New Cannabis Legislation Abolishes Public Cannabis Tenders Germany

New legislation in Germany has phased out public cannabis tenders. Learn how this impacts cannabis businesses!

Searching for opportunities in the emerging cannabis industry? Public cannabis tenders Germany might be the right place to start! In this blog post, we delve into the intricacies and opportunities presented by public cannabis tenders Germany. Whether you are a budding entrepreneur or a seasoned investor, understanding the landscape of public cannabis tenders in Germany could open up a whole new world of investing opportunities, so read on to learn more!

The Legalization Of Medicinal Cannabis Use

In Germany, the legalization of cannabis for medical use in 2017 paved the way for the cultivation, sale, and importation of medical cannabis. This is strictly regulated by the German Narcotics Act, requiring authorization for all business activities related to cannabis. When importing medicinal cannabis from outside the EU, an import authorization pursuant to the German Medicinal Product Act is necessary. The cultivation of cannabis is managed through a tender process.

Patient Access to Medical Cannabis in Germany

In Germany, patients can access medical cannabis in the form of dried blossoms or extracts only through a prescription for serious illnesses. This access is granted under certain conditions, such as the absence of a generally accepted standard therapy or when there is a reasonable possibility that medical cannabis will be beneficial to the disease process or symptoms. If these requirements are met, health insurers are obligated to cover the costs of cannabis therapy.

Potential Legal Risks of Non-Compliance

Violating the German Narcotics Act by engaging in illegal activities related to cannabis, such as cultivation, importation, possession, or promotion, can have severe consequences. There is a risk of facing criminal charges and severe penalties for individuals or entities found in violation of the law. Compliance with the regulations surrounding medical cannabis in Germany is crucial to avoid legal repercussions and ensure the safe and lawful provision of medical cannabis to patients in need.

What Were The Requirements For Growing And Manufacturing Medical Cannabis?

With the “legalization” of medical cannabis, the Cannabis Agency (Cannabisagentur) was founded at the BfArM. This agency is responsible for the controlled cultivation, harvesting, processing, quality testing, storage, packaging and dispensing to pharmacies of medicinal cannabis flowers in Germany.

Procurement and Storage Procedures for Cannabis Cultivation

Cultivation, harvesting and storage of the cannabis were carried out by companies selected in a procurement procedure. Alternatively, storage could also be carried out by a logistics service provider authorized by the BfArM.

Selection Process and Companies for Medicinal Cannabis Cultivation

The initial selection of cultivation companies was made in accordance with Section 19 (2a) BtMG in a europewide procurement procedure, which ended in April and May 2019 with the award of the contract to three companies. The awarded companies are the Canadian companies Aphria and Aurora and the German cannabis producer Demecan GmbH.

Quality Assurance Standards for Medicinal Cannabis Cultivation

To ensure the quality of cultivated medicinal cannabis, there are specifications according to the “Good Agricultural and Collection Practice (GACP)”. Good Manufacturing Practice (GMP)” and the “Monografie `Cannabisblüten´ (Cannabis Flower Monograph)”.

The selected companies were allowed to grow, harvest and process a combined 2,600kg annually over a four-year period. The total annual quantity was distributed among the producers as follows:

• Aphria (1,000 kg p.a.)
• Aurora (1,000 kg p.a.)
• Demecan GmbH (600 kg p.a.)

The first harvest took place in 2021, one year later than planned. In addition, only 50 kg could be harvested.

It was therefore not possible to cover the demand for medical cannabis exclusively from German cultivation. The exceeding demand is covered by imports, mainly from the Netherlands and Canada. In 2021, around 21,000 kg of medical cannabis were imported to Germany from abroad.

Uncomplicate Your Cannabis Production with GrowerIQ

Cannabis growers face challenges in managing reporting, documentation, and compliance requirements due to the complexity of regulatory frameworks, evolving legal standards, and the need for accurate record-keeping in a highly regulated industry. 

At GrowerIQ, our software aims to provide cannabis growers:

• A comprehensive solution for managing their cultivation operations
• Ensuring compliance
• Optimizing quality
• Enhancing efficiency throughout the seed-to-sale process
• Overall uncomplicating the production process. 

We do this with our software which offers a range of functionalities to assist cannabis growers, including: 

• Seed-to-Sale Tracking
• Quality Management
• Cultivation Planning

GrowerIQ provides cannabis growers with a comprehensive solution for managing their cultivation operations, ensuring compliance, optimizing quality, and enhancing efficiency throughout the seed-to-sale process.

The New Cannabis Legislation Abolishes Public Cannabis Tenders Germany

I am excited about the new cannabis legislation in Germany, which has recently introduced a landmark law that legalizes public cannabis consumption. This legislation, after significant public debate and parliamentary deliberations, permits adults to legally smoke weed in public. Under this new law, adults can possess up to 25 grams of cannabis for personal use in public, grow three cannabis plants in their homes, and possess up to 50 grams of cannabis for personal use at home.

Transition from Tender Process to Licensing for Medical Cannabis Cultivation

In terms of medical cannabis, the legislation is also making significant strides. The new policies are eliminating the tender process for cultivating medical cannabis in favor of a licensing scheme. This change is expected to increase the supply of medical cannabis in the country and make it easier for companies to operate and expand. This shift from tenders to licensing could potentially increase medical cannabis production by approximately five times and more than double its revenue opportunity. 

The removal of medical marijuana from Germany’s narcotics list is expected to simplify the prescription process and increase patient access by reducing legal and bureaucratic barriers for doctors and patients. Currently, the market serves only a small portion of the population, but analysts predict that if just 1% of the German population were to use medical cannabis, the market could grow significantly by 2025.

These changes in Germany’s cannabis legislation are expected to benefit major exporters to the German market, such as Canadian companies like Aurora Cannabis and Tilray Brands. The new policies are likely to have a positive impact on the industry, boosting the supply of medical cannabis and making it easier for companies to operate and expand in this growing market.

What Does This Mean For The Medical Cannabis Market?

The Germany Medical Marijuana Market is experiencing a significant increase in cannabis imports, which were up 20% in 2022 to 25 tons and are expected to rise again in 2023. Despite this growth, the market remains constrained by strict narcotics laws and regulatory challenges, limiting patient access and keeping the cash market small.

Supply Chain of Imported Medical Cannabis

The majority of the country’s MMJ imports come from Canada, accounting for 47% of all imports from January to September 2023. A meaningful portion of these imports are either re-exported or destroyed due to quality issues, further complicating the market’s supply chain.

Growth and Limitations of the Reimbursed Medical Cannabis Market in Germany

The reimbursed market, where patients’ cannabis prescriptions are covered by insurance, has seen a slight increase, with sales expected to reach €208 million in 2023, up from €198 million in 2022. Still, prescriptions are typically issued only as a last resort and for chronic conditions, limiting the market’s size.

Potential Impact of Legislative Changes on Medical Cannabis Access in Germany

Zuanic suggests that changes in Germany’s narcotics law could turn the tide. Currently, patients can obtain prescriptions through telehealth services after an initial in-person doctor’s visit, but the overall patient count remains low.

Projections for the market’s size vary; however, if 1-2% of the population joins the cash market, some analysts predict a market worth between €1.5 billion and €3 billion.

Uncomplicate Your Cannabis Production Today!

GrowerIQ is a software that aims to provide cannabis growers with a comprehensive solution for managing their cultivation operations, ensuring compliance, optimizing quality, enhancing efficiency throughout the seed-to-sale process. At GrowerIQ, we understand the challenges that cannabis growers face when it comes to managing reporting, documentation, and compliance requirements in the highly regulated cannabis industry.

Seed-to-Sale Tracking

Our software offers seed-to-sale tracking functionalities that enable cannabis growers to track their products at every stage of the cultivation process. This feature ensures that growers can maintain compliance with regulatory standards and have a clear understanding of the entire lifecycle of their plants. Through our seed-to-sale tracking capabilities, cannabis growers can streamline their operations and increase transparency in their production processes.

Quality Management

Quality management is a critical aspect of cannabis cultivation. GrowerIQ provides cannabis growers with tools to monitor and maintain the quality of their products throughout the production process. By implementing quality management practices, growers can ensure that their products meet high standards and provide consistent results to their customers. With GrowerIQ’s quality management functionalities, cannabis growers can build a reputable brand in the industry and increase customer loyalty.

Cultivation Planning

Effective cultivation planning is essential for the success of cannabis growers. GrowerIQ offers cultivation planning tools that help growers optimize their production schedules, allocate resources efficiently, and maximize their yields. By using our cultivation planning functionalities, cannabis growers can reduce waste, increase productivity, and enhance overall efficiency in their cultivation operations. Cultivation planning is a key component of successful cannabis production, and GrowerIQ is dedicated to providing growers with the tools they need to succeed.

Discover how GrowerIQ’s seed-to-sale software can help you set up all of the administrative components of a successful cannabis cultivation operation, without any hassle. Questions we haven’t covered? Please reach out and let us know. GrowerIQ serves clients coast to coast, and we’re ready to help your team today.