Pestle Analysis : Cannabis and Portugal

Overview of Portugal country

Portugal is among the oldest countries in the continent.

The country acquired freedom from the various nations of the Iberian Peninsula under the leadership of Count Afonso Henriques.

Portugal has experienced a continual rise and fall of human civilizations over the last 3000 years.

After entering the European Community – the EU’s precursor – in 1986, Portugal has developed a versatile and progressively service-based economy.

The nation adopted the Economic and Monetary Union in 1999 and joined 11 additional EU countries in adopting the euro on 1 January 2002.

Figure 1 shows the flag of Portugal

Overview of Portugal country

Figure 1 : Portugal

OVERVIEW OF CANNABIS INDUSTRY

Portugal’s tolerance for drug usage does not apply to the sale or distribution of cannabis.

If found trafficking cannabis, which is classified as a ‘list I drug,’ offenders can face a jail term of one to five years.

This period may be increased to four to twelve years, depending on the gravity of the offense.

Portugal’s government legalized the consumption of cannabis for medical reasons in June 2018

OVERVIEW OF PORTUGAL COUNTRY

It is impossible to rule out terrorist strikes in Portugal.

Globally, the possibility of a terrorist attack against UK interests and people has increased due to organizations or individuals inspired by the Iraq and Syria conflicts.

Portugal does have a history of international arranged crime.

Portugal passed the Drug Law 30/2000 in 2000, decriminalizing various drugs, from heroin to cannabis, and instituting a strategy that shifted ownership and consumption of illicit materials from a criminal to an administrative offense focused purely on public health care

Economical factors

Market value of cannabis demand in Portugal is 930 million euros.

A major producer of medicinal cannabis for the European market, Tilray, already has a large scale cultivation interest in Portugal (they’ve already invested $22 million in their facility, with 5.9 acres of cannabis crops in Cantanherde).

In January 2019, a Canadian and Israeli owned company (Sababa Portugal) announced plans to invest millions into cultivating cannabis crops in the region known as Campo Maior (in the southern Alentejo region of Portugal), starting off with an initial 40 hectres (Connie, 2021).

The weather in certain regions of Portugal are often ideal for growing cannabis (similar to California weather)

Cannabis cultivation industry majorly impacting the Portugal. According to Connie (2021), this industry would create 50,000 new jobs in the Alentejo region alone.

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Economical factors

Figure 2: Good weather

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Technological factors

Since the 1960s, cannabis cultivation and production techniques have progressed.

In recent years, the cannabis business has evolved (more relevance of high-yielding varieties/strains, development of contemporary production processes).

The indoor growing of contemporary powerful hybrids now viable anywhere in the globe, even outside of ideal edaphic and climatic conditions, as long as a dependable electric grid is present.

Furthermore, the recent adoption of modern high-yielding varieties and farming techniques will inevitably impact the global map of cannabis cultivation, with economic, socio-political and environmental implications.

Environmental factors

Portugal has among the lowest production expenses in the world, according to firms working there, owing to its moderate environment and abundant natural light.

The country’s moderate climate makes outdoor cultivation possible and lowers the demand for greenhouse heating.

The cannabis sector in Portugal is regulated by Infirmed, a health body that compels businesses to follow rigorous production guidelines.

There are limited insights, for example, on the significance of cannabis in rural communities’ livelihoods and the crop’s relevance to the local economy.

Social factors of cannabis

Cannabis is legal in Portugal

According to administration, cannabis addicted people should treated rather than punished

As, this law results in the decrease rate of druggist

Medical properties of cannabis

Cannabis`s tablets are legally available in the medical stores due to their medicinal values

A person who is not treated with standard treatments then can be cured by giving cannabis tablets

Not just druggist, cannabis tablets are used to cure many other diseases too.