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Traffic light clears the way for cannabis legalization: Which companies could benefit from the approval

2021-11-28T05:47:20.533Z


The approved legalization of cannabis for pleasure has triggered a gold rush mood in many places. But who will benefit in the end depends on future legislation.


The approved legalization of cannabis for pleasure has triggered a gold rush mood in many places.

But who will benefit in the end depends on future legislation.

Munich - There are only two sentences in the health paper of the traffic light coalition *. But they will create a billion-dollar market in Germany, or rather make it legal: cannabis for consumption purposes. Hemp has been approved as a medicine in Germany since 2017. In the future, the Federal Republic wants to release it for enjoyment. A controlled distribution through licensed shops is planned. The traffic light coalition wants to ensure that the quality is right, that the products are not contaminated and that the protection of minors is guaranteed.

Whether the substance will only be available in pharmacies in the future or also in pubs, at tobacconists and even on supermarket shelves is still open, as is much else.

The market is huge: The German Hemp Association (DHV) estimates the amount currently illegally consumed at 200 to 400 tons per year, which corresponds to a value of around 1.2 to 2.5 billion euros.

In contrast, the legal market for medicinal cannabis is rather clear with an estimated 12.5 tons in 2021.


But those who are already active here have a clear advantage in the legalized pleasure market.

At least that's how Benedikt and Jakob Sons, founders and managing directors of the cannabis wholesaler Cansativa, see it.

The company supplies doctors and pharmacists with medicinal cannabis.

According to the company's own information, the market share here is 20 to 25 percent.

Cannabis Legalization: Tough Competition

The competition is fierce: 87 companies have an import license for medical cannabis, but not all are already active. At the beginning of the year, the Hessen company was able to secure a major strategic order: The cannabis agency of the Federal Institute for Drugs and Medical Devices selected it as the exclusive wholesaler for cannabis legally grown in Germany. For four years, three companies licensed by the cannabis agency are allowed to deliver 2.6 tons per year, sold through Cansativa.

But who should meet the much greater demand for pleasure hemp is still completely open to Georg Wurth, spokesman for the German Hemp Association.

In the event of legalization, the German market would be entirely dependent on production: “Only medical cannabis may be traded internationally,” explains Wurth.

For Würth, who takes on the coveted supply of pleasure marijuana depends on the legislature: "If the licenses are cheap and easy to get, I can imagine that many small businesses will open and a colorful market will emerge."

In order to meet strict requirements, however, capital is needed: "The big tobacco companies, for example, could fill the gap," says Wurth.

The DHV advocates the lowest possible licensing hurdles "so that even small organic farmers can participate in the market."


Cannabis legalization: market will continue to diversify

Wurth firmly expects new producers because medicinal cannabis is unprofitable for the leisure market: "In Germany there are currently three licensed manufacturers of medical cannabis, but only one of them can deliver." Because the conditions for production are strict: "So far, it has to Growing cannabis under daylight lamps behind thick concrete walls is ecological and economic nonsense for a consumer product, ”said Wurth.

Because hemp plants also thrive outdoors in Germany.

"In addition, the laboratory tests cost a lot of money, which is superfluous for a luxury product." Because, like wine, cannabis is a natural product and therefore slightly fluctuating amounts of active ingredients are not a problem in recreational use.


Cannabis legalization: a good 28,000 new jobs

No matter who fills the vacuum, jobs will be created to a relevant extent, as the economist Justus Haucap found in a highly regarded study for the DHV. To do this, he has allocated the estimated amount consumed in Germany to the logistics required per ton in Colorado. The US state was the first to legalize marijuana in 2014. In order to meet German demand, 27,600 additional jobs would be needed, which together could generate over 1.3 billion euros in wage income.

For its calculations, Haucap has estimated a gross sales price of 10 euros per gram of cannabis, which roughly corresponds to street prices.

Haucap particularly emphasizes the social benefits: the legalization allows the state to generate over 4.7 billion euros in additional income every year.

* Merkur.de is an offer

from IPPEN.MEDIA

List of rubric lists: © Patrick Pleul / dpa

Source: merkur

All news articles on 2021-11-28

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