Why Legal Cannabis Growers in the Netherlands Fail to Meet Market Expectations

The cannabis experiment in the Netherlands, which aims to create a closed supply chain from production to sale, is facing serious obstacles.

In a letter to parliament, the Secretary of State for Youth, Prevention and Sport, Maarten Karremans, and the Minister of Justice and Security, Frank van Weel, announced that the experimental phase planned for September must be delayed. The reason is that unprepared growers are unable to meet the required production standards.

History and purpose of the cannabis experiment

The Netherlands has long been known for its liberal approach to cannabis. Legal coffee shops have become part of the culture, but the legalization of cultivation and controlled sale on a larger scale was intended to eliminate the black market and improve the quality of available products. The experiment was to introduce a system in which cannabis is produced, processed and sold only by licensed growers and sellers, ensuring full control over the quality and safety of the products.

The transitional phase, which began on June 17, was intended to prepare coffeeshops and growers for the upcoming experimental phase. During this period, products were to be supplied by designated growers to 75 participating coffeeshops in ten municipalities. Of these, 63 coffeeshops sold regulated cannabis and hashish. The aim of the transitional phase was to gradually move towards full legalization and regulation of the market.

Problems with implementing the assumptions

However, observations made in recent months have shown that growers do not yet meet the required standards. It is necessary to deliver at least 570 kg of hemp and 160 kg of hashish per week, and the warehouses should contain 6,800 kg of hemp and 2,000 kg of hashish. These goals have not been achieved, resulting in a delay in the start of the experimental phase, originally planned for September 16.

The reasons for these delays are complex. First, logistical and production problems encountered by fourth and fifth-generation growers make it unlikely that they will achieve the required volumes and variety of products in the short term. Growers are grappling with technical challenges, lack of experience, and difficulty in meeting stringent quality standards.

Reactions from market participants

Coffeeshop owners have expressed concerns about the current situation. While most are happy with the quality of the cannabis, the quality of the hash leaves much to be desired. The limited offering from the three growers also leads to a lack of product variety, which is a problem for both customers and coffeeshop owners. Customers expect a wide range of products, and the current shortages may discourage them from using legal sources.

Mayors of participating municipalities also express their concerns. They fear that the lack of sufficient quantity and variety of products could negatively impact the success of the experiment. Long delays could undermine confidence in the entire project and discourage other municipalities from participating in similar initiatives in the future.

Recovery plans and future actions

In response to these concerns, the Administration has decided to extend the transition phase to give growers more time to comply. A new experimental phase will begin no earlier than six weeks after the new start date is announced. In the meantime, production and availability of regulated products will be re-monitored, with results to be reported in mid-November.

In addition, it is mandatory for five growers to start production within nine months. Growers who fail to meet this requirement may lose their licenses. The introduction of this regulation is intended to speed up preparations and ensure that growers are able to meet market demands.

The cannabis experiment in the Netherlands is an important step towards regulating the market and eliminating the black market. Despite the current difficulties, the administration and market participants remain determined to see the project through to the end.

Solving the current problems is crucial for the success of the experiment and for meeting consumer expectations. In the coming months, all parties will work hard to improve the situation and ensure that the experiment is a success, benefiting both consumers and society as a whole.

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(Featured image by Ronni Kurtz via Unsplash)

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First published in Fakty Konopne. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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