Industry

Industry

Canada’s Pot Producers Shudder As Patients Allowed To Grow By Court

It is a great day for Canadian citizens, as federal court judge Michael Phelan ruled yesterday the 24th that patients have the right to grow their own cannabis. Not all of Canada is jumping for joy, however. Some are actually a bit nervous, for their pocketbooks.

Feb 26, 2016 - Christopher Teague

It is a great day for Canadian citizens, as federal court judge Michael Phelan ruled yesterday the 24th that patients have the right to grow their own cannabis. Not all of Canada is jumping for joy, however. Some are actually a bit nervous, for their pocketbooks.

Who wouldn’t be thrilled?

3 3 Marijuana And Pregnancy #2: Does Marijuana Have An Impact On Fertility?
Photo credit

The biggest commercial producers in the game were formed in response to the 2014 ruling that required patients to purchase marijuana from a licensed producer. Before that ruling, patients were obtaining licenses to grow at home, which Ottawa saw as difficult for regulation.

It is impractical to regulate home grows as tightly as commercial ones. The sheer number of site locations would wear out the loafers of even the most dogged inspector. In addition, because home grows would be small in scale, amateur, and done to save money putting the licensing fees and code restrictions on them that commercial growers are forced to have in place would effectively nullify the savings.

Nervous investors

2 4 Marijuana And Pregnancy #2: Does Marijuana Have An Impact On Fertility?
Photo credit

Basic business principles motto number 1 is Supply vs Demand. In the tightly regulated system, only the dispensaries could grow cannabis, giving them control of the market, meaning price control and profit increases. With the return to aspects of the older system, supply will go up as patients can save money by growing their own, and businesses worry they will see fewer people coming through their doors.

Investors in the leading producers such as Aphria Inc., Aurora Cannabis Inc., Canopy Growth Corp., and Mettrum Health Corp. are worried. Share prices for all publicly traded companies in the sector after the ruling. Canopy fell 6%, and Aurora fell 9%.

The future is still bright

pm Marijuana And Pregnancy #2: Does Marijuana Have An Impact On Fertility?
Photo credit

In the long run, business will still be booming, despite fears, if the history of the alcohol industry is any indicator. While in many places home brewing is legal, commercial alcohol sales remain largely unaffected for the same reason restaurants aren’t afraid of home kitchens. Paying someone else to do all the work is a matter of convenience.

Not all patients will have the resources, time, space, or ability to grow their own marijuana. For them, the commercial industry will always have their doors open. In truth, with Canadian Prime Minister Justin Trudeau backing legalization and decriminalization, it is only a matter of time before social stigma is swept away, and the love of cannabis spreads into the mainstream, bringing more customers than ever.

Do you think home grows will have a significant impact on dispensary sales? If cannabis is/becomes legal in your area of the world, would you grow your own or simply buy it at a store? Share your thoughts with us on social media  or in the comments section below.


Share This

Related Articles

Canadian cannabis advertising laws prevent celebrity endorsements of cannabis brands.

Ghostface Killah (Wu-Tang Clan) performing in Zénith, Paris on May 23, 2013. Wu-Tang Clan performed for free in Toronto on Saturday in partnership with a cannabis producer, raising questions about canadian cannabis advertising which restricts celebrity endorsements

Are we discovering downsides to legalization? Or is this just growing pains?


One of the most iconic games of our generation now has weed.

The Sims Game Finally Has Weed After Two Decades On The Market

Comments

Stay in the loop

Exclusive deals, original content.
Delivered to you.