Village Farms Is Firing On All Cylinders In The Netherlands
Village Farms International, Inc. (NASDAQ: VFF) has announced the commencement of processing orders and deliveries at its wholly-owned subsidiary, Leli Holland, in the Netherlands. This marks a significant milestone for the company, as it meets its previously-disclosed guidance on its timeline to commence sales in the Dutch market. The first harvest from Leli Holland’s indoor cannabis production facility in Drachten was completed in December 2024, and deliveries to Dutch coffeeshops are set to begin on February 7, 2025.
Leli Holland holds one of the ten licenses to produce and distribute recreational cannabis in the Netherlands, a country with a population of 18 million people. The production facility in Drachten was completed in October 2024, and Village Farms expects full ramp-up of operations by the second quarter of 2025. Starting April 7, 2025, all coffeeshops in participating municipalities will be required to purchase and sell cannabis products solely from regulated license holders.
The Dutch cannabis market is one of the more attractive opportunities globally, thanks to its long-established culture of legal cannabis consumption, zero-tax policy toward regulated products, and a considerably more favorable pricing environment compared to Canada. The market is expected to reach a revenue of US$277.20 million by 2025, with a projected annual growth rate of 1.16% from 2025 to 2029. By 2030, the legal cannabis market in the Netherlands is forecasted to reach a revenue of US$651.1 million, growing at a compound annual growth rate (CAGR) of 18.5% from 2024 to 2030.
Michael DeGiglio, President and CEO of Village Farms International, commented on the significance of this milestone, stating, “Today’s news marks the culmination of nearly five years of work by our team to commercialize Leli’s operations, and we are thrilled to begin deliveries to Dutch coffeeshops and meet our previously-disclosed timeline to launch of sales. With a long-established culture of legal cannabis consumption, a zero-tax policy toward regulated products, and a considerably more favorable pricing environment than Canada, the Dutch market represents one of the most attractive cannabis investment opportunities globally1.”
Village Farms’ entry into the Dutch market is a result of nearly five years of strategic planning and regulatory compliance. The company analyzed the market dynamics and regulatory landscape extensively before making its entrance4. The Dutch government’s decision to regulate and license cannabis production and distribution has created a favorable environment for companies like Village Farms to operate and thrive4.
The commencement of sales in the Dutch market is a testament to Village Farms’ ability to execute a profitable international growth strategy. The company looks forward to continued collaboration with the Dutch government to create a model for success in regulating cannabis internationally.
Village Farms’ entry into the Dutch cannabis market is a significant development for the company and the industry as a whole. With a favorable regulatory environment and a growing market, Village Farms is well-positioned to capitalize on the opportunities presented by the Dutch cannabis market.
