"We've been growing hydroponically for over 20 years," says Matthias Bakker, Managing Director and co-founder of Blom Medical, a medical cannabis grower in South Africa. However, not all those years were dedicated to medical cannabis cultivation, mainly due to regulatory constraints. "I was born in Holland, and then my family moved to South Africa." The Bakker family established a successful greenhouse business in the southernmost part of the African continent, cultivating crops such as tomatoes and bell peppers. As South Africa regulated the medical cannabis industry, Matthias saw an opportunity to leverage the family's decades of expertise. "Around three to four years ago, we began exploring medical cannabis production."
From vegetables to cannabis
The decision to enter the cannabis market was driven by the need for new ventures in a challenging vegetable industry. "The vegetable market isn't easy," Matthias notes. "I suggested to my father that we explore cannabis." Like many from the older generation, Matthias' father initially resisted the idea. "Are we going to grow dope?" Matthias recalls his father asking, with a chuckle. Despite the initial hesitation, Matthias, his brother Peter Bakker, and business partner Gavin Moffet eventually moved forward with the project.
The cannabis facility is located in a repurposed greenhouse, originally purchased from a neighboring farm. The structure, built for vegetable production, was re-engineered to meet the specific climate needs of cannabis. "It's an Israeli greenhouse that was too low for traditional crops like peppers or tomatoes, but it worked for cannabis, which doesn't grow very tall," Matthias explains.
Climate control is central to Blom Medical's operations, particularly given their background in hydroponics. "Consistency is key when it comes to medicinal crops," Matthias says. The company collaborated with Delphy, an agricultural consultancy group, to design and manage a climate that keeps temperatures below 30 degrees Celsius while controlling humidity and ventilation.
To handle the complexities of cannabis cultivation, Blom Medical has implemented a semi-autonomous system that integrates irrigation and climate control. "We invested in an Israeli controller that automatically manages everything, from humidity to dehumidification," Matthias explains. "Our head grower can log in from a computer and adjust the parameters as needed, whether he's at home or anywhere in the world."
Headhunting the right grower
Finding the right head grower was also a challenge. It's common in the cannabis industry for a grower with extensive experience in cannabis cultivation to be put in charge of a commercial-scale operation. However, having knowledge of cannabis doesn't necessarily mean that a grower is also adept at handling the day-to-day tasks of a large-scale greenhouse. Unrealistic expectations are often placed on someone who may not be equipped for the job. That's why Matthias and Blom Medical specifically sourced a head grower with extensive experience in hydroponics, but no background in cannabis. "We headhunted this individual, and it was the best decision," he points out. "We've been giving him all the support he needs to fill the gaps in cannabis knowledge. At the end of the day, cannabis is just another crop. It's certainly a lucrative one and can be quite finicky compared to others. However, it's much easier to teach an expert how to handle this specific crop than to educate someone on the nuances of running such a large operation."
The company has also faced challenges with South Africa's regulatory environment. Matthias notes that while Blom Medical operates under strict regulations, there has been inconsistency in the licensing process across the industry. "It took us about two years to finalize construction, and there were delays in the inspection process," he says.
Strong export market, but a lot to do for the local one
Despite these hurdles, Blom Medical is pressing ahead with plans to expand its operations. The current greenhouse spans 5,000 square meters, with only half of it used for cannabis production. The plan is to scale up to full capacity once the market allows. However, Matthias believes regulatory changes are necessary first. "Patients face the biggest regulatory hurdles. Doctors aren't educated enough, and there's pushback when it comes to prescribing medical cannabis." South African MMJ companies, however, thrive in the export market. "Although regulations hinder the development of a local market, we are free to explore the export market. Our stringent standards make our medical cannabis products suitable for both the EU and Australia—two of the most regulated markets globally," Matthias points out.
Blom Medical remains focused on its long-term goals. "Our relationship with the pharmaceutical industry is ongoing, and we're ready to scale up when market conditions improve. The regulatory aspect is the only barrier at this point, so we need to push for change—and that requires a concerted effort."
For more information:
Blom Medical
[email protected]
blommed.co.za