Cannabis Business Growing in Other Countries Too

In November Ohioans voted to make the recreational use of marijuana legal. By a margin of 57% to 43% Ohio voters decided reforming the laws to legalize, regulate and tax the use of cannabis was in their best interests. Ohio is the 24th state to make the recreational use of marijuana legal. Thirty-eight states allow its use for medical purposes. On the federal level, cannabis remains illegal. The federal government classifies cannabis, along with heroin and cocaine, as a Schedule I drug with a high potential for abuse and little to no medical benefit. At the time this column was being written the state legislature was debating details about how much pot anyone over 21 years and older can possess or grow. Changes are still being proposed about how much to tax consumers and how to spend the tax dollars the state will receive from the sale of cannabis. While the legalization of cannabis is increasing in the US, it is also becoming more common in other countries. Eyal Policar, adjunct faculty member at Tiffin University, grows and sells medicinal cannabis in his home country of Israel. Policar teaches business classes for Tiffin University's Bachelor of Business Administration program in Bucharest, Romania. Policar is Founder and Head of Board of Directors of CannArava, where he works with the medical community "to provide medical grade cannabis-based treatments for certified patients" according to the company's website. The company grows premium cannabis indoors to provide a stable and consistent product. The company entered the market in 2018 when an increase in demand for medicinal marijuana led the Israeli government to expanded the number of licenses to grow the crop. This was in addition to the vegetables and dates Policar was raising at the time. Eyal Policar's son Gahl is the Chief Grower at their farm located near Moshav Zofar in southeast Israel close to the Jordanian border. Gahl spent five years learning the cannabis business in California when it became legal to grow there. One of the complaints about medical marijuana in Ohio and the legalization of it across the country is that overtaxing by state and local governments has reduced the sales of legal cannabis. Allegedly this has incentivized consumers to buy it on the illegal market at much lower prices. Israel has avoided trying to gouge the users of medicinal marijuana. "Price-wise it (cannabis) is not taxed different than any other product" Policar said. Overall the business has been steady since Policar entered the market in 2018. Management of the distribution system is one of the strategies used to create a competitive advantage for CannArava. The international legalization of the cannabis will continue according to Policar. "I think everywhere in the world it is all about consumer awareness so it will eventually become legal in more countries." Policar said he uses examples from his cannabis business in his Tiffin University classes in Bucharest. "We discuss all aspects of the business from shareholders to stakeholders." The fact Policar is in the cannabis business makes it more interesting to students. "Everybody thinks cannabis is interesting." The October 7 invasion of Israel by Hamas has had an effect on his business and the overall Israeli economy. Things are getting better, but very slowly. "We're right back to the start of our independence" is a perspective Policar believes is happening and where Israel is at as a country. Businesses have gone back to work but many of them are struggling. "The economy has got to come back. Israel is too small a country. Most of the industry is geared for export. But it's going to take time." Perry Haan is Professor of Marketing at Tiffin University. He can be reached at haanpc@tiffin.edu.