Australia ranked as the top destination for Canadian medicinal cannabis exports last year, according to new data from Health Canada shared with MJBizDaily.
Between April 2022 and March 2023, Canada shipped 59,986 kilograms of flower to international markets, with Australia receiving 26,424kg — equal to 44% of the total.
Israel was the second-largest destination for Canadian flower at 35%, with Germany accounting for 16%.
Australia also topped the list for cannabis extract imports from Canada, taking in 8,392 litres — 93% of the 9,042 litres exported globally.
Aurora Cannabis CEO Miguel Martin told MJBizDaily that the stronger margins available in medicinal cannabis exports made the sector a more appealing long-term prospect than Canada's domestic recreational market.
"It's a big opportunity," he said. "The margins are about 2.5 times what they are in Canadian rec, and not declining."
Martin said regulatory predictability was also a key factor when evaluating which export markets to pursue.
"One of the things for us is we want to be in markets where the regulatory framework is predictable — even if it's slow," he said.
Canada-based industry consultant Deepak Anand said that although Australia is granting licences to more local cultivators, approvals are moving too slowly to satisfy domestic demand, leaving imports necessary to cover the shortfall.
He cautioned, however, that changes to TGO93 taking effect on July 1 could create headwinds for Canadian exporters.
"I think that will result in a little bit of a limiting of how much product actually is going to continue to go into Australia," he said.
