addition, the National Seed Institute has approved the use of 13 varieties of traceable cannabis seeds.

Argentina wants to earn foreign exchange through exports and create 10,000 jobs. Currently, cannabis-derived products are available in pharmacies across the country, and insurers have been ordered to cover prescription drugs containing cannabis.

In 2021, Pampa Hemp became the first private company to receive approval from the Argentine Ministry of Health. They started growing pharmaceutical grade cannabis in a laboratory in the province of Buenos Aires. According to Pablo Fazio, co-founder of Pampa Hemp and President of the Argentine Cannabis Chamber (ARGENCANN), demand for cannabis-derived products could create a new domestic industry. He noted that this development alone could be revolutionary.

The Medical Cannabis Research and Development Center (CIDCam) is located in the province of Santa Fe and owns over 200 cannabis plants of different strains. A second harvest is planned for this month and the center intends to support producers in experimenting with different types of cannabis.

Cannabis and the Environment

Discussions about cannabis in Argentina intensified last May when President Alberto Fernández implemented Law 27,669. This law created a regulatory structure for private and public investments across the cannabis value chain. It supplemented another 2017 law that encouraged medical and scientific research into cannabis but restricted production to the federal government solely for health-related ideals.

According to a report by the Argentine government, cannabis has a complex structure due to the existence of over 550 chemical compounds. The most intensively studied compounds are cannabinoids such as tetrahydrocannabinol (THC) and cannabidiol (CBD). THC is responsible for the plant’s well-known psychoactive effects, and CBD has attracted much interest from scientists as a potential treatment for anxiety, autism, insomnia, and other conditions.

According to the report, growth opportunities in this industry extend beyond the medical and recreational markets. Other uses include cosmetics, textile clothing, fibers, shoes, animal feed, biofuels, building materials, fertilizers, paper and car parts.

There are three main systems for growing cannabis: indoor, outdoor and mixed light, which combines aspects of indoor and outdoor production. Each of these methods can potentially impact the environment in different ways.

For example, indoor growing systems require more external inputs, especially electricity, which is why various studies have emphasized their significant carbon footprint. According to an article published in Nature Sustainability, the emissions associated with growing one kilogram of cannabis indoors are roughly equivalent to burning 2,000 liters of gasoline. Another study estimates that the carbon footprint of large-scale indoor cannabis production is between 2.2 and 5.1 tons of CO2 per kilogram of dried flower.

On the other hand, outdoor cultivation requires up to 140 times less electricity, according to a study conducted by the Cannabis Environmental Best Practices Task Force in Oregon, USA. The same study, however, highlights concerns about water consumption: A mature cannabis plant can use up to 22.7 liters of water per day during the 150-day growing season, almost double the amount required by a grapevine.

Several studies confirm possible adverse environmental effects.

Several studies conducted in California have raised additional concerns. A study published in Frontiers in Ecology and the Environment warns of the risk of deforestation and habitat fragmentation from commercial cannabis production. Another study published in Environmental Research Communications highlights the significant impact on water resources due to increased cannabis cultivation, indicating that water scarcity is a current and future concern.

Although there are environmental risks associated with growing cannabis, the plant also offers environmental benefits. Cambridge University researcher Darshil Shah has suggested that cannabis can sequester atmospheric carbon twice as effectively as forests, providing carbon-negative biomaterials for architects and designers.

According to the president of Mexico’s National Cannabis Industry Association, Guillermo Nieto, hemp can help mitigate the negative environmental impact of farming. Nieto emphasizes that hemp fiber can replace several raw materials, including cloth, paper and plastic, and can be used to make biodegradable products. He also notes that producing a kilo of hemp fiber requires 20 times less water than a kilo of cotton. Nieto shared these insights with Forbes.

Years of Prohibition in Argentina has led to a lack of scientific research into the environmental impact of cannabis production in the country. Proyecto Cáñamo Civic Association director Diana Barreneche says that while the cultivation has been around for a long time, it has only recently been reintroduced. The country is still in the early stages of research.

Although international studies provide some background information, not everyone agrees with their conclusions. Director of the Diploma in Cannabis Production and Regulation at the National University of Rosario, Bruno Cravero, notes that some studies are controversial and still remain in a gray area.

Diploma

The legalization of cannabis cultivation in Argentina is still in its infancy, and there could be beneficial and adverse environmental effects. While some studies have emphasized the significant carbon footprint of indoor farming, other research has demonstrated the plant’s ability to capture atmospheric carbon and produce sustainable biomaterials. It will be crucial to carefully assess and avoid potential adverse environmental impacts, while exploring the potential benefits of this adaptable plant as Argentina’s cannabis sector develops.

In 2013, Uruguay became the first country to legalize the cultivation, sale and consumption of cannabis, while Paraguay is also exploring legalizing cultivation for medicinal purposes. Across Latin America, countries have gradually eased restrictions on the cultivation, distribution, and use of cannabis.

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