Small-scale, craft cannabis producers may choose to move back into the illicit market if the barriers to the market are not addressed, says a new report from the federal government’s expert review panel.
The panel’s review of the federal Cannabis Act included numerous recommendations to address challenges the industry is facing, including calls for changes to regulatory fees for equity-deserving groups and micro-licence holders.
From a small producer’s perspective, they do seem to understand some of the specific concerns we’re facing.
The report argues that the future of smaller cannabis companies is in serious question without government intervention and other regulatory changes to lessen the financial pressure these companies face.
Some of those suggestions include reducing or even eliminating the cost of applying for micro and other “equity-deserving” applicants like First Nations and other historically disadvantaged groups.
The expert panel also suggests that provinces and territories that control distribution and sales within their jurisdictions should allow small-scale producers to sell directly to consumers, such as through farmgate or mail-order sales.
Ontario, New Brunswick, and BC currently have farmgate programs. No jurisdictions allow producers to sell directly to consumers, except through such a farmgate licence in BC.
The report also calls on allowing cannabis cultivators to sell dried cannabis directly into provincial markets without a processing licence, while also noting the challenges provinces face in purchasing products from a large number of often small companies.
The panel also calls on provinces and territories to review their “mark-ups, fees, purchasing practices, and the amount of shelf space they allocate to different products and different licence holders, including those from equity-deserving groups, to improve the prospects for the many smaller-sized companies that are currently struggling.”
“Any help we receive will help us survive. Give us some kind of advantage over the larger companies.”
Gord Nichol, North 40 Cannabis
Gord Nichol, the owner of North 40 Cannabis, a micro cultivator and processor in Saskatchewan, says any help is welcome. Since micro-producers are limited to a smaller footprint and cannot enjoy the benefits of the economies of scale of larger producers, Nichol says he would like to see the proposals for lower tax rates and regulatory fees specifically for micros.
“As a micro, I would support that,” says Nichol. “Any help we receive will help us survive. Give us some kind of advantage over the larger companies.”
Nichol also supports the idea of selling products directly to consumers, something he can currently only do with authorized medical patients through his medical sales licence. There are some provincial markets he’s been trying to get his cannabis into, like British Columbia, where he says he knows there’s consumer demand, but the province isn’t interested.
“If I can get past those kinds of gates and sell directly to consumers, I think that’s probably good for the industry. I’d love to operate an online store where anybody who wants to try my product can.”
When it comes to cultivators selling directly to provinces, though, he thinks several other hurdles will make the option less than viable for most. Meeting quality assurance standards without an on-site QAP can be challenging, and provinces will not necessarily want to deal with numerous individual cultivators—something the expert panel’s report also acknowledges.
Janeen Davis, VP of sales at Joint Venture Craft Cannabis, which operates as a processor and distributor for numerous micro and craft brands, shares a similar perspective.
“I think that some cultivators certainly have the ability to package and process CPG goods to provincial distributors. But others may still struggle with compliance issues. So I think there’s varying ability among cultivators that could find success in that approach.”
The real challenge, says Davis, is not the ability of a micro cultivator to get a processing licence, something she argues is relatively straightforward, but in getting approved by a province to sell into their markets. Davis also emphasizes that while she is aware that many small cannabis companies are struggling, many are doing well even under the current federal and provincial regulations, including Joint Ventures.
Jonathan Wilson, CEO of Crystal Cure, a micro cannabis producer in New Brunswick, says he was pleased to see the report address challenges that small producers face.
“I’m just excited to see so many mentions of small producers. It’s great to see that. From a small producer’s perspective, they do seem to understand some of the specific concerns we’re facing.”
“I think that some cultivators certainly have the ability to package and process CPG goods to provincial distributors. But others may still struggle with compliance issues.”
Janeen Davis, Joint Ventures Craft Cannabis
Wilson was most excited by the recommendations of provinces to allow more options with farmgate and allowing producers to sell directly to consumers. Crystal Cure is one of a handful of licensed farmgate producers in New Brunswick, meaning they can operate a retail store at their production facility, selling directly to consumers.
He says he’s been pushing the province to expand on the farmgate model, as well as allowing them to ship cannabis from their farmgate store directly to consumers.
“(The province) has been telling us they are waiting on guidance from the federal government, so now we have that. Now we can say ‘Hey, they’re recommending this. We’ve been echoing this and this is very consistent with what we’ve been lobbying for.”
The following is proof of assault on every man, woman and child!
After seeing how our bioenergetic body is being experimented on, to transform natural man into a cyborg by every means possible, and reading well researched and fact based articles below, how can anyone expect to end the war on man without a direct relationship with the Divine?
1] They used their mad science from the genome and protein researchand combined it with the equally if not more mad science involving electromagnetic frequencies to bring us a highly transmissible, autonomous living Nano technology designed to tag, trace and interface with every man, woman and child, to their central Quantum Computer.
Deactivating the nanotechnology
2] Please do not consume supplements inside a 5G environment. Magnesium, for instance, will activate Luciferase. Vitamin D fuels Luciferase.
After reading Substack posts below I did some research.
Nano materials are so small that a chemistry lab technician cannot see them, and, if they cannot test for frequencies, they will never know what’s actually in a vaccine, a dietary supplement natural and/or synthetic, food, beverage, chemtrails, etc.
It is true that vitamin D3 has a dark side, but it’s not a poison to humans in the way it can be to rats. The danger lies in the need to balance your vitamin K2 level with D3.
When we first learned of the benefits of D3, research revealed that in some it resulted in increased hardening of the arteries and a decreased lifespan. These were not the intended results obviously and researchers got to work discovering what this “dark side” of vitamin D3 was all about.
It’s a chemical that harms bones and organs with repeated use. It contains chloroform and other carcinogens. It’s even worse when taken with K “vitamins“, but if it’s working for you, great! I think everyone should do what works for them.
My first investigation was into Vitamin D, which I discovered is Rat poison and contains toxic chemicals. REAL Vitamin D comes from the sun. The factory has not figured out how to bottle sunshine, so they instead sell us poison. https://chemtrails.substack.com/p/the-natural-vitamin-scam-eating-byproduct
Technology is used to manipulate, control and enslave man. Nano technology is being used to experiment with transforming natural man into a cyborg [transhumanism].
Technology also brought ancient wisdom to our finger tips so we can learn and replace beliefs that enslave us with new awareness and behaviors that stop energizing tyrants.
I personally do not advocate any process or procedure contained in any of my Blogs. Information presented here is not intended to provide legal or lawful advice, nor medical advice, diagnosis, treatment, cure, or prevent any disease. Views expressed are for educational purposes only.
“Everyone wants to change the world but nobody wants to change themselves.” Tolstoy
Mark Carter’s – Ascension Intention-From Shadow to Light!
Adjusting to the Quickening
I and some people I’m aware of have been noticing that the human ego/will has been becoming more impotent, while the Soul that supplies Life Energy to us has been asserting its dominion more overtly, in order to prepare the body and mind for what will be required in the next phase of our evolution in consciousness.
It sometimes seems that the more we effort, the less we manifest. Our human desires are not always aligned with our Soul’s greater wisdom and plan for our lives. So it may feel as if we’re being forced to cede control to an unseen Force, which our questioning mind hopes is leading us to a destination that will serve us well.
A system override is occurring. The feeling of uncertainty and limbo is akin to the transitional state as gears switch up in a vehicle. The lesser wheel is being gradually deactivated, while the greater one is gaining dominance.
This natural and beneficial upgrade requires and demands our trust. If we insist on clinging to ego wishes and past habit attachments, we consign ourselves to extra suffering. The energetic process toward higher states of Being is built into our physical vehicles via activating Light codes, in accordance with cosmic timing that affects all Life on Planet Earth and beyond.
So what our conditioned, limited human minds think we want is not that important, and will be gently nudged aside by our emerging greater destiny. We may as well get used to it and learn to enjoy the inevitable process that will be asserting itself more clearly and powerfully as we proceed on our evolving course.
I wish you greater relaxation and comfort amid the heightening energies on our planet, as our old shadowy ways surrender to a brighter future that will far surpass our fondest dreams!
The Government of Canada released its final report on its review of the Cannabis Act, identifying 54 recommendations and 11 observations on how to strengthen and improve the administration of the Act.
The legislative review was designed to look at the impacts the legalization of cannabis had on different aspects of Canadian society, with a focus on use rates among young people, impacts on First Nations Communities, and the impact of people growing cannabis at home.
The review concludes that there has been “significant progress” made on several of the key objectives of the Cannabis Act, such as the establishment of a regulated framework for cannabis production, the ongoing adoption of legal supply chains by consumers, and a reduction in Canadians facing legal consequences for cannabis possession.
Although there has not been a notable increase in young people in Canada reporting cannabis use, the expert panel still expressed concern about Canada’s historically high youth use rate of cannabis. It also calls for creating and following specific targets to lower youth use rates.
The panel also expressed concern at the increasing popularity of high-potency THC products, and a need for greater consultation with First Nations and Indigenous communities to address concerns with public health and safety issues, as well as economic opportunities.
Recognizing the economic challenges facing the legal cannabis industry, the panel also calls on Health Canada to reduce the financial and administrative burden it places on those operating in the legal industry. Recognizing calls for excise tax reform, the panel calls on changes to excise taxes with higher-potency products being subject to more tax than lower-potency products.
Although the panel acknowledges industry calls for a greater THC potency limit for edibles, the panel says that, on balance, the increased risk to public health outweighs those concerns. Because of this, it recommends maintaining the current 10mg THC limit for edibles.
The panel also calls on changes to federal regulations to allow an in-person access model for medical cannabis through pharmacies, and suggests that home cultivation of cannabis has not raised any issues.
Two bipartisan Congress lawmakers have expressed serious concerns about the slow progress in implementing a measure that President Joseph Biden signed into law aimed at simplifying cannabis research procedures.
Representatives Andy Harris from Maryland and Earl Blumenauer from Oregon sent a letter to the heads of the U.S. Health and Human Services (HHS) and the U.S. Drug Enforcement Administration (DEA) seeking clarification on how marijuana research should be facilitated under the Medical Marijuana and Cannabidiol Research Expansion Act signed into law by the president in 2022.
Harris and Blumenauer, despite their differing views on more general marijuana policy matters, collaborated on this legislation, which they hailed as a significant step forward in resolving the federal government’s restrictions on marijuana research. However, they criticized the DEA and HHS for failing to implement the law effectively, contrary to congressional intentions.
In their letter, the lawmakers emphasized the importance of studying the effects of marijuana use, especially with more than one-half of U.S. citizens residing in states where recreational marijuana is legal and more than four million medical cannabis users. They expressed concern over the delay in processing an estimated 150 research applications for marijuana studies by the FDA under HHS and highlighted the outdated licensing requirements imposed by the DEA, which exclude many researchers.
Further, they noted that the HHS failed to meet its deadline for providing Congress with a report detailing the obstacles to government cannabis research, pointing to the act’s inadequate execution.
Harris and Blumenauer posed several questions to the DEA and HHS, including seeking clarification on timelines for research application decisions, pending research licensing applications, reasons for missing deadlines, and steps being taken to streamline research registration and expand marijuana research.
The collaboration between Harris and Blumenauer is noteworthy given their contrasting stances on marijuana policy. Blumenauer, a cochair of the Congressional Cannabis Caucus (CCC), has long advocated for federal cannabis legalization, while Harris has opposed such efforts. Despite their differences, both lawmakers are committed to ensuring that federal agencies adhere to the law aimed at facilitating marijuana studies.
In a related move, the National Institutes of Health (NIH) recognized the difficulties faced by researchers studying marijuana due to federal prohibition; these challenges include convoluted laws and insufficient cannabis supply. In response, the agency declared its intention to create a resource center for marijuana and cannabinoid studies, demonstrating its dedication to removing obstacles that stand in the way of researchers and scientists.
The research barriers that the lawmakers refer to are a fraction of the hurdles that industry actors such as Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) have to contend with in the different jurisdictions where they operate.
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With the decline in alcohol consumption statistics, and adult use cannabis sales on the rise, it’s clear that the work being done in this field is championing a profound cultural shift to which we’re all bearing witness. But this charge is a tall order, and consumers demand transparency and consistent, quality products to elicit the brand loyalty we all covet.
Beyond the stale rooms of legislation, why else is quality assurance at the forefront of each cannabis operation? Beyond stringent regulatory compliance, the QAP is responsible for meeting the highest product standards; turning consumers into fans. It’s not just about getting people high, it’s about the experience, the story, the engagement with industry – be it at events or over social – and knowing that what you’re consuming is none other than the best.
Our Spring issue digs into themes of quality assurance – a thread we at Grow Opportunitywill continue to trace using the results of our Industry Survey that I will present live at our virtual summit taking place mid-May beneath the broad QA umbrella. I would also like to take a moment to welcome Mariana Black, QAP at GlassHouse Botanics, as a new columnist (and future event speaker) who, in this issue, shares key lessons from the EU-GMP certification process.
Retail makes an appearance this season as Denis Gertler returns to speculate on behalf of some of the bold moves potentially underway in the Ontario cannabis retail sector, as “the Ontario government shows a willingness to upend retail more generally,” he says.
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And as the collective gatekeepers of the cannabis market, the custodians of the good vibes, we welcome back our Budtenders column, this time with Marigold CEO Katie Pringle presenting findings from their latest survey on the eve of Tether’s B-Week taking place later this month.
To the budtenders helping guide the cannabis experience with expertise and enthusiasm, we salute you!
Also on the docket this month, a new podcast with cannabis lawyer Rob Laurie, founder of Ad Lucem Law Corporation, as a pilot to perhaps a larger series on, well, drugs, in attempts to better understand and unravel the tangled legal tapestry.
Laurie takes us through a labyrinth of drug laws, offering insights, anecdotes and perhaps a dash of irreverence to keep things interesting.
Stay tuned for the first episode to drop near the end of March.
A big thank you to Michael Forbes as well for sharing his business narrative, from top to bottom. Speaking of good stories, the Forbes Group certainly belongs in that category. What I find most striking about Forbes’ journey is the state of health spectrum covered by his companies, from basic human necessities to essential therapies such as cannabis and psilocybin, and the extracurricular self-care modalities (embodied by Ageless Living) that couldn’t be more fitting for our modern era and contemporary priorities.
Forbes also proposes a simpler solution to the regulation of psilocybin mushrooms, rather than reliving the complexities of the Cannabis Act. He outlines the possibility of mushroom production in cannabis facilities and the sale of psilocybin and psilocin-containing products in cannabis retail dispensaries, instating a Cannabis and Psilocybin Act.Logical, right?
As we look ahead in anticipation of the rest of a fantastic year in cannabis, with in-person events now coupled with new advancements on sampling and consumption in the West, there is much to be excited about.
We’ll see you at Grow Up Conference & Expo back in Toronto later this Spring for the Executive Summit and another round of awards. And until next time, stay positive, stay curious and stay true to the spirit of cannabis!
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