Policy – Page 26 – International Cannabis Business Conference

Czechia’s Legalization Model Continues To Take Shape

Written by Johnny Green on July 23, 2024. Posted in Policy.

Europe’s cannabis movement is gaining momentum, and one of the best examples of that can be found in Czechia where a recently leaked document is providing insight into the adult-use legalization model that is being pursued there.

Ever since Germany announced its plans to pursue adult-use legalization, international cannabis policy observers have kept a close eye on the Czech Republic where leaders expressed a strong desire to follow Germany’s lead.

According to the leaked document that recently surfaced, which was provided to the International Cannabis Business Conference by local activists, what is being reportedly pursued in Czechia is a combination of home cultivation, cultivation associations, and ‘a regulated cannabis market.’

Personal cannabis possession and home cultivation are currently legal in multiple European nations – Malta, Luxembourg, and Germany. Cultivation associations are also currently permitted in Malta and Germany.

“The current prohibition leads to the fact that there are more than a thousand people convicted of cannabis crimes in prisons, which burdens the state budget with costs of over CZK 700 million per year,” emphasized Tomáš Vymazal, a member of the Rational Regulation (RARE) board and chairman of the Safe Cannabis Association, in a press release provided to the International Cannabis Business Conference.

The Registered Association Rational Regulation (RARE) was established at the beginning of 2024 with the aim of supporting rational cannabis regulation in the Czech Republic based on scientific knowledge and the best foreign experience. Its founders are the Czech industry cluster CzechHemp, the Legalizace.cz association, and the Safe Cannabis Association, which ‘brings together producers, distributors, and consumers of hemp extracts and hemp products.’

“The new legislation would lead to a significant decrease in the number of persons prosecuted, convicted or imprisoned for possession and cultivation of cannabis, which would result in annual savings of up to 1.2 billion CZK.” Vymazal stated.

The leaked document surfaced as cannabis advocates inside and outside of the Czech Republic continue to grapple with the news that Czech Republic National Anti-Drug Coordinator Jindřich Vobořil is resigning from his position. Vobořil has served as a top advocate for modernizing Czechia’s cannabis policies and regulations.

“We consider the departure of Jindřich Vobořil, a key expert on addictions, to be unfortunate and risky, especially considering the fact that his position in the negotiation of a comprehensive drug policy reform will change, because from the position of the national anti-drug coordinator, he could solve the issue not only professionally, but also cross-party, which is now endangered,” said the chairman of the RARE association, Robert Veverka.

A limiting factor in all legalized European nations, which will also presumably prove to be the case in Czechia to some extent, is current European Union agreements. EU policies limit the level of adult-use cannabis commerce that can be conducted within its member nations to cultivation associations and research pilot trials.

With that being said, if cultivation associations and pilot programs proliferate in Czechia, and adults can cultivate their own cannabis, the end result would effectively be widespread legalization, similar to what is expected in Germany. Regional cannabis pilot trials are already operating in the Netherlands and Switzerland with no reported issues, and are expected to launch in Germany by the end of this year.

According to the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), nearly 30% of Czech adults have consumed cannabis at least once in their lifetimes and 11.1% report having consumed cannabis within the last year. The average rate for once-a-year consumption across Europe is 8% according to EMCDDA data.

A cannabis reform win in Czechia will add further momentum for overall European reform efforts, which will, in turn, build momentum for global reform efforts. People around the world can support cannabis reform efforts in Czechia by making a donation to the Responsible Reform organization. More information, including how to donate, can be found on the organization’s website.

Court Case Challenges Japan’s Strict Cannabis Laws

Written by Hazel Norman on July 23, 2024. Posted in Policy.

When it comes to cannabis policy reform efforts, there is no ‘one-size-fits-all’ approach. The most straightforward way to achieve cannabis reform is when lawmakers draft, approve, and implement a measure. However, that is not always possible, as many lawmakers around the globe continue to cling to failed cannabis prohibition.

One of the most popular ways to get around anti-cannabis politicians is through citizen initiatives or referendums in which ordinary citizens collect enough signatures to force a vote on cannabis policy reform. Collecting signatures to force a vote has proven very successful in the United States at the state level.

Another route that has yielded results comes in the form of legal challenges. When someone is subjected to prohibition enforcement they are usually afforded the right to challenge such policies in court, and while court decisions are not as good as the passage of bills by lawmakers, they provide some level of protection to consumers and patients.

Landmark cannabis court rulings were previously issued in several countries, including Spain, Italy, South Africa, and Mexico. A recent example can be found in Brazil, where the nation’s Supreme Court determined that personal cannabis possession should not be a crime.

Japan is home to one of the strictest set of cannabis policies on earth. Late last year, Japan lifted its nationwide ban on the importation of cannabis-derived medications, although the medications can only be used in very limited circumstances.

Coupled with the lifting of importing cannabis-derived medications, Japan also approved new penalties for consuming cannabis. Under the new guidelines, people caught having consumed cannabis can face up to seven years in prison in Japan.

Ryujiro Oyabu, a 52-year-old Japanese pottery artist, was pulled over by police in Japan on August 8th, 2021, and found to be in possession of three grams of cannabis. Oyabu is reportedly fighting the possession conviction with the assistance of constitutional lawyer Hidehiro Marui who argues that cannabis prohibition is unconstitutional.

If the challenge succeeds, it could have a major impact on Japan’s cannabis policies.

“His team plans to argue that since marijuana is now recognised as a medicine, the government must elaborate further and present scientific evidence of its dangers, by which they hope to undermine the principles behind criminalisation.” stated iNews in its original coverage.

Only time will tell if Japan’s top court is willing to consider the case, and if so, whether or not the challenge succeeds. Fortunately, there are many examples now from around the globe of such legal challenges succeeding.

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Israel May Apply Import Fees On Canadian Cannabis

Written by Hazel Norman on July 15, 2024. Posted in Business, Policy.

Israel’s government is considering imposing import fees on medical cannabis products imported from Canada. Israel previously launched an “anti-dumping” investigation to determine if Canadian cannabis imports were hurting the nation’s domestic industry. In the fiscal year 2023, Israel imported about 21,000 kilograms of medical cannabis products from Canada’s emerging legal cannabis industry.

The investigation’s preliminary findings seem to have determined that prices for Canadian cannabis have impacted Israel’s medical cannabis industry and that a proposed ‘fix’ will come in the form of import fees.

A final decision on whether to implement import fees on Canadian medical cannabis products is expected sometime later this year. Per initial reporting by StratCann:

In the course of the investigation, it was determined that the large volume of cannabis sold into the Israeli medical market from Canada was having a significant impact on both the local market and domestic companies’ ability to compete.

These products, determined Tal’s report, were sold at lower prices that, he argues, do not reflect the normal course of business and at prices that are lower than production costs or from their prices in the Israeli market, especially given the additional costs of exporting cannabis from Canada.

StratCann reports that roughly 80% of cannabis imported by Israel currently comes from Canada. The remaining imports reportedly originate from Portugal, Uruguay, and Uganda. Israel’s investigation “determined that a fair price for Canadian cannabis sold into the Israeli market was about $2-8 a gram” according to StratCann.

Israel’s legal medical cannabis industry is in a state of contraction right now according to domestic coverage, with The Israeli Cannabis Magazine reporting that “after a record of over 140,000 patients in January 2024, in the last six months the number of medical cannabis license holders in Israel dropped by about 8% to 128,355 as of today, the beginning of July 2024.”

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Czechia’s Cannabis Movement Remains Strong After Recent Political Shakeup

Written by Johnny Green on July 15, 2024. Posted in Policy.

Earlier this week, Czech Republic National Anti-Drug Coordinator Jindřich Vobořil announced that he had submitted an intent to resign from his position. Local media reported that the resignation was accepted by Prime Minister Petr Fiala and that the resignation would become effective “at the end of August.”

Jindřich Vobořil has served as a top cannabis policy modernization advocate in the Czech Republic in recent years. In October 2022, Vobořil publicly applauded German lawmakers’ push for adult-use legalization in their country after German Health Minister Karl Lauterbach held a press conference announcing provisions of Germany’s proposed legalization model.

Per Radio Prague International at the time:

If national anti-drug coordinator Jindřich Vobořil’s proposed plan comes into effect in 2024 as he hopes, Czechia could become the second EU country to legalise the recreational use of cannabis. And not only that – it would even go a step further, also making its sale legal. The anti-drug coordinator presented his plan for combatting addiction – which includes the proposal to legalise cannabis – at a press conference this week.

“At the moment, there is a political consensus for me to create this proposal for the regulation of cannabis, a substance which is illegal at the moment. We want to regulate it with the help of the market and we believe that this regulation will be more effective than the current ban.”

“Germany and the Czech Republic go to a regulated market at the same time.” Jindřich Vobořil stated on his Facebook page the same day Minister Lauterbach made his formal presentation in Germany.

“Today, Germany announced through the mouth of its Minister of Health that it is launching the legislative process. It won’t be quite the free market, as some would expect. For example, colleagues from Germany talk about the allowed amount, they do not have cannabis clubs that we are supposed to. I’m pretty sure I want to hold on to cannabis clubs until my last breath. I find this model very useful, at least for the first years.” Vobořil went on to state in his post.

“However, we are in live contact with our colleagues from Germany and have repeatedly confirmed that we want to coordinate ourselves, even practically by consulting each other on our proposals. I will also want their expert assessment of our proposals, which we will prepare in the above mentioned working expert group.” Vobořil also stated in his Facebook post.

According to domestic reporting in the Czech Republic, Vobořil may have been forced to resign due to his push for a regulated cannabis industry.

“His departure was pushed, for example, by the ruling People’s Party and the head of the ANO opposition movement, Andrej Babiš. Vobořil (1966) worked as an anti-drug coordinator from 2010 to 2018. He returned to his post in February 2022.” stated ČTK in its original coverage (translated from Czech to English).

Despite the announced resignation, Vobořil is expected to stay very active in advocating for cannabis policy modernization efforts in the European nation, and the country’s cannabis movement remains strong, with leaked documents reportedly indicating that some domestic lawmakers are still pushing for a regulated cannabis industry.

“The fight to end cannabis prohibition in #Czechia did not end yesterday—quite the contrary!” stated Lukas Hurt, publisher of Magazine Konopí and Cannabis Therapy Magazine, manager of CzecHemp, in a post on LinkedIn. “I am saying to all of you again: with the departure of Jindřich Voboril as national drug coordinator, nothing is over here, on the contrary – everything is at stake now and the implications could be huge for the whole European cannabis movement.”

German Federal Ministry Of Food And Agriculture Publishes Draft Industrial Hemp Bill

Written by Hazel Norman on July 15, 2024. Posted in Policy.

According to the German Cannabis Business Association (BvCW), the German Federal Ministry of Food and Agriculture has published a draft industrial hemp bill that would modernize policies pertaining to the cultivation and handling of industrial hemp in Germany.

“The aim of the planned Industrial Hemp Liberalization Act (NLG) is to eliminate legal uncertainties and create new fields of activity in the industrial hemp sector. The draft deletes the intoxication clause (“abuse clause”) and allows the indoor cultivation of industrial hemp. This is intended to promote sustainable raw materials and support climate protection. However, the regulation excludes the consumption of cannabis products for intoxication purposes.” BvCW stated in an email this week (translated from German to English).

“The plan is intended to provide greater legal certainty and more fields of activity for the industrial hemp sector. Cannabis products intended for consumption for intoxicating purposes, so-called edibles, will not be permitted under the Industrial Hemp Liberalization Act.” the measure states (translated from German to English).

“The plan will in particular remove the so-called abuse clause and eliminate the associated legal uncertainty when dealing with industrial hemp. In addition, the indoor cultivation of industrial hemp will be permitted as a new field of activity.” the measure also states.

The Industrial Hemp Liberalization Act also points out that “there are no alternatives to the plan, because agricultural subsidies such as direct payments from the European Union for areas on which industrial hemp is grown have not led to the hoped-for increase in the area under cultivation in Germany.”

“In order to promote industrial hemp in Germany, the possibilities for cultivation must be expanded and the requirements for handling industrial hemp must be relaxed.” the bill’s text states.

In May 2024 at the last parliamentary evening in the House of Agriculture and Food Industry, Federal Agriculture Minister Cem Özdemir (Greens) spoke publicly in favor of modernizing Germany’s hemp policies. Part of Minister Özdemir’s public statements included the announcement of the abolition of the intoxication clause.

“Imagine if dealers and producers of non-alcoholic beer were subjected to raids and punished because they could distill a schnapps from the remaining alcohol. In practice, such a complex extraction does not take place with industrial hemp,” said BvCW managing director Jürgen Neumeyer at the time. “This senseless noise clause has increasingly led to economic damage and bankruptcies in recent years. The abolition is urgently needed and we are therefore very pleased! This is an important step towards re-establishing the German industrial hemp industry. We look forward to a draft from the BMEL and will continue to support the parliamentary process constructively.”

Cannabis advocates have long pushed for this type of reform, including in the lead-up to the passage of the new CanG bill. Unfortunately, opponents were able to maintain the status quo under the premise that consumers could make intoxicating products out of hemp.

“If access to THC-containing flowers is to be made possible through clubs and home cultivation anyway, why should anyone go to the trouble of extracting low doses of THC from CBD flowers for several hours in their own home workshop?” Krautinvest.de pointed out in its initial reporting.

“Speaking at the International Cannabis Business Conference Berlin last year, industry veteran and President of EIHA Daniel Kruse said: “I would simply cancel this clause. All stakeholders will advocate for its abolition.” Business of Cannabis stated in its initial reporting.

“The debate about the ‘misuse of hemp’ needs to be brought to an end. Hemp has huge potential if the clause is abolished. Industrial hemp would lead to more sales than medical and recreational put together in Germany.” Daniel Kruse also stated at the International Cannabis Business Conference in Berlin.

According to BvCW, the Industrial Hemp Liberalization Act “is now being coordinated between departments, so statements on this can probably be submitted soon. The BvCW is now preparing a statement on this.”

In addition to causing headaches in Germany, the lack of comprehensive hemp and CBD industry reform has also caused similar issues throughout Europe.

Cannabis Cultivation Associations Moving Forward In Lower Saxony

Written by Hazel Norman on July 8, 2024. Posted in Policy.

Cannabis cultivation associations appear to be moving forward in Lower Saxony, with local media outlet Frankfurter Allgemeine Zeitung reporting that Agriculture Minister Miriam Staudte delivered the first approved permit to “Cannabis Social Club Ganderkesee” (translated from German to English) in the district of Oldenburg.

“With regard to consumer protection, it is clear to me: By allowing cultivation by associations, risks posed by illegally sold cannabis, such as excessive THC levels, can be avoided.” stated Minister Staudte according to Frankfurter Allgemeine Zeitung.

So far, 45 cannabis cultivation associations have registered to start applying for a permit in Lower Saxony, 16 of which have reportedly completed their applications. Cannabis cultivation associations became legal in Germany as of July 1st, although bureaucratic issues hampered an immediate rollout.

North Rhine-Westphalia is another area of Germany that is already accepting applications for cannabis cultivation associations, albeit “only a few” so far according to local reporting from ASB Zeitung.

“In North Rhine-Westphalia, a few Cannabis growing associations filed applications for permits starting July 1st, as revealed by a dpa survey of the responsible district administrations.” stated ASB Zeitung.

“According to a spokesperson, the first applications have been submitted in the Regierungsbezirk Duesseldorf, but a specific number could not yet be named by the authority. Three applications have been filed at the Bezirksregierung Köln by Tuesday, and one in Detmold. At the Bezirksregierung Arnsberg, there were initially “three incomplete applications,” according to a spokesperson. The Bezirksregierung Münster reported no applications yet.” ASB Zeitung also stated.

German cannabis cultivation associations have to adhere to various rules, including limiting membership to a maximum of 500 members and restricting sales to 50 grams per member a month (30 grams for members 18-20 years old). Clubs will also be permitted to sell cannabis clones and seeds.

In a recent nationwide survey conducted in Germany by Pronova BKK, 44% of self-reported ‘regular’ cannabis consumers indicated that they plan to join one of the country’s cannabis cultivation associations once they launch in their respective jurisdictions. Another 27% of ‘occasional’ cannabis consumers also indicated that they plan to join an association.

The Pronova BKK survey involved 1,000 people in Germany aged 18 and over and was conducted in May 2024. The survey also determined the following (translated from German to English) about Germany’s cannabis consumer base:

Over a quarter of Germans consume cannabis at least occasionally, and one in ten consumes it weekly
More than half of Generation Z consumes cannabis at least occasionally
For a third of cannabis consumers, legalization does not influence consumption behavior
Among younger respondents under 45 years of age, one in ten has increased consumption since legalization
Eight percent of non-users are considering growing their own cannabis at home

Among self-reported ‘regular’ cannabis consumers participating in the survey, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

Germany’s Medical Cannabis Industry Is Booming

Written by Johnny Green on July 8, 2024. Posted in Business, Policy.

Germany’s emerging medical cannabis industry was already the largest in Europe before the nation’s new CanG law took effect. However, since April 1st, 2024 when the first provisions of adult-use legalization became effective in Germany, the nation’s medical cannabis industry has already grown exponentially.

“Since April 1, the medical cannabis market has almost doubled in Germany,” says David Henn, CEO of the medical cannabis wholesaler Cannamedical, per original reporting by ntv.de.

The recent growth in Germany’s medical cannabis industry is also evident in new data published by Bloomwell Group. The brokerage service company ‘provides both doctors and pharmacies with a digital platform for medical cannabis.’ The company reported a “1,000 percent” increase in business since legalization started in Germany.

A main contributing factor to the recent growth of Germany’s medical cannabis industry was the removal of cannabis from the nation’s Narcotics List, which was a key component of the new CanG law. The removal of cannabis from the list made it easier for doctors to prescribe cannabis in Germany, in addition to improving the medical cannabis supply chain and boosting domestic medical cannabis production.

Medical cannabis is arguably the biggest winner of Germany’s adult-use policy modernization effort so far, and the boost in patient numbers is still very much in the early stages. Prior to April 1st, researchers estimated that Germany had between 200k and 300k active medical cannabis patients. That number is projected to increase to as much as 5 million in the not-so-distant future.

A February 2024 market analysis by Zuanic & Associates determined that if 1% of Germany’s population (roughly 838,000 people) became cash-paying medical cannabis patients, the German medical market ‘could reach €1.7Bn in value by the end of 2025.’ If current trends persist, the 1% threshold could be surpassed far earlier.

The legal German cannabis market is projected to reach an estimated $4.6 billion in value by 2034 according to a recent market analysis by researchers at The Niche Research, which is an impressive sum. However, if Germany’s medical cannabis industry continues to increase at its current rate, the projection could prove to be too conservative as time goes on.

Germany’s medical cannabis industry boom is paralleled by a dramatic increase in the nation’s ancillary cannabis industry, and that increase is having a butterfly effect on other parts of Europe. A recent survey by YouGov found that 7% of surveyed German adults have already purchased cannabis seeds or clones, and another 11% reported that they will in the future.

In a separate nationwide survey conducted in Germany by Pronova BKK, among self-reported ‘regular’ cannabis consumers participating in the survey, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

Cannabis seed banks across Europe have reported a significant sales spike due to German home cultivation legalization, and presumably the same is true for companies specializing in home cultivation equipment.

Cannabis opponents in Germany are pointing to the increased size of the nation’s medical cannabis industry and trying to use it to justify their prohibitionist positions. What those opponents fail to recognize is that a boost in patient numbers is not indicative of a ‘broken system.’ Rather, it is a testament to the cannabis plant’s wellness properties and the evolving attitudes of medical professionals.

According to tens of thousands of peer-reviewed studies, countless patient testimonials, and the professional opinions of licensed medical doctors throughout Germany, cannabis is a safe, effective medication that can treat numerous ailments and conditions. Suffering patients deserve to have safe access to therapies that their doctors deem appropriate, and that includes medical cannabis therapies.

Germany’s new medical cannabis policies are working exactly as they should be, regardless of the fear-mongering talking points that cannabis opponents choose to cling to.

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Navigating Germany’s Booming Cannabis Market: A Guide for International Companies

Written by Johnny Green on July 8, 2024. Posted in Business, Policy.

The excitement surrounding cannabis in Germany is palpable. With the current government coalition decriminalizing and rescheduling the plant, a wealth of opportunities has arisen for both domestic and international organizations. Events like the International Cannabis Business Conference and Mary Jane Berlin are buzzing with activity, setting new attendance records. However, navigating the German market requires a nuanced understanding of the current regulations to avoid potential pitfalls.

To assist international companies aiming to enter this vibrant market, the largest German Cannabis Business Association (BvCW – Branchenverband der Cannabiswirtschaft, www.cannabiswirtschaft.de) has introduced a specialized format. This initiative is designed to provide critical information and support for businesses looking to establish a presence in Germany. With its comprehensive focus on all aspects of cannabis—medicinal, recreational, and industrial—the BvCW is uniquely positioned to offer valuable insights into the evolving landscape.

Why Germany?

“We understand that there are many eyes on Germany at the moment,” states Dirk Heitepriem, president of the BvCW. “Since April 1st, many opportunities have opened up for international companies looking to sell products and services in Germany! We receive numerous inquiries daily from industry colleagues worldwide. Our goal is to provide them with a platform that will guide them through the process, helping them find the right stepping stones while avoiding inherent traps.”

Key Developments and Opportunities

Benjamin Patock, a member of the Executive Board, adds, “A lot has changed. Access to cannabis as a medicine is easier than ever. Additionally, we are witnessing a significant boom in the recreational home-growing market, with the first cannabis clubs on the horizon. However, some opportunities remain exclusive to EU member states at this point.”

Introducing the BvCW International Briefing

To keep international companies well-informed, the BvCW will host the “BvCW International Briefing” quarterly via Zoom. These sessions will cover recent policy changes, current opportunities and risks, and expected regulatory developments. Participation is free of charge upon registration.

Stay ahead of the curve and ensure your company is well-prepared to tap into Germany’s expanding cannabis market. Register now to join the BvCW International Briefing and gain the insights needed for a successful entry.

For more information and to register, visit

www.cannabiswirtschaft.de/intlbriefing

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Thailand Committee Votes To Reclassify Cannabis As A Narcotic Effective January 1st

Written by Hazel Norman on July 8, 2024. Posted in Policy.

The wild cannabis public policy ride continues in Thailand where a key committee voted this week to officially reclassify cannabis and hemp as a narcotic in the country. Thailand adopted a historic cannabis reform measure in June 2022 that removed cannabis from the nation’s narcotics list.

Starting January 1st, 2025, cannabis will be reclassified as a narcotic in Thailand according to the committee-approved plan, and not just cannabis varieties that are high in THC. Even floral hemp that is low in THC will be classified as a narcotic in Thailand. Per excerpts from Bangkok Post:

The resolution stated that cannabis and hemp are to be regarded as narcotic plants except for their branches, roots and seeds. Cannabis buds and any materials containing more than 0.2% tetrahydrocannabinol (THC) will also be classified as narcotics.

“If the Office of the Narcotic Control Board agrees with our conclusion, the next step will be for the Food and Drug Administration to amend any cannabis-related laws and set up criteria for how the plants can be used.

The potential law reversal in Thailand comes at a time when cannabis policy modernization efforts are gaining momentum in other parts of the world. The first provisions of Germany’s adult-use legalization law took effect on April 1st, 2024, and South Africa recently adopted a limited recreational cannabis legalization measure the following month.

In addition to Germany and South Africa, cannabis is also legal for adult use in Uruguay (2013), Canada (2018), Malta (2021), and Luxembourg (2023). Regional adult-use cannabis commerce pilot trials are operating in the Netherlands and Switzerland, and nearly half of the states in the U.S. have approved recreational cannabis legalization measures.

Thailand’s expected policy change serves as a sobering reminder to cannabis advocates around the world that there is still a considerable amount of work to do in order to not only ensure that harmful cannabis prohibition policies are eliminated, but also, that the policy changes remain in place.