Netherlands: Exports of medical cannabis down for the first time in a decade

It's a small revolution. In 2019, the land of tulips and gouda sold over 4 tons of medical cannabis abroad. In 2020, that figure drops to 5 %, according to information from specialist firm Prohibition Partners, a first in ten years. And while the drop isn't spectacular, it does point to a change: the Netherlands is losing its position as Europe's leading supplier of medical cannabis.

Since 2003, the country has been showering Europe and the world with medical cannabis. With its armed wing Bedrocan - the only company authorized to sell this substance -, the Netherlands sell up to 2.5 tons to the Germans, and 700 kilos to the Italians. After growing by 59 % over the last five years, Bedrocan is expecting a difficult future.

Cheap international competition

The main reason for this decline : Bedrocan is increasingly suffering from international competition. With the legalization of medical cannabis in many parts of the world, other countries are now getting involved in production. Uruguay, Spain, Australia, Portugal and Israel also want a piece of the action. And these countries are very appealing to Germany, the main buyer of Dutch cannabis.

The German choices are therefore reducing Bedrocan's growth. Especially as these new cannabis growers are able to produce at lower cost. This is the case of Fotmer Life Sciences, a Uruguayan company that made a name for itself by producing «the largest international shipment of medical cannabis ever made».».

Another potential explanation is the «short-distance» trend. As in the case of food, countries are increasingly seeking to redirect their production to their national soil. Germany, for example, has set in motion a national crop that should eventually meet the needs of the entire country. And as early as May, a German company will offer a THC oil «made in Germany».