Global Ganja Report

From the "Tulip Mania" in 15th century Holland to the Bitcoin bubble of 2017, high hopes for a commodity's market performance can lead to unsustainable overvaluation inevitably followed by a painful correction. Many observers believe that cannabis fell prey to this phenomenon in 2018—but are hoping for growth in a more rational and realistic market in the coming year.

It has long been established that cannabis can effectively treat glaucoma, a condition that damages the optic nerve and can lead to blindness. However, new research indicates that while THC helps fight glaucoma, its cousin cannabinoid CBD has the opposite effect—and could actually counteract the efficacy of THC.

The newly enacted Farm Bill contains language implicitly removing hemp-derived CBD from the controlled substances list, along with industrial hemp. A CBD industry that has been growing fast in a legal grey zone stands to grow faster in the light of legal clarity. Conflicting state laws and even federal regulations, however, could prove an obstacle to unfettered expansion.

When the United Kingdom announced the historic step of rescheduling cannabis and allowing physicians to prescribe it two months ago, there was concern from patients and advocates as to whether actual herbaceous flower would be allowed, or only extracts. Now the first patient is approved to receive cannabis under the program, and it is indeed to be dried flower. The bad news: with the National Health Service barred by bureaucratic hurdles from providing it, patients are at the mercy of the market—and the price is prohibitive. 

Days after legalizing medical marijuana, New Zealand's government has confirmed that a referendum on general cannabis legalization will be held in 2020. With the Green Party aggressively pushing the idea, prospects seem good for Aotearoa to follow Uruguay and Canada as the world's third country to legalize.

Nationwide cannabis shortages since Canada went legal last month are causing some provinces to rethink their distribution plans. Alberta has just announced that retail outlets will be barred from purchasing online but must place their orders manually to prevent the computerized system from being overwhelmed. Provincial authorities are struggling to break the logjam in the supply chain, and keep enough product in stock for those who purchase either online or from brick-and-mortar outlets.

Colombia is facing a strange contradiction—foreign capital is pouring in for the legalized cannabis sector, yet the new right-wing President Iván Duque is returning to the hardline "drug war" policies that the country has moved away from in recent years. This means not only a resumption of glyphosate spraying to wipe out illegal crops in the countryside, but an overturn of the former decriminalization policy. Street arrests for cannabis use and possession have soared since Duque issued his recrim decree.

With general legalization in Oregon, the number of people enrolled in the state medical marijuana program is plummeting, and there is talk of actually ending it. Authorities have already dramatically slashed the limit for daily sales, supposedly in a crackdown on diversion to the black market—which continues to thrive, even amid the notorious over-supply.