man holding cannabis plant - Industrial Hemp Ecuador

Industrial Hemp Ecuador (What To Know About Regulations And Licensing)


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Ameer Asghar
Ameer is an enthusiastic writer who believes in the remarkable potential of the cannabis plant to lead people towards natural health alternatives, steering them towards a path of improved well-being and health.

Learn and expand Ecuador hemp swiftly. Grasp the market, navigate regulations, and enhance cultivation methods

Imagine you are a farmer in Ecuador looking to diversify your crops. You want to choose a fast-growing and easy-to-cultivate plant that allows you to tap into an emerging market with great potential. This scenario describes the situation many growers in Ecuador currently face as the country opens up to industrial hemp. This blog offers valuable insights into the developing hemp industry in Ecuador and its regulations.

GrowerIQ’s cannabis production software can help you quickly get up to speed on industrial hemp Ecuador. With our tools, you can track the progress of your new industrial hemp crop and efficiently comply with regulatory requirements. 

What Is Industrial Hemp?

What is Industrial Hemp - Industrial Hemp Equador

Industrial hemp comes from the cannabis sativa plant species. This versatile crop has many industrial and consumer uses. Hemp is a source of fiber and oilseed grown in more than 30 countries. In Ecuador, an initiative announced in 2020 marks the start of industrial hemp production for export, creating new opportunities for the local economy.

What is the difference between industrial hemp and marijuana?

Industrial hemp is high in fiber and low in THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana that makes some cannabis varieties a valued drug. Several countries, including Ecuador, maintain this distinction by strictly regulating the THC levels of industrial hemp and marijuana.

Industrial Hemp Laws In Ecuador

Law Books - Industrial Hemp Equador

The Reform of the Criminal Law, enacted on June 21, 2020, laid the groundwork for Ecuador’s hemp industry. This reform marked a significant shift by decriminalizing the possession and use of cannabis for:

  • Therapeutic
  • Palliative
  • Medicinal purposes

Hemp Legalization

The Law of Control and Prevention of Drug Use was amended to exclude non-psychoactive cannabis—often referred to as industrial hemp—from control measures. Cannabis plants or their parts with less than 1% THC by dry weight are not subject to stringent controls.

In response to these changes, the Ministry of Agriculture issued Ministerial Agreement No. 109-2020 on October 19, 2020. This agreement outlines the regulations for agro-industrial activities related to:

  • Non-psychoactive cannabis 
  • Hemp

License Requirements

The agreement establishes seven types of licenses required for various activities, including:

  • License 1: Importation and commercialization of hemp seeds and cuttings (including seeds for industrial use)
  • License 2: Sowing and production of hemp seeds and cuttings (including seeds for industrial use)
  • License 3: Hemp cultivation
  • License 4: Industrial hemp cultivation
  • License 5: Hemp processing and production of hemp derivatives
  • License 6: Plant breeding and/or germplasm banks and research
  • License 7: Acquisition of derivatives and/or biomass or hemp flower (including biomass for industrial use) for export

These licenses are crucial for:

  • Importing
  • Growing
  • Processing
  • Exporting hemp and its derivatives in Ecuador

Regulation of Finished Products

The regulatory environment also encompasses finished products derived from hemp. On February 25, 2021, the Agency for Health Regulation, Control, and Surveillance (ARCSA) issued Resolution No. ARCSA-DE-002-2021-MAFG, which provides sanitary technical norms for products intended for human use and consumption. This resolution defines the THC limits for different categories of products:

  • Pharmaceutical Products: Less than 1% THC.
  • Processed Foods and Supplements: Less than 0.3% THC
  • Cosmetics: Less than 1% THC
  • Medical Devices and Hygiene Products: Less than 1% THC.

These regulations ensure that finished products adhere to safety and quality standards while meeting the legal THC concentration limits. 

Opportunities and Challenges

Ecuador’s swift regulatory developments indicate a strong governmental interest in fostering the hemp industry. The country has positioned itself as a potential hub for cannabis research and development, attracting local and international investors. For businesses, this means a promising landscape for:

  • Exploring new opportunities 
  • Expanding their operations

Simplify Hemp Cultivation with GrowerIQ

Hub: Smoking Club Opening License, TK: Morocco Cannabis Meta title: A Guide On Morocco Cannabis Legalization & Getting A Permit Meta Description: From the latest updates on Morocco's cannabis legalization to a step-by-step process on obtaining a permit, this guide covers it all. Get your questions answered! CTAs: Link: https://groweriq.ca/ Anchor Text: Cannabis Production Software Do you ever want to join a growing industry but need clarification on many rules and are unsure what will happen? Morocco Cannabis market is getting bigger, but getting a smoking club opening license can be difficult. Grower IQ's cannabis production software can help you understand the process and get started in this market. What Is The Composition Of The Cannabis Plant? Cannabis is a type of hemp, part of a plant family used extensively in the yarn industry. The most critical part of the cannabis plant is its flower, which produces resin containing two key molecules: THC CBD THC is the component responsible for altering one’s state of consciousness to make one feel “high” and is also used for anesthesia purposes, such as in cancer patients undergoing chemotherapy. On the other hand, CBD does not produce the same effects. Apart from its sedative properties, CBD counteracts THC to mitigate its effects, particularly by calming the nervous system. Wide Range of Potential Benefits The therapeutic virtues of CBD are substantial, as determined by the U.S. National Centre for Biotechnology Information (NCBI). CBD has: Anti-inflammatory properties Alleviates anxiety and depression Calms epilepsy symptoms Ease certain psychotic disorders like schizophrenia NCBI studies have even suggested that at high concentrations, CBD inhibits the proliferation of tumor cells in certain cancers and could reduce the risk of artery necrosis following a heart attack. This has reignited the debate about cannabis’s pros and cons, with some countries recognizing the benefits of this plant for both healthcare and the economy. Regulations On The Legalization Of Morocco Cannabis Morocco has long been recognized as one of the world's most prolific producers of cannabis. However, cannabis only became legal in the North African nation in June 2021. The Moroccan Parliament adopted Bill 13-21 to regulate the plant for medical and industrial purposes. Cannabis production and consumption for recreational purposes in Morocco remains illegal. Bill 13-21 outlines regulations for diverse aspects of medical, industrial, and cosmetic cannabis in Morocco, including the following: Cultivation of cannabis Seed importation Product exportation Al Hoceima, Chefchaouen, and Taounate The law identifies three provinces, Al Hoceima, Chefchaouen, and Taounate, allowed to cultivate and produce cannabis. It opens the door to include other regions based on domestic and international investors' demand for cannabis supply chain activities. These areas have traditionally been used to cultivate cannabis and have climates uniquely suited to growing marijuana. Farmers in the three traditional growing areas (the ones legalized now) have been growing cannabis as a primary source of income, whether it is illegal or not. Boosting Farmer Profits The reason for the change in legislation, according to the government, is to improve the economic standing of these farmers. In the illegal black market, farmers earn 4% of the final turnover of the crop. The government claims that this will rise to 12% under its control. Cooperatives, Negotiation Support, and Sustainable Practices The law also recommends that farmers set up cooperatives to support the negotiation efforts between farmers and manufacturers. These cooperatives will be responsible for signing contracts with manufacturers and ensuring the preservation of farmers' rights. In addition, the law will allow the farmers to acquire the best methods for sustainable agriculture, be open to global experiences in this field, and acquire quality seeds. Morocco Regulates Cannabis Industry with Regional Focus and Centralized Control Morocco, like South Africa, wants to focus the industry in a specific part of the country for strategic, economic, and sustainable development and crime prevention reasons. Morocco, similar to South Africa, plans to concentrate cannabis production in a specific region for strategic and economic reasons, including crime prevention and sustainable development. A central regulatory body, the National Agency for the Regulation of Cannabis-related Activities, will oversee all aspects of the industry, from licensing to cultivation, import/export, transportation, and commercialization. Only licensed individuals or groups can participate in the legal cannabis market. A THC limit is set for farmers (below 1%), with exceptions for medical/pharmaceutical products. Related Reading • Is a Cannabis Association Profitable • Smoking Club Requirements Is Recreational Cannabis Legal In Morocco? Although Morocco is a major cannabis producer, officially, cannabis use for recreational purposes is illegal. In practice, it is tolerated. Nearly a million people live in areas of northern Morocco where cannabis is the main economic activity. It has been publicly grown and smoked there for generations, mixed with tobacco in traditional long-stemmed pipes with clay bowls. Uncomplicate Your Hemp Production Cannabis growers face challenges in managing reporting, documentation, and compliance requirements due to the complexity of regulatory frameworks, evolving legal standards, and the need for accurate record-keeping in a highly regulated industry. At GrowerIQ, our software aims to provide cannabis growers with a comprehensive solution for: Managing their cultivation operations Ensuring compliance Optimizing quality Enhancing efficiency throughout the seed-to-sale process Overall uncomplicating the production process We do this with our software, which offers a range of functionalities to assist cannabis growers, including: Seed-to-Sale Tracking Quality Management Cultivation Planning GrowerIQ provides cannabis growers with a comprehensive solution for managing their cultivation operations, ensuring compliance, optimizing quality, and enhancing efficiency throughout the seed-to-sale process. Production Landscape Of Cannabis In Morocco Together with Afghanistan, Morocco is one of the top growers of illegal cannabis in the world, although the government has turned a blind eye to its growth for decades. It is estimated that 400 000 people, or some 60 000 households, live on the cultivation of cannabis in the three demarcated areas: Al Hoceima Chefchaouen Taounate The cannabis subsistence farmers in these areas claim that cannabis is the only crop that will grow there. Cultivated for centuries, cannabis production shifted to the Rif region in the 18th century, where it remains prominent today. Traditional methods involve drying stalks and beating them to collect trichomes (THC-laden crystals). The first beating yields the highest quality product. Trichomes can be packaged loose or pressed into hashish slabs marked with producer identifiers. What Is The Potential Of The Moroccan Cannabis Market? Morocco's cannabis market is thriving, with projected revenues set to reach US$241.20 million by 2024. The market volume is expected to grow at an annual rate of 2.95% from 2024 to 2029, peaking at US$278.90 million. What makes Morocco stand out in the Cannabis market is its rich cultural heritage intertwined with diverse landscapes, making it a significant player in Cannabis consumption and production. Customer Preferences in Morocco The Moroccan market reflects deep-seated cultural practices when it comes to Cannabis consumption. The local population favors traditional methods like hashish, owing to their cultural familiarity and accessibility. This preference for traditional consumption methods is a testament to the historical significance of Cannabis in Morocco, with a long history of cultivation for both medicinal and recreational uses. Market Trends in Morocco One striking trend in Morocco's Cannabis market is the increasing demand for high-quality products in international markets. As attitudes toward Cannabis evolve globally and legalization becomes more widespread, Moroccan producers are adapting to meet the standards and preferences of global consumers. This trend has led to a surge in innovation and quality improvement in the local industry. Local Special Circumstances in Morocco Morocco's geographical location and climate offer ideal conditions for Cannabis cultivation, resulting in top-quality products sought after globally. The country's extensive history of cultivating Cannabis has helped establish a strong foundation of knowledge and expertise in the industry. However, the informal nature of the market and regulatory challenges pose barriers to fully capitalizing on the sector's potential in Morocco. Internalization Of Moroccan Cannabis Moroccan cannabis is making waves in the industry with the internalization of its cultivation and production. With the legalization of cannabis exports to Europe in 2024, Morocco has: Legalized cannabis exports to Europe in 2024. Attracted investment with over 200 operators entering the market. Increased legal cultivation to 3,000 hectares in the Rif region. Revenue Growth and Market Share Ambitions The shift towards legal production is anticipated to bring annual revenues of 400 to 600 million euros within the next four years. To secure a 10% to 15% market share in Europe, Moroccan companies like Bio Cannat are processing cannabis for both export and local markets. The first legal exports included 100 kilograms of resin containing less than 1% THC, solidifying Morocco's position in the European market. The resin was sold for 1,400 to 1,800 euros per kilogram, catering to the growing demand for legal cannabis. ​Challenges and Opportunities Despite the promising prospects, challenges remain in the industry. Climate impacts can affect cultivation, while cost competitiveness versus European producers remains a key consideration. The internalization of Moroccan cannabis is not just about business; it's about transforming the industry and creating new opportunities in a vibrant and evolving landscape. Related Reading • Cannabis Social Club • Request CBD Cultivation License Spain How Do I Get A Production Permit? To obtain a permit to grow or produce cannabis in Morocco, individuals or entities must go through The National Agency for the Legalization of Activities Related to Cannabis. This agency has set specific regulations and procedures to ensure that all cannabis-related activities are conducted legally and in compliance with established guidelines. Strict Licensing and Production Controls The agency has determined that no cannabis-related activity is legal unless the involved party has received a permit from the Agency. The production quota for cannabis will be decided annually based on demand, with a stringent THC limit of less than 1% for most cannabis farming activities. Transparent Permit Application Process Approval or rejection of a cannabis license in Morocco follows a strict timeline. The National Agency has a 10-day deadline to issue an administrative application follow-up 60-day deadline from the date of the application's submission to respond to each permit application, providing either an approval or rejection. In the case of a denial, the agency must justify the decision, whether for farming, production, commercialization, or export purposes. It is also crucial to note that a delay in or lack of response from the agency should not be considered a rejection. Permit Revocation and Renewal Permits to grow or produce cannabis in Morocco can be retracted under specific circumstances. These include: A request for permit retraction by the owner A change in ownership Violation of any rules or criteria Two-year halt in activity Infringement of existing drug regulations If the permit-holder is related to a member of the national agency's executive board The agency cannot retract permits without providing written notice to the concerned party, followed by a 15-day legal or administrative rebuttal deadline. All permits are valid for 10 years and are renewable upon demand, following the same process. Uncomplicate Your Cannabis Production Today With GrowerIQ! GrowerIQ is a leading software solution designed specifically for cannabis growers to help them manage their cultivation operations efficiently. Cannabis growers face numerous challenges in the industry, and accurate record-keeping and compliance are vital. GrowerIQ aims to simplify the production process by providing functionalities such as: Seed-to-sale tracking Quality management Cultivation planning By utilizing GrowerIQ, cannabis growers can: Streamline their operations Ensure compliance with regulatory frameworks Optimize the quality of their products Enhance efficiency throughout the entire seed-to-sale process This software provides a holistic approach to managing cultivation operations, considering the industry's complexity and the need for accurate documentation and reporting. Related Reading • Growing Medical Cannabis in Spain • Industrial Hemp Spain

Cannabis growers face challenges in managing reporting, documentation, and compliance requirements due to:

  • The complexity of regulatory frameworks
  • Evolving legal standards
  • The need for accurate record-keeping in a highly regulated industry

At GrowerIQ, our software aims to provide cannabis growers with a comprehensive solution for:

  • Managing their cultivation operations
  • Ensuring compliance
  • Optimizing quality
  • Enhancing efficiency throughout the seed-to-sale process
  • Overall uncomplicating, the production process

GrowerIQ Features

We do this with our software, which offers a range of functionalities to assist cannabis growers, including: 

  • Seed-to-Sale Tracking
  • Quality Management
  • Cultivation Planning

GrowerIQ provides cannabis growers with a comprehensive solution for:

  • Managing their cultivation operations
  • Ensuring compliance
  • Optimizing quality
  • Enhancing efficiency throughout the seed-to-sale process

Related Reading

Industrial Hemp Cultivation Laws In Ecuador

Legality - Industrial Hemp Equador

To legally cultivate industrial hemp, you must obtain a license specifically for the cultivation of non-psychoactive cannabis. This license is required for all growers and ensures that operations comply with national standards. 

There are separate licenses for various stages of the hemp industry, including those for:

  • Cultivation
  • Processing
  • Research

Each license type has specific requirements and conditions.

Regulatory Compliance for Industrial Hemp in Ecuador

The hemp cultivated must have a THC content of less than 1% by dry weight. Regular testing and certification may be required to ensure compliance with this limit. Growers are expected to maintain detailed records of their cultivation activities. This includes:

  • Documenting the quantity of seeds
  • Plant growth stages
  • Harvest yields
  • Any pest or disease management practices

Using software like GrowerIQ’s seed-to-sale software can help streamline the record-keeping process, enabling you to track all your activities in one place.

Agro-Industrial Regulations for Industrial Hemp in Ecuador

The agreement stipulates guidelines for best agricultural practices, including:

  • Soil preparation
  • Planting densities
  • Irrigation methods
  • Pest control

These practices help ensure the quality and safety of the hemp produced. Regulations cover the processes for harvesting hemp, including:

  • Timing
  • Techniques
  • Post-harvest handling to maintain product quality and compliance

Licensing for Specific Activities Related to Industrial Hemp in Ecuador

Separate licenses are required for plant breeding and research activities related to hemp. These licenses facilitate innovation and development within the sector. For those involved in the export of hemp or its derivatives, additional licenses are needed. These ensure that exported products meet international standards and regulations.

Additional Considerations for Industrial Hemp Cultivation in Ecuador

Compliance with environmental regulations is necessary to minimize the ecological impact of hemp cultivation. This includes:

  • Managing water use
  • Soil conservation
  • Waste disposal

Growers must adhere to health and safety standards to protect workers and ensure the safe handling of hemp.  

Related Reading

Medical Cannabis In Ecuador

Medical Cannabis - Industrial Hemp Equador

Ecuador’s Medical Cannabis Regulations: A Framework of Opportunity for the Hemp Industry

Regulations in Ecuador for medical cannabis are comprehensive and structured. In September 2019, Ecuador passed legislation allowing the use of cannabis with up to 1.0 percent THC for medicinal purposes. The Ministry of Health and the Agency for Health Regulation, Control, and Surveillance (ARCSA) oversee the production, distribution, and regulation of medical cannabis products, setting strict THC limits for various product categories.

This regulatory framework ensures that medical cannabis remains focused on therapeutic use while preventing recreational misuse. The expansion of Ecuador’s hemp industry is expected to support and enhance the production of medical cannabis, leveraging the infrastructure and expertise gained from hemp cultivation and processing.

Getting A Licence For Industrial Hemp Cultivation In Ecuador

Getting a License - Industrial Hemp Equador

Know the Rules Before You Start Planting Hemp in Ecuador

Before applying for a hemp cultivation license in Ecuador, you should familiarize yourself with the local regulations. Ministerial Agreement No. 109-2020 regulates the cultivation of non-psychoactive cannabis (hemp) in Ecuador. This agreement outlines the legal framework, including the THC content limitations and the types of licenses available.

Gather Your Hemp Licensing Documents

Next, you must prepare the necessary documentation to apply for a hemp cultivation license. This typically includes:

  • Proof of business registration
  • Details of your cultivation site
  • A comprehensive plan outlining your cultivation and processing operations

Apply for a Hemp Cultivation License

You must apply for a hemp cultivation license from the Ministry of Agriculture. There are different types of licenses depending on the specific activities you plan to undertake. For cultivation, you’ll need to apply for a License for the Cultivation of Non-Psychoactive Cannabis or Hemp. You can submit your application in person or online. 

In-Person Window

Submit physical and digital folders (as established in art. 32 of AM no. 109) at any MAG single windows.

Virtual One-Stop Shop

Send scanned documentation to ventanilla_gye@mag.gob.ec and deliver the physical copy to the Undersecretariat of Agricultural Production at the central plant (Quito or Guayaquil) or the District Directorates.

Expect a Site Inspection

Be prepared for a site inspection by the Ministry of Agriculture. They will assess your cultivation area to ensure it meets the required standards and regulations for hemp farming.

Comply and Get Your License

Once your application is reviewed and approved, you’ll receive your license, allowing you to cultivate industrial hemp legally. Ensure ongoing compliance with the regulations, including:

Stay on Top of Reporting Requirements

Stay informed about any updates or changes to the regulations and ensure you adhere to all reporting requirements set by the Ministry of Agriculture.

Industrial Hemp Ecuador – Market Potential

Market Potential - Industrial Hemp Equador

Ecuador’s hemp market is on the rise as the world catches on to the benefits of industrial hemp. In the past, Ecuadorians used hemp for textiles and rope. As the global hemp market expands, Ecuador is looking to cash in. This will be the first step towards the eventual legalization of cannabis in Ecuador.

What Do People Want?

Ecuadorians are increasingly leaning towards natural and holistic health solutions, and this shift is fueling a growing interest in Cannabis products. This trend aligns with global movements where consumers are exploring alternative remedies and recognizing the potential benefits of Cannabis for wellness and health. 

The desire for natural health solutions is creating a receptive environment for hemp and Cannabis-based products in Ecuador.

What’s Trending?

The Ecuadorian Cannabis market is experiencing notable trends, particularly in:

  • Acceptance
  • Legalization

The country has seen a gradual shift towards the legalization of Cannabis for medicinal and therapeutic purposes. This evolving regulatory framework opens doors for businesses to enter the market and cater to the rising demand for diverse Cannabis-based products. As regulations evolve, more opportunities for market expansion and innovation are emerging.

So, What Do the Numbers Say? 

Revenue in Ecuador’s Cannabis market is projected to hit approximately $245.60 million in 2024, highlighting promising market potential. Over the next several years, the market is expected to grow at a modest annual rate of 1.23%, with a forecasted market volume of $261.10 million by 2029. This steady growth reflects increasing consumer interest and expanding opportunities within the sector.

How Does Ecuador Compare to the Rest of the World?

On a global scale, the Cannabis market is much larger, with the United States expected to generate a substantial revenue of $42.98 billion in 2024. In terms of per capita revenue, Ecuador generates about $0.49k per person. While this figure is relatively modest compared to the U.S., it indicates a burgeoning market with significant room for growth.

What’s the Future Look Like?

Ecuador’s Cannabis market is poised for expansion, bolstered by increasing government support for research and potential advancements in medical and industrial Cannabis legalization. 

As the regulatory environment becomes more supportive and consumer interest rises, the market is set to grow and diversify, offering substantial opportunities for businesses and investors.

Related Reading

Uncomplicate Your Cannabis Production Today With GrowerIQ!

Cannabis Reporting Software | Simple reporting, powerful data analysis

Industrial hemp farmers face challenges navigating complex regulations and shifting legal standards. GrowerIQ helps by simplifying the compliance process. Our software automates reporting and documentation so industrial hemp farmers can focus on what they do best—growing high-quality hemp. 

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