By / December 15, 2019

Israel’s cannabis industry to finally export cannabis

After years of delays, Israel’s cannabis industry can finally obtain a license to export its products to other countries. Israel has been at the forefront of medical cannabis research since the 1960s.

Laws in Israel have allowed researchers to innovate in a range of new cannabis products. Legislators quickly realized the economic potential of allowing their cannabis products to be sold abroad and in 2017 proposed to legalize the export of medical cannabis products.

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Large-scale operations for Israel’s cannabis industry

Later in the same year, several Israeli cannabis growers started to operate on a large scale, hoping to sell their products internationally.

But at the beginning of 2018 Prime Minister Benjamin Netanyahu destroyed these hopes by blocking the export law for fear that cannabis from Israel would enter the black market. Regardless of this, legislators officially legalized medical cannabis exports in December 2019.

The adoption of this law renewed the interest of foreign investors interested in the Israeli cannabis industry, but the interest quickly weakened as the export prospects were again delayed.

At the request of President Trump, Prime Minister Netanyahu delayed the legalization of cannabis exports for almost a year. This month, these delays may come to an end as the government has given its final consent to the export of medical cannabis abroad.

Israel’s cannabis industry to begin exporting

Israeli cannabis companies can now export their products, but there is still a hook. Before international exports can be allowed, the local cannabis industry must first be able to satisfy the domestic demand for medical cannabis.

Unfortunately, there is a shortage of medical cannabis in Israel since one of the country’s largest growers, Tikun Olam, was temporarily closed due to concerns over the drying process.

a large cargo ship, in open water, on a clear day, representing exporting from Israel's cannabis industry
Israeli medical cannabis exports will begin once companies manage to meet domestic demand. (Source)

“Many foreign investors decided to invest their funds and technological know-how abroad, establishing crops in places such as Malta and Uganda and investing or establishing hemp companies all over the world, from Poland to the U. S., Australia, and other countries,” explained Laura Kam, President of Kam Global Strategies.

All of this can now change with the lifting of the temporary export ban, but Israeli cannabis companies have yet to overcome a number of other regulatory obstacles before they can sell their goods abroad.

For example, in order to export goods to Europe, companies must comply with the Good Manufacturing Practice (Eu-GMP) standard and many Israeli cannabis companies do not yet meet these complex and demanding standards.


(Featured image by Rafael Nir via Unsplash)

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