Photos courtesy of Kumara Farms
Kumara Farms is on a mission to help people rediscover the health, wellness and medicinal benefits of herbal remedies that ancient civilizations have used for centuries.
Whether it’s cannabis, marigold or the psychedelic Ayahuasca herbal beer Banisteriopsis caapi and Psychotria viridis, Kumara Farms is committed to making sure it gives back to the communities it serves.
Kumara Farms is an innovative social impact company that offers botanicals traditionally used by ancient civilizations in the health, wellness and medicine markets. Social impact companies prioritize work that consciously, systemically and sustainably responds to the needs of a local or global community.
“Our decisions are not simply based on the financial performance of our company,” said Andres Vazquez, president of Cann Farm, the Peruvian subsidiary of Kumara. “During our decision-making process, we look at whether we are helping a specific social issue, and that is also added value for our investors.”
One of the areas where Kumara has had a social impact is in its partnerships with patient associations, who have lobbied the government to legalize medical cannabis but are still not allowed to grow the plants. Kumara proposed that Cann Farm reserve a space on his farm where these organizations can grow their own cannabis plants.
“We’re going to charge them minimum basic costs on the water they use and that sort of thing, but I’m not going to charge them like it’s a business relationship,” Vazquez explained.
Kumara’s other social impact activities include educating people – including competitors – about the cannabis plant and business opportunities through seminars and training courses and ensuring that indigenous peoples who have recognized the benefits of the plant for centuries are not excluded from the industry.
“We are creating new business models so that the indigenous community is not left behind,” said Vazquez.
Cann Farm holds the first and only license to cultivate and manufacture cannabis in the country. It also has a license to import and distribute cannabis and is a registered importer of cannabis seeds.
While it may have the earliest cultivation and manufacturing licenses, Cann Farm isn’t the only company that wants to run a cannabis business in Peru. Toronto based Tilray (NASDAQ: TLRY), which sells its products in Argentina and Chile, also wants to set up in Peru.
The company, which began selling its products in 2020 and will generate sales of $ 100,000 in 2021, expects continued growth and expansion. It predicts that its revenue will reach $ 1.1 million in 2022 and $ 6.3 million in 2023.
So far, Kumara Farms has secured over $ 8 million in funding which it has used to purchase its nearly 150-acre farm and build its pharmaceutical manufacturing plant, as well as its working capital. He’s in the process of raising a $ 1 million Series B round to use to kickstart his grow operations and expand his team.
The company distributes its products through a national network of more than 40 retail outlets, mainly through drugstore chains. It has also entered into additional exclusive trade agreements with smaller independent retailers.
Kumara Farms has also established a strategic collaboration with Canna Hope, Peru’s most successful cannabis clinic with more than 2,000 patients and 200 consultations per month.
Kumara is no stranger to growing plants for medicinal purposes. The company, which has established advanced seed genetics and agronomy, has over 15 years of experience growing and processing organic marigold flower extracts for the medical industry. Marigold extract is used to treat macular degeneration.
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