Cannabis Producer Demecan Expands Production - Demecan doubles cannabis production in Germany amid regulatory uncertainty
Demecan, Germany's largest medical cannabis producer, has doubled its cultivation capacity in Ebersbach, Saxony. The expansion follows a €23 million investment, with €5 million allocated to the latest upgrade alone. Despite this growth, the company still relies on imports to meet demand.
The Ebersbach facility now spans an extraction plant and an in-house lab for quality control and cannabinoid testing. Annual production has risen to roughly 4,000 kilograms, up from previous levels. Alongside this, the workforce has expanded from 70-80 employees to around 120.
2022 marked the company's strongest year to date, reinforcing its upward trend. Yet, Demecan remains critical of proposed legal changes under the MedCanG amendments, which aim to tighten cannabis distribution through pharmacies. Health Minister Karl Struck has pushed for stricter regulations, creating uncertainty for producers like Demecan. The company warns that tighter rules could drive consumers back to the black market.
Saxon Minister-President Michael Kretschmer is set to tour the site on Thursday, highlighting its regional significance.
The expansion strengthens Demecan's position as Germany's top medical cannabis supplier. However, regulatory pressures and ongoing import reliance pose challenges for the future. The company's growth reflects both opportunity and uncertainty in the evolving market.
