The Danish Ministry of Health has revealed that an executive order allowing local companies to export medical cannabis in bulk took effect on the first day of this year. This puts Denmark in pole position around the continent since many other countries are still staggering in their efforts to get medical cannabis programs running.
For example, the military is the only entity authorized to grow cannabis in Italy while Germany is yet to get its domestic cultivation program going.
Several foreign medical cannabis companies, including The Green Organic Dutchman and Canopy Growth have set foot in Denmark. Several reasons make this landlocked nation ideal for this nascent industry.
First, Denmark is close to Germany. Germany is regarded as the “golden goose” in Europe, so any company that can access the German medical cannabis market stands to make a fortune. It is also easy to access the rest of Europe from Denmark.
Secondly, Denmark has an advanced agricultural system that relies on technology to grow products that compete favorably on the continent and beyond. This shift to automation didn’t just happen by chance. The Danes realized that in order to compete with warmer countries in the region, automation was the way to go. This removed the reliance on human labor that was very expensive. Cannabis growers therefore stand to benefit from this rich agricultural heritage.
Thirdly, the government in Denmark is stable and supportive of the medical cannabis industry. This support was ably demonstrated when in just one year, medical cannabis was legalized, regulations were passed and exports were also permitted. Other countries take more than a year to hit just one of those milestones.
Additionally, utility rates in Denmark are one of the lowest on the continent. This is a big advantage to cannabis growers because electricity is one of the largest costs that they have to incur in order to grow marijuana indoors.
However, not everything favors the Danish cannabis industry.
For starters, many local doctors are skeptical about the medicinal benefits of cannabis and they have voiced their concerns. Denmark has responded to this by creating the Clinical Cannabis Forum in order to spread awareness about medical marijuana.
Secondly, several countries in the south have longer growing seasons and warmer weather in addition to abundant cheap labor. These include Malta, Portugal and Greece. Their products are likely to give Denmark a run for its money.
It remains to be seen how Danish technology will be harnessed to address those roadblocks that may reduce the shine on the allure of the industry. Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4) and Plus Products Inc. (CSE: PLUS) wish Denmark all the best on its journey to become a player in the international medical cannabis industry.
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