Moroccan farmers planted their first legal cannabis in June just two years after Morocco legalized cannabis production in the country and hopes are high for a good crop, according to a piece in Bloomberg headlined “Morocco Has High Hopes After Planting Its First Legal Cannabis Crop.”
Authors Matthew Griffin and Souhail Karam said that, although this is just the beginning, there is great optimism that Morocco will become an established supplier in the near future.
Morocco approved cannabis production for medical and industrial use to generate more tax revenues, create employment opportunities, and promote environmental protection. The government has since issued licenses to a huge number of farmers and businesses. The industry faces a number of challenges, however. Recreational use is still illegal, and there remains resistance in the Rif region, where cannabis production has a long tradition.
“Cannabis has been in place in the region for centuries, and changing it from one day to the next is going to create resistance,” confirmed Khalid Mouna, a professor at Moulay Ismail University in Meknes who studies Morocco’s cannabis economy.
Despite the large numbers of licensed operations, there is concern about productivity and competition. According to Adardak Charif, a cannabis farming researcher located in the Rif, rivalry with illegal drug barons is driving up the costs of hashish resin and jeopardizing the legal market’s viability.
Lawrence Purkiss, a senior analyst at Prohibition Partners, told the authors that the challenge of transitioning traditional farmers to the legal market is actually a global phenomenon.
“Around the world, traditional farmers have been held back from entering the legal market due to expensive upfront costs, administrative hurdles and quality standards that are difficult to meet for smaller businesses and cultivators,” he said. “Even Canada and the U.S., which are among the most mature legal markets, have struggled to supplant their well-established illicit markets.”
Morocco has some distinct advantages, however. Its current product brand association and geographic location make it a compelling contender in the legal cannabis scene. Attaining its full potential will necessitate removing recreational usage restrictions and creating international trading routes.
Analysts believe that Morocco’s real advantage lies in the recreational market, reflecting the country’s well-established brand. As the country navigates the difficulties of legal cannabis, the future holds both obstacles and opportunities.
“Morocco is of interest because it has advantages,” said Alastair Moore of Hanway Associates. Moroccan products have “an established cachet.” Moroccan hashish is “a mainstay from the streets of Spain to the coffee shops of the Netherlands . . . that could give exporters a stamp of legitimacy.”
Morocco’s location just across the Mediterranean also means that it has “easy access to Europe, where nations such as German, the UK and Italy are opening up to cannabis.” Morocco also has free trade agreements with the US and EU that could prove advantageous.