Due to the suspension of European programs, Denmark approved the "mass export" of medical cannabis

The Danish Medical Hemp Export Act, approved in mid-2018, made it possible for individual patients to export medical cannabis once a year, but the new executive order effectively expands its capabilities and provides for the expediency of wholesale supply of therapeutic cannabis in any form and in any quantity, provided the necessary permits are obtained. 

On 1 January 2018, a decree on the possibility of mass export of legal psychoactive cannabis from Denmark came into force. It is this regulation that has placed Danish therapeutic cannabis companies in a privileged position in the competitive market of the European Union. In the field of legal and regulatory support Denmark is a leader among European countries, whose companies are fighting for the market, which, according to the British analytical company Progressive Partners, has already become a multi-billion dollar industry.

In Denmark, medical cannabis was introduced into the legal framework in just one year, comprehensive rules were developed and implemented, and the legal export of therapeutic cannabis was allowed. Other countries took much longer to complete at least one of the following  Germany tried, but failed to launch a programme for the legal cultivation of therapeutic cannabis at home text-align:justify">

• in spite of the huge modern history of medical cannabis use in Israel, only at the end of 2018 did the country pass a law permitting the export of psychoactive cannabis (it will take some time before it will be possible to adopt regulations and create the conditions under which the adopted regulations will be able to work);  

• Italy currently has a state monopoly on the legal cultivation of psychoactive cannabis, with one of the structural units of the country's Ministry of Defence dealing with the matter.

Danish medical cannabis export law approved in mid-2018 made it possible for individual patients to export medical cannabis once a year, but the new executive order effectively expands its capabilities and provides for the expediency of wholesale supply of therapeutic cannabis in any form and in any quantity, subject to obtaining the necessary permits.

The legal psychoactive cannabis industry in Denmark has already attracted more than $306 million in foreign direct investment in the country's rapidly growing hemp economy (information from the Danish Horticultural Association and Invest in Denmark). Leaders in Canada's legal psychoactive cannabis market, 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 also want to work in Denmark, for example, the Canadian ICC International Cannabis is teaming up with the Israeli company Sababa Sciences to build a fully automated greenhouse of about 4.4 ha.

Because of mutually beneficial cooperation with Danish companies, Canadian cannabis corporations specializing in the legal production of psychoactive cannabis are establishing a greenhouse fund in Denmark on an area of more than 18.5 hectares to meet local and European demand for leaves and inflorescences of medical cannabis.

Rikke Jakobsen, Director General of Cannabis Danmark, a non-governmental organization that works with producers, patients, doctors and politicians, says that in 2019, the legal market for psychoactive cannabis will explode and we are at the centre of this process.

Cause international hemp corporations are investing in the nascent medical cannabis sector in Denmark:

• development of agricultural technologies in the country

• the strong breeding capabilities of Danish growers, who claim to create specialized varieties of different therapeutic trends in modern cannabis;

• a government that responds quickly and effectively to the global needs of the hemp market;

• easy access to the European Union market and proximity to Germany – the main consumer of medical cannabis products.

According to Mr. Jacobsen, any businessman can call the Minister of Health and talk to him about the matter of concern, and the Ministry is extremely responsive to the needs of companies operating in the local hemp business. That is, any producer can directly address production issues with the authorities, including top officials of the Ministry of Health.

One of these manufacturers is the Ontario-based Canopy Growth, which has established a joint venture with hemp producer Danish Cannabis ApS called Spectrum Cannabis Denmark ApS. According to Canopy's Vice President of Public Relations, Denmark has quickly established an extremely attractive licensing regime for producers. As our company was looking for jurisdictions to diversify its development, management decided that it would be possible to establish the appropriate production facilities in that country. This is a key factor in the country's fairly strict regulatory framework, with good utility tariffs and a skilled workforce. In addition, our synergy with local companies has accelerated the entry of Canopy products into both local and emerging markets in other European countries.

«The level of agricultural automation in Denmark compensates for the lack of cost competitiveness that the country faces in comparison to warmer countries. In terms of cultivation efficiency, the country's agricultural sector has evolved over the years towards relying less on less predictable and expensive manual labour in favour of highly automated agricultural ecosystems," said Michael Prytz, Senior Advisor to the Ministry of Foreign Affairs.

Medical cannabis program in Denmark

Presents two parallel four-year experiences. One implies the possibility of using cultivated therapeutic cannabis in the medical field, the other is home cultivation of therapeutic cannabis. At the moment, there is no guarantee that one of these programs will be extended after the end of the entire experimental period. Within the framework of the program, the Clinical Cannabis Forum has been created, where groups of doctors prescribing hemp medicines, scientists and patients share information about the use of therapeutic cannabis in the treatment of various diseases. This includes raising awareness of the exclusive therapeutic properties of cannabisa in academic and medical circles. In 2019, the first courses will be held to train medical staff in cannabis therapy. The event will provide practitioners with information on the therapeutic properties of cannabinoids, dosages, and the availability of cannabinoid products on the national market.

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Agricultural competition in the cannabis market in Southern Europe is not new to Denmark. The country's greenhouses have found ways to outperform similar enterprises in the sunnier jurisdictions. International competition from places such as Portugal, Malta and Greece, which have longer growing seasons and cheaper labour, is in itself the biggest threat to Danish agriculture. Nevertheless, about a quarter of Denmark's exports are related to the country's agricultural sector. 

While Germany has separate contracts with private companies for the production of small quantities of medical cannabis, Denmark has no limits on the volume of legally produced therapeutic cannabis in the country. Denmark has one of the cheapest electricity tariffs, which is one of the main cost items for growing medical cannabis.

The process of obtaining permits for the legal cultivation of therapeutic cannabis from German authorities takes an extremely long time. It is the duration of the process of registration of permits required for this purpose that gives an advantage to cannabis companies in countries such as Denmark, where such issues are solved as quickly as possible.