Ecuador: from growing roses to Cannabis

Ecuador legalized medical cannabis in 2019. And while its industry has yet to really take off, the hemp industry has arrived as a breath of fresh air for horticulturists who produced mainly for export until the Covid pandemic.

The country has legalized hemp at 1% THC in 2020 and has since granted 46 10-year licenses for hemp development.

In Tabacundo, north of the capital Quito, the farm Flowers Boutique, originally specialized in roses, has built Cannabis greenhouses to capitalize on the growing demand for hemp-based products, a project that founder Klaus Graetzer calls CannAndes.

He plans to start exporting his product within two years and is seeking licenses from Ecuador to sell CBD-based products, including creams, oils and candies.

«The project was born out of difficult times,» says declared Klaus Graetzer. «During the pandemic, the flower industry was hit hard. We saw an opportunity to take advantage of the new regulations.

Klaus saw rose production plummet last year, from 40 million stems a year to just 15 million. This drop is almost double the overall decline in the country's flower exports, which stood at 8 %.

CannAndes is confident in its ability to market and sell hemp products.

«The idea is to export smokable CBD flowers to Switzerland: it's the biggest market for this flower,» said Felipe Norton, director of CannAndes. «Given the experience we have with flowers, it's a good opportunity».

Many remain uncertain about the stability of hemp products, as sales are largely dictated by trends, consumption patterns and government regulatory decisions. Ecuador's Vice Minister of Productive Development, Ney Barrionuevo, noted the hemp industry's dependence on consumer demand:

«We have the climate and soil conditions to grow the crop, but it's demand that will dictate the level of supply... For now, it's nascent.»