Estimated Cost of Production for Medical Cannabis (Cannabis sativa L.) in Greece

Chariklia CHATZIGIANNI, Ioannis ROUSSIS, Christos T. PAPADAS, Stella KARIDOGIANNI, Varvara KOUNELI, Ioanna KAKABOUKI, Antigolena FOLINA, Panayiota PAPASTYLIANOU, Dimitrios BILALIS

Abstract


In recent years, cannabis has raised public awareness in many countries worldwide about its medical uses. The European cannabis market reached its peak during 2018 with investments of 500 million €. Greece introduced Law 4523/2018, which regulates the production and processing of medical cannabis. A start-up business plan was drawn up for a medical cannabis operation owned a 1 ha greenhouse to estimate the start-up costs and the costs of cultivating and processing medical cannabis under greenhouse conditions in Greece. The results of the present study revealed that the investment was estimated at 4,960,044 €. Net profit in the first year amounted to 3,584,621.70 €, while the annual net profits from the second to the tenth year amounted to approximately 7.07 billion. The Net Present Value with a value of 45,425,241.24 € is positive and the internal rate of return (IRR) is 94.14%, which means that the investment can be characterized as profitable.

Keywords


business plan; economic analysis; greenhouse cultivation; medical-cannabis facility; profitability.

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DOI: http://dx.doi.org/10.15835/buasvmcn-hort:2019.0017




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