German Cannabis Business Association – Sept 2024: Various Updates On Cannabis Cultivation Clubs

Current developments regarding cultivation associations in Germany

09/13/2024 | The approval of growers’ associations in Germany is progressing slowly. Since July 1, 2024, applications for growers’ associations can be submitted, so far over 280 applications have been submitted, mainly in North Rhine-Westphalia (53 applications), KrautInvest reports. Lower Saxony has already issued at least nine licenses, while in Berlin the first association received approval at the end of August.

The bureaucratic hurdles are high, as the cultivation associations have to meet strict requirements. Many federal states criticize the additional administrative burden that the new regulations will create.

According to Ippen Media, the planned prices for cannabis in the first cultivation associations vary between 3 and 10 euros per gram, with an average of around 6 euros. Activists are calling for faster implementation and improvement of the law.

Approval of cannabis cultivation associations in Baden-Württemberg and Bavaria is slow

09/10/2024 | According to the Esslinger-Zeitung, 53 applications for cannabis cultivation associations have been received in Baden-Württemberg since the beginning of July, but so far not a single one has been approved. The Freiburg Regional Council, which is responsible for approvals, is currently reviewing the applications and reporting back any deficiencies. The process is complex and requires a review of association premises, safety concepts and proof of training. Staff shortages at the authority are also delaying processing.

As the Salzburger Nachrichten reports, no cannabis club in Bavaria has yet received a cultivation license either. The necessary training for prevention officers, a prerequisite for a license, only began this month.

Lower Saxony state parliament: Minor interpellation on the licensing and control of cannabis cultivation associations 

09/10/2024 | Members of parliament Verena KämmerlingBirgit Butter and Katharina Jensen (CDU) have submitted a written question to the state government of Lower Saxony regarding the costs of licensing and monitoring cannabis cultivation associations. The question relates to the transfer of these tasks to the Lower Saxony Chamber of Agriculture (LWK), which has been responsible for approval and monitoring since July 1, 2024. Answers from the state government:

  • One-off costs: the one-off costs for the transfer of approval and monitoring cannot be quantified as no working hours were documented.
  • Ongoing costs: The draft budget for 2025 includes €507,000 for the LWK and €581,000 for the Ministry of Food, Agriculture and Consumer Protection (ML) to cover personnel and material costs.
  • Application figures: It is assumed that around 300 cultivation associations will be approved in Lower Saxony in the medium term, with around 15 further applications expected to be rejected each year.
  • Positions at the LWK: Two positions have currently been created at the LWK for the approval and inspection of growers’ associations, which have already been filled.
  • Time required for approval: Approximately 7.8 person-hours and costs of around 484 euros are calculated for the approval of a growers’ association.
  • Ongoing inspection: 8.5 person-hours and costs of approx. 528 euros are planned for the inspection of a growers’ association.
  • Laboratory tests: As a precautionary measure, 100,000 euros have been budgeted for laboratory tests in the 2025 budget, with the cost per test being around 165 euros.
  • Fees: The licensing and inspection of cannabis cultivation associations is subject to a fee, the amount of the fee depends on the time required and the qualifications of the personnel involved. The costs are therefore borne by the prospective cultivation associations.

This information illustrates the challenges and financial aspects associated with the implementation of the Cannabis Act in Lower Saxony.

Hesse still waiting for first approved cannabis cultivation association

09/01/2024 | Five months after the partial legalization of cannabis and two months after the approval of cultivation, there are still no legally active cannabis cultivation associations in Hesse. So far, 15 applications for permits for such associations have been submitted and are still being processed, according to the Frankfurter Rundschau newspaper.

“So far, no permit application in Hesse is ready for approval,” explained a spokeswoman for the Ministry of the Interior. The hurdles for approval are high, as special requirements regarding reliability and prevention must be met.

The Darmstadt Regional Council, which is responsible for licensing, is expecting several hundred applications. According to cannabis clubs, the bureaucratic effort is high. Among other things, a tax number and a certificate of good conduct are required.

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