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UK Begins Large-Scale CBD Production

UK Begins Large-Scale CBD Production

Sundial Growers, an Albertian based Canadian company recently acquired Bridge Farms, a British cannabinoid production company with a 75-acre cannabis production facility in Lincolnshire. Bridge Farms is one of the UK’s largest growers and also the winner of the overall UK Grower of the Year Award in 2017. What does mean for the UK? Nothing but the fact that the age of large-scale CBD production in UK is finally here.

Sundial Growers is a big player in the cannabis industry and they intend to create one of the largest automated cannabis farms with this recent acquisition. This is a big one, given that Bridge Farms had ₤18 million equity injection in 2018 from HSBC and private equity investor NorthEdge Capital. It will certainly impact the production of hemp-based products in the UK.

Almost at the same time with this acquisition, Sundial Growers applied to be listed on the Nasdaq in the United States.

Furthermore, the existence of the cannabis industry in this part of the UK is not entirely new, as the county of Norfolk has been housing British Sugar, the grower of cannabis crop for GW Pharmaceuticals. The east coast has been historically associated with major international British trade, so foreign investment in agriculture in this part of the world is not just new neither is the shipping of the products. 

Impact on the British Market

It will be interesting to see how this new development affects the British market, what with the advent of a likely Brexit. Will the newly constructed cannabis production centers be for both domestic and overseas consumption or just the former? This remains to be seen.

However, siting such a fully-fledged CBD production facility in such a strategic location indicates that CBD production is about to begin in a level yet to be seen in any other European country. More still, the people behind this development seem to be considering both the local and international market. 

Impact on the European Market

It’s unlikely that the European market will be affected much by this large-scale cannabis production.  The UK has a lot of worker safety and pay regulations, and this will probably affect the way they price their products. It may not be able to compete with the price range of CBD oils and products in Europe right now. What this means is that exports of the British-produced cannabis products to Europe is very unlikely.

But no matter what, large-scale production of both CBD and THC is already underway in UK and many customers are already gearing up for it.

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