Cannabis is growing steadily in a distant part of rural Germany but it is a gradual process so don’t hold your breath.
The plants are growing in labyrinthine production halls belonging to Demecan, a firm in the state of Saxony, under the watchful eye of multiple video cameras.
Any visitors must repeatedly pass through locks where they have to disinfect their hands, change their shoes and put on face masks. “We have to comply with safety precautions because we handle narcotics and produce medicines,” says co-founder Constantin von der Groeben.
Those efforts are paying off, he says. Less than a year after its launch in July, the company has delivered its first supplies of medicinal cannabis.
German law has allowed people to use cannabis for medicinal purposes since 2017, if prescribed by their doctors, to alleviate pain, for example, though the current government is planning liberalizing these laws to legalize the drug’s use.
Ever since 2017, cannabis has been booming. Germany imported 20.6 tonnes of flowers and extracts in 2021 alone.
Only three sites produce cannabis on behalf of the state, following a tender in 2019. Alongside German start-up Demecan, the other two are both Canadian-owned. Aurora’s facility is in Saxony-Anhalt and Tilray’s is in the northern state of Schleswig-Holstein.
Demecan’s founders spent months sitting in their shared flat in Berlin, fine-tuning their offer. They finally settled on a former slaughterhouse close to Dresden, after spending time searching for the perfect location.
They say the firm can supply significantly more if demand surges, able to deliver more than 10 tonnes of cannabis flowers per year in the short term if needed.
Right now, Demecan produces just under 1,000 kilograms per year. Looking ahead, the tender envisages that the three companies in Germany will produce a good 10 tonnes over four years.
The price is not publicly known, as Germany’s cannabis agency, based at the medicines institute, would not reveal what it pays for the flowers.
All that is known so far is that German pharmacies have to pay €4.30 ($4.5) per gramme to the agency, which acts as an intermediary between the companies and the pharmacies.
The Demecan founders have invested €20 million in the production facility in Ebersbach, with 30% of that from subsidies and the rest coming from investors.
They spent it expanding the long halls on the site, but it was the technology that proved most expensive.
It allows the company to gather minute levels of data about the halls the plants are growing in, from the temperature to the CO2 content.
“Our goal is to provide patients with the same quality in every single plant,” says co-founder Adrian Fischer. Every flower must contain the same level of tetrahydrocannabinol (THC), so patients don’t wind up inadvertently taking too much or too little, he says.
“Consistent quality is best guaranteed in indoor cultivation. That was also one of the specifications in the tender.” The companies in Germany are dealing with much stricter requirements than in many other places.
Aurora Cannabis also produces the plants indoors, at greenhouses located at its Denmark site.
Demecan uses lighting to ensure the plants have optimal conditions. The growers use different lights to simulate the passing of the different seasons.
Co-founder Cornelius Maurer walks through the rows with a tablet equipped with a special white filter, inspecting the growth. “This is the only way you can really see properly if the plants are gaining a rich green tone and are looking healthy,” he says.
The founders started production in October 2021 and have since produced several plant vintages and are happy with the quality level.
Beyond tests in their own laboratory, their plants are also checked by external inspectors sent by the authorities.
“We are always trying to improve the plants,” says Fischer.
The two founders have high hopes about the plans of the new government to legalize cannabis.
Germany’s new coalition government, between the Social Democrats (SPD), the Greens and the Free Democrats (FDP), committed to the “controlled distribution of cannabis to adults for consumption purposes in licensed shops” in its agreement after last year’s elections.
Initial consultations on the move are now under way, with the government set to focus on the issues of young people and health protection.
The government’s plans would “control the quality, prevent the passing on of contaminated substances and ensure the protection of minors,” the parties said late last year.
Looking ahead, a cannabis tax alone could generate an annual €1.8 billion for the state, according to a study by the German Hemp Association.
Companies meanwhile look forward to business booming. If the government allows the controlled dispensing of cannabis, Demecan could deliver the best quality for the wider market and expand further, says Fischer.
Cornelius Maurer (l) and Adrian Fischer inspect the cannabis blossoms as part of their quality controls for a medicine that needs close care, they say. Sebastian Kahnert/dpa
© DPA
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