Huge market potential- competition almost everywhere:
Currently the main suppliers of medical cannabis are Netherlands, Canada, USA (Local use only) and Israel (Local Use only, Export- not yet started), Australia and some products coming from Portugal, Spain, Denmark, Uruguay and Lesotho. There are more OECD countries that are allowing Medical Cannabis cultivations and growing, and sales planned for 2021.
EU and north American suppliers already claim that they are unable to continue for long with the current prices in the Germen governmental bid's prices. The growing in those countries where climate condition is not suitable for Cannabis growing are massive energy consumption with high labor and operation cost that leading for high Cash-per Gram. Therefore, we can see that some of the leading LP's are looking of alternative growing methods and moved to outdoor growing.
The approval of recreational use could be a barrier for production produce in Canada.
USA- currently close market, The cannabis used approved on the state level only and not on the federal level therefore it will take time till the market will be open for Export-import activity.
Israel: After years of discussion around the regulations that would allow Israeli producers to export, 2020 has paradoxically seen Israel becoming the largest global importer of cannabis. Israel has the knowledge and the know-how however we should learn from past processes. The Israeli agriculture brands were: Agrexco, Carmel, Jaffa, Bikel Flower who were famous as Flowers, Fruits, Citrus fruits and herbs suppliers and most of them disappeared or scale down there operation and activity dramatically. At the same time companies as: Netafim, Adama, Barmad, Naan-Dan, Hazera Genetics, and many other companies dealing with agricultural Inputs, systems, agro-tech, consultancy are expanding activity. Roses, Carnation, spray-carnation and other cut flowers growing moved from Israel to Africa, and seems that this what is expected in the medical cannabis too, with international markets are becoming more crowded, Israel may choose to focus their efforts where its expertise lies as an R&D and innovation center.
Africa -currently just 2 countries have the right legal frame for exporting, many countries are reviewing the medical cannabis legalization and some already made some progress of it. In many countries there are great resistance coming from religions institutes and health authorities what delay the legalization process, however we believe that even if more countries will approve and finalized the legalization process it will take time till we will see products available and our current position allowing us to be first to market.
Latin America-High potential to become a main supplier however they could have an issue with the Cartels law and regulation as well as problem exporting to the EU following recreational use approval.