Australia plans cannabis exports

SYDNEY: Australia said yesterday it planned to become the fourth country in the world to legalise medicinal marijuana exports in a bid to score a piece of the estimated $55 billion global market.

Cannabis cultivation in Australia is still relatively small, as recreational use remains illegal. But the government hopes domestic medicinal use, legalised last year, and exports will boost production.

“Our goal is clear: to give farmers and producers the best shot at being the world’s number one exporter of medicinal cannabis,” Health Minister Greg Hunt said.

Shares in the more than a dozen Australian cannabis producers listed on the local exchange soared.

Cann Group ended the day up 35%; AusCann Group rose nearly 54%; and BOD Australia closed up about 39%. All were record highs for those companies. Hydroponics Company finished up 30%, hitting its highest price in five weeks.

Peter Crock, chief executive of Cann Group, which cultivates cannabis for medicinal and research purposes, said medicinal marijuana production had been stymied by limited demand from Australian patients.

“While the Australian patient base is growing, it is very small,” Crock said. “Being able to export will allow us to have the scale to increase production.”

Hunt said the new legislation would include a requirement that growers first meet demand from local patients before exporting the remainder of their crop.

Despite growing demand, only Uruguay, Canada and the Netherlands have so far legalised the export of medicinal marijuana.

The Australian government’s proposal needs to pass federal parliament when it returns to session next month. The main opposition Labour Party has signalled it would support the move.

Fuelled by a growing acceptance of the benefits of marijuana to manage chronic pain, moderate the impact of multiple sclerosis and soften the effects of cancer treatment, several countries and 29 states in the US have legalised cannabis for medicinal use.