CPlant Cannabis Company turns to Paraguay for cheaper production and manufacture

As cannabis begins to be treated more and more like an agricultural commodity, the race is on to find the best climate and most economical place to grow it. In South America, a new candidate is emerging: Paraguay, therefore reported Bloomberg.

And exporter of medical cannabis Planting seeks to acquire licensed producer in Paraguay as soon as possible to begin production of THC-rich flowers, said Cplant CEO Lucas Crivilone.

As a vertically integrated company since 2019, CPlant offers an end-to-end service. “We work with producers, provide them with genetics, advice, drying, packaging and sale to wholesalers and retailers. We handle inflorescences, feminized seeds, edible grains and make biomass for extraction, ”Crivilone told El Planteo in a interview.

Low operating costs and cheap electricity

The company already produces cannabis for CBD in Uruguay. However, if cannabis prices continue to fall, CPlant could move most of its farming operations from Uruguay to Paraguay, where operating costs are 50% lower. “If Paraguayan regulations work for us and market prices allow us to have a significantly higher profit margin in Paraguay than in Uruguay, we would aim to do our farming in Paraguay,” noted Crivilone.

Production of medical marijuana in Paraguay is limited to 12 local investors. Cheap electricity, low wages and an established pharmaceutical industry provide the South American country with a good opportunity to compete with pot-friendly countries like Colombia.

CPlant is also lobbying the Uruguayan government to allow the production and export of psilocybin mushrooms for medicinal purposes.

“We are now focusing on retail products and other compounds such as THC and psilocybin mushrooms,” added Crivilone.

The company’s CSO, Guido Husni, agrees that THC and psilocybin mushrooms have a bright future.

“We are confident that this will be the dominant model,” said Husni.

Photo courtesy of CPlant.

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