Currently, the BC LBD has contracts with 31 licensed cannabis producers (Spriggs, 2018). Smaller producers will not be able to apply to sell their crop to LBD and retailers until mid-October, once the legislation comes into effect (Spriggs, 2018).
Many municipalities do not want cannabis grown in concrete bunkers on their Agricultural Land Reserves (ALR), but it may be possible to request a special zoning permit to grow on land that is not part of the ALR; those who want to produce cannabis should ensure they are aware of their municipality’s stance and bylaws (Spriggs, 2018; Kane, 2018). For example, Tilray Inc., one of the companies that will be a licensed producer for LBD, is growing in an industrial zone in Nanaimo (Kane, 2018). Growing outside of the ALR will mean that producers pay higher taxes.
Additional information for potential and current producers:
- Craft Cannabis BC estimates that craft growers in BC were supplying up to 70% of Canada’s cannabis (Spriggs, 2018; Craft Cannabis Association of BC, 2018), prior to agreements being signed with large producers such as Aurora Cannabis Inc.
- The Federal Cannabis Act does allow for licensing of micro producers, allowing for a maximum canopy of 200 square metres. (Spriggs, 2018; Craft Cannabis Association of BC, 2018)
- A list of all 31 producers with who have entered into licensed agreements with the province to provide recreational cannabis can be found here.
Those who are interested in entering the cannabis production business in BC may want to contact associations such as the Craft Cannabis Association of BC, Cannabis Growers of Canada, or Cannabis Commerce Association of Canada.
If you would like to know more about how cannabis production works, BC cannabis producer Tantalus Labs has a made a virtual tour of their facility available here and here is a brief article about the company and their tour( Daily Hive Staff, 2018).
Are you planning to enter or already a part of this new industry? Let us know what you think of the laws and the impact they will have on your business down below, or tweet us @sba_bc. We look forward to hearing from you!
For part three on Consumers and Education, click here.
Photo credit: BC Liquor Distribution Branch. Attribution required, no derivatives permitted.