Saturday, September 9, 2017
Cannabis production in Canada seems to be looking up, as at the country's top licensed marijuana producer, Canopy Growth Corp., is set to double its production. Reuters reports that growers are rushing to ensure product to all Canadians who will be legally capable of purchasing recreational marijuana by July of next year. Canopy's substantial increase, which will involve a C$21 million investment to upgrade its facility, is in response to an unexpected shortage in supply. From the report:
“This is a very big leap, in terms of our output, our capacity, our footprint,” Bruce Linton, Canopy Growth’s CEO, said in an interview.
Canopy Growth is currently licensed to produce 31,000 kilograms of marijuana and related products, and aims to triple that by July next year, the deadline the federal government has given provinces to make pot legal for all.
The deal gives Canopy 450,000 square feet of greenhouses that can be immediately added to its existing 350,000 square foot facility in Niagara-on-the-Lake, Ontario. It is also building an additional 200,000 square feet of greenhouse capacity on its existing property.
Linton said that a 250,000 square foot greenhouse should be able to produce around 10,000 kilograms of marijuana annually, which at an average sale price of C$8 a gram could bring in C$80 million.
The company says it is expanding beyond Niagara to other parts of Canada and expects 3 million Canadians to use legal recreational marijuana next year. It also has partnerships with medical marijuana companies in Brazil and has been exporting marijuana to Germany for sale in German pharmacies for over a year.
Canopy may be expanding in Canada, but the company says it intends to stay far away from United States market due to uncertainty in a country where all aspects of marijuana are federally illegal.
-- Erin Milliken