The Netherlands has been one of the first countries to tolerate the sale and use of cannabis, primarily through its famous "coffee shop" model. However, this system has long operated under a so-called "back door" policy, where the sale of cannabis is legal, but the supply chain that brings the cannabis to these shops remains illegal.
To address these issues, the Dutch government initiated the Closed Cannabis Chain Experiment in 2017. After six years of preparation, the experiment is finally set to begin, involving ten participating municipalities: Almere, Arnhem, Voorne aan Zee, Groningen, Zaanstad, Nijmegen, Tilburg, Heerle, Maastricht and Breda. Notably, Amsterdam, despite being globally famous for its coffee shops, is not taking part in this experiment.
In a recently released video on YouTube by Spuiten en Slikken, the channel takes us on a journey to discover the differences between the old Dutch back-door policy and the Closed Cannabis Chain Experiment. Most interestingly, they share the thoughts and opinions of a coffee shop owner in Amsterdam.
Back-door vs cannabis chain experiment
For years, cannabis growers in the Netherlands have operated in a legal gray area. Although the end product can be sold legally in coffee shops, the cultivation process remains illegal, leaving growers vulnerable to legal risks and creating challenges in maintaining quality control.
Growers have expressed frustration with the current system, noting that they often encounter mold and pests in their crops, which can compromise the quality of the cannabis. This is one of the main challenges that the coffee shop owner mentions. Namely, they lack legal avenues to properly test and ensure the safety of their products. This is a stark contrast to other regulated industries, where products like apple juice come with labels that guarantee quality and safety to consumers, the coffee shop owner explains.
The Closed Cannabis Chain Experiment supposedly offers a solution to these issues. By allowing legal cultivation, growers can now test and monitor their crops more effectively, ensuring that the cannabis sold in coffee shops is safe and of high quality. The experiment also imposes strict hygiene standards, with facilities requiring disinfection protocols and detailed record-keeping for each plant.
The video indeed takes us inside the grow facility of one of the growers participating in this pilot. The journalist gasps in surprise at the sight of thousands of plants growing and even asks if all of that was actually legal. Being used to seeing such setups only on news broadcasts about illegal grows, it's no wonder that such a sight is unprecedented for the Northern European country. However, looking inside such a legal, advanced facility shows a glimpse of what growers can achieve if they are allowed to grow cannabis professionally on a large scale.
One of the key arguments in favor of the experiment is its potential to undercut the illegal market. By offering a legal alternative, the experiment aims to reduce the demand for illicit market cannabis, which often lacks quality control and can be more dangerous for consumers.
However, there are still concerns about the practicality of the experiment. Coffee shops are currently limited to holding only 500 grams of cannabis at any time, which is insufficient to meet daily demand, leading to frequent restocking throughout the day. In the video, they explain that a coffee shop on average sells around 1,300 grams of cannabis per day. This restriction continues to create a stressful environment for coffee shop operators, who must discreetly replenish their stock without attracting legal attention. The hope is that the experiment will eventually lead to a safer and more sustainable system, not only for consumers but for businesses as well.
Not as planned
At the same time, the pilot is progressing more slowly than anticipated. In a letter sent to the Dutch parliament, it was suggested that a longer transition phase may be necessary. Production is lagging behind, and growers are encountering more challenges than expected—at least according to the initial plan. "Track & trace data shows that cannabis and hashish production at the first three growers now in production lags behind the production projections expected by the growers last March," the letter reads. "In response to the questionnaire, the majority of coffee shop owners indicated that they are currently unable to provide their customers with a diverse supply of cannabis products. To speak of a sufficiently diverse supply, coffee shop owners indicated that certainly, more than three growers must be ready to supply. Mayors of the participating municipalities also expressed concerns about insufficient (diverse) supply."
Of the 10 growers participating in the pilot, only three of them are actually producing. Two are experiencing delays, and the remaining five haven't even started yet. A lot of pressure is on as the stakes for the industry are quite high, but the opportunities are there. Once all the wrinkles are smoothed out, the Dutch experiment has the potential to be one of the first European examples of a legal, closed cannabis supply chain.