Economic and Technical Analysis of an Integrated Medical Cannabis Cultivation and Processing Unit

Abstract: This paper aims to examine the economic viability of an integrated unit dedicated to the cultivation and processing of medical cannabis. Initially, we explore the economy of the medical cannabis industry, while focusing on the demand of the global market and the opportunities it presents. A description of the cultivation of medical cannabis is provided along with the differences and benefits of greenhouse versus outdoor cultivation, followed by an analysis of the determining factors that led to choosing the greenhouse as the optimal solution. The case study of this paper is a greenhouse complex of 120.000 square meters for cultivating and processing of medical cannabis in the prefecture of Xanthi, Greece using geothermal energy to meet its energy demands. Cultivation and processing needs for the aforementioned investment are thoroughly calculated, thus specifying the types of machinery and equipment required to meet those needs. We develop an econometric analysis of the investment, accompanied by an estimation of the profit and loss results both annually and over time, leading to a detailed examination of the company’s finances over a 20-year span.

Key words: medical cannabis; economic and technical analysis; cannabis cultivation; cannabis processing; greenhouse cultivation

         JEL codes: M1, M2, Q1