THE politician in charge of diversifying the economy has backed calls for a ‘recommitment’ to Jersey’s burgeoning biopharmaceutical industry – which posted a profit for the first time last year.
Economic Development Minister Kirsten Morel called on fellow States Members to support the sector, which has expanded beyond medicinal cannabis to develop other products, conceding that early political enthusiasm may have waned because of the objections of some Islanders, particularly neighbours of Jersey’s biggest cannabis farm.
Earlier this week, the JEP reported that the industry had become profitable for the first time in 2025, making over £12m of sales and employing 70 people.
It prompted a former senior civil servant who now advises the industry to call for the government to “recommit” to it, as the sector moved away from ‘proof of concept’ to profitability and significant exports.
Dan Houseago said there had been little political support expressed since 2020/21, when rules were changed to allow a medical cannabis industry to grow in Jersey.
Asked for his reaction, Deputy Morel said: “I think Mr Houseago has put forward a really valid perspective.
“There was a commitment at the beginning which opened the doors to several medicinal cannabis companies, three of them being set up by Islanders. However, since then, I think, politically, some of my colleagues felt it became more difficult to champion the industry.
“One of the reasons was the issues that one company [Northern Leaf] had with their neighbours, which were perfectly valid but made politicians step away a bit.
“Also, the firms were not in profit so people were questioning whether it would ever bring anything of value to the Island. However, now we have seen the industry turn a profit last year; it is a good example of how economic incentives can take a long time to deliver, and that is something Jersey is quite bad at appreciating.
“This is because there is a natural tension between economic development and the media cycle, where people expect to see change on a day-to-day basis, but that is often unrealistic in business.”
Deputy Morel continued: “Ultimately, it has taken around eight years for the cannabis industry to make a profit. I know at the beginning, promises were made that it would take three or four years. Those were clearly a bit too ambitious, but eight years is still a good time to move to profitability.
“These are high value, low footprint sectors, which is what Jersey needs. We have six or seven medicinal technology businesses in Jersey now that we did not have six or seven years ago. It shows that we can diversify into different areas.
“Ultimately, the companies are there to be taxed at 20% so they will bring revenue to the exchequer going forward.”
