First of a series on the preservation of a 91Ƶcraft cannabis91Ƶ industry in B.C.
In the bad old days, B.C. used to supply half of Canada91Ƶs marijuana, export it to the United States by the hockey bag, and bring home a bong-full of blue ribbons for its exotic 91ƵB.C. bud91Ƶ strains from international Cannabis Cup competitions in Amsterdam.
Premier John Horgan argues that this history is the main reason why legal marijuana has fizzled so far in B.C., a year into Prime Minister Justin Trudeau91Ƶs bold legalization experiment. Horgan91Ƶs government is moving to take over the 91Ƶeconomic development91Ƶ part of legal cannabis from Ottawa, because its ponderous Health Canada licence system for growers is working great for mass-market producers in Ontario and Quebec. And it91Ƶs killing B.C. bud.
The Central Kootenay around Nelson B.C. is ground zero for Horgan91Ƶs experiment, economic development grants to subsidize and guide illegal growers from the dark side to the light. The $676,000 project is funded by the Ministry of Social Development and Poverty Reduction, and administered by Community Futures Central Kootenay.
Energy Minister Michelle Mungall, who holds the Nelson-Creston seat for the NDP, was quoted in a low-circulation , applauding the grant91Ƶs potential to help growers navigate the federal-provincial-municipal regulations. Kootenay West MLA Katrine Conroy, another NDP cabinet minister, has expressed her concern that Canada91Ƶs wave of stock-market-backed mega-producers is a grave threat to her local economy.
Social Development Min explains why gets the first economic grant for its growers
91Ƶ Tom Fletcher (@tomfletcherbc)
Social Development Minister Shane Simpson says this is his ministry91Ƶs first cannabis-related business venture, and it was a grassroots idea. If it works for the Kootenays, it could work for the Okanagan or the Sunshine Coast, Simpson says.
91ƵWe91Ƶve seen what91Ƶs happened with the craft beer industry in British Columbia,91Ƶ Simpson said in an interview with Black Press. 91ƵIt91Ƶs exploded and become an important part of the local economies in communities right across the province. It91Ƶs possible that there could be that same craft aspect to the production of cannabis. 91ƵEverybody talks about B.C. Bud and the reputation it has, so if we can build a craft industry that91Ƶs legal, that91Ƶs regulated appropriately, then that91Ƶs a good thing.91Ƶ
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B.C.91Ƶs main legal effort is a monopoly wholesaler run by the Liquor Distribution Branch, with a monopoly online store and a scattering of government-owned retail stores, a few licensed private retailers and a ragtag of unlicensed stores and private dealers. Some insiders estimate that the 91Ƶgrey market91Ƶ and 91Ƶblack market91Ƶ ragtag still holds 80 per cent of the B.C. market.
Large-scale licensed national producers, the Budweiser and Coors Light of cannabis, have been noted for missed targets, regulatory cheating, and a shortage followed by a glut of overpriced product, some of it getting mouldy sitting in the warehouse.
Horgan says he91Ƶs well aware that most of the product Health Canada has made legal for recreational sales is from other provinces. And he recalls telling the Trudeau government well before legalization that B.C. would make its own way on business development.
91ƵThe federal government said 91Ƶwe91Ƶll take care of economic development91Ƶ, and we just disagreed with them on that, and we continue to disagree with them on that,91Ƶ Horgan told reporters at the B.C. legislature Nov. 28. 91ƵWe have in B.C. a legendary quality product, and that91Ƶs not making its way to the legal market.91Ƶ
BC Premier explains the struggle of making legal in the land of
91Ƶ Tom Fletcher (@tomfletcherbc)
The jokes about the B.C. NDP somehow l are no longer funny. It91Ƶs a fact. In her second-quarter budget update, Finance Minister Carole James reported that forecast for B.C. Liquor Distribution Branch income has been lowered $18 million 91Ƶdue to the delayed rollout of private and public cannabis stores and lower-than-anticipated demand.91Ƶ
Federal excise tax from cannabis, the dollar-a-gram first take for recreational product, is split three quarters for the province and one quarter for Ottawa. The latest forecast downgraded B.C.91Ƶs share for the current fiscal year from $38 million to $8 million. Policing and other costs are coming in higher than budgeted.
Horgan acknowledges that the problem is the black market is still here, and the 91Ƶgrey market91Ƶ that worked through medical dispensaries and compassion clubs, is greatly endangered. One disadvantage is price, with Statistics Canada estimating that legal cannabis is running close to $10 a gram, while illegal product is selling for half that.
Quebec-based Hexo Corp. has a plan for that, and it91Ƶs more bad news for 91Ƶcraft cannabis91Ƶ in B.C. Hexo has launched a budget product for national sales called 91ƵOriginal Stash.91Ƶ It91Ƶs only sold in the old-school 28-gram or one-ounce bag, at $4.99 a gram.
Next part: A craft cannabis grower navigates the regulatory system.
tfletcher@blackpress.ca
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