Uruguay selects 3 new industrial growers of recreational marijuana to meet customer demand


Photo by Olaf Speier

The Uruguayan government announced the 3 winning organizations chosen to develop recreational marijuana for industrial purposes below an application approach that started final February.

To meet a shortfall in adult-use cannabis, the Uruguayan Institute for the Regulation and Handle of Cannabis (IRCCA) on Monday tapped the following organizations:

  • Uruguay Biopharmaceutical Study Organization LLC, primarily based in the United States and conditioned to register a organization in Uruguay.
  • Jabelor S.A., primarily based in Uruguay.
  • Legiral S.A., primarily based in Uruguay.

The 3 winners had to receive an approval from the Uruguayan National Secretariat for the Fight Against Cash Laundering and Terrorism Financing (SENACLAFT).

Other organizations that participated in the application approach obtained extra than 60% of the total points but didn’t finish in the 1st 3 positions and can be wait-listed for a period of up to 3 years.

For that, the government keeps a $five,000 warranty deposited by the applicants.

Since the cost is fixed by the government, the criteria to pick the winners was purely primarily based on technical elements, Martin Rodriguez, executive director of the IRCCA told Marijuana Small business Everyday.

The cost was final updated by the government in August 2019, fixed at 50 Uruguayan pesos per gram (roughly $1.35) retail, of which the producer receives about 70% and the rest goes largely to the retail pharmacy and a smaller component to the IRCCA.

The 3 winners will join two current cultivators selected selected 4 years ago through the country’s 1st tender for cultivating adult-use marijuana: ICC Labs, which was acquired final year by Canada’s Aurora Cannabis, and Simbiosys.

The pair have been every single authorized to develop two,000 kilograms a year, despite the fact that they failed to hold up with demand.

The 3 new organizations will develop cannabis below the identical terms and circumstances applied to ICC Labs and Simbiosys.

That suggests 5 organizations will be capable to generate a combined total of 10,000 kilograms of recreational cannabis flower per year at a cost fixed by the government.

Provide shortages

The new awards come just after ICC Labs and Simbiosys combined have been unable to effectively develop the total authorized quantities.

They have been only capable to generate about three,000 kilograms combined as of mid-2019, which led to continuous provide shortages.

Regional business sources that spoke with MJBizDaily on the situation of anonymity confirmed that Uruguay Biopharmaceutical Study Organization LLC is US-primarily based organization, as its name suggests.

They also stated Jabelor S.A. is an Uruguayan organization comprised of Uruguayan and Chilean capital, though Legiral is 100% Uruguayan-owned.

In 2013, Uruguay became the 1st nation in the globe to federally legalize the industrial production of adult-use marijuana.

According to the IRCCA, as of Oct. 27 almost 50,000 men and women have been registered to legally access recreational marijuana in Uruguay employing only one particular of the following 3 methods:

  • 37,971 clients are permitted to get up to 10 grams of cannabis per week in 17 pharmacies, the only legal retail locations for the recreational marijuana grown so far by ICC Labs and Simbiosys. Customers can only get flower, of which only two strains capped at 9% THC are readily available.
  • 7,576 household growers can generate up to six cannabis plants at household and harvest up to 480 grams per year.
  • three,962 members of 135 clubs where collective cannabis developing is permitted can generate a maximum provide of 480 grams per member per year.

Uruguay also has small business possibilities in the healthcare and hemp sectors of the business.

Mexico is anticipated to come to be the second nation in Latin America, and only third one particular in the globe, to totally legalize cannabis on a federal level.

Far more details can be located in the lately published report Cannabis in Latin America: The Regulations and Possibilities.

Alfredo Pascual can be reached at [email protected]


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