Australian medical cannabis company ECS Botanics Ltd (ASX:ECS) says it has seen big boosts to yields with its new Protective Crop Enclosures (PCEs).
The firm says a first harvest from PCE-grown cannabis has produced 656 kilograms wet weight of flower, representing a 50% increase compared to the previous highest harvest of 437 kilograms of the same strain. Additionally, an enhanced PCE design has contributed to a further improvement in flower quality.
“With year-round cultivation now possible, we’re well-positioned to introduce our new strains and meet the increasing demand for premium, organic medicinal cannabis both domestically and internationally,” said ECS Managing Director, Nan-Maree Schoerie.
By the end of this year ECS says it will have commissioned 5 of the 9 new PCEs it committed to, with balance expected to be up and running by the end of February 2025. This will take the number of PCEs to 26.
An electricity upgrade necessary to power six PCEs year-round has been required, with an additional upgrade to 2MW to support a total of 15 PCEs year-round in the works, which, if approved, will occur in FY26.
ECS Botanics was established in 2018 as an ASX-listed company with a Tasmanian-based food and wellness business. It acquired Victoria-based Murray Meds in March 2021, and in 2022 divested other interests to focus on medical cannabis at its Victorian operations. This year, it achieved organic certification from the National Association for Sustainable Agriculture Australia (NASAA).
The Victorian operation is licensed to produce 13 tonnes and is forecast to produce 9.2 tonnes in FY 24/25. With the help of its PCE’s, the firm intends matching its license quota in FY 26.
According to the firm, the Australian medical cannabis market is anticipated to reach A$696 million in 2024. With an annual growth of 20.4%, it’s expected to tip A$1.2 billion by 2028. But ECS’ target market isn’t just Australian and New Zealand – it’s also exporting to Europe, which represents a market estimated to be $8-10 billion. ECS’s exports are forecast to be 32% of sales during this financial year.
Looking further ahead to the 2027 – 2029 timeframe, ECS intends exporting to North America and Asia. The US market is projected to be worth US$39 billion in 2041.
