Market Opportunities

 

The cannabis is one of the fastest growing industries in the world and we can see  Legalization process almost everywhere, more and more countries are approving or in process of approving the use of medical cannabis and the market is estimated in billions of dollars and grams. 

The company main targeted market is the European market, with an overall population of over 740 million, Europe is the largest medical cannabis market worldwide. With 22 countries in the continent including the four of its biggest economies, Germany, UK, France and Italy that recently passing legislation allowing for the prescription of medical cannabis, we are confident in the long-term strength of the market.

 

                                                                                                                                                                                                                    By Prohibition Partners

Medical cannabis in the US and Canada reaches around 1% of the population and the regulation in the European market giving us an estimation of 1.5-3% of the population that will be eligible for medical cannabis prescriptions, with as less as use of 1 gram/ day we can estimate that the market size will be over 4,000,000 kg annually.

However,  the development of the medical cannabis market and opened accesses of patients  in Europe is still limited and despite having a considerably larger population than the US and Canada put together, patient numbers in Euro pe show a far more lax growth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The European market is moving forward and the infrastructure and industry behind medical cannabis has been building up slowly but surely and this gradual development will allow to reach the market potential. 

 

Therefore, the focus now is on company’s capabilities to be agile enough to move to meet the evolving international market demands , the next generation of growing and cultivation companies that will grow under better and more suitable growing condition and with lower operation cost that will able to provide the market with high quality products in a dramatically lower cash-per-gram all year around, will minimize the environmental impacts of the medical cannabis sector and will open the accesses for more patients to the medical cannabis treatments.

 

The company is also evaluating the Israeli Market, with 72,000 prescription and 2,500 k"g a month and according to the Israeli MoH for 100,000 prescriptions and 3,500 k"g a month by the end of 2020, Israel is currently the largest medical cannabis importer, WW.  We believe that even the market size is limited the market, Collaborations and joint ventures with an Israeli companies have add value in the global medical cannabis market as well as in the Israeli, both.   

 

   https://prohibitionpartners.com/2020/09/22/european-cannabis-waking-the-sleeping-giant/             

 

Market Challenges

 

 

Medical Cannabis vs Commodity?

The opportunities for differentiation in the Cannabis sector are nearly endless. If firms are breeding cannabis to produce very specific cannabinoid and terpene profiles, and then extracting the ingredients for use in formulation with other additives to produce highly-refined products for treatment of specific ailments, they hardly bear any resemblance to corn farmers.

Beside of the product nature, the cannabis sector is highly regulated sector with very strict requirements from seed to final products and on the delivery system from packaging and up to patients supplying.    

Therefore, to compare the Medical Cannabis to basic agricultural commodity producers is misguided. It would be more accurate to compare them to pharmaceutical companies or over the counter drug and supplement manufacturers, we shouldn't think of cannabis investing as getting in on early stage corn farming, we should view it as investing in alcohol at the end of prohibition or a pharmaceutical company with a promising new treatment.

 

How NIRCOM avoid the commodity trap?

  1. Provide high quality production by Growing under the best natural conditions, using the most advance growing methods and systems.   

  2. Be an inexpensive grower- Bringing our Israeli and Canadian knowledge in big scale agribusiness, medical cannabis and Africa with law operation cost and scalability will allow us to get a Cash-Per-Gram of US$ 0.05-0.08 (5-8 cents per gram)

  3.  Create the finished goods/ turn the ingredient into high-value goods - Dried flower, extraction, formulation, package goods – By  allowing to  manufacturer and export all products frame, Extraction Facility in house, collaboration  with an Israeli start-up who developed a patent registration product and creating additional joint venture with companies and leading R&D institutes, in-house Genetic and establishing commercial breeding activity .

  4. Branding- building our own brand and Zimbabwe quality brand.

©2019 by NIRCOM.