What does it take to become a licensed cannabis grower in Colombia?
Colombia’s weather is ideal for cannabis cultivation. Many are now wondering how to get a cannabis license in Colombia. Although it is among the first Latin American countries to legalize and regulate medical cannabis for the purpose of domestic and export markets, no medical cannabis products are actually available in the domestic Colombian market as of 2019 [2]. Most companies are still in the research and development stage but some companies are selling cosmetics and CBD products domestically. CBD is also being exported from Colombia, but cannabis exports have yet to take place. Continue reading for a comprehensive guide to help you become a licensed cannabis producer in Colombia.
Medical Marijuana Legalization in Colombia
In 2016, Colombia passed Law 1787 which legalized medical marijuana products and established a regulatory framework through Decree 613 in 2017. Decree 613 established licensing for manufacturing cannabis derivatives, cultivating cannabis and hemp, sourcing cannabis seeds, and distributing medical cannabis products.
In July 2021, Reuters reported that Colombian President Ivan Duque signed Decree 811, which lifted the ban on exporting dried cannabis. The decree also expands cannabis sales and streamlines regulatory procedures. Recreation cannabis use remains illegal in Colombia.
This is a big step as Latin American cannabis exports have the potential to be a $6 billion market. Since Latin American countries have a natural environment that supports lower-cost cannabis cultivation, their exports could reduce the need for more intensive cultivation practices in nations like Canada. Exports can also serve nations that are new to the cannabis market and lack domestic production, such as Argentina.
…One gram of cannabis flower in Colombia cost less than $0.50 to produce, while in Canada the cost tends to be more than over US$1.00.
-from Cannabis Business Times, “Colombia Authorizes Exports of Dried Cannabis Flower for Medicine“
Recreational Marijuana Legalization in Columbia
Sale of Recreational Cannabis in Columbia
The Columbian Senate came very close to legalizing the sale of cannabis in 2023. This motion was put forth as a constitutional reform bill, since the explicit prohibition of drug sales was included in Article 49 of the Constitution in 2009.
Constitutional Reform Bill Doesn’t Pass in 2023
Lawmakers made efforts to legalize the sale of recreational cannabis by putting forth the proposed legalization as a constitutional reform bill, in front of the Columbian Senate. However, during the eight, and final debate on the legislation on June 20, 2023, the constitutional reform bill fell short of the required 54 votes it needed to be passed – receiving only 47 votes in favour.
Despite the setback, there are several lawmakers who supported and rallied behind the bill. Lawmakers such as Juan Carlos Losada, the bill’s primary sponsor, and President Petro, expressed their on-going determination to legalize and regulate the sale of recreational cannabis. So, this matter isn’t over yet, and we’ll likely see similar reform bills being proposed in the near future.
Consumption of Recreational Cannabis in Columbia
Even though the reform behind the legalization of the sale of recreational cannabis fell flat, Columbia already allows the consumption of recreational cannabis use. The Columbian legislation that was enacted during the 1980s, and 1990s allows the consumption, and possession of up to 20 grams of cannabis, and the cultivation of up to 20 plants.
How to Get Your Cannabis Cultivation License in Colombia
In Colombia, there are four types of cannabis licenses that are controlled by the Justice Ministry, Health Ministry, and the National Direction of Psychotropics of Colombia. These governing agencies are responsible for granting cannabis licenses. ICA and INVIMA may also be involved depending on the license type. The four types of cannabis licenses available in Colombia are:
- License for the Manufacture of Cannabis Derivatives
- License for the use of Cannabis Seeds for Planting and Crops
- License for the Cultivation of Psychoactive Cannabis Plants
- License for Non-Psychoactive Cannabis Plants Cultivation
Colombian cannabis lawyers explain that along with providing processing fee payments, licensure requires a sworn statement of income n proof of citizenship/immigration card/visa for natural persons or tax ID number for companies. Specific licenses also have specific requirements.
Cannabis Manufacturing Licenses in Colombia
A Colombian license to manufacture cannabis allows you to produce cannabis products for domestic use, export, or scientific research. Cannabis Manufacturing Licenses have basic requirements of providing a real estate registration number or cadastral ID, certification of use, or possession in good faith of the property, if you do not own the property you also must show your rights for use. You also need to submit a security protocol, a cannabis cultivation plan, and a description of equipment and areas.
Requirements for a Cannabis Manufacturing License in Columbia
The license for the manufacture of cannabis derivative products is granted by the Ministry of Health and Social Protection, this license costs 30,000,000 Columbian Pesos, which converts into $7,111.62 US Dollars as of October 2023. There are two separate payments that must be made.
The first payment is a processing fee, for validating application documents, and must be made in advance of submitting the application. The second payment covers the cost of the actual license and can be paid in installments our in a lump-sum payment.
It can take a few months, or even years for start-ups to secure licenses, due to the government bureaucracy in Columbia.
Here are the specific requirements, and documents that must be submitted as part of the application process:
- proof that you have paid the ‘processing fee’
- a personal declaration of your income signed by the legal representative and the accountant or fiscal auditor (of a company), as well as a copy of your professional accreditation or ‘tarjeta professional’
- the Company’s statement of purpose, signed by its Technical Director
- the Technical Director’s degree or diploma as an accredited chemist or chemical engineer
- proof of the Technical Director and the Deputy Technical Director’s professional accreditation
- the property registration number or cadastral certificate. If you are not the owner of the property, you must include a document proving you are using it legally
- a plan of action of the company’s operations
- a description of the location where the operations will take place and the equipment that will be used
- a security protocol
- an accreditation guaranteeing that the end product meets the required standards
- a plan of action for exportation
- a plan of action for the completion of the operations after the license expires.
Cannabis Seed Licenses in Colombia
To sell or distribute cannabis seeds in Colombia, a License for the use of Cannabis Seeds for Planting and Crops is needed. The requirements are the same as for the manufacturing license except no cultivation plan is required.
Requirements for a Cannabis Seed License in Columbia
The cannabis seed license is issued by the Ministry of Justice and Law, and this license costs 12,449,000 Columbian Pesos, which converts into approximately $3,000 US Dollars as of October 2023.
Here are the requirements for the licensing process:
- a description of the location where the operations will take place and the equipment that will be used.
- a security protocol
- the property registration number or cadastral certificate. If you are not the owner of the property, you must include a document proving you are using it legally
- if the license is going to be used for scientific purposes, evidence of the research project is required.
Cannabis Cultivation Licenses in Colombia
Colombian cannabis cultivation licenses allow you to grow cannabis that will be manufactured. If you want to do the manufacturing, you will need to get a manufacturing license as well as a cannabis cultivation license in Colombia. The manufacturing license needs to be linked to the cultivation license. The License for the Cultivation of Psychoactive Cannabis Plants allows you to grow and store cannabis and allows you to produce seeds for sowing.
To get a Colombian cannabis cultivation license you’ll need to submit all of the general requirements. Like the manufacturing license, you need a real estate registration number or cadastral ID, certification of use, or possession in good faith of the property, if you do not own the property you also must show your rights for use. You’ll also need to have a contract for harvest workers, security protocol, cultivation plan, description of equipment and areas, and a good business plan concept. Cannabis cultivation licenses have an additional requirement for efficacy tests and agronomic evaluation in licensed crops.
Costs for a Cannabis Cultivation License in Columbia
A psychoactive cannabis cultivation license costs 43,557,000 Columbian Pesos, which converts into approximately $10,319 USD as of October 2023.
On the other hand, a non-psychoactive cannabis cultivation license is significantly cheaper, as it costs 14,866,000 Columbian Pesos, which converts into approximately $3,500 USD as of October 2023.
Requirements for a Psychoactive Cannabis Cultivation License in Columbia
Here are the specific requirements for a psychoactive cannabis cultivation license in Columbia:
- A license for the Manufacture of Cannabis Derivatives
- A contract with the buyer of the harvest, if this person isn’t the same as the grower of the cannabis
- The property registration number or cadastral certificate. If you are not the owner of the property, you must include a document proving you are using it legally
- A description of the location where the operations will take place and the equipment that will be used
- A security protocol
- A plan of action for the cultivation
- A positive report from a previous control visit
- If the license is going to be used for scientific purposes, documentation outlining the research project.
Requirements for a Non-Psychoactive Cannabis Cultivation License in Columbia
Here are the specific requirements for a non-psychoactive cannabis cultivation license in Columbia:
- A real estate registration number or cadastral document, or document that shows that the company can legally use the property, or an affidavit stating the possession or good faith possession of the property
- A description of the location where the operations will take place and the equipment that will be used
- A description of the cannabis varieties used, confirming their non-psychoactive properties
- A positive report from a previous control visit
- if the license is going to be used for scientific purposes, evidence of the research project is required.
Hemp Cultivation Licenses in Colombia
To grow hemp in Colombia, you need a License for Non-Psychoactive Cannabis Plants Cultivation. Requirements for growing hemp in Colombia include certification of use or possession in good faith of the property, description of the property, equipment and areas, description of the varieties of hemp you plan to grow, and accreditation that they are not psychoactive. In Colombia, hemp is defined as a cannabis plant that has no more than 1% THC.
Medical Marijuana Regulation in Colombia
In addition to fully reviewing Colombian marijuana laws, people who are interested in becoming a cannabis cultivator in Colombia can reach out to The Colombian Association of Cannabis Industries (ASOCOLCANNA).
- Cannabis Licenses (Law 1787)
- Medical and Scientific Purpose Cannabis (Decree 613)
- Cannabis License Controls (Resolution 577)
- Cost of Cannabis Licenses (Resolution 578)
- SMEs Regulations (Resolution 579)
- Medical and Scientific Use of Cannabis (Resolution 2891)
- Derivatives of Cannabis (Resolution 2892)
- Decree 2106 of 2019
Cannabis Quota System
Colombia has a cannabis quota system that only allows a certain amount of cannabis to be grown and manufactured [2]. Cannabis companies must apply for a quota. To do so they must first register a genetic variety with ICA. Registration involves generating technical information through research. As of 2019, quotas have been issued for research and development purposes only. Commercial quotas are only granted based on legitimate demand, and a certain percentage of cannabis production is reserved for small and mid-sized businesses.
Largest Columbian Cannabis Producers
Clever Leaves
Clever Leaves, a dynamic player in the world of medical cannabis and hemp extracts, boasts an impressive 1.8 million square feet of lush greenhouses in the heart of Colombia. Established in 2016 by visionaries Andres Fajardo, Julian Wilches, and Gustavo Escobar, this trailblazing company achieved a significant milestone in 2019 when it joined forces with Northern Swan, its major investor, propelling Kyle Detwiler into the role of CEO. As the sole private enterprise among a select quartet, Clever Leaves stands out.
Distinguishing Factors
What sets Clever Leaves apart is its comprehensive approach, from producing crude cannabis oils, distillates, and isolates to delivering finished products through their innovative B2B wholesaler platform, aptly named Clever Leaves 360. Adding to their repertoire, Iqanna, Clever Leaves’ pharmaceutical branch, is wholly dedicated to advancing the frontiers of medicinal cannabis. Their expertise covers research, cultivation, extraction, processing, and efficient distribution.
Clever Leaves doesn’t stop there; they wear many hats in the cannabis universe. Managing three wellness and beauty brands and overseeing a diverse portfolio of cannabis enterprises, they’re all about holistic growth.
Equally impressive, Clever Leaves’ extraction facility is a powerhouse, capable of processing a staggering 2,400 kilograms of dried flowers each month.
The global reach of this industry leader extends to Portugal, where in 2019, they secured authorization to cultivate medical cannabis. A sprawling 90-hectare farm in Portugal now hosts their operations, marking yet another milestone in their journey of excellence. With Clever Leaves, the future of medicinal cannabis is bright, promising, and, most importantly, filled with boundless possibilities.
Avicanna
Avicanna, a bio-pharmaceutical powerhouse, is on a mission to revolutionize the world of cannabinoids, exclusively targeting the medical cannabis, health, and wellness sectors. This visionary company, established in 2016, bears the fingerprints of co-founders Setu Purohit and Aras Azadian, who now steer the ship as President and CEO.
Backed by Johnson & Johnson
Nestled within the Johnson & Johnson JLABS Innovation Centre in Toronto, Avicanna’s dynamic hub serves as the epicenter for groundbreaking research and development. They’ve inked an exclusive research partnership with the prestigious Leslie Dan Faculty of Pharmacy at the University of Toronto, a testament to their commitment to cutting-edge science.
Significant Cultivation Ability
But that’s not all. Avicanna’s influence extends to the lush landscapes of Santa Marta, Colombia, where their majority-owned subsidiaries, Sativa Nativa and Santa Marta Golden Hemp, cover a whopping 410,000 square feet. These facilities are a powerhouse, churning out over 30,000 kg of biomass annually. In this verdant haven, they cultivate THC, CBD, CBG, and a treasure trove of rare cannabinoids. These wonders form the backbone of Avicanna’s impressive range of finished products and are shared with the world under the coveted Aureus Santa Marta brand.
Avicanna’s impact isn’t confined to research and cultivation. They’re the proud owners of Rho Phyto, a pioneering medical cannabinoid brand making waves in Canada, thanks to an exclusive partnership with Shoppers Drug Mart.
Niche Consumer Brand Portfolio
And let’s not forget Pura Earth, Avicanna’s CBD derma-cosmetic consumer brand. Launched in the vibrant Colombian market in November 2019, this star brand has its eyes set on a global expansion, promising to transform the way we perceive wellness and beauty.
Pharmacielo
Pharmacielo, a visionary cannabis trailblazer, sprouted its roots in 2014 in the bustling heart of Toronto. But this company doesn’t just talk the talk; it walks the walk in the lush landscapes of Colombia through its wholly-owned subsidiary, PharmaCielo Colombia Holdings.
Vast Grow-Ops
Spanning over 1.2 million square feet of open-air greenhouses, Pharmacielo’s Colombian abode is a vibrant canvas where over 5.5 million kilograms of cannabis flowers bloom annually. Yet, that’s not the limit of their prowess. With a processing capacity of over 24 metric tonnes of refined cannabis oil each year, they’ve harnessed the alchemical power of nature to perfection.
But that’s just the beginning of this epic journey. Currently, Pharmacielo is scripting the future with its CBD and THC extracts, and there’s a treasure trove of commercial brands in the making.
And in 2019, Pharmacielo etched its name in history by orchestrating its maiden commercial exports to Europe and the United States. This is not just a company; it’s a revolution in the making, and it’s happening now. Strap in; the ride is breathtaking.
Seed-to-Sale Software for Colombian Cannabis Growers
The Colombian cannabis regulation system is very stringent. Regulators require the use of seed-to-sale cannabis software such as GrowerIQ [1,2]. Producers must keep records of every step in the cultivation and manufacturing process. Standard operating procedures (SOPs) are required for security, cultivation, extraction, testing, and transportation. Testing for purity and potency must be conducted through accredited laboratories. Good Agricultural Practices (GAP) and Current Good Manufacturing Practices (cGMP) are expected to be followed.
Looking Forward: Cannabis Licensing in Colombia
Cannabis growers in Colombia are currently sourcing their genetic material from Bulgaria and Canada [1]. While their cannabis market has yet to take off, CBD products are thriving due to the looser regulatory requirements. Cannabis licensing in Colombia is stalled as there is a significant backlog of applicants and a shortage of quotas. Cannabis companies can also expect to face challenges when it comes to real estate and banking. However, the country continues to reform its cannabis laws and regulations to improve its functioning. There is a lot of opportunity for cannabis cultivation and manufacturing in Colombia for companies that have the resources to establish themselves.
The fact that you found your way to this article is remarkable, we’re sure that you’re an ambitious grower. The oppourtunity in international trade does not end here. We have written guides on getting your cannabis license for more countries, such as Thailand, Spain, Australia, and Mexico. Check out our guides over here: Thailand: The First Asian Country to Legalize Cannabis, Cannabis License in Spain, How to get your Medicinal Cannabis License in Australia, and How to Get a Cannabis License in Mexico.
Find Out More
GrowerIQ’s seed-to-sale software is a critical system to help you comply with medical marijuana cultivation in Colombia. Our experts can help you create a successful international cannabis venture and strive within any legal framework. To learn more, get in touch with our Cannabis professionals by completing the form below.
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References
- Flurez, G., Grisales, L., Quintero, D., Tirado, N. (2020). Global Cannabis Guide Chapters – Colombia. JD Supra. https://www.jdsupra.com/legalnews/2020-global-cannabis-guide-chapters-34784/
- Pascual, A. (2019). Cannabis in Latin America: The Regulations and Opportunities. Marijuana Business Daily. Retrieved July 24, 2021, from https://mjbizdaily.com/wp-content/uploads/2019/09/Cannabis-in-Latin-America_The-Regulations-and-Opportunities.pdf