Applications for Germany’s recently legalised cannabis cultivation associations, or ‘social clubs’, have increased significantly over the last month.
To date, 226 applications have been submitted across every German federal state, an increase of nearly 250% compared to the last time Business of Cannabis reported on the topic in early July.
Despite the rapid increase in applications, only eight permits in a single federal state have been granted, as the level of bureaucracy and lack of a clear framework begin to frustrate would-be associations.
CEO of Cannovum Cannabis AG, an organisation focused on providing services for Germany’s cultivation associations, Klaus Madzia, told Business of Cannabis: “It’s going very, very slow. We anticipated problems, but our expectations have been surpassed.”
According to Prohibition Partners’ monthly tracker, gathered from various local news publications, a number of states have seen significant growth in application numbers over the past month.
A comprehensive list of the associations can be found here.
The biggest increase over the month has been in North Rhine-Westphalia, which has seen 48 new cannabis social club applications come through over the past month.
Given that North Rhine-Westphalia is the most populous state in Germany, with 18m inhabitants and a number of the country’s major cities, including Cologne, Düsseldorf and Dortmund, this is to be expected.
Other highly populated states, such as Baden-Württemberg, home to roughly 11m residents, and Lower Saxony, with a population of around 8m, are also leading the pack in terms of application numbers.
Notably, Lower Saxony continues to be the only state to have issued any licenses (8 to date), under 50% of all applications, equating to one club for every 1m residents.
Asked which states were proving particular problematic for applicants, Mr Madzia said: “Let’s rephrase that—it’s better to ask which states aren’t a problem.
“We’ve decided on Lower Saxony, and our reference club will start there in the next couple of weeks. We’ve had productive discussions, and it’s the only state that’s been somewhat open and granted licenses. Everywhere else, I only see problems.”
In Bavaria, which maintains a restrictive stance on cannabis, cultivation associations face significant challenges in the application process. In February 2024, Bavarian Minister-President Markus Söder announced his party’s intent to obstruct or delay the implementation of the Cannabis Control Act (CanG). As a result, applicants encounter additional hurdles, such as mandatory courses on youth protection and prevention, which won’t start until September 2024.
Another key area of frustration for applicants, Berlin, which has been stuck in administrative limbo for weeks, yesterday made a major step forward as a tussle between the Senate Chancellery and the Health and Social Services Administration over who was responsible for granting permits was finally resolved.
In Berlin, the implementation of the Cannabis Act faced challenges when the Senate Department of Health unexpectedly assigned licensing authority to the city’s 12 district offices just three days before the law took effect on July 1, 2024. The districts, unprepared and lacking expertise, received no guidelines on the application process. While cannabis associations could submit applications, they remained unprocessed until clear regulations were finalized by the Senate, further delaying the licensing procedure.
Yesterday, a decision was finally reached, meaning the State Office for Health and Social Affairs (Lageso) will now handle the approval of cultivation associations, while district offices will inspect cultivation sites and enforce regulations.
However, Mr Madzia remained skeptical about the rate of progress in Berlin, stating: “I’ve heard about a supposed breakthrough in Berlin, but as a resident, I’m cautiously waiting to see what happens. I don’t see anybody operating in Berlin before the end of the year, in all honesty.”
These issues highlight the complexity of the regulation, given each state has a degree of authority in how it chooses to regulate cannabis social clubs.
As Prohibition Partners explains in its soon-to-be published German Cannabis Report, the type of authority and application requirements vary across all 16 states.
In Brandenburg, Bremen, Hamburg, Saarland, and Saxony-Anhalt, consumer protection agencies handle the process. In Bavaria, Mecklenburg-Western Pomerania, Lower Saxony, and Thuringia, food or agricultural authorities are responsible. Other states, such as Baden-Württemberg and Hesse, have assigned regional councils to manage the permitting and control of these associations, reflecting the diverse regulatory approaches across Germany.
According to Mr Madzia, associations are now looking towards securing partnerships and services to enable their growing operations to flourish.
A key area of focus, according to the conversations he has had with would-be associations, is bringing in help from the agricultural sector.
“What they’re most interested in during our discussions is finding partners in the agricultural sector who are willing to invest, have the know-how, and hold the necessary licenses to grow,” he explained.
“Many club associations are discovering that you can’t easily repurpose real estate that wasn’t originally agricultural. For example, you can’t just convert an old car garage into a greenhouse without facing local government restrictions. That’s why our original approach of partnering with established agricultural experts is proving to be the most viable path to success.”
“There’s a lot of mistrust at the regulatory and licensing level towards newly formed co-ops, especially those that emphasize recreational cannabis in their branding. Partnering with an established agricultural entity adds a level of respectability and seriousness in the eyes of regulators, making the process smoother.”
Prohibition Partners’ German Cannabis Report, which will dive deeper into the issues discussed in this article, is now available for pre-order here.
The post Cannabis Social Club Applications Surge Across Germany, But Licensing Issues Continue to Frustrate Applicants appeared first on Business of Cannabis.
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To date, 226 applications have been submitted across every German federal state, an increase of nearly 250% compared to the last time Business of Cannabis reported on the topic in early July.
Despite the rapid increase in applications, only eight permits in a single federal state have been granted, as the level of bureaucracy and lack of a clear framework begin to frustrate would-be associations.
CEO of Cannovum Cannabis AG, an organisation focused on providing services for Germany’s cultivation associations, Klaus Madzia, told Business of Cannabis: “It’s going very, very slow. We anticipated problems, but our expectations have been surpassed.”
Slow but steady growth
According to Prohibition Partners’ monthly tracker, gathered from various local news publications, a number of states have seen significant growth in application numbers over the past month.
A comprehensive list of the associations can be found here.
The biggest increase over the month has been in North Rhine-Westphalia, which has seen 48 new cannabis social club applications come through over the past month.
Given that North Rhine-Westphalia is the most populous state in Germany, with 18m inhabitants and a number of the country’s major cities, including Cologne, Düsseldorf and Dortmund, this is to be expected.
Other highly populated states, such as Baden-Württemberg, home to roughly 11m residents, and Lower Saxony, with a population of around 8m, are also leading the pack in terms of application numbers.
| Federal State | No. of Applications July | No. of Applications August | Change |
| Baden-Württemberg | 20 | 41 | 21 |
| Bavaria | 7 | 20 | 13 |
| Berlin | 1 | 20 | 19 |
| Brandenburg | 0 | 5 | 5 |
| Bremen | 0 | 1 | 1 |
| Hamburg | 5 | 7 | 2 |
| Hesse | 2 | 9 | 7 |
| Mecklenburg-Western Pomerania | 0 | 3 | 3 |
| Lower Saxony | 16 | 21 | 5 |
| North Rhine-Westphalia | 5 | 53 | 48 |
| Rhineland-Palatinate | 4 | 17 | 13 |
| Saarland | 0 | 2 | -4 |
| Saxony | 0 | 8 | 8 |
| Saxony-Anhalt | 0 | 6 | 6 |
| Schleswig-Holstein | 0 | 9 | 9 |
| Thuringia | 1 | 4 | 3 |
| TOTAL | 67 | 226 |
Notably, Lower Saxony continues to be the only state to have issued any licenses (8 to date), under 50% of all applications, equating to one club for every 1m residents.
Asked which states were proving particular problematic for applicants, Mr Madzia said: “Let’s rephrase that—it’s better to ask which states aren’t a problem.
“We’ve decided on Lower Saxony, and our reference club will start there in the next couple of weeks. We’ve had productive discussions, and it’s the only state that’s been somewhat open and granted licenses. Everywhere else, I only see problems.”
In Bavaria, which maintains a restrictive stance on cannabis, cultivation associations face significant challenges in the application process. In February 2024, Bavarian Minister-President Markus Söder announced his party’s intent to obstruct or delay the implementation of the Cannabis Control Act (CanG). As a result, applicants encounter additional hurdles, such as mandatory courses on youth protection and prevention, which won’t start until September 2024.
Another key area of frustration for applicants, Berlin, which has been stuck in administrative limbo for weeks, yesterday made a major step forward as a tussle between the Senate Chancellery and the Health and Social Services Administration over who was responsible for granting permits was finally resolved.
In Berlin, the implementation of the Cannabis Act faced challenges when the Senate Department of Health unexpectedly assigned licensing authority to the city’s 12 district offices just three days before the law took effect on July 1, 2024. The districts, unprepared and lacking expertise, received no guidelines on the application process. While cannabis associations could submit applications, they remained unprocessed until clear regulations were finalized by the Senate, further delaying the licensing procedure.
Yesterday, a decision was finally reached, meaning the State Office for Health and Social Affairs (Lageso) will now handle the approval of cultivation associations, while district offices will inspect cultivation sites and enforce regulations.
However, Mr Madzia remained skeptical about the rate of progress in Berlin, stating: “I’ve heard about a supposed breakthrough in Berlin, but as a resident, I’m cautiously waiting to see what happens. I don’t see anybody operating in Berlin before the end of the year, in all honesty.”
These issues highlight the complexity of the regulation, given each state has a degree of authority in how it chooses to regulate cannabis social clubs.
As Prohibition Partners explains in its soon-to-be published German Cannabis Report, the type of authority and application requirements vary across all 16 states.
In Brandenburg, Bremen, Hamburg, Saarland, and Saxony-Anhalt, consumer protection agencies handle the process. In Bavaria, Mecklenburg-Western Pomerania, Lower Saxony, and Thuringia, food or agricultural authorities are responsible. Other states, such as Baden-Württemberg and Hesse, have assigned regional councils to manage the permitting and control of these associations, reflecting the diverse regulatory approaches across Germany.
Looking ahead
According to Mr Madzia, associations are now looking towards securing partnerships and services to enable their growing operations to flourish.
A key area of focus, according to the conversations he has had with would-be associations, is bringing in help from the agricultural sector.
“What they’re most interested in during our discussions is finding partners in the agricultural sector who are willing to invest, have the know-how, and hold the necessary licenses to grow,” he explained.
“Many club associations are discovering that you can’t easily repurpose real estate that wasn’t originally agricultural. For example, you can’t just convert an old car garage into a greenhouse without facing local government restrictions. That’s why our original approach of partnering with established agricultural experts is proving to be the most viable path to success.”
“There’s a lot of mistrust at the regulatory and licensing level towards newly formed co-ops, especially those that emphasize recreational cannabis in their branding. Partnering with an established agricultural entity adds a level of respectability and seriousness in the eyes of regulators, making the process smoother.”
Prohibition Partners’ German Cannabis Report, which will dive deeper into the issues discussed in this article, is now available for pre-order here.
The post Cannabis Social Club Applications Surge Across Germany, But Licensing Issues Continue to Frustrate Applicants appeared first on Business of Cannabis.
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