The Netherlands Sets December Launch for Cannabis Pilot Program in Breda and Tilburg

2.1 min readPublished On: September 25th, 2023By

AMSTERDAM — The Netherlands has designated December 15 as the inception date for its highly anticipated cannabis pilot program, set to commence in the cities of Breda and Tilburg.

This experiment, previously slated to begin in 2020 but experiencing multiple postponements, will involve the legal cultivation and distribution of cannabis in select cities. The initial phase, lasting up to six months, will allow coffee shops in these cities to offer both legally grown and existing tolerated cannabis products.

In a statement, the Dutch government disclosed, “Two legal growers are expected to be prepared for delivery to coffee shops in the fourth quarter of 2023.” A supplementary pair of growers is forecasted to commence supply by February 2024.

The “start-up phase” of the program has been introduced to facilitate businesses’ transition to the new regulatory environment. Ministers Ernst Kuipers of Health, Welfare and Sport and Yeşilgöz-Zegerius of Justice and Security, both supportive of the effort, envision this as an opportunity to explore legalized production and sales chains.

Should any significant public safety concerns arise, the government reserves the right to halt the program. They have committed to sharing insights gained with all participating municipalities, aiming for seamless transitions in subsequent stages.

Following this preparatory period, the “transition phase” is scheduled, during which regulated products can be sold alongside tolerated products in coffee shops. However, the official experimental phase will witness a mandatory shift, allowing only the sale of regulated cannabis in participant shops.

Historically, the Netherlands is renowned for its “soft drugs” policy, termed gedoogbeleid. While sale and consumption of cannabis are tolerated, its production and distribution have remained prohibited, leading to a unique business environment for coffee shop owners. Despite these nuances, coffee shops have proliferated. In 2007, there were an estimated 229 shops in Amsterdam alone, a number that stood at 166 by 2020. Across the nation, approximately 570 coffee shops operate within 102 municipalities.

This initiative by the Dutch government comes amidst a growing trend in Europe of reevaluating cannabis policies. Luxembourg, a member of the European Union, commenced a similar pilot program after legalizing cannabis for personal consumption. Switzerland, though not an EU member, has also embarked on its cannabis pilot journey this year.

As cities like Amsterdam impose stricter regulations on cannabis consumption in specific districts, it remains to be seen how the country’s pioneering experiment will reshape the landscape of cannabis trade and consumption in Europe.

The initiative underscores the evolving attitudes and the complex interplay between commerce, regulation, and public perception in one of the world’s most famed markets for cannabis.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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