Kinetiq Group Perspective
The air is changing, and the world is smaller because of technology. Also, it does not take a wizard nor the proverbial rocket scientist to figure out that global acceptance of cannabis is still in its infancy with just about 20% of the almost 200 countries worldwide (as recognized by the United Nations) having legalized medicinal or pharmaceutical cannabis. So, why are we using the word “disrupt” this early? The reality is a hybrid of supply, demand, sustainability, and quite simply “competition” of some going head-to-head with mother nature.
In business, according to the Cambridge Dictionary, “disrupt” is: “to change the traditional way that an industry operates, especially in a new and effective way”. So, how can mother nature be something new and non-traditional? Also, sustainability is not a new concept either. …as we have industries utilizing bamboo, solar energy, and even hamburgers that now have zero beef.
Forecasting disruption… Two years ago today (December 9th), CannaInsider article artfully outlined how CBD was positioned to disrupt other industries such as alcohol and pharmaceuticals were on the verge of being disrupted with an ominous warning of “Brace for Impact”. While just last year, Louis O’Neill, a co-founder of Australians news, published an insightful article describing Cannabis as a disruptive technology for the global paper and pulp market, along with Big Ag and of course Big Pharma.
In 2021, we read articles about falling cannabis prices in Canada since its legalization and plummeting cannabis prices in California impacting small farmers getting pinched by mega-corporate farms (Big Ag) and… calls to action. Well, concerns or angst with Big Pharma, Too Big to Fail Banks, the 1%ers, or even in Brazil the 3% (for those Netflix series buffs) likely will continue. However, as it relates to the disruption it’s happening within the cannabis industry too. This disruption is being supported by mother nature and that should hopefully keep us all humble for generations to come.
In recent news from the Latin American country of Colombia, is that its president Ivan Duque loosened regulations to allow the export of dry cannabis flowers for the cannabis industry… and this is a game-changer. The CNN Business story is on point with its perspective of Colombia’s cannabis business is poised for lift-off and Big Pharma is already paying attention. The country’s virtual year-round 12 hours of sunlight with few temperature extremes and plenty of sustainable water supplies that are supported by rainforests, mountains, and natural ecosystems will be the disrupter.
Quite simply. . . North America (yes, including Canada) and Europe are unable to compete with mother nature and low cost of sustainable energy with abundant natural resources available to a country such as Colombia. Due to its proximity to the equator, Colombia basically possesses a 365-day growing season capability as its agricultural industry is well aligned within regions for optimal performance primarily based on altitude for consistency (such as temperature). Remember… Colombia consistently produces and exports some of the world’s best coffee, delicious fruit, rice, and beautiful flowers to name a few.
Disrupt Or Be Disrupted is not an “if” or “when” related to the cannabis industry in North America and Europe, but the question will be “how fast” as the time it is starting “now”. For those in the cannabis industry look to 2022 & beyond… if one is not thinking about Colombia or considering its impact in coming years to a 50% to 75% reduction to the current cost to produce or acquire 1 gram of dry cannabis flower, then you are about to be… disrupted.
Legalized cannabis is not new to Colombia, as the regulatory framework and laws were passed in 2016 for the medical and scientific use of cannabis and its derivatives. While there are active farms in the country and some Big Pharma moving in, the next phase of immense or accelerated growth is a game-changer for both inside the country with over 600 active licenses and internationally. So, it’s a “Disrupt Or Be Disrupted” for cannabis, including Big Pharma, Big Ag, and those massive metal production facilities with expensive non-sustainable energy being used in North America and Europe.
Best wishes to all in this amazing industry, while my bet is on mother nature and supporting low-cost sustainability!