The German government has just announced that it will buy at least 650 kilograms (1,433 pounds) of GMP certified, medical cannabis flower from “domestic producers” who won the tender lots. This means, in other words, that of the three Canadian companies who won the bid (Aurora, Aphria and Wayland/ICC/Demecan), the only domestic production that currently takes place is via the ICC facility in Eastern Germany.
This means that at least the short term winner, certainly on the price front, is ICC and Demecan.
Why?
It is the only one of the three that has certified production facilities in place. The other two producers, Aphria and Aurora, must import from somewhere else. However, this announcement makes things even more strategically interesting, as Aurora announced a much lower price to the Italian government – canceled bid nonetheless (that was for medical-grade CBD).
That alone undermines the price now set out by the German government – of €2.30 euros a gram wholesale – as the one to beat in Europe. This also means that enterprising producers elsewhere now have a reference price to beat (and many of them can). Even with the price of transportation, this price is a calling card for those of Portuguese, Spanish, Greek and Polish extraction who have either entered or about to enter the game.
Read more at internationalcbc.com