Increasing legalisation will eventually lead to cannabis becoming a commodity much like any other crop. In such a regulatory climate, it is likely the lowest-cost producer that will win – particularly if a producer can combine a low-cost product with the qualities normally associated with higher end products in other categories.
This is the prediction of Toronto-based Flora Growth, which has chosen to focus much of its cannabis production in Colombia, a country it says combines a low-cost base such as relatively low agricultural wages from a global scale with the infrastructure and technology to still harvest and extract product – a crucial factor often missing in other lower-cost agrarian economies – and the potential for a high-quality cannabis “terroir”.
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