This is an English translation. The original Dutch article is authoritative.
Recently, the Dutch government published an important update regarding the closed coffeeshop supply chain experiment. This letter informs the House of Representatives about the progress of the experiment, which is currently in the start-up phase in Breda and Tilburg. As of 17 June, the transition phase has commenced, involving all ten participating municipalities. This update provides insight into the current state of affairs, the experiences gained, and the planning for the coming months.
Status of the experiment
The start-up phase of the experiment, which began on 15 December 2023, aims to gain experience on a small scale with the regulated sale of cannabis products. During this phase, both existing tolerated products and regulated cannabis products are available in Breda and Tilburg. The feedback and experiences gathered during this phase are essential for refining the processes and systems required for the successful rollout of the experiment in a broader context.
The transition phase, which started on 17 June 2024, is a crucial step for the experiment. From that moment, growers are permitted to sell their regulated cannabis products to coffeeshops in all ten participating municipalities. These products will be offered alongside existing tolerated products, giving coffeeshop owners and consumers time to adjust to the new supply. This gradual process prevents an abrupt transition that could lead to logistical problems and potential public order issues, such as an increase in illegal street trade.
According to the schedule, the experimental phase will begin three months after the start of the transition phase, on 16 September 2024. During this phase, the sale of tolerated products will no longer be permitted. It is therefore essential that, by that time, the quantity, quality, and diversity of regulated products are sufficient to continuously supply all participating coffeeshops. If this does not happen, the risk of illegal (street) trade increases, which would undermine the objectives of the experiment.
Experiences gained and lessons learned from the start-up phase
The start-up phase has yielded important insights into the practical implementation of the experiment. This phase offered municipalities, growers, coffeeshop owners, transporters, and supervisors the opportunity to gain experience on a small scale with the closed supply chain and the associated processes.
Double enforcement regime
During the start-up phase, coffeeshops in Breda and Tilburg were allowed to sell both tolerated and regulated products. There were concerns that this 'double enforcement regime' would lead to lack of clarity and problems with enforcement. The police and the Public Prosecution Service even had the option to terminate the phase early via a 'stop button' if serious problems with public order and safety were to occur.
However, the evaluation showed that these concerns were unfounded. It was crucial to properly inform coffeeshop owners prior to the start of the start-up phase to prevent confusion. As a result, inspections proceeded smoothly, and supervision was not hindered by the presence of both tolerated and regulated products. Good communication and information play a key role in the success of enforcement, something that will also be applied in the upcoming phases.
Commercial stock
Another challenge during the start-up phase was the limitation of commercial stock to 500 grams of regulated products per coffeeshop. This restriction brought about logistical bottlenecks, as coffeeshops had to be restocked multiple times a day. This increased not only the logistical burden but also security risks, as products were temporarily stored in vehicles.
After consultation with the parties involved, including the mayors, the police, and the Public Prosecution Service, it was decided to relax this restriction. Coffeeshops were henceforth allowed to maintain a weekly stock. This proved to be more efficient and safer, as it reduced the need for frequent deliveries and lightened the administrative burden. This approach will also be maintained in the transition and experimental phases, significantly improving practical feasibility.
Track & trace system
The track & trace system, which follows regulated products from production to sale, plays a crucial role in the supervision of the closed supply chain. During the start-up phase, coffeeshops and supervisors received extensive instructions on using this system. Experiences so far show that the system generally functions well, but there is also room for improvement.
During the start-up phase, some malfunctions occurred in the track & trace system. Although these malfunctions were quickly resolved, they highlight the importance of a robust and reliable system. Coffeeshops must be proficient in registering sold products, both during normal operations and after malfunctions. Additionally, coffeeshops have indicated that linking the track & trace system to their point-of-sale (POS) systems would reduce administrative burdens. This link is currently being developed.
Supervision of secure transport
According to the regulations, the delivery of cannabis products from growers to coffeeshops must take place via secure transport. During the start-up phase, several points for attention and improvements were identified regarding the practical implementation and supervision of this secure transport. The Ministry of Justice and Security, Dienst Justis, and the police are working together to address these points. For example, by drafting clear work instructions and providing clarification to transporters regarding the applicable requirements.
Contact between experiment participants
Throughout the start-up phase, there have been multiple contact moments between the various parties involved. This included regular consultations between municipalities, supervisors, coffeeshops, and growers. The feedback is predominantly positive, and this communication proved crucial for the smooth running of the experiment. The parties involved emphasize the importance of ongoing cooperation and information exchange to address any problems quickly and effectively.
The start-up phase of the closed coffeeshop supply chain experiment has yielded valuable insights that contribute to a smooth transition to the next phases. The extension of the transition phase to three months provides all those involved with more time to adapt and resolve any issues. This pragmatic and gradual approach is essential for the success of the experiment. The experiment remains under close supervision, and progress is continuously monitored. The government will inform the House of Representatives and other stakeholders in a timely manner about important developments and results. The experiences gained will play an important role in shaping future policy and improving processes within the experiment.
Editorial BCD, 21 June 2024