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.

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. 

Terpenes, the chemical compounds that give your herb its distinctive smell and flavor, are increasingly recognized as a vital part of the overall cannabis experience. But with the growing popularity of vape pens and concentrates, industry is now adding terpenes to products in an effort to recreate that whole-flower feel. These may come from plants other than cannabis—and some may even be synthetic.

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.

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.

Cannabis has become a global industry, but obviously it is still limited by legal restrictions—and the fact that these increasingly vary from country to country further complicates things. Where is commercial cannabis going and where is it coming from? And how is this likely to change as the international atmosphere further liberalizes?

Amid the seemingly endless hype about CBD, its once better-known sibling cannabinoid THC seems to increasingly languish in the shadows—both in terms of media attention and industry investment.