Billions of dollars from shampoo and beer: why you should develop cannabis products in Israel. opinion

Israel has always been a leader in development and inventions when government ministries knew not to interfere with local industry development. In fact, the cannabis market, with great economic potential, is getting complicated. Instead of producing a procedure for factories and developing consumer goods, the unregulated domain and billions of revenues evaporate overseas

Billions of dollars from shampoo and beer: why you should develop cannabis products in Israel. opinion

Imagine that the Ministry of Education would have prevented Israeli transportation on the global high-tech map. Imagine that the Ministry of Science and Technology would have stopped the creation of world-changing movers, Wiz, or the CD, or that the Ministry of Agriculture would not allow farmers to export the cherry tomatoes they invented in Israel. Better not to describe.

Along with the dropper, solar water heater, fuel and flakes - Israel has always led inventions, developments, adopting global trends and taking them two steps forward. Government ministries have been able to help over the years or at least not interfere with local industry.

The cannabis market, the hot field for two years - is only getting worse. On the one hand, the number of patients has risen by an average of 2,500 a month since last March. On the other hand, less and less accessible merchandise and supply difficulties exist for some patients. In addition, the legalization process is (seemingly) advanced, but for now the law is unclear and subject to interpretation.

Naama Issachar appealed to the judges: "I have the cannabis planted, I have nothing to do with it"

Less accessible goods and supply difficulties exist for some patients. Medical Cannabis (Photo: Yotam Ronen)

Cannabis crops in Israel, World Patch Company in Tel Aviv, December 2015 (Photo: Yotam Ronen)

According to the Ministry of Health's own projections, the number of medical cannabis patients will jump to 100,000 by 2020 and the revenue potential in the region will reach NIS 700 million - three times that of 2018. Instead of solving the problems and making immediate availability, most players in this market are more concerned with how to divide The money in the supply chain and not how to distribute supplies to patients.

The cannabis market in Israel is divided into two areas - the regulated medical that includes the plants, oil and inhalers and the non-regulated non-medical and includes various consumer products from shampoo through beer, soups and cookies.

Billions of dollars in the market will evaporate overseas

Levy (Photo: Ilan Bashor)

As part of the new regulation in the medical field, the Ministry of Health expanded the supply chain to various parts, creating economic battles on the backs of patients. But while all eyes are on medical cannabis, it is precisely the world of consumer products that does not receive attention has the greater economic potential in the field.

International research shows that by 2025, the global cannabis market for consumer goods will be about $ 90 billion, compared to $ 50 billion in the global medical cannabis market. The market is growing fast, and here too Israel is at the forefront with a luxurious industry that exports food and farm products to the world.

The Israeli Cannabis Consumer Products Forum at the Manufacturers Association found that if products containing CBD or HEMP could be manufactured, the potential for export in the next few years could be about half a billion shekels.

Action to approve cannabis trials (Photo: Reuters)

Dr. Costas Ioannides, 49, performs a sampling of a medicinal cannabis plant at the Greek agricultural organization "Demetra" in Athens, Greece, September 2, 2019. (Photo: Reuters)

Many countries around the world are already ready to absorb these products today, but for now, the regulator does not allow Israeli factories that want to cope with the demand to make experiments with their materials in order to prepare themselves for the future.

If the Ministry of Health fails to act quickly and act immediately to approve trials with CBD or HEMP in consumer product factories that have a GMP quality mark, this large market could evaporate abroad. Demand for consumer products with cannabis will find the solution in factories in Europe, the East and the United States. Enjoy sales valued at hundreds of billions of dollars.

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While they are already one step ahead of us, it is not too late to make the change. The relevant government ministries' work teams should convene as early as tomorrow and begin work, produce a clear procedure for the various factories, and enable the immediate development of cannabis-based consumer products.

The writer is the CEO of the Biscoll Group, Chairman of the Israeli Cannabis Consumer Products Forum and in the past, Chairman of the Small and Medium Enterprises and Chairman of the Foreign Trade Committee of the Manufacturers Association