By April, seven of the ten Dutch growers participating in the Closed Coffeeshop Chain Experiment are expected to be able to deliver. So far, the project has been laborious. A recently published report evaluated the preparation phase, which included the recruitment and selection of growers.
The responsible ministries of Justice and Security (JenV) and Health, Welfare and Sports (VWS) wanted research firm BBSO to identify what went "well and not so well," including the recruitment and selection of participating municipalities and growers. Unsurprisingly, the process was not without its challenges. For the study, six growers were interviewed, and work visits were conducted.
The researchers concluded: "The selection and designation process of cannabis growers took a long time and was less successful in its implementation during the preparation phase."
Hash
The Dutch cannabis experiment has a long backstory. The announcement in the Rutte III coalition agreement dates back to October 2017. However, it wasn't until December 2023 that the municipalities of Breda and Tilburg began the incorporated start-up phase. The transition phase then started in all ten selected experiment municipalities in June 2024. By April 2025, the 'experiment phase' will end, and coffee shops in municipalities participating in the cannabis experiment will only be allowed to sell regulated cannabis. This phase is intended to last four years. In early April, seven out of ten growers are expected to be ready to deliver.
Whether enough hash will be produced remains to be seen. Growers have indicated that producing hash presents "great challenges." The report notes uncertainties about the potential quality of hash compared to the Moroccan hash already available on the market and the (higher) costs involved in production. "In this context, designated growers may consider not producing hash, which could (potentially) limit the supply of regulated hash within the experiment."
'Paper test' for quality
In the end, ten growers were selected, and enthusiasm was high. After receiving 147 applications from private parties to produce legal cannabis, a national working group selected 51 applications (from 42 applicants). A lottery draw was then held since more applications were positively evaluated than the set maximum of ten growers.
The selection process was not conducted on a "first come, first served" basis, nor was it based on "quality." According to the report, the ministries involved preferred selection based on quality, but for various reasons, this was deemed neither desirable nor feasible. Growing cannabis first for testing purposes would have been illegal, and sampling at the government's request was considered ethically irresponsible from a health perspective. There were also concerns about potential lawsuits if a quality-based test was implemented. As a result, a "paper test" was chosen.
Locations cause delays
The researchers wrote: "The first stage of selection used a review process that provided little insight into who among the applicants might ultimately meet all the criteria. The details of the submitted business plan, cultivation plan, security plan, and statement of a possible location provided too little basis for this. The lack of actual availability of a (final) location for growers led to lengthy procedures."
Seven out of ten growers chose cultivation locations in municipalities without participating coffee shops. Growers have (or will have) production facilities in Almere, Groningen, Haarlemmermeer, Lelystad, Lingewaard, Oldambt, Smallingerland, Voorne aan Zee, Veendam, and Waalwijk. Almere, Groningen, and Voorne aan Zee also have participating coffee shops.
Too little attention for the grower
The bottlenecks surrounding "cultivation location and land-use planning" received little attention from the ministries, even though this was one of the factors causing delays, the researchers argued. "Moreover, growers have faced higher costs in their preparations due to changing market conditions. Partly as a result, they have had to tap additional financing channels."
Some growers adjusted ownership and business structures in the interim or brought in foreign shareholders to secure financing, which led to new, protracted Bibob (Public Administration Probity Screening Act) procedures. "The issues surrounding growers who could not open a bank account were also not anticipated." Establishing a large-scale production site involves an investment of 25 to 30 million euros.
The ministries' premise that the experiment can only begin once "the quantity, quality, and diversity of the hemp and hashish produced is sufficient to fully and permanently supply the participating coffee shops" has taken its toll and has strongly impeded the progress of the cannabis experiment, concluded the researchers, who also evaluated other links in the chain and process steps
in this report.