The German government has just announced that it will acquire at least 650 kilograms (1,433 pounds) of GMP certified, health-related cannabis flower from “domestic producers” who won the tender lots. This suggests, in other words, that of the 3 Canadian firms who won the bid (Aurora, Aphria and Wayland/ICC/Demecan), the only domestic production that at present requires spot is through the ICC facility in Eastern Germany.
This suggests that at least the quick term winner, surely on the price tag front, is ICC and Demecan.
It is the only one particular of the 3 that has certified production facilities in spot. The other two producers, Aphria and Aurora, will have to import from someplace else.
Even so, this announcement tends to make items even extra strategically intriguing, as Aurora announced a a lot decrease price tag to the Italian government – canceled bid nonetheless (that was for health-related-grade CBD).
That alone undermines the price tag now set out by the German government – of €2.30 euros a gram wholesale – as the one particular to beat in Europe.
This also suggests that enterprising producers elsewhere now have a reference price tag to beat (and numerous of them can). Even with the price tag of transportation, this price tag is a calling card for these of Portuguese, Spanish, Greek and Polish extraction who have either entered or about to enter the game.
It also puts the choice to delay the export of North Macedonian flower in an even extra intriguing new light. No matter when the nation decides to export, it has a globe of possibilities on its quick, European, if not German, doorstep.
With this quantity on the table, enterprising distributors now also have not only benchmarks for the 1st time, but an insight into the industry that so far has only been acquired ahead of by private interviews of insiders on the ground.
Bottom line? The industry is opening for low expense, imported flowers, and oil that can beat that price tag.
Combined with a reduction in the essential mark-up imposed by German pharmacies this suggests that the retail expense of cannabis in Germany is in line for an additional pretty dramatic correction at point of sale, and when it could not pretty however beat the unregulated industry, this suggests that cannabis priced surely below €15 a gram will be out there quickly.
It also suggests that the higher expense place on bringing in a new premium-priced item is ultimately starting to normalize (though anticipate to see added drops in price tag as guidelines continue to alter about Europe). If nothing at all else, each Italian and Polish crops will additional undermine the German reference price tag, to say nothing at all of the winds now blowing if not developing in Portugal, Spain, Greece, and other decrease labour climes all through Europe.
Even so, no matter the ultimate winners in the industry from the company side, it also suggests that individuals are starting to have options to either out-of-sight priced item only very affordable with insurance coverage coverage or the black industry.