Argentina begins exporting medical cannabis to Europe and Australia

Argentina, through its state-owned Cannava S.E., has announced its first exports of medical cannabis flowers to Germany, Portugal and Australia. Argentina is often regarded as a potential powerhouse in the Latin American cannabis industry.

Argentine medical cannabis in Europe

Cannava S.E., owned by the province of Jujuy, has signed agreements to export a total of 730 kilos of pharmaceutical-grade cannabis flowers to approved pharmacies in the above-mentioned countries.

The allocation includes 200 kilos for Australia, 400 kilos for Portugal and 130 kilos for Germany. Gastón Morales, president of Cannava, emphasized that these cannabis flowers will not be processed into oils, but sold directly in their raw form.

Contracts with customers in Germany, Portugal and Australia are expected to generate sales of 5 million euros ($5.4 million) for Cannava this year, with Mr. Morales forecasting «sustained growth» in demand of around 5% per year. He predicts that the state-owned company will generate a total of between 150 and 200 million euros over the next 15 to 20 years, underlining the economic potential of cannabis exports for Argentina.

In April 2023, Cannava organized its first roadshow in Switzerland and Germany, showcasing its production capabilities and the pharmaceutical quality of its products.

In August of the same year, it entered into an alliance with GL Biomeds, a UK company that provides European support to attract industry customers by facilitating the supply management of medicinal cannabis products. The agreement has strengthened Cannava's presence on the continent and the introduction of its products to new markets.

An important milestone was reached in September of the same year with the first export of 70 kilos of cannabis inflorescences. to North Macedonia, marking its entry into the European market.

This feat was followed in December 2023 by the first export of Argentine medical cannabis to Germany, passing European pharmacopoeia quality controls and setting a new standard for Argentine medical cannabis exports.

In February 2024, Cannava began negotiations with GLB and Canapac (Portugal) to set up its showroom in Lisbon, enabling potential European customers to discover its products.

Last April, it signed the first long-term 5-year supply contract with German company Drapalin, securing the sale of 800 kilos of medical cannabis inflorescences in the first year.

In May, it consolidated its presence in Australia through a 5-year contract with Cannabas PTY, with purchase commitments of 1,250 kilos in the first year and 2,500 kilos in the second.

Medical cannabis in Argentina

Argentina's legal framework for medical cannabis is quite special. Medical cannabis legalized in 2017 but it was not until 2023 that the Argentine government creates the Hemp and Medical Cannabis Industry Regulatory Agency (ARICCAME) to oversee the cannabis sector. ARICCAME's mission includes promoting research and technological advances, ensuring consumer safety, and collaborating with public bodies and universities.

Several licenses granted to Argentine companies to produce and export medical cannabis, but for the moment these products cannot be sold on Argentine soil, apart from CBD oil.

Patients and patient associations can grow their own cannabis and buy imported CBD and THC products from pharmacies with a doctor's prescription.