Amatheon Agri Receives Regulatory Approval to Cultivate Medical Cannabis in Zimbabwe

BERLIN, GERMANY / ACCESSWIRE / June 14, 2021 / The Ministry of Health of Zimbabwe has approved Amatheon Agri's license to produce cannabis for medical and scientific use

The company now embarks on an assessment and planning phase for growing and producing an assortment of cannabidiol (CBD) products

The global medical cannabis industry was estimated to be worth around US$21 billion in 2020, with very high estimated annual growth rates over the next five years as an increasing number of countries approve its use

Amatheon Agri's subsidiary in Zimbabwe was established in 2014 and seeks a first-mover advantage as the country reengages with the international community and promotes agricultural investment
This extremely high value crop supports Amatheon Agri's strategic expansion into export markets and diversified offerings to achieve additional contribution margins 

Amatheon Agri Holding N.V. (the "Company"), the Euronext listed agribusiness and farming group (ISIN NL0010273694, Symbol MLAAH), today announces that its subsidiary, Amatheon Agri Zimbabwe (PVT) Ltd., has secured a license to produce medical cannabis in Zimbabwe. This is the first and important regulatory step and allows the Company to enter a detailed planning phase whereby it will identify the site, variety and protocols required for production. As a heavily regulated and extremely high value crop, this new product will further diversify Amatheon Agri's export portfolio and spearhead its entry into the speciality products market. 

Medical cannabis boom

The legalisation of medical cannabis continues to gain momentum around the world. North America remains the largest market, with expected progress on legalisation for both medical and recreational purposes likely to drive future growth. US market research company BDSA estimated a global market size of US$ 21.3 billion for 2020, with expected global sales of US$ 55.9 billion in 2026. This would mean a compound annual market growth of more than 17% (CAGR). 

Among patients and healthcare professionals, there is an increasing awareness about the benefits of medical cannabis for a variety of ailments. In addition to medical uses, current trends include producing edible products with cannabis, coupled with an increasing amount of it being used as a functional food with purported health benefits as well as usage in the cosmetics industry.