North America's cannabis hype seems to be coming to an end, according to Achmed Majid's article in the Dutch newspaper Het Financieele Dagblad. Dutch greenhouse builders, who were doing well in recent years as a result of high investments in the cannabis sector, are currently hardly actively involved in building greenhouses, the article explains.
That the hype is over is also confirmed by the president of Avag, the trade association for greenhouse builders and related companies, Annie van de Riet. According to her, there is an overproduction of recreational cannabis in the US and Canada. Greenhouse builders are now focusing more on other sectors, such as food horticulture. "Food security has come back on the agenda because of the corona crisis. For investors, that is now more interesting to invest in than cannabis."
In recent years, investors in North America have been pulling out their wallets to produce cannabis in specially designed Dutch greenhouses. "Especially in the U.S. and Canada, it has been a turbulent market in recent years," says Pascal Oers, co-owner of horticulture consultancy VEK Adviesgroep. "A lot of money has been put into the production of cannabis, but because of all kinds of regulations, the points of sale have only become available very late. So you had the production, but no stores to sell it."
Overproduction and also crop failures - the cannabis plant is susceptible to many pests and diseases - led to empty greenhouses. Greenhouses were also reused for other purposes. "In hindsight, the results were disappointing." While as many as 73 cannabis companies went on the stock market in Canada between 2016 and 2019, there were only four, as of 2020.
Click here to read the complete article (in Dutch).