Danish cannabis producers are now able to export bulk shipments around the world after a new law came into force this month.
The Scandinavian country legalized medicinal cannabis last year and it permitted single dose exports, but that restricted its ability to compete with leading exporters like Canada and The Netherlands. But that has now all changed with an executive order that authorizes overseas sales of bulk parcels of cannabis flower, extracts, and derivatives.
It means Denmark is perfectly poised to become a major supplier to neighbouring Germany, which has a large and wealthy population and has legalized medicinal cannabis use but not cultivation.
Canadian firms have recognized the country’s potential as a key trading post in the global cannabis industry, and they have invested more than C$400 million to establish operations there, according to estimates from the Horticultural Association of Denmark. Aurora, Aphria, The Green Organic Dutchman, and Canopy Growth are among the large firms to invest.
International Cannabis Corp. (CSE: WRLD; FWB: 8K51; OTC: KNHBF) welcomed the change in law, declaring that Denmark is emerging as the preeminent European jurisdiction for medical cannabis cultivation.
“This recent executive order further reinforces the company’s opinion that it holds one of the few Danish medical Cannabis licenses and that these licenses have become premier European Cannabis assets, given the access allowed to the EU by Denmark’s recently revised export regulations,” said chief executive Eugene Beukman.
ICC expanded its cultivation plot in Denmark to 100 acres last month and began constructing one of the country’s largest medicinal cannabis production facilities near the city of Møeldrup. It praised Denmark’s motivated and stable government, ample supply of low-cost power, access to skilled agricultural and manufacturing labour forces, local plant breeding and genetics expertise, lack of production cap or quotas, well-funded healthcare system, established retail pharmacy network and, crucially, its proximity to larger import-based markets like Germany.
ICC’s rival Aphria has just completed a deal to buy CC Pharma, a leading distributor of pharmaceutical products, including medical cannabis, to more than 13,000 pharmacies in Germany. We should expect plenty more deals in the year ahead as big companies jostle for position in the lucrative European market, which is opening up all the time.