Agra Ventures' wholly owned subsidiary, Farmako is one of the few local German producers. The Canadian company believes that its German subsidiary is well-positioned to benefit from Germany’s planned legalization of adult-use cannabis as the new Chancellor of Germany, Olaf Scholz, has recently vowed to make the change a top priority. The legalization of adult-use cannabis in Germany would enable Farmako to expand its offering of cannabis extracts and dried flower as well as CBD and THC Testkits, while potentially also increasing the manufacturing and distribution of other cannabis products and accessories. Based in Frankfurt, Farmako is a GDP-certified pharmaceutical wholesaler that is currently focused on the medical cannabis market to facilitate patient access to reliable cannabinoid therapies and provide support to healthcare professionals.
The new German government is a coalition of three parties including the German Social Democrats, the German Free Democrats, and the Green Party. Traditionally, the German government has been more conservative and, therefore, this shift in the mix of its ruling political parties is expected to result in substantial changes. In a recent survey by infratest dimap, 49% of German citizens are in favor of recreation cannabis legalization. In 2014, only 30% of German citizens were in favor of legalization, which means that medical cannabis legalization and its use, as well as more research and understanding of cannabis and its benefits, have been revolutionary in the eyes of German citizens.
As of 2016, cannabis for medicinal purposes has been legal in Germany, however, further decriminalizing cannabis for adult use is now a priority for the country’s new government within the next two years. The German economy is expected to benefit from the change in law as it is projected that the government could earn $5 billion Euros annually in tax revenue and save money on policing. Not only do individual businesses like Farmako stand to benefit from the legalization of recreational cannabis in Germany, but its economy is predicted to grow, crime rate is forecasted to decrease and an estimated 27,000 new jobs are expected to be created.