Village Farms opens Groningen facility to quintuple Dutch cannabis output

Village Farms opened its new cannabis facility in Groningen, Netherlands, this morning, a building designed from the ground up around cultivation, with an odor system calibrated so precisely that neighboring companies might as well be next to a tomato grower.

The Dutch roots run deeper than the board members' accents might suggest. The company's relationship with the Netherlands goes back years, and the Groningen location is an extension of work that began in Drachten, where Village Farms started cultivation last year using practices carried over from its Canadian operations. The new facility is where that learning gets applied at scale.

"Almost four decades ago, we started bringing Dutch technologies to North America. We've always worked closely with Dutch partners, and many of our growers and engineers are Dutch or have Dutch heritage. This feels like coming home."

Village Farms entered the Dutch market through its majority owned subsidiary Leli Holland, which holds one of ten licenses issued by the Dutch government to legally produce and distribute recreational cannabis to participating coffeeshops.

Once fully ramped, Village Farms anticipates annual production capacity of approximately 10 tonnes in the Netherlands, enough to quintuple its output for the Dutch cannabis trial and position the company for wider European market access. Orville Bovenschen, President of Canadian Cannabis & Leli Holland, and Mike DeGiglio, CEO and founder, highlighted their confidence in the Dutch market, as well as further growth in Europe. "We believe in the power of cannabis."

Village Farms started its Dutch cultivation activities in the nearby village of Drachten last year, using cultivation practices developed through its Canadian experience to establish the facility. The new Groningen location represents a continuation of this set direction and an upgrade, with the building fully designed around the demands of cultivation. Special attention was paid to the odor control system, ensuring that nearby companies might just as well be neighboring a tomato cultivation facility.

The opening was marked by the unveiling of an artwork by local artist Ben, reflecting the company's history: strong roots in vegetables and a future in cannabis.

More technical details to follow on Monday!