In Paraguay, the industrial cannabis sector is celebrating. They’ve announced reaching a milestone as the European market has purchased the entirety of the country’s premium cannabis flower production for 2024.
The agreement marks a key moment in Paraguay’s expanding role in the global cannabis market, particularly in Eastern Europe, where demand for high-quality cannabis products is growing.
Crafting Of Success
The deal was confirmed by the government following a series of developments earlier this year when a shipment of cannabis flower samples was sent from Paraguay to Europe. The high quality of the flowers captured the attention of European entrepreneurs, prompting them to visit Paraguay.
During their visit, they sealed the agreement and introduced advanced technology to enhance the preservation and transportation of the flowers.
“They brought a technology called freeze-drying. Producers harvest the cannabis flowers and place them in refrigerated containers at -30 degrees. The flowers are frozen fresh, not dried. This way, the production is bought fresh and green,” explained Marcelo Demp, president of the Paraguayan Chamber of Industrial Cannabis (CCIP) to Infonegocios. This innovative method ensures that the flowers maintain their quality during transportation to Europe, a crucial factor for markets with high standards.
Read Also: $2.9B European Cannabis Market: A Strategic Blueprint For Cross-Border Transportation Logistics
Expanding Production To Meet Demand
The Paraguayan plantations involved in this agreement are located in Areguá, Nueva Italia, Iruña and Hernandarias. Although precise production volumes cannot yet be confirmed due to variable crop yields, Demp estimates a minimum yield of 5 tons per hectare, potentially generating up to $25,000 per hectare.
Despite this success, Demp acknowledged that current production levels are not yet sufficient to fully meet European demand.
As a result, the CCIP is actively seeking more producers to join the industry to boost the sector’s capacity and ensure Paraguay’s position in the growing global cannabis market.
In September, neighbor Argentina also made a significant move in the global cannabis market by exporting medicinal cannabis to Switzerland and partnering with Germany’s Cantourage Group SE to introduce Patagonia Heritage‘s products to Europe.
Prior to that, another Argentine state-owned company completed its first export of cannabis flowers to Europe and Australia, securing contracts worth $5.4 million annually for therapeutic use.
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Rapid Growth Since 2019
The industrial cannabis industry in Paraguay, which only began in 2019 after the approval of its legal framework, has experienced exponential growth.
In just five years, the country has exported over 600 tons of cannabis products and raw materials to various international markets. Products such as gummies, infusions and cannabis derivatives have also helped Paraguay boost its primary production.
Cover: AI generated image
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
