POD2014_New Developments Cannabis Market

8/12/2019 POD2014_New Developments Cannabis Market

1/6

PERSPEC IVES ON DRUGS New developments in Europescannabis market

ransnational criminal organisations are involved in theproduction of cannabis for domestic markets, and are alsoexporting the drug to other European countries. Tis PODtakes a look at some of the main features of Europes cannabismarket with a specic focus on herbal material and atsome of the important changes taking place.

It is difficult to estimate with any certainty the extent ofcannabis cultivation and the amount of the drug produced inEurope. Most of the available information is the result of lawenforcement activities, and thus reects the priorities of lawenforcement agencies and the resources committed to thedisruption of cannabis supply. Tis data can provide, however,useful insights into cultivation settings in Europe and thedifferent criminal groups involved.

I Cannabis production in Europe

Te 1970s saw the emergence of serious cultivation andbreeding of cannabis plants, with growers in North Americaand Europe working to develop plants that could grow in awider range of conditions, produce higher yields and higher-potency products (Decorte, 2010; UNODC, 2006). During the1980s, the Netherlands emerged as the centre of cannabisproduction and know-how in Europe. Over time, the export ofDutch knowledge, combined with the spread of technologicaldevelopments, has led to a trend in several Europeancountries (mostly western) towards import substitution(Jansen, 2002; Potter, 2008). Tis has involved domesticproduction of cannabis increasingly supplying domesticconsumption, and reducing reliance on imported products.

Europe has long been one of the worldslargest consumer markets for cannabisresin. Te European market for cannabisis now increasingly dominated by herbalproducts. Tis change in the market

shares of the two types of cannabisproducts is the result of a shift in how themarket is supplied, driven by increasedaccess to specialist knowledge andtechnology. Cultivation of cannabisis spreading across Europe, and asthis happens, the distances betweenproducers of herbal cannabis and theconsumers of the drug are shortening.

U P DA T E D 2 7

5 .2

0 1 4

emcdda.europa.eu/topics/pods/cannabis-markets-developments

Full edition of this article with interactivefeatures available online at


2/6

PERSPEC IVES ON DRUGS I New developments in Europes cannabis market

Cannabis is a plant that lends itself to a variety of growingconditions, ranging from indoor hydroponic (without soil)settings to growth in natural outdoor settings such as eldsand forests. Indoor cannabis cultivation techniques wererst developed in the Netherlands during the mid-1980s to

avoid detection by the authorities and to overcome climatelimitations. Use of controlled growing conditions andgenetically selected strains can allow growers to obtain fourto six harvests a year, which are of a higher yield and producematerial with higher potency than would have been possible inthe past (Potter and Duncombe, 2012; Vanhove et al., 2012).Indoor cultivation has become very attractive to cannabisgrowers across Europe. It is now reported in 26 Europeancountries, and is identied as the dominant mode of cannabisproduction in 16 of them (EMCDDA, 2012a).

Successful outdoor cultivation of cannabis depends upon anumber of factors, including natural daylight cycles, soil, watersupply and plant strains. Outdoor-grown crops produce oneor two harvests a year. Although outdoor growing is reportedin most European countries, it appears to predominate overindoor settings mostly in southern and eastern areas, wherethe climate is more favourable.

I Scale of cannabis cultivation in Europe

Herbal cannabis production is now widespread in Europe,and plantations have been discovered in all countries. TeNetherlands and the United Kingdom are currently reportingthe highest number of detected production sites, with severalthousand being taken down every year in each of the twocountries. Te next-highest numbers of sites are reported byBelgium and Poland, where between 1 000 and 1 500 siteswere discovered in 2012.

Te scale of cannabis cultivation sites commonly varies froma few plants to several hundred, with large sites of over 1 000plants being reported in seven countries in 2012. An increase

in the size of cultivation sites has been reported in Franceand Finland, possibly indicating a professionalisation of theactivity. Four other countries, most of which have detectedlarge sites, have observed a reduction in the size of the sitesdiscovered (Czech Republic, Greece, United Kingdom andNorway).

Although some growers cultivate the plant solely for personalor friends use, commercial growers, driven by the prospectof nancial gain, are now reported across Europe. Te useof large-scale production facilities by criminal groups isincreasing in many countries, while some of them tendnow to run multiple small-scale plantations to mitigaterisks of detection. Te criminal groups involved in cannabisproduction in Europe are numerous, and there is evidence ofa high degree of organisation and specialisation within the

Photo: iStockphoto

trade. Examples of criminal organisations that have beenidentied as playing an important part in cannabis productionare groups of Vietnamese origin, which are active in central,western and northern Europe, motorcycle gangs in Finlandand armed groups in urkey.

Seizures of whole cannabis plants are generally thought to bean indicator of domestic cultivation that is, the plants areassumed to have been grown in the country where they wereseized. A number of facts support this assumption: wholecannabis plants are bulky and difficult to hide; the plants areusually dried and non-consumable parts are removed beforebeing trafficked for retail distribution and sale. With over 30000 cases in 2012, the number of seizures of cannabis plantsin Europe has doubled in ve years. Millions of cannabisplants are conscated every year in Europe; with just under7 million seized in 2012, this was nearly triple the quantityreported ve years earlier. Some countries only reportseizures of plants in weight; in 2012, interceptions in thesecountries totalled 45 tonnes, a 50 % increase compared to2007.

Cultivation is reported to be increasing in several countriesincluding Ireland, Slovenia, Slovakia and the United Kingdom.Greece and Poland report increasing indoor cultivation. Tenumber of cannabis plantations dismantled is increasingin Belgium, the Czech Republic, Croatia, Poland andRomania. Tis could be indicative of an increase in domesticproduction. However, the sizes and settings of plantationsvary considerably, and as law enforcement agencies becomemore aware of the phenomenon, they are getting better atdetecting such sites.

Developments in cannabis supply have been accompanied bya shift from resin to herbal cannabis consumption in Europe.Consumption of herbal cannabis has been increasing in thelast 10 years and has now overtaken that of resin in Europeoverall (EMCDDA, 2012a). Of the estimated 2 050 tonnes


3/6


of cannabis consumed every year in the European Unionand Norway, about 60 % (1 280 tonnes) is herbal cannabisand the remainder is resin. While consumption of resin isconcentrated in a few countries, the use of herbal cannabisis more evenly spread across Europe. Te United Kingdom is

estimated to be the largest market, accounting for 24 % of allherbal cannabis consumed in Europe, followed by Germany(16 %), Spain (15 %) and France (11 %).

Tere has always been a large variation in the content ofHC the main psychoactive ingredient in cannabis

across Europe, with highly potent material being reported onoccasion. Tere are current concerns about the public healthimplications of increased consumption of highly potentherbal products that are low in CBD a cannabinoid withantipsychotic properties (see video).

I Production and trafficking areas in Europe

Cannabis production in Europe is a major challenge for druglaw enforcement: it is difficult to detect, especially whenoccurring indoors, and trafficking often within countries orwithin the Schengen open borders area, and requiring l ittlecrossing of the external borders of the European Union ismore difficult to interdict compared with imports of resin. Tisis reected in the tentative interdiction rates of around 40 %for resin and less than 10 % for herb in the European Union.

In most countries, the produce of cannabis plantations isdestined for local drug markets. In a few countries, however,cannabis is also produced for export. Some geographicalpatterns can be observed in herbal cannabis supply in Europeby looking at seizures and their relative proportion of themarket.

South/South-East Europe

Te Western Balkans countries are a source of herbalcannabis consumed in the European Union, with cultivationoccurring in Albania, in particular, but also in Bosnia-Herzegovina, Kosovo ( 1), Montenegro, Serbia and the formerYugoslav Republic of Macedonia. Herbal cannabis originatingin these countries is trafficked into the European Unionthrough Greece, Croatia or Italy. Tis product, however, grownoutdoors, is of comparatively poor quality. After exportation,it is sometimes mixed with domestic products, and then soldfor a higher price. Tis practice is reported in Greece. Evidencepoints to Greece being a growing trafficking hub for herbalcannabis. In 2012, Greece reported an annual increase oftwo-thirds in the amount of herbal cannabis conscated (22tonnes). Average seizures, over 201012, were around 2.5 kg,

and the amount of herbal cannabis intercepted was 109 % ofthe estimated national consumption an exceptionally highrate. Tese data point to intense cross-border trafficking withneighbouring countries, likely of products both of domesticorigin and from the Balkans.

In recent years, urkey has emerged as the largest seizingcountry in Europe for herbal cannabis, reaching a new recordof 125 tonnes in 2012. Although the average size of the

seizures has declined over the years, it is now around 1.5kg, which remains large compared with other countries, andpoints to bulk trafficking, probably of material of domesticorigin.

In that part of Europe, Bulgaria may also be a place ofbulk trafficking of herbal cannabis. Although the quantityseized and it is increasing remains comparatively small(1.3 tonnes in 2012), the average size of the interceptedshipments (5 kg) is very large. In a context in which criminalorganisations are tightening their hold on the distribution ofdomestically produced herbal cannabis traditionally grownoutdoors, these data may reect intensication both of theactivity of such groups and of their targeting by the police.

I Facts and gures

457 000 the total number of herbal cannabis seizuresreported in Europe, 2012

230 tonnes the total quantity of herbal cannabisintercepted in Europe, 2012

2 050 tonnes the total quantity of cannabis estimated tobe consumed in Europe

1 280 tonnes the total quantity of herbal cannabisestimated to be consumed in Europe

875 000 the total number of offences reported by thepolice in relation to cannabis in Europe, 2012

78 % the proportion of cannabis-related offences inEurope linked to use or possession for use, 2012

525 EUR/g the average price of herbal cannabis atretail level in Europe, 2012 (range)

314 % THC the average HC content in herbalcannabis in Europe, 2012 (range)

46 % THC (MAX) the maximum HC content in herbalcannabis in Europe, 2012

(1) Tis designation is without prejudice to positions on status, and is in line withUNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.


4/6


South-West Europe

In South-West Europe, Italy and Spain may be developinginto important production countries for cannabis. Tey bothreported the largest increases in seizures of cannabis plants

in 2012, intercepting 4 million plants in Italy and 40 tonnes inSpain.

Italy remains one of the largest seizing countries in Europefor herbal cannabis, with 21 tonnes intercepted in 2012. Onaverage, the seizures are very large, around 3.3 kg, and thetotal amount seized is estimated to represent 25 % of thelocal market. As well as pointing to increasing production anddistribution of domestic material, these data may also suggestthe importation and possible transit of herbal material, forinstance from the Balkans.

In common with many other European countries, Spainhas reported a major increase in the quantities of herbalcannabis seized in the last two years (reaching 10 tonnesin 2012). However, seizures are very small, at about 80 g onaverage, and the total amount recovered amounts to only 5% of estimated domestic demand. Tese data point to localtrafficking of small quantities, probably of domestic origin.Some of the herbal cannabis produced, however, is intendedfor exportation further north; for example in 2013, 15 sites,growing 13 000 plants, near Malaga, were dismantled in anoperation targeting a network of criminals operating betweenSpain and the Netherlands.

North/North-West Europe

Belgium and the Netherlands have long been identied as atrafficking hub for both herbal cannabis and cannabis resin.In recent years, changes in enforcement in the Netherlandshave led Dutch commercial growers to transfer some of theiroperations to Belgium, with the produce being exported backto the Netherlands for sale in coffee shops. Te result is a

blurring of the boundaries between the two countries withrespect to cannabis production and supply. Herbal cannabisproduced in these countries is destined for both domesticand export markets, with a large number of countries inEurope reporting the Netherlands as the source of the drug.On a European scale, however, Belgium and the Netherlandshave been overtaken by other countries for herbal cannabisseizures (6 and 13 tonnes respectively seized in 2012).Tese amounts are equivalent to about 15 % of the estimatednational market in Belgium and 12 % in the Netherlands.

Denmark also appears to be a centre of cannabis production,with 1.4 tonnes of cannabis plants seized in 2012. Cannabisconsumption in Denmark, however, continues to bedominated by resin, and some of the herbal cannabis

produced there is reported to be exported to countries such asthe Netherlands and Sweden.

Te United Kingdom and Germany are estimated to be thelargest markets for herbal cannabis in the European Union.

Te relatively small average size of seizures (100200 g)in both countries is likely to reect the large proportion ofseizures at user level. Te amounts intercepted are equivalentto 6 % of estimated national demand in the United Kingdomand 2 % in Germany. Tese data suggest a predominance ofsmall-scale trafficking, mostly of domestic products.

Herbal cannabis consumed in Germany may also originatefrom the Czech Republic. Te Czech Republic and Slovakiahave become important cannabis producers, supplyingboth their domestic markets and exporting to neighbouring

countries.

I Conclusion

Te past decade has seen major strides in the applicationof advanced plant breeding, cultivation and processingtechniques to cannabis production. At the same time,Europes markets for cannabis products have changedfundamentally. oday, more herbal cannabis than resinis consumed in the European Union. Increasingly, herbalproducts are being produced in the same countries wherethey are sold and consumed. As production of herbalcannabis has increased, signs have appeared that it is alsobeing exported to neighbouring countries.

Te increased availability of cultivation equipment andtechnical know-how has facilitated an expansion in thenumber of indoor production sites. Tis technology hasallowed organised crime groups involved in cannabisproduction to manage both large-scale plantations andmultiple smaller sites. Cannabis produced in Europe poses

a challenge to law enforcement, as it is harder to detect andseize than cannabis products shipped into Europe throughits external borders. Tis underlines the need for advanceddetection techniques to support interdiction efforts.


5/6


In spite of the recent expansion of the European herbal

cannabis market, Europe is likely to remain one of theworlds major consumer markets for cannabis resin. Tesupply of cannabis resin to Europe relies to a large extentupon foreign producers, predominantly Morocco, and to alesser extent Afghanistan (EMCDDA, 2012). Recent globaldata suggest that resin from Morocco is consumed mainlyin western and northern European countries, whereas themain consumer markets for Afghan resin are Asian andMiddle-Eastern countries as well as Russia and urkey(UNODC, 2013a).

According to the latest estimates of global cannabis resinproduction, Afghanistan is the worlds leading producer,with 1 300 tonnes in 2011 (1 400 tonnes in 2012), followedby Morocco, with 760 tonnes in 2011. Te current guresfor Morocco, however, imply a 75 % reduction in resinproduction between 2003 and 2011, which is not supportedby seizure data (EMCDDA, 2012; UNODC, 2012, 2013a,2013b).

Developments in cannabis cultivation in Morocco may havealtered the parameters for estimating resin productionin that country. Recent research in the Rif region, where

Moroccos cannabis resin is produced, suggests that thefarmers now cultivate imported hybrid cannabis plantsinstead of the local kif plant, on which regional resinproduction had traditionally been based. Te new hybridsare reported to yield three to ve times more resin per plant,and the resin is said to contain much greater amounts of

HC than kif plants (Chouvy and Afsahi, in press).

As a result, it is likely that Morocco now produces muchmore cannabis resin than available estimates wouldsuggest, and that the resin produced is of higher potencythan was previously the case. Tis could explain theanomalies found when comparing seizure data in keycountries such as Algeria, Morocco and Spain withestimates of Moroccan resin production and Europeanconsumption (EMCDDA and Europol, 2013). Tesedevelopments in Morocco may also explain the markedincrease in cannabis resin potency reported in Europe since2009.

References

Chouvy, P.-A. and Afsahi, K. (in press), Hashish revival in Morocco, InternationalJournal of Drug Policy. Available online at: http://dx.doi.org/10.1016/j.drugpo.2014.01.001

EMCDDA (2012), Cannabis production and markets in Europe , EMCDDAInsights Series No 12, Publication Office of the European Union, Luxembourg.Available online at: http://www.emcdda.europa.eu/publications/insights/cannabis-market

EMCDDA and Europol (2013), EU Drug markets report: a strategic analysis ,Publication Office of the European Union, Luxembourg. Available online at:http://www.emcdda.europa.eu/publications/joint-publications/drug-markets

UNODC (2012), World Drug Report 2012, United Nations, New York.

UNODC (2013a), World Drug Report 2013 , United Nations, New York.

UNODC (2013b), Afghanistan. Survey of commercial cannabis cultivation andproduction 2012, Islamic Republic of Afghanistan Ministry of Counter Narcoticsand United Nations Office on Drugs and Crime, September. Available online at:http://www.unodc.org/documents/crop-monitoring/Afghanistan/Afghan_Opium_survey_2013_web_small.pdf

Origin of cannabis resin consumed in Europe and production estimates


6/6


I Decorte, . (2010), Te case for small-scale domestic cannabis cultivation,

International Journal of Drug Policy 21, pp. 271275.

I EMCDDA (2012a), Cannabis production and markets in Europe , EMCDDA InsightsSeries No 12, Luxembourg: Publications Office of the European Union. Available onlineat: http://www.emcdda.europa.eu/publications/insights/cannabis-market

I EMCDDA (2012b), Reitox 2011 and 2012 national reports to the EMCDDA . Availableonline at: http://www.emcdda.europa.eu/publications/searchresults?action=list&type=PUBLICA IONS&SERIES_PUB=w203

I EMCDDA and Europol (2013), EU Drug markets report: a strategic analysis ,Publications Office of the European Union, Luxembourg. Available online at: http://www.emcdda.europa.eu/publications/joint-publications/drug-markets

I Jansen, A. C. M. (2002), Te economics of cannabis-cultivation in Europe, paperpresented at the 2nd European Conference on Drug rafficking and Law enforcement,Paris, 2627 September 2002. Available online at: http://www.cedro-uva.org/lib/jansen.economics.html

I Potter, G. (2008), Te growth of cannabis cultivation: explanations for importsubstitution in the UK, in Korf, D. J. (ed.) Cannabis in Europe: dynamics andperceptions, policy and markets , Pabst Science Publishers, Lengerich, pp. 87105.

I Potter, D. J. and Duncombe, P. (2012), Te effect of electric lighting power andirradiance on indoor-grown cannabis potency and yield, Journal of Forensic Sciences 57, pp. 618622.

I UNODC (2006), Review of the world cannabis situation, Bulletin on Narcotics , VolumeLVIII, Nos. 1 and 2. Available online at: http://www.unodc.org/documents/data-and-analysis/bulletin/2006/Bulletin_on_Narcotics_2006_En.pdf

I Vanhove, W., Surmont , ., Van Damme, P. and De Ruyver, B. (2012), Yield and turnoverof illicit indoor cannabis (Cannabis spp.) plantations in Belgium, Forensic ScienceInternational 221(13), pp. 265270.

References

Video on new developments in Europes cannabis market, available on theEMCDDA website: emcdda.europa.eu/topics/pods/cannabis-markets-developments

I Interactive element: video

Documents

POD2014_New Developments Cannabis Market