ANZ International Economist Kishti Sen says with all-year rainfall in some parts of Fiji, it has an ideal climate to naturally grow medicinal cannabis plants in the cooler regions of the two main islands and some of its outer islands mainly Kadavu.

Medicinal cannabis is a recognised treatment for a range of conditions including chronic pain relief and is generally seen as a safe product with less severe side effects than other treatments.

Having been legalised in several countries, demand has lifted in recent years and is expected to stay strong as more countries make it legal.

Sen says the market size of medicinal cannabis was estimated at over $70 billion in 2022 and Fiji can tap into the overseas market.

He says this can be converted into a new industry focused on export.

Sen adds the current cost of medicinal cannabis can be prohibitive, and is thus afforded mostly by higher disposable income patients in the developed world.

At present, cannabis cultivation is illegal in Fiji and legislative reforms are needed to make farming and production for the export market legal.

The Ministry of Trade and Industry is currently holding public consultations to get view on ways to legalise medicinal cannabis for the export market only.

Sen says once established, the revenue contribution from medicinal cannabis can be quite significant.

The Australian state of Victoria currently produces 73,000 litres of cannabis oil and 24,000 kilograms of dried leaf and flower per year.

Sen says if Fiji were able to produce 50% of Victoria’s capacity, then a price of AUD3,000/L for oil and AUD4,000/kg for dried plant matter, will yield revenue of AUD158m or FJD235m.

Sen stresses this is more than Fiji’s combined total of sugar and gold exports last year.

However, Sen warns that it is worth noting that, while the number of patients in developed economies accessing medicinal cannabis has risen in recent years, high demand countries have established local production networks.

According to him, for Fiji to gain a foothold in the North American, European and even Australian markets will face stiff competition.

Other exporting countries, such as Canada and Israel, are already supplying products to these markets, and Australian producers are exporting to European countries.

Sen suggests that while the market for medicinal cannabis is growing, Fiji will need to identify its unique product offering to attract investors and break into the export market.