Business
Cocaine Production Soars to Record Levels, UN Reports
Cocaine production and trafficking has spiked and eclipsed levels seen before the COVID-19 pandemic, according to a new report from the United Nations.
According to a report from the United Nations Office on Drugs and Crime (UNODC), “The COVID-19 pandemic had a disruptive effect on drug markets. With international travel severely curtailed, producers struggled to get their product to market. Night clubs and bars were shut as officials ramped up their attempts to control the virus, causing demand to slump for drugs like cocaine that are often associated with those settings.
“However, the most recent data suggests this slump has had little impact on longer-term trends. The global supply of cocaine is at record levels. Almost 2,000 tons was produced in 2020, continuing a dramatic uptick in manufacture that began in 2014, when the total was less than half of today’s levels.”
According to The Guardian, production “of coca, the drug’s base ingredient, spiked 35% in 2020-21, surpassing pre-pandemic levels.”
“The pandemic was a bit of a blip for the expansion of cocaine production, but now it has rebounded and is even higher than what it was before,” said Antoine Vella, a researcher at the United Nations Office on Drugs and Crime and who contributed to the report on cocaine.
The UN report says that the “surge is partly a result of an expansion in coca bush cultivation, which doubled between 2013 and 2017, hit a peak in 2018, and rose sharply again in 2021.
“But it is also due to improvements in the process of conversion from coca bush to cocaine hydrochloride. In parallel, there has been a continuing growth in demand, with most regions showing steadily rising numbers of users over the past decade. Although these increases can be partly explained by population growth, there is also a rising prevalence of cocaine use. Interceptions by law enforcement have also been on the rise, at a higher speed than production, meaning that interdiction has contained the growth of the global amount of cocaine available for consumption,” the report continues.
While the cocaine trade has long been concentrated in major hubs like Colombia, that might be changing. As Vella told The Guardian, “I think we need to shift away from thinking of cocaine as being a European/North American problem because it’s also very much a South American problem.”
“The cocaine trade in Colombia was once controlled by just a few major players. As a result of a fragmentation of the criminal landscape following the demobilization of the Fuerzas Armadas Revolucionarias de Colombia (FARC) in 2016, it now involves criminal groups of all sizes, structures and objectives. But, signs of consolidation of some of these groups have recently emerged. These developments have led to an increasing presence of foreign actors in Colombia. Mexican and Balkan criminal groups have moved closer to the centre of production to gain access to supplies and wholesale quantities of cocaine,” the report says. “These foreign groups are not aiming to take control of territory. Instead, they are trying to make supply lines more efficient. Their presence is helping to incentivize coca bush cultivation and finance all stages of the supply chain.”
The report continues: “In established cocaine markets, the proportion of the general population using the drug is high. But these markets only cover around one-fifth of the global population. If the prevalence in other regions increases to match established markets, the number of users globally would increase tremendously because of the large underlying population. This type of market convergence has already been happening in the case of Western and Central Europe, where purity levels and prices have harmonised with the United States, although prevalence of cocaine use in Western and Central Europe has not yet reached the level in the United States.”
Source: https://hightimes.com/news/cocaine-production-soars-to-record-levels-un-reports/
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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