Dutch medical cannabis shipments to Germany have partially been restored after a short delay, and some German wholesalers started receiving flower deliveries in recent days, Marijuana Business Daily has learned.
MJBizDaily confirmed that at least three German wholesalers – clients of the Dutch Office of Medicinal Cannabis (OMC) – received their June order at the end of last week or so far this week.
Because of the large dependency on Dutch flower, there was a looming possibility of supply interruption, but so far, MJBizDaily hasn’t seen any meaningful shortages among the pharmacies we regularly survey.
In an email to MJBizDaily, the OMC noted that the June orders are now being shipped in phases.
All of Germany’s flower supply for pharmacy dispensing is grown for now in Canada, the Netherlands and Portugal.
Despite the lack of supply diversification, the supply chain and stock levels are more robust than in previous years.
“Although we were aware of market concern about the delay, we never feared there would be a significant impact,” Nick Pateras, managing director of Europe for London-based Materia Ventures – which owns a German wholesaler – told MJBizDaily.
“In fact, we have already received our shipment and have experienced no disruption in our sales to pharmacies.”
Clifford Starke, CEO of Franchise Cannabis, a Toronto-based, European-focused marijuana company that owns two German wholesalers, confirmed to MJBizDaily that Phatebo, one of the Franchise Cannabis German subsidiaries, received its June order last week. The order consisted exclusively of the Bedrocan cultivar flower.
Franchise’s other German wholesaler, ACA Müller GmbH, is still waiting for its June shipment, which is expected next week, Starke said.
Many other German clients of the Dutch government are still awaiting their June shipment.
June shipments might overlap with July orders for some wholesalers – or come close to it.
For July, the OMC emailed its German clients, offering each up to 3 kilograms (6.6 pounds) of flower, Marijuana Business Daily has learned.
That’s less than the June or May orders, which were up to 5 kilograms, and a challenge for German wholesalers that depend exclusively on Dutch supply.
The reduction indicates either that the OMC is taking new clients – which would mean the number of German wholesalers distributing Dutch product surpassed 65 – or that the agency does not have enough stock for the roughly 40 existing clients and is reducing the amount available.
“Germany today is struggling with EU-Good Manufacturing Practice flower supply issues, but that should be sorted in coming quarters as facilities in countries like Portugal come online,” Starke told MJBizDaily.
“It will be increasingly hard for Canadian facilities to be competitive supplying the European market,” he said.
Alfredo Pascual can be reached at email@example.com