Minister-President of Kelvon Sölmundur Vilbertsson and State Minister for Agriculture and Food Production Kristmundur Henrýsson
are currently on a visit to Kalistan to secure an agreement with either the Kalistani Government or the Organisation of Drug
Exporting Nations (ODEN) on the importation of industrial hemp and medicinal cannabis after a dramatic shortage in hemp and
cannabis. Amidst increasing demand for biofuel as Kelvon's economy continues to deal with the loss of its principle revenue
earner, Asvald, the demand for biofuel, which currently captures a large percentage of the state's new revenue streams is
increasing. As Kazulia does not maintain large, mature cannabis farms, the Kelvon Fuel Trading Company, the state-owned fuel
supplier has been forced to look outside. Recognising that most states in the Dovanian region do not maintain liberalised
cannabis regulations and only allow for its use within the perimeters of medical treatment and research, the Kelvon Fuel Trading
Company has to look outside for potential sources. On the biofuel front; Kelvon is the only state to be run almost entirely by
renewable energy resources. According to statistical data from the State Ministry for Energy and the Environment found that
around 55% of cars on Kelvon's roads are run by Direct-ethanol fuel cells with around 32% being powered by biodiesel coming from
industrial hemp. Recognising that the biodiesel from industrial hemp is recognised by the Federal Department of Energy and Energy
Affairs, its price is subsidised alongside the federal fuel subsidy, making it more affordable for drivers to swift to biofuels
as an alternative fuel source. The eagerness to produce biofuels from cannabis and ethanol comes amidst there appears to be a
growing market for the commodities as many states moving towards renewable energy seek to discover/utilise alternative fuel
sources, separate from the traditional oil and natural gas sources. According to the Federal Department of Energy and Energy
Affairs, there is an eagerness to remove the federal fuel subsidy recognising the Prime Minister's drive to form a solid
environmental protection policy.
Minister-President Vilbertsson stated that the subsidy on biofuels is more favourable than that on regular fuels such as diesel
and petrol. The Kelvon Fuel Trading Company supplies biofuels to gas stations across Kelvon and Kazulia and exports surplus gas
onto the international market. Minister-President Vilbertsson stated that although the state had considered introducing
provisions for a strategic stockpile, permission to stockpile large amounts of cannabis would have to come from the Federal
Government who has not come to conclusion on that policy. Vilbertsson noted that with demand increasing as biofuel plants have
been asked by the State Government to increase production, the supply is rapidly diminishing as the industrial hemp plants cannot
keep up with the demand. He stated that if the demand is not fed, the State Government would have to divest Kelvon Fuel Trading
Company from industrial hemp and restructure its revenue streams to come exclusively from ethanol. Months prior, the
Minister-President spearheaded the introduction of anti-trust laws in the agricultural sector which saw many mega-farms being
broken up, thus allowing for smaller farmers to compete and survive. When asked whether he regretted the decision to break-up the
large agribusinesses in Kelvon, Minister-President Vilbertsson stated that the decision to break up the agribusiness oligopoly
that existed in Kelvon was important to bring relief to the small farmers who were being driven out of their livelihoods by the
larger corporations. CEO of Mara-Andrason, one of the largest agribusiness corporations in Kazulia, Henning Langager stated that
the company could help cover the shortfall but noted that it could only do so if Kelvon's Government removes its crippling
regulations on the agricultural sector. Langager stated that the company could easily establish another mega-farm in Kelvon and
import seeds from another nation, but noted that such a move could only happen when the State Government repeals the Agricultural
Development, Fair Competition and Investment Act. State Minister for Agriculture and Food Production Kristmundur Henrýsson stated
that the State Government will review the law in the coming months but noted that companies should not hold their breaths.
Minister-President Vilbertsson stated that he intends on establishing a trade mission in Kalistan to attract agricultural
investment into Kelvon and to allow for Kelvonese businesses to export their agricultural products to the Kalistani markets.
Under the reformed constitution, Kazulian States reserve the right to determine their own foreign policy once it does not
contradict that of the Federal Government. Meaning, if the Federal Government bars trade from Likatonia (for example), Kelvon
cannot engage in a separate trade agreement with Likatonia, nor can Kelvon draw foreign investment from Likatonia. Vilbertsson
stated that Kelvon's use of technology in agriculture could be extremely beneficial to the Kalistani economy. He highlighted that
the University of Kelvon had intentions to establish an exchange programme with the Kalistani Government and the Lourennais
Government to ensure students from the aforementioned nations have access to quality agricultural education and to also ensure
that Kazulian students to access similar forms of education in other nations through cooperation. The Minister-President stated
that he had his eyes set on Indrala as a potential local for another University of Kelvon foreign campus, but noted that the
industrial hemp shortfall would take prior for now. He stated that he hopes to conclude a favourable agreement with the Kalistani
Government, ODEN or an industrial hemp company in Kalistan to ensure the demand can be met. He concluded by stating that once he
returns to Kazulia, he intends on establishing the Strategic Cannabis/Hemp Reserve (SCHR).