As rumours continue to circulate about the identity of the international criminal gang targeted in last week’s Portuguese busts, a key industry player has warned of potential supply disruption to the country’s medical cannabis patients.
On Tuesday, May 20th, Portuguese police (Polícia Judiciária), in association with Spanish police, undertook over 60 search warrants leading to the seizure of seven tons of cannabis and five arrests.
Named Operation Erva Daninha (Weed), it is understood that one of the premises targeted by police was that of cultivation firm Canna Forest in Fundão, central Portugal.
Canna Forest’s website states that it has a License v17 granted by INFARMED, the National Authority of Medicines and Health Products in Portugal, to undertake activities ‘related to human medicines and health products’.
While Infarmed have failed to respond to questions from Business of Cannabis as to whether it will be reviewing its licensing regime, there are some concerns it may be forced into a crackdown on cultivation and production licensing, impacting the country’s supply chain operations.
Michael Sassano is the Founder and CEO of SOMAÍ Pharmaceuticals, which owns a state-of-the-art manufacturing facility and indoor cultivation facility in Lisbon, Portugal.
Speaking to Business of Cannabis, he mentioned that following a similar crackdown in Thailand, it had become increasingly difficult to move ‘flower out of the country’.
“As a result of this police activity, there is the potential that our import and export permits will slow down.
“For people in the legal industry not caught up in this mess, we may need to be concerned about potential delays we cannot control, and so we should start building up inventories in other countries so patients don’t run out of stock.
“Our biggest concern is a knee-jerk reaction from regulators, which slows down what we need to do, and which could lead to a situation where we end up with months of delays, leaving patients without their medicines.
“We need to get the product to the patient, and if it isn’t there, then they will go to someone else – is that then the right thing for the patient?”
However, he did say that for end-to-end solutions on narcotics ‘there is already track and trace from A-Z. “In our world you already know where the flower was grown and which pharmacy sold it,” he added.
Mr Sassano’s concerns were echoed by Guilherme Galaz Tavares, CEO & Co-Founder at cannabis software firm Cannabud.ai. Writing on LinkedIn, he noted how export permits are now taking up to 12 weeks to be approved and claimed that trust from international partners in Portuguese cannabis is being eroded.
Portugal is the second largest cannabis cultivator – and exporter – on the planet after Canada, with some 41 companies licensed for cannabis cultivation, 24 for manufacturing, 51 for import, 51 for export and 15 for trade and distribution.
As well as the arrests, raids and cannabis seizures, police also confiscated 12 vehicles and 11 weapons.
The police say that, as well as the 64 warrants domestically and on the island of Madeira, another six were enacted in Spain, one in Bulgaria and another in Cyprus.
A Judicial Police statement to Business of Cannabis said: “The investigations revealed that the criminal organization, aware of the flaws in the inspection and control system for exports of medicinal cannabis in Portugal, acquired pharmaceutical companies, then created commercial companies licensed for the wholesale trade, import and export of medicinal cannabis, ending up, in reality, sending several thousand kilos of cannabis to illicit markets using false documentation and certificates.”
Business of Cannabis understands that the Portuguese police activity may feature as part of a wider international, law-enforcement operation investigating widespread activity of the aforementioned ‘criminal organisation’
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