Village Farms Expands Cannabis Production in the Netherlands while its European Business Jumps by 75%

Canadian cannabis producer Village Farms International is continuing its expansion in the Netherlands, where its second cultivation facility, located in Groningen, is now fully planted and preparing to ramp up production.

At the same time, the company is expanding internationally, driven by a 75% increase in its overseas cannabis sales, and reaffirms the group’s ambitions in the European medical markets.

Village Farms Will Increase Its Cannabis Production in the Netherlands

Village Farms International, through its subsidiary Leli Holland, is preparing to increase its cannabis production for Dutch coffeeshops participating in the regulated supply chain pilot program.

On November 9, 2026, when it released its third-quarter results, the Canadian producer announced that its second cultivation site, located in Groningen, was now fully planted. This new facility is expected to begin generating revenue as early as the fourth quarter of 2026, followed by a gradual ramp-up throughout 2027.

This expansion follows Village Farms’ commitment to’Dutch experiment with regulated cannabis, which aims to put an end to the historical paradox of coffeeshops: although authorized to sell cannabis, these establishments previously had no legal channel through which to obtain their supplies.

Through its subsidiary Leli Holland, Village Farms is listed among the ten producers authorized to grow and to supply cannabis to the coffeeshops participating in the Dutch pilot program. This position gives it privileged access to one of the few European markets where the production and distribution of recreational cannabis take place within a legal and regulated framework.

To address the unique characteristics of this market, Leli Holland has developed a product line inspired by local consumption habits, ranging from cannabis flowers to hashish, as well as «spliffs» and pre-rolled joints.

Despite a 21% decline in its cannabis sales in the Netherlands during the third quarter of 2026, to $2.8 million, Village Farms continues to invest in the country. The company is counting on the ramp-up of its production capacity to reignite its revenue growth by the end of the year and, above all, in 2027.

Global cannabis sales surge by 75%

During the third quarter of 2026, Village Farms' international sales reached $20.8 million, compared with $11.9 million during the same period in 2025.

This a 75% increase year-over-year is mainly due to the increase in volumes of medical cannabis exported to Germany, despite a 9% decline in average selling prices due to a higher proportion of bulk flower shipments.

International exports accounted for 31% of the company's total quarterly revenue, compared with 18% a year earlier.

In total, Village Farms generated $66.9 million in revenue, including a record $55 million in net cannabis sales.

International markets continue to be an important outlet for Canadian producers, especially since recreational cannabis sales in Canada face persistent competitive pressure.

Additional production capacity to support European expansion

Beyond the Netherlands, Village Farms is expanding its Canadian cultivation infrastructure to meet demand in international medical cannabis markets. The’Delta 2 Greenhouse Extension in British Columbia is expected to be completed, as planned, in the first quarter of 2027.

The facility is expected to reach an annual production capacity of 40 metric tons by mid-2027, bringing the Delta site’s total production to approximately 160 metric tons of dried cannabis flowers per year. The company also plans to expand into other European countries, leveraging its cannabis production capabilities. EU-GMP certified.

With nearly $80 million in cash on hand at the end of September, Village Farms appears to have the financial resources needed to carry out these projects.