JERSEY’S medicinal cannabis industry turned a profit for the first time last year with over £12m of revenue, almost £50m of investment and 70 people working in the sector.
There is now a burgeoning ‘cluster’ of biopharmaceutical companies, including six businesses licensed to cultivate cannabis, and the sector should be supported, according to a new report by the government’s Economy Department which charts the Island’s progress on diversifying its economy.
However, a former senior civil servant who advises the now-profitable and exporting sector said that the government needed to ‘recommit’ to the industry – arguing that ministers had done very little since changing rules and passing initial legislation in 2020/21 that, quite literally, enabled it to grow.
Dan Houseago, who now advises the Jersey Biopharmaceutical Council, which represents the industry, said: “The government made some big and bold supportive moves back in 2021, when it signed a memorandum of understanding with the UK Home Office, which allowed us to licence businesses, and it changed the Proceeds of Crime Law, which meant that you could invest in the industry.
“However, it hasn’t done a great deal since then so now is the time for the government to recommit to the industry. It doesn’t have to put money in but having its backing is incredibly important to the sector.
“What it needs to do is make sure that the regulations are right, to make sure it has the capacity to act quickly, and it is an enabler rather than a disabler.”
Mr Houseago continued: “The Fiscal Policy Panel [which provides independent advice to the Treasury Minister], has said that Jersey needs to grow its economy on the supply side, and what else is out there?
“The industry has moved beyond proof of concept and although it is still early days, reaching profitability is an important milestone. We now have a sizeable export business which supplies the majority of Britain medicinal cannabis exports, especially to Germany. That is up and running, and works well.
“Each of the six licensees support up to 50 local businesses.”
He added: “But this industry is not just about medicinal cannabis; we also have businesses working in the emerging sector of psilocybin- and ketamine-assisted therapy. Another strand is developing general medication that is coming off its patent.”
Psilocybin is the psychoactive ingredient in magic mushrooms while ketamine is best known for its anesthetizing properties, but both have found to effectively treat a range of mental health conditions.
Mr Houseago said that the Jersey Biopharmaceutical Council would soon publish its own strategy for growth which he hoped the government would support.
This week’s update to the Economy Department’s 2023-launched ‘Future Economy Programme’ closely follows the government’s ‘Time to Win’ strategy, which puts the finance industry at the front and centre of Jersey’s economic growth.
Although Time to Win conceded that efforts to diversify the economy had not borne enough fruit – hence its call for a concerted and unified effort to make sure financial services remained competitive – this week’s update pivots the government back to investing time, effort and money in more sectors.
It states: “The financial services sector remains the largest single contributor to Gross Value Added [the value of goods and services in an economy], and the recent competitiveness review seeks to enhance this, benefiting the whole Island.
“Other sectors contribute to the economy in ways that go beyond GVA through making Jersey an attractive place to live, work, and providing our quality of life. At the same time, the importance of all sectors contributing to the resilience of the whole Island’s economy and supporting our living standards cannot be taken for granted.”
The Future Economy Programme update says that 82 of its original 90 actions are now in progress or have been completed.
Not all of its flagship projects are showing such green shoots as the cannabis industry.
Early enthusiasm and energy for an offshore windfarm, for instance, appears to have waned and although found to be technically feasible, the project now hinges on talks with the UK and France to assess if anyone would buy Jersey’s surplus power.
However, the Economy Department points to other evidence of progress: introducing a £20m Better Business Support Package, which has supported 183 businesses with grants; Jersey reaching the milestone of 5,000 single-person private-sector businesses in June 2025; and updates to the licencing, planning, and trademarks laws.
Other positives it highlights include: the agricultural sector growing 6% last year, thanks in part to the Rural Support Scheme; Jersey Business helping around 400 startups; and progress with the government’s retail and visitor economy strategies.
The report states: “If we do nothing living standards will fall, or future governments may be forced to make difficult decisions such as raising taxes, significantly increasing population through migration, or reducing public services.
“In other words, without action now, the choices available to future governments will narrow. The Future Economy Programme is designed to expand those options and reduce the need for such measures.”
Underpinning the programme is several demographic challenges to the current system of funding services. In 25 years’ time, Jersey’s population of over-65s will have grown by 45% while the number of those of working age will have decreased by 8%. Meanwhile fertility rates are falling to their lowest levels since records began.
