Like everybody in the australian cannabis industry except most probably the exporters themeselves, we here at ECS have expressed growing concern about the increasing level of imports. - and like many, have not really been satisfied with the vague amd indefinite responses to our various enquiers.
So i took up the open invite from peak industry body, MCIA, to attend one of the small info sessions they put on in Bris, Syd and Melb last week >> to bloody welll find out from the horses mouth myself. (!!!)
16 - 18 people only (Sydney). Intimate. Wide ranging aggrigation from different parts of the sector. Not from partcularly "heavyweight" operators that i could detect. 'Good bunch. 2 Cannabiz blokes, 1 ECS sales mngmnt attendee, and the Chair were the only identities i was previously familiar with. Initially anyway.
Mostly info updating on a number - certainly not all - of the crucial issues facing our sector right now. Relaxed, very informative. Pleanty of qiestions and open dialogue. Peter Koetsier chaired. Good manner for head of a rep body i reckon. Obviously right on the job in Canberra - and all around the traps. We got the word on what really is on the minds of the Min, the asst Min, the TGA, ACEC, the ODC, et al.
but cut to the chase... Imports. First - it is important to know that the MCIA represents 70 odd different businesses - of all kinds, right across the sector >> so it is never going to take an outright stand on imports one way or another. That is not its job ( sadly) Nevertheless... PK did say that they realise supporting a healthy Au production industry is crucial - they do want to get the Gov to find a good mix. I personally believe him on this critical point. He relayed lengthy convo he has had with the minister et al.
Yes, Imports hold the majority of the MC market now, and still increasing. And stockpiling.
Import protection, of any kind, on the horizon? In short - NO. There seems to be the common acceptance - from this mob anyway - that.. a/ Australia is not going to get out of bed tomorrow morning and change its genaral "Free Trade" policy for the intsy binsy MC industry - especially not any politian that will then need to inform the BHP, Rio and Big Ag of that little switch. b/ "Anti dumping" protections seem to have been actively investigated - then pretty well rejected. The laws are not very strong in Au. And there is little appetite to ever use them anyway. - were the reasons given.
( interestly, an mcia person gave me a quiet nod towards the ECS bloke when i asked them personally if there was anybody - or amy company - actively advocating for any kind of protection. Unfortunately my convo with him after the meeting was joined by other people and moved away to other things. Worth following up tho.)
Butt... the industry and the government will not be able to ignore the issue much longer for another reason >> yep.. the good ol' UN Single Convention on Narcotic Drugs. ( no need to panic here, boys and girls, but there is no running away from this little set of powerful international laws that australia is a signatory to either)
According to PK, ( nb, my quickly given interpretation only!!) - "at some point" in 2025 stockpiled inventories + imports will overtake current use/demand. The Single Convention esspressly prohibits that. Peter is constantly reminding the minister of that deadline - and telling them that it wont be any easier to deal with if left to the last minute. A complex and difficiult issie to deal with. for sure. but there could be the seeds of hope in this area. Stay posted.
So yeah... the import situ is as it is - for now.
Nb Nb. My number 2 reason for being there only became apparent when i realised an ECS bloke was there >> i bailed him up straight after the meeting to get assurances that we were still going to be price compeditive in both Au and Europe.
"Oh hell yeah" - one of the most quietly confident and believable casual "oh hell yeahs" i have heard in my long interesting cannabis life - and remember, there have been times when my life has depended on my ability to finely judge the believabilty of little snippits like this.
We'll survive any price regime with our method of production, our business model, our leadership, the expanding markets, australias golden reputation for being austraila (as also reported by mcia) and for ECS style organic marijuana. I reckon anyway.
sorry for the tutorial - warning, maybe a bit more coming anyone who can follow it has my admiration, and quiet thanks for listening. Ps. Dont believe me. Check for yrrself - everything, always. I do.
ECS Price at posting:
1.6¢ Sentiment: Hold Disclosure: Not Held
Imports.
(20min delay)