The industrial cannabis sector in Paraguay continues to advance vigorously, marking a significant achievement in its expansion to Eastern Europe. According to Marcelo Demp, president of the Paraguayan Chamber of Industrial Cannabis (CCIP), the entire premium cannabis flower production planned for 2024 has been purchased by the European market.
This international agreement resulted from a process that began earlier this year when a shipment of cannabis flowers was sent as a sample to Europe. The excellent quality of the product was crucial for its acceptance, prompting European entrepreneurs to visit Paraguay. During their stay, they confirmed the purchase and offered advanced technology to improve the preservation and transportation of the flowers.
One of the technological innovations introduced by European entrepreneurs is freeze-drying, a process that freezes fresh flowers at -30 degrees in refrigerated containers. This method ensures the product reaches Europe while maintaining its freshness and quality, which is crucial for marketing in demanding markets.
The plantations supplying this agreement are in areas such as Areguá, Nueva Italia, Iruña, and Hernandarias.
Although the total production volume of Paraguayan cannabis cannot yet be precisely determined due to variability in crop yields, a minimum production of 5 tons per hectare is estimated, potentially generating revenues of approximately $25,000 per hectare.
Despite this success, Demp noted that the current production is not sufficient to meet the growing European demand, leading the CCIP to seek new producers interested in joining the industrial cannabis cultivation. The goal is to increase productive capacity and solidify Paraguay’s position in this expanding global sector.
Since the approval of industrial cannabis legislation in 2019, the industry in Paraguay has shown exponential growth. The country has exported more than 600 tons of products and raw materials to various international destinations in just a few years. Additionally, the sector has diversified its offerings, including derivative products such as gummies and infusions, consolidating Paraguay as a key player in the global industrial cannabis market.
Around the world, more countries are legalising and/or decriminalising the plant, with Germany legalising marijuana earlier this year, leading to some economic growth and lots of happier people.
