{"id":8880,"date":"2020-01-06T17:42:14","date_gmt":"2020-01-06T17:42:14","guid":{"rendered":"https:\/\/www.denverpost.com\/?p=3823996"},"modified":"2020-01-06T17:42:14","modified_gmt":"2020-01-06T17:42:14","slug":"u-s-leads-in-cannabis-innovation-but-cedes-global-market-to-canada","status":"publish","type":"post","link":"https:\/\/cannitrol.com\/blog\/u-s-leads-in-cannabis-innovation-but-cedes-global-market-to-canada\/","title":{"rendered":"U.S. leads in cannabis innovation, but cedes global market to Canada"},"content":{"rendered":"<div id=\"wp_fb_like_button\" style=\"margin:5px 0 5px 5px;float:right;height:100px;\"><script src=\"http:\/\/connect.facebook.net\/en_US\/all.js#xfbml=1\"><\/script><fb:like href=\"https:\/\/cannitrol.com\/blog\/u-s-leads-in-cannabis-innovation-but-cedes-global-market-to-canada\/\" send=\"true\" layout=\"standard\" width=\"450\" show_faces=\"false\" font=\"arial\" action=\"like\" colorscheme=\"light\"><\/fb:like><\/div><div class=\"media_block\"><\/div>\n<div><img src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2020\/01\/u-s-leads-in-cannabis-innovation-but-cedes-global-market-to-canada.jpg\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><a href=\"https:\/\/www.denverpost.com\/2020\/01\/06\/cannabis-global-market\/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+dp-news-marijuana+%28Denver+Post%3A+News%3A+Marijuana%29&amp;utm_content=Google+UK#comments-anchor\"><span class=\"spot-im-replies-count\" data-post-id=\"3823996\" \/><\/a><\/p>\n<p><strong>By Markian Hawryluk,<\/strong> <em>Kaiser Health News<\/em><\/p>\n<p>DENVER \u2014 In a large warehouse, LivWell Enlightened Health feeds its cloned cannabis plants a custom blend of nutrients, sprays them with filtered water and pumps extra carbon dioxide into the air. LivWell releases three types of insects to clear the plants of unwanted pests without the use of toxic pesticides.<\/p>\n<p>Every part of the growing process is meticulously documented and evaluated to constantly refine the process.<\/p>\n<p>After 20 years of experience, legal marijuana growers in the U.S. have the reputation of creating the best product in the world, scientifically grown and tightly regulated for quality and safety.<\/p>\n<p>The crop would be in high demand internationally \u2014 perhaps the centerpiece of a new U.S. industry \u2014 if not for the regulatory conundrum in which growers operate:<\/p>\n<p>Because marijuana is legal in many states but still illegal federally, marijuana growers are unable to ship their products to other countries or even other American states that have legalized the drug. So while U.S. cannabis firms have driven product innovation and mastered the science of large-scale grow operations, they restlessly wait for the export curtain to lift.<\/p>\n<p>Instead Canada has emerged as the dominant exporter in the burgeoning global trade of marijuana, which ArcView Market Research and BDS Analytics estimated at $14.9 billion in sales for 2019. Companies there are raising capital and building international trade ties despite having an unlikely climate to be an agricultural pot haven.<\/p>\n<p>Rezwan Khan, vice president of global corporate development for cannabis seed supplier DNA Genetics, believes that U.S. cannabis is the world\u2019s best but said: \u201cCanada has a huge advantage, because they can fill a gap.\u201d<\/p>\n<h3>Best in the world<\/h3>\n<p>Khan said California cannabis especially is superior because its growers have been developing legal marijuana products since 1996, longer than everywhere but Amsterdam.<\/p>\n<p>\u201cCalifornia has been the epicenter of cannabis culture for many years,\u201d he said.<\/p>\n<p>Its cannabis seeds have been distributed all over the world, and many foreign firms are trying to reproduce the quality of West Coast marijuana. But Khan says it takes more than seeds and water to grow good weed.<\/p>\n<p>The genetics and sophistication underlying the U.S. cannabis industry lead to better-quality and higher-potency flowers for those who smoke marijuana and innovations in oils, tinctures and edibles.<\/p>\n<p>\u201cThe world wants that technology,\u201d said Michael Sassano, CEO of Solaris Farms, the largest cannabis hybrid greenhouse in Nevada. \u201cThe Netherlands had a big jump; they could have done anything. But the U.S. is the one that turned the industry into what it is today, with all the products we make, not Canada.\u201d<\/p>\n<p>The other draw of American-grown cannabis, according to Denver-based cannabis law expert Bob Hoban, is that foreign customers value the regulatory oversight that ensures the product is safe and unadulterated.<\/p>\n<p>\u201cIt\u2019s being regulated by a government agency, which is not necessarily what\u2019s happening around the rest of the world,\u201d Hoban said.<\/p>\n<h3>Hampered growth<\/h3>\n<p>Because federal law prohibits the sale and use of marijuana, growers have not had easy access to the banking system. LivWell had to pay cash for its HVAC system. And with sales limited to in-state retailers, it hasn\u2019t been cost-effective to invest in much automation for its production line. Most of its processing and packaging is done by hand.<\/p>\n<p>The patchwork of legalization means cannabis isn\u2019t always grown where it\u2019s easiest to grow, in warm climates with limited rainfall. It\u2019s grown where it\u2019s legal. California, Oregon and Colorado grow most of the country\u2019s authorized marijuana as legally isolated islands.<\/p>\n<p>That leaves cold Canada as a somewhat odd choice to be the world\u2019s leader in marijuana exports.<\/p>\n<p>When Canada legalized marijuana in 2018, its firms could be listed on the New York Stock Exchange and NASDAQ. So Canadian companies represent a back door for U.S. firms to access capital and export markets, and for smaller firms, provide a potential exit strategy. Many U.S. marijuana growers are positioning themselves as attractive acquisition targets for Canadian firms eyeing the lucrative U.S. market.<\/p>\n<p>Canadian firms are using their head start to sign trade deals and secure licenses to sell marijuana internationally. While the market remains limited, at least 30 countries \u2014 including Mexico, Germany and Italy \u2014 have legalized medical marijuana. And the numbers are growing as scientific studies have demonstrated its utility for pain control, nausea and glaucoma.<\/p>\n<p>\u201cThere\u2019s more than enough time for American companies to catch up,\u201d said Kris Krane, president of 4Front Ventures, which grows and sells marijuana in nine states. \u201cBut the longer that we wait, the longer we continue to maintain this unsustainable prohibition, the more difficult it\u2019s going to be for American companies to catch up.\u201d<\/p>\n<h3>Ready to export<\/h3>\n<p>Changing public sentiments about marijuana in the U.S. have many American cannabis firms readying for the day they can legally sell their products elsewhere.<\/p>\n<p>\u201cIf the state borders do break open, we\u2019re preparing for that,\u201d said Sassano, who also is board chairman at Somai Pharmaceutical, a holding company based in Dublin that distributes medical cannabis products to pharmacies across Europe.<\/p>\n<p>That means an industry that began mainly as small mom-and-pop growers and retailers must now consider its corporate hygiene and whether it\u2019s meeting legal requirements to sell in these new markets.<\/p>\n<p>LivWell is building large-scale indoor cannabis growing rooms in Colorado and Oregon designed to scale up production for interstate or international commerce. The new rooms have 30- to 40-foot-high ceilings and state-of-the-art LED lighting cool enough to sit close to the plants.<\/p>\n<aside class=\"related right\" \/>\n<p>\u201cThen you farm vertically,\u201d said Dean Heizer, LivWell\u2019s chief legal strategist. \u201cWe learned that from the microgreens that people are farming in old cities and in old skyscrapers. If you can cultivate in cubic meters, you can scale. If you\u2019re cultivating in square feet, you can\u2019t.\u201d<\/p>\n<p>With 11 states plus Washington, D.C., approving recreational use and 33 states legalizing medical marijuana, industry insiders believe marijuana may be legalized nationally in the near future, greatly expanding their market.<\/p>\n<p>In November, the House Judiciary Committee passed a bill with more than 50 co-sponsors that would effectively make marijuana legal in the U.S. Though unlikely to pass Congress immediately, it is seen as a sign of hope for the future.<\/p>\n<p>\u201cIt\u2019s just a matter of time,\u201d Krane said. \u201cHow much time is very much a question of debate.\u201d<\/p>\n<p><em>Kaiser Health News (KHN) is a nonprofit news service covering health issues. It is an editorially independent program of the Kaiser Family Foundation that is not affiliated with Kaiser Permanente.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"media_block\"><\/div>\n<p>American marijuana has a reputation for being the best in the world. But the federal prohibition on marijuana makes shipments across state lines or overseas a pipe dream. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5062,52,6811,6813,77,5577,9,5019,1,3,61,1736],"tags":[5063,2632,6816,6818,2655,5580,5022],"_links":{"self":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8880"}],"collection":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/comments?post=8880"}],"version-history":[{"count":0,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8880\/revisions"}],"wp:attachment":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/media?parent=8880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/categories?post=8880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/tags?post=8880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}