The Federal Institute for Drugs and Medical Devices (BfArM) has increased the import quota for cannabis for medical and scientific purposes to 192.5 tons for the current year. In addition, Demecan, Tilray, and Aurora produce domestically. Following the liberalization of domestic cultivation under the Cannabis Act, which came into effect on April 1, 2024, all three companies announced plans to expand their capacities. However, compared to imports, domestic production continues to play a subordinate role. In mid-September, German Cannabis Standards announced that it had received ten million euros from investors to finance the construction of a 21,000-square-meter cannabis production facility in Bitterfeld-Wolfen, Saxony-Anhalt. The facility is scheduled for completion by the end of the first half of 2026.
The challenges are significant. It’s unclear how much of the imported cannabis actually reaches patients through pharmacies. Since its removal from the Narcotics Act, the Federal Institute for Drugs and Medical Devices (BfArM) no longer receives this information from pharmacies. Continuously falling prices suggest that the oversupply is increasing rather than there being a shortage. At the same time, the Bundestag is debating an amendment to the Medicinal Cannabis Act this week. The current draft would significantly restrict patients’ access to cannabis therapy. A draft law could be passed in spring 2026. Nevertheless, a total of four companies have applied for cultivation licenses in Germany, in addition to the three existing ones. One of them is German Cannabis Standards, which has so far specialized in underground cultivation. Despite the tense market environment, its managing director, Nikolaos Katsaras, is optimistic about the start of its own production, planned for next year.
According to Katsaras, the production facility is expected to produce up to 2.4 tons of dried cannabis flowers annually. The managing director plans to expand capacity to approximately ten tons per year by 2027, with an option to increase to 18 tons by 2028. Regarding the German market for cannabis flowers, currently described as a “price war,” Katsaras points to his own calculations. He is confident that “profitable cannabis production” can be achieved in Germany through “smart construction and process optimization.” Since cannabis is no longer classified as a narcotic, he sees “entirely new possibilities for efficient and cost-effective construction.” He also anticipates comparatively lower transport and bureaucratic costs. Regarding energy costs, Katsaras points to potential savings through heat recovery, industrial electricity rates, and the use of solar energy. He also notes that they are in discussions with suppliers in the struggling solar park in Bitterfeld-Wolfen.
According to Katsaras, the applications for cultivation and production licenses have been submitted to the Federal Institute for Drugs and Medical Devices (BfArM), and the manufacturing permit has been submitted to the State Administration Office of Saxony-Anhalt. With the completion of the construction work, he hopes that “only” the final inspection will remain.
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