Legal marijuana in Uruguay was initiated as an international success back in December 2013 when it became the first country in the world to legalize the cultivation,distribution, sale and consumption of marijuana.
Former Uruguayan President Jose Mujica, whose administration who as well legalized same-sex marriage and abortion in midst of serving his term, pitched the pot legalization law as a way to battle against drug gangs.
The government’s low price cap and strict cultivation limits are pushing less regulated hemp to the center stage among cultivators. That’s not a bad idea, according to Guillermo Delmonte, CEO of International Cannabis Corp., as hemp is expected to become a much bigger market than cannabis.
“Recreational cannabis is regulated by the government and we sell what the government lets us sell,” stated Delmonte.
“In the hemp market, we can produce all we can to meet demand.” The global market for hemp is projected to expand further than its current $1 billion as more countries legalize marijuana cultivation, according to Medical Marijuana Inc., a publicly-listed marijuana grower in California.
For a company like International Cannabis, that potential growth suggests expanding beyond Uruguay. According to the Denver Post, International Cannabis is already in advanced talks with five European and South American pharmaceutical and food companies to supply additives like hemp oil and hemp-based extracts for medical products.
What people expected to happen in Uruguay when marijuana was made legal has not happened, Uruguay is not going to become the Amsterdam of the south. Only 50 of the country’s 1,200 pharmacies have signed up to sell cannabis products. Those who are not citizens of Uruguay can only purchase marijuana if they have resided legally in the country for at least two years. As the legal weed industry works out its kinks, Uruguayan growers are preparing to cash in on pot’s billion-dollar, globally traded cousin: hemp.
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