"A lot of the cannabis producers in Thailand grow indoors. Our approach is different. We're in the tropics, where the sun's intensity is high. We believe that it is a shame not to make use of that," says Thomas Ruiter, Co-Founder of Canngrow. Thomas and his business partner, Menno Keppel, were already active in Thailand with their company Agri Solutions Asia, a technology supplier for the greenhouse industry in South East Asia. "For years, we've been building greenhouse projects here. When medical cannabis was introduced in Thailand, we saw a great new opportunity in the market. We wanted to set up a greenhouse to demonstrate the systems that we can offer cannabis growers. Cannabis is a new crop in the country, so there is not yet a lot of technical cultivation knowledge. With all the challenges growers already face here (humidity, temperatures, seasons with too little light), we want to extend our knowledge and help them improve their production."
Greenhouse vs. indoors
While the company was in the process of getting its medical license and building its greenhouse, the recreational market opened up. Next to the CBD strains they were already producing, Canngrow decided to start producing THC varieties as well. "We're currently growing 9 different strains. Yet trying to sell our products is challenging at the moment, the market is quite saturated."
However, by growing in a greenhouse, the company differentiates itself from the competition. "A lot of the Thai production is grown indoors. Yet that involves relatively high operating costs. For example, you need to cool the facility and constantly use artificial lighting," says Thomas. "With our greenhouse, we use the sunshine that is freely available. If that's not enough, then we supplement with lights. As a result, we can supply a good quality product for a nice price."
Greenhouse production in a tropical, humid climate doesn't come without challenges. "We don't fully control the climate in our greenhouse, as we want to keep our production accessible to Thai farmers who don't have the ability to invest in advanced techniques. We want to show them that it's possible to grow cannabis in a greenhouse, adapting to the weather by using blackout screens, lights, and biological control."
So far, they've already noticed an interest in the products and systems they offer. "A year ago, the cannabis prices were so high that pretty much any producer could be profitable. Now, the prices are starting to recover to a more normal level. As a result, many Thai growers are not surviving the price declines. The growers that survive are the ones who know how to produce efficiently. So there is definitely a necessity in the market for good cultivation systems for irrigation, climate control, etc.," Thomas says.
Overall, the company believes greenhouses are the future of the Thai cannabis market. "In the long term, we expect many growers to make the same choice we did. It's necessary to keep your cost of production low, which becomes a challenge in an indoor facility. We aim to show other growers that it's possible: growing high-quality cannabis for a good price."
The Thai market
When it comes to the market in Thailand, it is still not well regulated. "We would highly encourage the regulations to become stricter and to control the regulations that are there. Unfortunately, that's not being done at the moment. Many products don't comply with the standard, but it doesn't get monitored. For example, there's no track and tracing, and nothing needs to be tested by a lab. So the THC percentages you see in the dispensaries should be taken with a grain of salt," Thomas says.
Canngrow tries to partner with serious vendors who value high-quality products. "At the moment, it's a survival of the fittest. When the regulations get stricter, many companies won't survive. That's, of course, sad on an individual level, but it would be much better for the industry as a whole."
For more information:
Agri Solutions Asia
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