Stalled In Bureaucratic Limbo, This German City Struggles With Illegal Cannabis As Demand Surges

Despite cannabis legalization in Frankfurt, the expected surge in legal cultivation has yet to materialize. The city, which could support up to 129 cultivation associations, has had only two applications submitted since the law took effect two months ago. Across Hesse, just 14 applications have been filed, including in Kassel, Gießen and Vogelsberg, with none as yet approved.

Bureaucratic Hurdles Hamper Legalization Efforts

The slow response is largely due to complex bureaucratic requirements. Applicants must provide extensive documentation, such as certificates of good conduct and an Elster certificate for electronic applications. 

Additionally, addiction prevention training for club prevention officers adds another layer of complexity. In Hesse, it remains to be seen who is authorized to offer this training. A tight three-month deadline and application fees ranging from 500 to 1,000 euros have deterred many potential applicants.

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

Medical Marijuana Market Expands Amid Legalization Struggles

While legal recreational market struggles, Germany’s medical marijuana sector is booming. The Federal Institute for Drugs and Medical Devices (BfArM) reported a 51% year-over-year increase in medical marijuana imports in the second quarter of 2024. 

Germany imported 11,706 kg of dried cannabis flower, a 44% increase from the first quarter. The number of patients grew by 400% from March to June 2024.

Illegal Market Thrives As Legalization Efforts Stall

Despite legalization, Frankfurt's illegal weed market has thrived. Illicit cannabis trade has increased significantly as the legal market struggles to establish itself. The Frankfurt police and Public Order Office report minimal changes in enforcement, with 17 pending cases related to excessive cannabis possession. The Public Order Office has collected 278.50 euros in fines, targeting individuals caught with more than 25 to 30 grams in public or 50 to 60 grams at home.

Read Also: 25 German Cities Join Cannabis Pilot Trials In 2024 Under New Legalization Law

Regional Disparities And Delays Across Germany

The challenges in Frankfurt are mirrored across Germany. North Rhine-Westphalia, Germany's most populous state, has received only 43 applications for cannabis cultivation associations, most of which are incomplete. Berlin faces even greater bureaucratic challenges, with no clear authority designated to handle applications. 

Meanwhile, in Baden-Württemberg, 38 applications have been submitted, but none approved due to delays. Lower Saxony plans to introduce hefty fines for violations of cannabis laws, reflecting the broader difficulties in implementing new regulations.

Future of Legal Cannabis Distribution Uncertain

Despite these setbacks, Frankfurt is still interested in pursuing a controlled cannabis distribution model. Other cities, such as Wiesbaden, have shown similar interest. Wiesbaden’s Health Minister recently signed a letter of intent to join a regional cannabis pilot trial. However, Frankfurt has yet to finalize plans or establish a timeline.

Read Next: Berlin Grants First Cannabis Cultivation Permission, Lower Saxony To Introduce Fines With ‘Hefty Penalties’

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsRegulationsEurozoneGlobalMarketsEurozoneGermany Cannabis
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!
CCC-Oct-24-Banner-1

Click on the image for more info.

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry?

Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. 

Get your tickets now before prices surge by following this link.