08/18/2024
Cannabis is just one of the many industries in which I have interest and experience! Here's a short report I submitted about the international economic opportunities for CBD grown right here on the Western Slope!
Cannabidiol International Report:
From the Western Slope to the World
by Tanesha Harrington
April 2024
Cannabidiol (CBD), is a phytocannabinoid isolated compound derived from the cannabis sativa plant. Once outlawed for decades due to misconstrued connotations propagated by the media, modern medical science has since discovered an array of benefits associated with the consumption of the product, including a reduction in symptoms of anxiety, depression, eating disorders, and even some types of seizures, (Devinsky, et. al., 2014). The Agricultural Improvement Act of 2018 fully descheduled low-TCH (less than 0.3% THC- the byproduct of combustion that creates intoxication) cannabis products from the Controlled Substances Act of 1970. While certain functional properties derived from the cannabis plant remain highly illegal in many places around the world, the non-intoxicating cannabidiol isolate is now domestically sanctioned for use and consumption in 44 US states, 4 territories, and the District of Columbia. Internationally, over 50 countries worldwide allow CBD, including France, Brazil, and China, though regulation of the isolate in these countries is much more strictly enforced than in the United States, (CBD Legal Map, 2023). Since legalization, manufacturing companies have been in a race to see who will be the leader of this rapidly expanding and extremely lucrative global market.
One such contender from the Western Slope is EcoGen BioSciences– a cannabis genetics, farming, extraction, refinement, and product manufacturing company located in Grand Junction, Colorado. In their own words, “EcoGen BioSciences is a world leader in the farming, production and manufacturing of h**p-based ingredients and raw materials, using sustainable farming practices to ensure quality CBD products are accessible to mainstream consumers,” (EcoGen BioSciences, 2021). They achieved an ISO 9001 – 2015 quality standard from the Internal Organization of Standards for global recognition of quality and BRC Global Standards Certification. The company consists of just under 100 employees, 160,000 sq. ft. of greenhouses, 100,000 sq. ft. of production, R&D, and processing space, and 570 acres of farmland, (EcoGen BioSciences, 2021). The Western Slope of Colorado is known for its agriculture—from Olathe Sweet Corn to Colorado-grown wine grapes and beer hops. Capitalizing on the cultivation of cannabis in the area just makes sense.
France is currently the world’s third-largest h**p producer and the largest in Europe. Many people are unaware that h**p has been used to produce fiber for ship sails and clothing, oils, food, and medicine for thousands of years and is still used for these purposes in many parts of the world. It was even an influential factor in the strategies of the Napoleonic Wars, (Crosby, 1961). Bans on the plant for consumption were not implemented until the late 1920s in Europe. Recently, however, according to Forbes, in December 2022 the French Council of State ruled to lift a ban on the sale of CBD flowers following the ruling to lift the ban on CBD altogether in 2021, (Biopharma, 2023). The conditions for cultivation in France are similar to those in the US, with THC limits set at 0.3%, except that it must be sold as a food additive instead of a health supplement. Since that time, 400 CBD stores have opened for business and sales are expected to reach nearly $300 million in 2024, (Sabaghi, 2023). Other projections from multiple sources suggest that global CBD and cannabis sales will double over the next ten years, (CBD Consumer Health Market, 2024). Businesses hoping to be first among those entering the market are warned though, that French regulations on the import of CBD are considerably stricter than those in other parts of the European Union and they are advised to partner with locals or border countries to establish an international foothold. For example, EcoGen BioSciences has partnered with Dushey Med Lt., a European Industrial H**p Association (EIHA) member, to supply a warehouse in London, UK that also distributes to France, (EcoGen BioSciences, 2021).
According to the USDA, “Brazil imported US$ 90.4 million of cannabidiol (CBD) from 2010 to August 2020, with the United States responsible for 14 percent of the total (US$ 12.7 million). In 2019, the United States had its best export performance, exporting US$ 2.6 million CBD to Brazil and accounting for 22 percent of the total,” (Brazil, 2020). Cannabis cultivation for the purpose of research and development on a medical level is a growing national industry for Brazil. In addition, EcoGen BioSciences of Western Colorado, a subsidiary of Kadenwood, has launched a rebranding of their CannaMeds division in San Paolo to become EcoGen Brazil, (EcoGen BioSciences, 2021). Representatives of the Brazilian branch of EcoGen work together with local doctors to prescribe CBD to patients who can benefit the most from its use. CBD is available via prescription only and is not available to consumers in any other manner. However, political discussions and votes about the growth and sale of cannabis remain a highly relevant subject in Brazilian government as research, studies, and development into the possible medical benefits of cannabis are encouraged, (Devinsky, et. al., 2014).
Cannabis can trace its history back to the birth of agriculture, through ancient times in China, India, the Middle East, and Africa, and alongside the development of human civilization. In fact, China has been the world’s leading producer of cannabis for over 6000 years, specifically cannabis chinensis delile, for its versatility as a fiber and its use in textiles, (Plants of the World Online, 2024). Currently, cannabis cultivation in China is a highly regulated activity and is strictly for the purpose of industrial h**p and government-supervised research for some medicines. The public sale or trade of CBD by a foreign company in China is highly unlikely in the future after zero-tolerance bans of the isolate in all products in 2022, (De Guzman, 2023).
*Resources*
Biopharma, G. (2023, September 26). Cannabinoid laws in France. GVB Biopharma. https://www.gvbbiopharma.com/cannabinoid-laws-in-france/
Brazil: Brazil’s initial h**p report. (2020, September 28). USDA Foreign Agricultural Service. https://fas.usda.gov/data/brazil-brazils-initial-h**p-report
Cannabis chinensis Delile | Plants of the World Online | Kew Science. (2024, May). Plants of the World Online. https://powo.science.kew.org/taxon/urn:lsid:ipni.org:names:850876-1
Cannabis Legalization World Map: 2024 Updated – Business Plan templates. (2024, May 14). https://cannabusinessplans.com/cannabis-legalization-map/
CBD Consumer Health Market size to hit USD 69.72 BN by 2033. (2024, May 14). https://www.precedenceresearch.com/cbd-consumer-health-market
CBD Legal Map | Where is CBD Legal in the World & States. (2023, November 27). Neurogan. https://neurogan.com/blogs/legal
Crosby, A. W. (1961). America, Russia, h**p, and Napoleon: a study of trade between the United States and Russia, 1783-1814. https://open.bu.edu/handle/2144/26782
De Guzman / Hong Kong, C. (2023, February 1). CBD tends to perplex regulators. Hong Kong’s new ban reinforces Asia’s strict drug approach. TIME. https://time.com/6251453/hong-kong-cbd-ban-facts/
Devinsky, O., Cilio, M. R., Cross, H., Fernandez‐Ruiz, J., French, J., Hill, C., Katz, R., Di Marzo, V., Jutras‐Aswad, D., Notcutt, W. G., Martinez‐Orgado, J., Robson, P. J., Rohrback, B. G., Thiele, E., Whalley, B., & Friedman, D. (2014). Cannabidiol: Pharmacology and potential therapeutic role in epilepsy and other neuropsychiatric disorders. Epilepsia, 55(6), 791–802. https://doi.org/10.1111/epi.12631
Ecogen Biosciences. (2021, May 22). International cbd genetics,cbd manufacturer - Ecogenbiosciences. EcoGen BioSciences. https://ecogenbiosciences.com/international-business/
EcoGen Biosciences - Overview, News & Similar companies | ZoomInfo.com. (2024, May). ZoomInfo. https://www.zoominfo.com/c/ecogen-labs/467330565
Oshiro, C. A., & Castro, L. H. M. (2022). Cannabidiol and epilepsy in Brazil: a current review. Arquivos De Neuro-Psiquiatria, 80(5 suppl 1), 182–192. https://doi.org/10.1590/0004-282x-anp-2022-s137
Sabaghi, D. (2023, January 6). France’s court overturns government ban on sale of CBD flowers. Forbes. https://www.forbes.com/sites/dariosabaghi/2023/01/05/frances-court-overturns-government-ban-on-sale-of-cbd-flowers/?sh=7475eb1b44c1
A French court has overturned the government's ban on the sale of CBD flowers, paving the way for a lucrative market that has been held back by strict legislation in recent years.