Many big companies are putting their eyes on the European cannabis market, as multiple sources have projected its multi-billion dollar potential. Yet, one of the biggest challenges is to find a way of importing cannabis goods that is sustainable and profitable. The best way would be to have a cannabis hub right in Europe, as some companies have been doing through setting up operations in Portugal, for instance. Yet, there is another country that is poised to capitalize on the cannabis export from Europe, one that also possesses other benefits outside the transportation itself: North Macedonia.
“We were one of the first people investing in the North American cannabis industry,” says Yuval Soiref, founder and director of PhCann. “But then, we wanted to set up an operation here in Europe; and that’s eventually what I, together with NYSK, did with the newly opened facility in North Macedonia.”
Growing in North Macedonia
There are many benefits to growing cannabis in North Macedonia. “We selected this country because costs are cheaper than elsewhere in Europe,” Yuval says. “It didn’t make any sense to go to Denmark or Germany. From my experience, growing cannabis indoors can be very expensive; this is also one of the reasons why some facilities in Canada as well as here in Denmark, for instance, didn’t even start operating in the end.”
Pharma-driven
So, even though this was the first time that this company set up a cultivation in Europe, he was very much aware of what needed to be taken into consideration. “We are a pharma-driven company,” he points out. “And our plan is to produce the highest quality medicines in Europe. In order to achieve that level of consistency, we decided to build an indoor facility. We have seen that anyway there was a lack of indoor facilities in Europe, and therefore there isn’t much diversification in the domestic market. These considerations led us to eventually build one of the largest indoor facilities in Europe, and surely the most technologically advanced.”
Yet, before getting there, there were a number of challenges to overcome. “First of all, I want to point out that our CEO did a fantastic job,” he remarks. “As said, we are a pharma-driven company, and we wanted to go the long way in order to do things right. The license was the first thing to do. Then, we had to do all the ICO certifications. Based on those, we eventually received GACP certification, and the EU-GMP certification for our extraction and pharmaceutical cannabis products; these certifications are the key for the international export.
A lot of companies wanted to get to Europe and build a lot of greenhouses, but eventually none of them exported. That’s why we decided to go the longer way and to get all our certifications in place, because hard work pays off in the end. We went for an indoor facility also because there is a lack of indoor flowers in the market. Now, we are waiting for the flower export law.” Indeed, North Macedonian growers are eagerly waiting for the government to finally release cannabis export laws. “I think they are going to have the law very soon,” Yuval says. “It is a very big step for North Macedonian growers, and for the country as a whole. Especially in these COVID times, such a law would bring more revenue into the country, helping the economy a lot. With that, North Macedonia will truly be a key player in the medical cannabis industry.”
A future of brands
At the same time, according to Yuval, whether it's pharma, or recreational, the future of the industry is going towards brandization. “Brand is going to be a winner both in the recreational and pharma market,” he says. “You see a lot of companies doing clinical trials, but then you just have big companies with big products, and that’s where the power of the brand will come into play. We always position ourselves as a provider, manufacturer, and grower of pharma-grade cannabis flower. The European market is currently more focused on pharma and flower. But in the future, I think we are going to see the oil market growing as well.”
For more information:
PHCANN
PharmaCann Polska Sp. z o.o.
Aleja Jana Pawła II 70/14
00-175 Warszawa
info@phcann.pl
phcann.pl