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Новости/Аналитика

In connection with the suspension of European programs, Denmark approved the "massive export" of medical cannabis

07.01.2019

Danish law on the export of medical cannabis, approved in mid-2018, made possible the one-time export of medical cannabis for individual patients, but the new executive order effectively expands its capabilities and provides for the expediency of wholesale supplies of therapeutic cannabis in any form and quantity, subject to the necessary permits.
 
On January 1, 2018, a decree was introduced on the possibility of carrying out a mass export of legal psychoactive cannabis from Denmark. It is this regulatory act that has put Danish companies producing therapeutic hemp in a privileged position in the face of competition in the European Union market. In the field of regulatory support, Denmark is the leader among European countries whose enterprises are fighting for the market, which, according to estimates by British analytical company Progressive Partners, has already become an industry with a multi-billion dollar turnover.
 
In Denmark, within just one year, medical cannabis was introduced into the legal field, comprehensive rules were developed and implemented, and legal export of therapeutic cannabis was permitted. Other countries took much more time to perform at least one of the following actions:
 
 • Germany tried but failed to “launch” the program of legal cultivation of therapeutic cannabis at home;
 
• despite the huge modern history of using medical cannabis in Israel, the country only at the end of 2018 adopted a law allowing the export of psychoactive cannabis (it will take some time to adopt bylaws and create the conditions under which the adopted legal acts will be able to earn);
 
• In Italy at the moment there is a state monopoly on the legal cultivation of psychoactive cannabis, and this is a matter of one of the structural units of the Ministry of Defense of the country.
 
Danish law on the export of medical cannabis, approved in mid-2018, made possible the one-time export of medical cannabis for individual patients, but the new executive order effectively expands its capabilities and provides for the expediency of wholesale supplies of therapeutic cannabis in any form and quantity, subject to the necessary permits.
 
The legal psychoactive cannabis industry in Denmark has so far attracted more than $ 306 million in foreign direct investment in the rapidly developing sector of the country's hemp economy (information from the Horticultural Association and Investments in Denmark). Leaders in the Canadian legal market for psychoactive cannabis such as Aphria, Aurora Cannabis, The Green Organic Dutchman and Canopy Growth have already deployed their production facilities in Denmark. Hemp market players from other countries are also eager to work in Denmark, for example, Canadian ICC International Cannabis is teaming up with the Israeli company Sababa Sciences to build a fully automated greenhouse of about 4.4 hectares.
 
Thanks to the establishment of mutually beneficial cooperation with Danish companies, Canadian cannabis corporations specializing in the legal production of psychoactive cannabis create a greenhouse fund in Denmark on an area of ​​more than 18.5 hectares in order to satisfy local and European demand for leaves and inflorescences of medical cannabis.
 
Cannabis Danmark, the general director of a non-governmental organization working with manufacturers, patients, doctors and politicians, Rikke Jakobsen, states that "in 2019, the legal market for psychoactive cannabis will explode, and we are at the center of the whole process."
 
The reasons why international hemp corporations invest resources in the emerging sector of medical cannabis in Denmark:
 
• the development of agricultural technology in the country;
 
• strong breeding capabilities of Denmark's growers, claiming to create specialized varieties of different therapeutic areas of modern hemp breeding;
 
• government of the country, which quickly and efficiently responds to the global needs of the hemp market;
 
• easy access to the European Union market and proximity to Germany - the main consumer of products made from medical cannabis.
 
According to Mr. Jacobsen, “Any businessman can call back to the Minister of Health and speak on the subject of interest, and the Ministry responds extremely promptly to the needs of companies operating in the local hemp business. Those. any manufacturer can directly address production issues with the authorities, including the top officials of the Ministry of Health ”.
 
One such manufacturer is Ontario-based Canopy Growth, which has set up a joint venture with Danish Cannabis ApS, a manufacturer of cannabis under the name Spectrum Cannabis Denmark ApS. According to Canopy's vice president of public relations, “Denmark quickly established an extremely attractive licensing regime for manufacturers. Since our company was looking for jurisdictions to diversify development directions, the company management decided that it was possible to create corresponding production capacities in this country. Here, good tariffs for utilities and skilled labor, which is a key factor in a fairly strict regulatory framework of the country. In addition, the synergy of our efforts with local companies has accelerated the output of Canopy products to both local and emerging markets in other European countries. ”
 
“The level of agricultural automation in Denmark compensates for the disadvantage that the country faces in terms of cost competitiveness compared to warmer countries. From the point of view of cultivation efficiency, the country's agricultural sector has evolved over the years in a direction that now relies less on less predictable and expensive manual labor in favor of highly automated agricultural ecosystems, ”says senior adviser to the Ministry of Foreign Affairs Mr. Michael Prytz .
 
Medical Cannabis Program in Denmark
 
It consists of two parallel four-year experience. One implies the possibility of using grown therapeutic cannabis in the medical field, the other - the cultivation of therapeutic cannabis at home. At the moment there are no guarantees that one of these programs will be extended after the end of the period for conducting the whole complex of experiments. The program has created the Clinical Cannabis Forum (Clinical Cannabis Forum), on whose pages groups of doctors prescribing cannabis drugs, scientists, and patients share information about the use of therapeutic cannabis in the treatment of various diseases. This was done, among other things, to increase awareness of the exclusive therapeutic properties of cannabisa in academic and medical circles. In 2019, the first courses aimed at training cannabinoid therapy for medical personnel will be conducted. As part of the above event, practitioners will be provided with information on the therapeutic properties of cannabinoids, dosages, as well as the availability of cannabinoid products in the country’s market.
 
Commentary of the «Ukrainian Industrial Hemp Association»
 
Agricultural competition in the hemp market from the countries of Southern Europe is not something new for Denmark. Greenhouse complexes of the country have found ways to surpass similar enterprises operating in more sunny jurisdictions. International competition from places like Portugal, Malta and Greece, with longer growing periods and cheaper labor, is in itself the biggest threat to Danish agriculture. Despite this, about a quarter of Denmark’s total exports are linked to the country's agricultural sector.
 
Unlike Germany, the government of which concludes separate contracts with private companies for the production of a small amount of medical cannabis, Denmark has no restrictions on the volumes of therapeutic cannabisa legally produced in the country. Denmark is the owner of one of the cheapest electricity tariffs, which is one of the main cost items for growing medical cannabis.
 
The process of registration by the state structures of Germany of permits for legal cultivation of therapeutic hemp takes an extremely long time. It is the length of the process of obtaining the necessary permits for this purpose that gives an advantage to hemp companies in countries such as Denmark, where such issues are resolved as quickly as possible.
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