In hills of northern Morocco, farmers work tirelessly to cultivate a plant that could potentially transform Morocco’s economy: cannabis. But this isn’t the illicit cannabis that’s been smuggled out of the country for decades.
Instead, these farmers are growing a variety of cannabis that has the potential to be used for medicinal purposes. With the first batch of production expected late March, pressure is high for Morocco to prove itself in the already-established industry.
Even small details such as using a screw that doesn’t meet quality standards in the cannabis greenhouse could sabotage the entire production chain.
“That’s where the problem is going to lie — the farmers won’t have the capital to do that, and the government won’t do it for them. It’s a massive expenditure,” Damon Booth, owner of Maltese cannabis production and research company, Melabis told FDI intelligence.
She says that in Malta for example running up a pharmaceutical cannabis greenhouse respecting Good Manufacturing Practice could costs up to around 10 million euros for a facility that is fully GMP standard.
In addition to the high cost of getting started, there is a lack of trust between farmers in Morocco’s Rif region, which has historically been marginalized.
Raouf Farrah, a senior analyst at the Global Initiative against Transnational Organized Crime says that “there is uncertainty about the extent to which farmers and local communities in the north will adhere to and participate within the legal system.”
He notes that these communities have historically worked with traffickers who control the supply chain and often have ties to the community. Additionally, there is significant mistrust between the northern population and the state due to the region’s marginalization over the past few decades.
Farrah predicts that large pharmaceutical companies and international investors with ample resources will control the commercialisation of cannabis, and that farmers will only be able to sell raw products.
“When cannabis becomes legal, you see that the price goes down. With more big industries getting into the market, the price will fall. What we have seen where it has been legalised, the benefits go to big companies,” says Ghada Waly, executive director of the UNODC, speaking to FDI intelligence.
“To think that this will make Morocco rich is a romantic idea,” says Ms Waly. “If you legalise something, the market changes.
In countries such as Canada and the US, big industries have taken over the cannabis industry, with few small farmers involved.
Since 2016, foreign investors have announced a total of 128 projects worth $6.5bn in the production of legal cannabis, with the US, Colombia, and Canada being the top investment destinations.
However, as legalization leads to lower prices, big companies tend to reap the benefits, according to the executive director of the UNODC.
“It is wrong to think that if you change regulation, markets will remain the same. The dynamics and price will change, new players will emerge. You are not solving the problem for small farmers that need more profits or livelihood sources.”
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