-HERBS (Health Education and Research into Botanical Sciences), has announced the launch of a cannabis startup in Jamaica.
-Why has it chosen to launch in Jamaica?
KINGSTONG, JAMAICA / ACCESSWIRE / April 19, 2018 / has long been the global capital of cannabis culture, but the island is only beginning to enact decriminalization. With a hugely profitable worldwide market developing, it wants in on the economic benefits. Jamaica is working to support the first wave of legal cannabis producers and retailers. Many have expressed concerns that the country could be left behind the international legalization movement as most global investment has gone to home-grown startups.
Anthony Bailey, a Canadian of Jamaican descent, is the CEO of HERBS says the company will be seed-to-sale integrated operation and already has plans to export. The company reports that Bailey has put in place a global growth plan and gained important tax incentives from the government.
Property in Westmoreland region
The Westmoreland region in Jamaica is well known for its Orange Hill area, where the climate, elevation and nutrient-rich soil help farmers to grow the highest quality cannabis in Jamaica. Savanna-la-Mar is the capital, and this is where the startup is located. It consists of many acres of land with reservoirs and canals for irrigation and access to the second largest river in the country. As a Special Economic Zone, it is a tax-free investment.
The property will be protected with a perimeter wall, and CCTV will be installed. The first building to be constructed is a hybrid greenhouse, and the aim is to purchase an extraction machine later this year.
A retail facility, Herb House, will accommodate about a hundred clients, who will be able to choose products and use them in a social setting.
Great profits for startups and local economies
Cannabis production is proving to be a highly profitable startup in other countries where net revenues of $500 million and profits of about $35 million are being reported with 7M grams to start per month.
The new operation will create attractive new employment options and a chance for locals to earn higher wages. There are some challenges facing startups in Jamaica, but with the government relaxing laws, there is less red tape than there was before. The opportunity is also available to scale up as growth takes place and can be done in such a way that consistency isn't be compromised.
Construction, cultivation and product creation
The aim is to spend most of this year on construction and then to get the plants into the ground. Perfect Plant in Holland will provide the first tissue cultures to ensure crops of high quality are consistently grown. Jamaica may be regarded as a mecca for cannabis, but in recent decades many of the country's classic strains have faded as local breeders mixed genetics.
After the plants are grown and harvested, 12-14 weeks will be spent on creating products for retail or export. Orange Hill trademarks will be used on the products.
Import and export
Plans are to export cannabis in the future and HERBS is already in possession of an LOI (Letter of Intent) with a First Nation minister to import and export that includes tax incentives. The potential in the Canada group is to import 720 million grams a year but getting a license will be key.
International demand growing
The owner of HERBs, David Berry, is putting together a capable, highly motivated board of directors. He is also in the process of establishing strategic connections with other businesses and entrepreneurs in the industry.
Medical cannabis is likely to be the biggest driving force of growth, and one of the roles of HERBS will be to help educating people about its many health benefits. The illegal nature of cannabis restricted research for many years but recent clinical trials are beginning to show its great promise in the treatment of many serious conditions.
With the international demand for high-quality products growing all the time due to changes in legislation, the booming cannabis industry shows no signs of slowing down. The operation in Jamaica is sure to benefit from the increasing use of medical cannabis worldwide.
The company is waiting for approval of a license. It will give it the right to cultivate, process, transport and sell cannabis products. It will also be able to do research and development. The Cannabis Licensing Authority has simplified applications for licenses because it realizes the benefits that operations like HERBS will bring to the economy.