Australia: Zuanic Assocs Publish MMJ Report To Coincide With This Weekend’s Medical Cannabis Shindig In Queensland

Essentially, they are on the mark with this bit of analysis

All this said, C$ export growth to Australia seems to be slowing, with C$ dried flower exports to Australia up only 1% qoq in 4Q24 vs.+74% qoq growth in exports to Germany (as per StatCan). This may be an indication of the total Australian MMJ market slowing, and or of C$ exports losing share to imports from other countries and or to local Australian production. 

and they note

Domestic production has been growing (again, data is limited), and it likely accounts now for close to 30% of total consumption in Australia, as per estimates by our local contacts. If we assume non-Canadian imports as well as domestic production both continue to gain market share, that would mean the Australian MMJ market must have grown by 20-30% in CY24 (i.e., above the 16% growth in C$ DF exports to Australia) 

But .. as they note throughout this brief update there is a paucity of just about everything with regard to information onthe market. It’s about time somebody in Canberra started getting operating companies to report in greater deatil what theyare buying from whom at what price and where they are selling it and with what mark ups.

That can then allow policy makers to get a better handle on how to actually grow the Australian donmestic sector and keep that product for Australian patients

21 February 2025 Cannabis Industry Update Cannabis: On Australia’s MMJ Market Key Highlights: We write this brief high-level report on the Australian MMJ market as a preview of our visit to the UIC conference this weekend (the country’s main MMJ event). For the third year in a row, Australia was Canada’s #1 MMJ export market in CY24 (as per StatCan), accounting for 40% of Canada’s C$ dried flower exports (C$104.3Mn) and for 27% of extracts (C$14.7Mn). Dried flower C$ exports to Australia grew by 16% in CY24 after +69% in CY23 and +165% in CY22. Exports of extracts to Australia (12% of total C$) grew by 43% in CY24 (+43% in CY23; +35% in CY22). Yes, Germany has been getting all the attention (and in fact “passed” Australia as the #1 destination for Canadian flower in 4Q24, at C$30.7Mn vs. C$27.6Mn), but Australia is still a key destination for Canadian exports, and a market that should warrant more investor attention as export growth starts to drive sentiment on Canadian LP stocks (see recent moves, as some LP stocks “decouple” from US driven news flow). See inside this report for color.