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Home ATTUALITA

The narcotics plant business model, which is “passing” to agriculture, brings up to 1 billion euros in revenue per year

by imkadmin
Maj 8, 2022
in ATTUALITA
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The narcotics plant business model, which is “passing” to agriculture, brings up to 1 billion euros in revenue per year
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Cultivation of cannabis in black seems to be the most productive branch of agriculture and has evolved rapidly in the last five years, in terms of technology and cultivars.

Journalist Artan Hoxha said that the cultivation process has been significantly improved through investments and expertise, making traffickers save profits, reducing planted areas.

Cultivars are improved

From 2016, when narcotic plants were planted en masse across the country creating oversupply that affected the price reduction in the European market, now the processes are more controlled. Mr. Hoxha said that the cannabis seeds that are planted in Albania come from the Netherlands and are safe, while a kind of cultivar called Gorrilla has revolutionized the rankings.

This is a type of hybrid formed in Spanish laboratories that gives production for about two months and has a very high level of recreational substance (THC) 25% from about 12-14% that had other crops grown in Albania. The plant is resistant and gives safe and high yield in a small area.

Unlike other types of cannabis, a kilogram of Gorrilla costs up to 4,500 euros. Growers have also avoided using native seeds that have often become barren, importing safe seeds from abroad.

Investments in greenhouses and technology are sophisticated

Operating in often difficult territories and without infrastructure, cannabis growers have developed new and modern techniques in plots, from drip irrigation systems to the development of modern greenhouses. Mr. Hoxha has photos, which show several hectares of greenhouses planted with cannabis, which would be envied by the best vegetable greenhouse business in Albania.

A type of plastic is used for the cover, which costs 20 euros per square meter and provides the right light and temperatures for the plant. All plots are equipped with drip irrigation system, while agronomic consulting services are provided from outside. A large proportion of growers have invested in technology to avoid the risk of checks and detection by the police.

Hoxha said that the consolidated farms have installed technological systems from Israel, which monitor the plots and areas around the county, avoiding the guards who often become witnesses when caught by the police.

The systems are equipped with sensors that detect movements and often improvise crackling-like noises, in order to scare away casual visitors. Usually such cannabis farms have received guarantees from law enforcement agencies, – said Hoxha, as investments are of high value.

Production is diversified in dwellings and greenhouses

To conserve revenue, illegal cannabis businesses have diversified production, using greenhouses and homes. The tendency to expand home cultivation has increased recently, due to the fast harvest time and high price. Controlled production conditions in the apartment give a safe production, – said Hoxha.

A kilo of home-grown cannabis costs about 2,100 euros. Hoxha has data that in Tirana alone there are about 100 apartments planted with cannabis. Also the cultivation of cannabis for recreational purpose has shifted to a large extent in greenhouses and in mountainous areas especially in the mountains. Greenhouses provide fast and quality production growth, as for all other agricultural crops. One kilogram of cannabis in the greenhouse costs about 1800 euros.

Improves the cannabis processing chain, increases profits

As in any other agricultural crop, for cannabis, investment in processing increases the value of the product and the profits as well. In recent years, groups have increased investment in cannabis laboratories and processing units, Mr Hoxha said. Cannabis stocks that cannot be sold abroad as packaged bunches become oil or chocolate (a pressing process done on bunches to preserve them longer).

The climate and the labor force favor cultivation in Albania

Albania, as a Mediterranean country has the climatic advantage, as for any other agricultural crop and for the cultivation of cannabis. According to Mr. Hoxha, this is an advantage which is helped by an already qualified workforce that deals with the cultivation and processing of the plant. The production yield for cannabis is also according to geographical areas.

In the North, for example, the harvest season lasts longer and yields are lower, while in the center and South, the climate is more favorable providing sowing more than twice a year. The highest yield is cultivars in the southern area. In addition to the favorable climate, Albania has a skilled workforce, which has been working in cannabis cultivation for years.

The production process is usually carried out by young men and women, while at the time of harvesting and undressing, many employees are engaged, who are mainly women. Employees have escalated knowledge in processing, especially for oil and chocolate extraction.

A liter of cannabis oil costs an average of 40 thousand euros and requires at least 20 kilograms of bohche. The transport of oil becomes easier, due to the low quantity, while the profit is high compared to the gross export of bohche.

Engaged, about 20 thousand people, salaries above average

Across the country, about 20,000 people are engaged in cannabis cultivation every year for seasons, says Hoxha. They occupy about 5% of the total employment reported by INSTAT in agriculture and are also as much as 25% of farmers equipped with NIPT in Taxes.

Wages for cannabis workers are higher than in other branches of agriculture. An employee in the production sector is paid over 2 thousand ALL per day from about 1.5 thousand ALL that is paid per employee per day in the greenhouses of Lushnja and Divjaka.

While in the processing process, payments are higher and range from 3 to 5 thousand ALL per day, according to market data. Salaries for cannabis workers are on average about 55 thousand ALL per month.

Cannabis brings in up to 1 billion euros in revenue per year

Cannabis has become a more controlled business, reducing surface area and increasing production value by technology and cultivar improvement. Groups are maintaining income levels, cultivating very little.

In December last year, Guardia di Finanza General Giuseppe Arbore, in a public speech, said that from May 1 to October 31, 2021, 70 air surveillance missions were carried out, compared to 67 missions or flights performed in the year. “last year and 1119 plantations were identified and 92428 narcotic plants were destroyed”, said Mr. Arbore.

Mr. Hoxha claims that these dispositions do not include controlled cannabis greenhouses and farms, but occasional plantings outside the control of large groups. Most of the plantings have not been damaged by the police, as the plantings are carried out after the areas in the spring have been inspected by the Guardia di Finanza.

Gorilla cultivars are planted and ripened for 6-9 weeks according to the zones, in the time between checks, which are usually done in spring and autumn. In Albania, there are many farms that cultivate from 50 to 100 thousand roots, or even more. International financial institutions consider the informal economy at 30-40% of GDP, or 14 billion euros in 2021.

According to these reports, the share of the black economy is more than about 4 billion euros, where a third, over 1 billion euros, is estimated to be generated by the cannabis trade.

According to journalist Hoxha, cannabis revenues are distributed in the form of corruption from political circles, police, local government and also in the form of payments to transporters, processors, transporters and agronomists, etc. Cannabis provides a regular income for about 20 thousand families in our country. Plant cultivation has boosted trade that supports cannabis growth, from agricultural inputs to sophisticated laboratory units for oil production.Monitor.al

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