How the UK medical cannabis market is tackling supply chain strain

More than five years has passed since medical cannabis was legalised in the UK, yet there are still significant challenges within the complex supply chain that relies on global imports.

Building a complete UK supply chain could offer benefits to all those involved as well as bringing a major boost to the UK economy.

Despite medical cannabis being legal via prescription since 2018, the logistics and costs associated with importing it are still highly complex.

This has a knock-on effect that ultimately makes accessibility for patients even harder, and they are often unable to guarantee a consistent supply even with a regular prescription.

For each part of the supply chain, there are challenges – some have been addressed but others are still causing issues.

Firstly, attaining an import licence is a costly exercise for any clinic or wholesaler.
Being a Schedule 1 and 2 controlled drug, medical cannabis requires specialist highly secure and temperature-controlled logistics solutions.

The complexities surrounding logistics and customs clearances of importing a Schedule 1 controlled drug into the UK and the costs associated often means that other international medical cannabis markets throughout the world, such as Germany, Switzerland, US, Canada are more attractive to licenced cultivators and producers.

This means that the UK patient is often left with a lower quality product with a shorter shelf life, as the licensed producers will target the more commercially attractive markets.

As well as price tags, timelines can also be a hurdle. Due to export restrictions in other countries, there can be a four-to-eight week wait time for products to arrive in the UK.

Following a government change, licenced wholesalers can now order in larger quantities and store supplies for future prescriptions to help combat this.

When compared to supply chains around the world, cultivators facing these complex circumstances will often find easier ways of selling medical cannabis products.

This can sometimes mean the UK market is seen as a ‘last resort’ and impacts the range of cannabis strains being imported. As well as the delays with imports, this can also mean the shelf life of the product is limited, both of which hinder suppliers and patients.

By allowing the cultivation and distribution of UK-grown medicinal cannabis, there is an opportunity to build a complete supply chain without the import challenges, so we can pass these benefits onto the patient and still maintain compliance.

UK-based growers and suppliers would offer the benefit of a consistent stream of medical cannabis products, in strains that suit doctors and their patients.

In the current climate, products can easily go in and out of stock from foreign producers, and with the products in higher demand this is even more likely.

The combined focus of the UK industry must be to simplify the international supply chain, or to prioritise home-grown products, to ease patient and doctor concerns and relieve pressure of sourcing a reliable supplier.

By using a collaborative ethos, not only would patients find more relief, but the whole UK economy would benefit.

Ambiguity is lessened, and traceability can be more accurate from the growth to the manufacturing process – a closely monitored timeline from start to end.

The UK has a world leading life sciences industry and there are already a huge number of existing businesses that are involved in pharmaceutical manufacturing and extraction – many of the largest firms around the world operate out of the UK because of the skills available.

By bringing the supply chain into the UK, we would broaden that experience and boost the economy.

With any new market, there is of course a business benefit, but there is also a community-wide impact from everything involving transport companies, solicitors, recruitment firms, and even up to the local high street shops and cafes that cater for the influx of new workers.

Additional services across the board are required to support emerging industries, and medical cannabis is no different.

Perhaps one of the most notable benefits would be to the NHS, and the potential to alleviate some of the pressure on health services for patients who may find medical cannabis helps manage their pain.

This also opens up the possibility of allowing more people back into work – patients, family members and other care support. The impact can be seen from hyperlocal through to national.

Having analysed and understood the challenges of the medical cannabis market, and spoken at length with others in the industry, there is a clear need for a UK-based supply chain.

The intention is to supply only a fraction of what the market is capable of – meaning it is large enough for other UK companies to contribute to and support the drive to make the UK a world leader in the industry.

James Leavesley is Chief Executive at Dalgety. Go to dalgetyuk.co.uk