Netherlands lawmakers have begun limiting the number of German wholesalers who are allowed to import cannabis from Dutch cultivators.
Reports suggest that the Dutch Government is considering temporarily limiting the amount of medicinal cannabis it exports to German wholesalers.
According to the AMP German Cannabis Group—which is based in Berlin—the Dutch Office of Medicinal Cannabis (OMC) has, "postponed selling EU-GMP medical cannabis to additional importers, including AMP, until further notice."
While this may sound like relatively minor news, it could end having a considerable impact on the German cannabis market, as almost 40% of the cannabis flower imported to Germany in 2019 came from the Netherlands, with the remainder being sourced from Canada and Germany.
It is our understanding that German and Dutch government authorities are currently negotiating new export quotas for medical cannabis. AMP will be able to procure supply from the Netherlands once the OMC increases its production supply for export and supply restrictions are lifted. AMP German Cannabis Group Director and President, Dr. Stefan Feuerstein
The company also confirmed that it had already placed an initial order to import, "two Bedrocan International-branded products from OMC, which subsequently confirmed receipt of AMP's order." Although, AMP's press release did not specifically confirm whether this order was actually shipped.
"Independent from that, we are in very advanced negotiations with several foreign cannabis producers who already have an EU-GMP certification and are expecting to sign at least one definitive supply agreement within the next month," AMP Director and President Dr. Stefan Feuerstein said.
"Our potential suppliers generally operate cultivation facilities with an annual production capacity between 5,000 and 10,000 kg."
However, other German wholesalers have reported receiving up to five kilograms of cannabis from the OMC in June, which is the amount ordered the previous month.
This implies that the Dutch Office of Medicinal Cannabis may no longer be accepting new applications for wholesale importers, as the OMC currently ships approximately 200kg of the plant to Germany each month as part of a 2,500 kg per year supply agreement.
The static amount of cannabis combined with the increasing number of wholesalers means that German importers have been receiving less marijuana each month. In April, German wholesalers were receiving 6.5 kg of cannabis from the Netherlands each month, although by May this number had fallen to 5 kg.
As the 5kg limit has remained in place for the duration of June, it seems to imply that the OMC has elected to temporarily cap the number of German importers at approximately 40.
AMP subsequently stated that they have entered into negotiations with several federally licensed Canadian cannabis producers to make up this shortfall, with shipments expected to begin later this year.
"[The] first large imports of AMP's medical cannabis brand are expected to be coming from Canada during the fall of 2020 from licensed producers that were EU-GMP certified prior to COVID-19 pandemic," the company stated.
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