Here’s the introduction to the piece and we do suggest linking through to read the full article on this one
While patient numbers are still small, from a market development perspective, Israel is still ahead of Canada and just about everyone else. However the small domestic population is not big enough to support a medical program that can compete in sheer size to what is going on elsewhere – including of course Canada and the bigger American states. Not to mention attract the same kind of equity over time. There was about $100 million of foreign investment in the Israeli market in 2016. Compare that to the Canadian market. In 2016 the domestic market was worth about $150 million – with a twentyfold increase expected in the next five years.
Now it appears, both politically and economically, the expedient and easy thing to do is export both bud and product to a world which right now, cannot get enough of the legal stuff – no matter its end use. The fact that Israel is restricting its exports to medical only is also a sign that wider recreational reform globally is on a backburner while politicians in particular deal with the reality that the drug has real medical efficacy everywhere.
A political football has just landed squarely in the goalposts domestically, in other words, as the rest of the world catches up.
Global Market Positioning
This development could not be better news right now for a global medical market facing huge shortages next year. In Canada, producers are already predicting they will not be able to grow enough for both patients and rec users. Not to mention supply other markets.
What this development also does is create a major source of competition for exported Canadian medical grade bud in all markets including Europe looking for alternative sources right now. That includes Germany, which may have to at least partly source its medical weed from other countries for the next 18 months as it gets its own grow program off the ground. The top contenders for those grow licenses right now are mainly Canadian firms with EU operations. Given historical relations since WWII, however, this area is one where there will be ready and quick introductions if not conversations and business development. Expect a German-Israeli cannabis research venture of some kind for sure in the relatively near future, if not interactions over crops and pharma extractions.
Australia is also in the early stages of its own grow program. Israeli medical stock will almost certainly find its way into that market too.
In other words, this is supremely good news for everyone in fact. Especially as exports will be strictly controlled by the Israeli government. It could also mean that predicted medical cannabis shortages, where-ever they now occur, could be targeted with quick injections of high grade, medical cannabis, proudly grown in Israel.
The following article from Ganjapreneur published today backs up the CFN argument