"We're big believers in the power of cannabis"

"We're big believers in the power of cannabis," said CEO Mike DeGiglio of Village Farms last Friday during the opening of the new indoor cultivation facility in Groningen, Netherlands. "All plants created have a purpose, and so does cannabis."

It's the next step in the cannabis adventures of the company that has its roots in tomatoes - something symbolised in the artwork that was revealed during the opening. Village Farms has been involved in cannabis since its legalization in Canada, while continuing to build on its roots in high-tech greenhouse horticulture, which date back nearly four decades. Last year, the company announced that it would place its traditional horticultural activities into a new entity, Vanguard, with strong growth ambitions in the fresh produce industry, allowing the publicly listed Village Farms to fully focus on cannabis cultivation. Their products are currently being exported to Germany, the United Kingdom, Israel, Australia, and New Zealand, and they are expecting continued growth in Europe.

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

Headquarters
CEO Mike addressed the historic connections between the Netherlands and Canada: the role Canada played in the region, with many Canadians giving their life during the liberation of Netherlands, the Dutch techniques used by Village Farms to set up their enterprise, and now their return to the Netherlands, with their European headquarters, and their role in the legislation of the plant, and the value chain, in Netherlands.

Dutch market
Throughout almost four decades, the growers have built up considerable experience in indoor cultivation in Canada itself. Several of the Dutch team members also have backgrounds from cultivation in the Netherlands, while in Canada, the company operates both greenhouse facilities and a fully indoor site.

This combined expertise formed the basis for designing the current cultivation system. In Drachten, the concept was tested on a smaller scale over the past year to eliminate initial issues. This was essential, as the €23 million investment in the two facilities is expected to be recouped within four years, the duration of the Dutch cannabis trial.

What happens after that remains uncertain, as it is still unclear whether legal cannabis cultivation will continue in the Netherlands. Village Farms has anticipated potential expansion: the Groningen building is designed to accommodate an additional floor, and the 6 MW energy connection, currently operating at 2.5 MW, offers sufficient capacity for scaling up. Energy availability is a sensitive topic within the already congested Dutch grid, as also highlighted by local political responses. The team indicated they were surprised by the allocation, noting that a 6 MW connection was actually more cost-effective than 2.5 MW, and added that discussions are ongoing with neighboring businesses to collaborate on electricity availability.

Showing the facility
In addition to technical suppliers and colleagues, customers were also invited to the opening, namely coffee shop owners from the region. Visitors were guided through the different cultivation rooms, each dedicated to specific growth stages and varieties that Village Farms plans to produce. The facility has additional space for drying, producing, and packaging finished products for distribution to approximately 80 Dutch coffeeshops in participating jurisdictions - or, as it's being called, the Vault, the highly protected area.

The water technology area was also showcased, with explanations on various cultivation recipes and strict cleaning protocols to maintain a fully hygienic growing environment. This also explains why no plants are currently present. "We are not allowed to use chemicals, so we can't take contamination risks."

Guests were also invited onto the roof, not just for the view, but to see the container housing the core of the ammonia-based system that drives both odor control and cooling within the facility.

The project was delivered through close collaboration with the municipality of Groningen and several Dutch partners. Lek Habo was responsible for electrical and water systems, while Geerlofs handled HVAC. The installation includes 1000W Fluence lighting, a Ridder climate system, and water treatment units from suppliers such as Van der Ende. After such an intensive development process, partners like Lek Habo and Geerlofs feel almost like family, Mike noted.

"This is not only our most technologically advanced installation in 37 years of agriculture, but it is also the most advanced precision agriculture facility in the Netherlands, possibly even worldwide. We selected technologies that have not been implemented before and, together with our partners, brought this to life."