On February 12, 2025, Brazil’s Superior Court of Justice (STJ) rejected a request to delay the deadlines for regulating the cultivation of industrial hemp for medicinal purposes. This ruling comes in the wake of a major decision from November 2024, when the court’s First Section authorized the cultivation of low-Tetrahydrocannabinol (THC) hemp – a variety of Cannabis sativa – with the specific intent to produce medicinal, pharmaceutical, and industrial products, including CBD.
The decision allows licensed companies to grow industrial hemp for medicinal use, paving the way for the development of various products aimed at treating patients. This move represents a key step in Brazil’s cannabis industry, setting the stage for the country to become a significant player in the global medicinal cannabis market. However, after this ruling, both the National Health Surveillance Agency (ANVISA) and the Union filed declaratory embargoes, requesting a 12-month extension to meet the court’s ruling.
Despite these appeals, on February 12, 2025, the First Section of the STJ unanimously upheld the original deadlines, rejecting the request for an extension. The court emphasized the importance of maintaining legal certainty and ensuring the timely implementation of regulations to guarantee that patients have quick access to necessary treatments, avoiding any delays that might impede their rights.
With this ruling, Brazil is on track to become a leader in the production of medicinal cannabis in South America, opening doors for both domestic use and international trade.
Outlook for Cannabis Prices: Brazil’s Potential to Lead South America
As Brazil moves forward with its cannabis regulations, the country is poised to become a dominant force in the South American cannabis market. Currently, medicinal cannabis products in Europe and Canada are sold at high prices, driven by costly production, stringent regulations, and dependence on imports. However, Brazil’s low-cost production environment – including its affordable labor and energy costs – gives it a competitive edge that could disrupt these established markets.
Brazil’s favorable climate and vast agricultural capacity, coupled with its lower energy costs compared to Canada and Colombia, position it as a potential hub for cheaper cannabis production. As a result, Brazil could soon establish itself as a leading producer of affordable cannabis in South America, possibly even surpassing Colombia, which has traditionally dominated the region’s cannabis market.
With its ability to offer cost-effective production, Brazil may also challenge Canada, a major player in the global cannabis industry, thanks to its lower energy costs and competitive pricing structure. If Brazil can scale its cannabis industry effectively and meet international quality standards, it could push Canadian producers out of key markets, offering a more affordable alternative for medicinal cannabis buyers worldwide.
In the near future, Brazil may very well become the go-to source for inexpensive cannabis in South America, reshaping the global cannabis market and potentially changing the dynamics of the industry.
