Given the success of medical cannabis, the Dutch government wants to authorize a second producer

The rapid increase in demand for medical cannabis in the Netherlands and, more broadly, across Europe has led the Dutch government to make a second medical cannabis production license available. It will issue a Europe-wide call for bids in the coming days.

An ever-increasing demand to meet

The first production license was granted 16 years ago, in 2003, to Bedrocan International, a Dutch company based in Emmeloord in the northern part of the country. Bedrocan produces five types of cannabis flowers with different CBD-to-THC ratios. Its products can be found throughout Europe in countries that have legalized medical cannabis.

Faced with a surge in domestic and international demand, the company’s production capacity is beginning to be stretched. Yet it has increased its production capacity fivefold over the past five years. It seems that this is no longer enough. After 16 years of monopoly, Bedrocan will have to contend with a rival with whom it must share its sole client: the Dutch government.

A Lucrative License

The Medical Cannabis Board (BCM), a Dutch government agency, is responsible for issuing licenses for the cultivation and production of medical cannabis. The Office also oversees the establishment of cultivation sites and handles the distribution of the crop. In fact, the agency purchases all of the medical cannabis produced and then delivers it to hospitals and pharmacies. According to a report from Prohibition Partners, the domestic market was worth 5 million euros in 2018.

About half of the stock is destined for export. The Netherlands, a pioneer in medical cannabis, exports in several European markets including Germany, Italy, Poland, Denmark, Finland, Austria, Macedonia, Norway, Switzerland, Sweden, the Czech Republic, Sweden, the United Kingdom, and Malta. As a result, the license at stake is particularly lucrative. The BCM is set to launch its call for bids very soon; it has announced that it will do so «in early June.».