A draft resolution from the Colombian Agricultural Institute (ICA), which seeks to create a pathway for the importation of cannabis from Canada, is raising questions inside Colombia’s cannabis industry. 

As first reported in El Planteo, the ICA recently published a draft resolution to define phytosanitary requirements for the importation of dried cannabis flowers from Canada.

While the issue is raising red flags among some in the industry in Colombia, not all agree with the idea that there is even a need or demand for Canadian cannabis making its way to the Colombian market. 

Deepak Anand, a Canadian industry consultant who assists cannabis companies with exports, says he doesn’t see how cannabis produced in Canada could even compete with cannabis produced in Colombia, given the extra costs for labour in Canada. 

“Combined with the lower cost, broad availability, and minuscule medical cannabis market in terms of patients, I am not sure what appetite there would be to import dried cannabis flower into Colombia,” Anand tells StratCann.

Lucas Nosiglia, president of the Latin America division of biopharmaceutical company Avicanna (LATAM), shared a sentiment similar to El Planteo’s. He doesn’t see how it would be economically viable to ship cannabis from Canada to Colombia. 

“In Colombia, there is the capacity to produce flower of the highest quality at much more competitive costs than in Canada,” says Nosiglia.

Avicanna is an international biopharmaceutical company in the medical cannabis space that was founded in Toronto in 2016. The company also acquired Shoppers’ medical platform, MyMedi, in 2023.

Paula Andrea Cepeda Rodríguez, the general manager of the Colombian Agricultural Institute (ICA), clarified with another Colombian website, Hierbabuena Revista, that Colombia has allowed cannabis imports since 2016. However, she notes that the ICA has not yet accepted any cannabis imports from Canada.

“It is important to tell the country that the ICA is not opening the door to cannabis imports because there has been a regulation in place for more than nine years,” said Rodríguez. 

She adds that if Colombia wanted to limit such imports, it would require the Congress of the Republic to make changes to the law and corresponding regulations. The current draft document serves as public feedback to see if there is a local appetite for such imports.

“What we published for public consultation is a draft resolution that establishes the phytosanitary requirements for the importation of dried cannabis flowers from Canada, whose purposes are solely industrial and pharmaceutical use,” she noted.

The phytosanitary requirements include that any cannabis shipment from Canada is free of Cryptolestes pusillus, a species of lined flat bark beetle native to Europe, and Trogoderma variabile, commonly known as the warehouse beetle.

The shipment must also be free of whole seeds, meet specific labelling requirements, and pass a phytosanitary inspection at the place of entry.

Exports of cannabis for medical purposes from Canada have continued to show significant increases in the last few years. There were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 and 79,279.75 kilograms exported in 2023.

Exports of cannabis oil for medical purposes have also increased significantly. In the first six months of 2024, Canada exported 10,489.38 litres, and in 2023, 7,078.9 litres. In September 2023 alone, 1,011.74 litres were exported, the highest month on record.

Some of the largest markets for Canadian cannabis have been Australia, Israel, and Germany. While Canadian cannabis has been in high demand by consumers and sellers in these markets, as their domestic industries gain momentum, there has been some pushback as well. 

In early 2024, Israel opened an investigation into allegations of Canadian cannabis flooding the local market at below-market costs, making it difficult for some local producers to compete. In November, a 126-page final report proposed tariffs as high as 175% on some Canadian cannabis. No decision regarding the proposed tariffs has yet been released. 

Some cannabis producers in Australia have raised similar complaints, although others in the industry have pushed back against these concerns. 

Nosiglia, with Avicanna LATAM, also told El Planteo that he thinks this draft resolution from the Colombian Agricultural Institute could be at the behest of some Canadian companies that are searching for new markets for their products, pointing to reports of oversupply in the Canadian market. 

“There may be an interest from Canada in exporting because they produce more than they sell, it is the after-effect of the boom in the sector where there was more growth than necessary,” he told the publication. 

Cannabis exports have indeed been a boon for many Canadian cannabis companies, especially because international sales often command a higher price than the Canadian market. Exports have helped relieve some pressure from Canada’s very saturated cannabis market, and also do not come with the added cost of Canada’s federal excise tax, which can weigh down the overall revenue from domestic sales.

However, some claims of oversupply and even destruction of Canadian cannabis are often misrepresented. While some Canadian companies have been sitting on large amounts of cannabis in large vaults, these products are not always of a saleable quality, nor evenly distributed across the market. 

Philip Campbell, the CEO and director at Herbal Dispatch, a Canadian company that also sells on the export market, says the oversupply of cannabis in Canada is not as much of an issue as it was in the first few years of legalization. 

“The oversupply largely seems to have been addressed as the large vaults have been mostly sold through,” Campbell tells StratCann. “This is evidenced by the wholesale price on the Canadian Cannabis Exchange going up slightly over the last few months. There are some LP’s with oversupply if a batch doesn’t meet listing specs or a partner isn’t able to take a batch, which creates some buying opportunities still.” 

“There may have been some large companies partaking in product jumping, but without knowing the specifics of a transaction that’s just speculation on my part,” he adds. “There is strong demand for Canadian products. As the international market becomes more global and we compete with other producers in competitively priced countries like Thailand, Colombia, and South Africa, the market is increasingly looking to Canadian producers for top shelf product that is grown by our highly experienced producers.”

El Planteo also published part of a letter that lawyer Efraín López, director of Colombian cannabis company Árpez Company and former official of the Ministry of Justice, wrote to the Colombian government.

“Canada does not allow the importation of cannabis for medical or industrial purposes from Colombia, why would we allow its entry?”

While Canada does allow cannabis imports for very limited medical or research purposes, the threshold for approval is so high that it has only seen about 28 kilograms imported between October 2018 and June 2024, out of about 54 kilograms authorized. 

According to figures from the Colombia government, Colombia exported $10.8 million worth of cannabis in 2023 and $9.7 million in 2022. Of that, 32% went to Brazil, 25% to Australia, and another 14% to Germany.

Related Articles

Data presented by Health Canada indicate cannabis exports may continue growing

October 25, 2023

Canada’s medical cannabis market remains steady, exports continue to increase

January 14, 2025

Israel’s Ministry of Health says tariffs on Canadian cannabis will harm patients, benefit illicit market

November 25, 2024