Will Canada have to subsidize the cartels?

13 December 2017

So, Canada is gonna sell it’s own marijuana next year, at what they say are below-market prices. Although the rationale is undercutting the black market, and ending smuggling, Canadian consumption far outstrips production … only about 30% of domestic consumption is domestically grown. So where is the other 70% to come from?

I don’t really care what Canadians do, but wonder if the country can provide enough for its domestic market, or whether it will be forced to exploit our Mexican one. Yeah, I understand the Canadians produce quite a bit, but they have a short growing season, and … correct me if I’m wrong… they grow a lot in energy-hogging grow houses. We have two growing seasons here, effectively all of it for export (illegally). However, the areas where marijuana is grown are also areas short of water, and marijuana uses a lot more water than our traditional food crop, corn (240 gallons per pound, v 120 gallons per pound of corn).

California? Canadians are going to have to deal with the higher labor costs there, as well as the water problem.

Add to the legal issues in Mexico (solvable only in theory… unfair agricultural export/import policies under NAFTA are a hot button issue now, and only going to get more so as we go into our presidential campaign this coming year).

How they’re going to work out legal exports is something to ponder. I don’t know if any more Canadian companies would even be welcome here . . . Hate to tell those nice people way up north, but throughout Latin America, Canadian firms are considered the pits when it comes to human rights abuses and unfair labor practices. And, given the history of foreign exploitation in the agricultural export business in Latin America over the centuries (sugar,coffee,bananas, etc.), I am a little fearful of what will happen when “big ag” moves into the marijuana market.

I’m sure the plan was thought through on the consumer end, but on the producer end, I have my doubts.

2 Comments leave one →

Allen Manana permalink

13 December 2017 2:59 pm

Oh my golly ! Don’t want to burst your bubble. but… Canada can produce far more marijuana than Mexico can. First it grows wild, and abundantly. It’s referred to as the “Hydro Line” crop. BC Bud, is considered the best.
On one occasion, in Haliburton Ontario , the Ontario Provincial Police, raided and took, many, many dump trucks of plants, and took them to the “dump”. These are not the little Tonka trucks used in Mexico, but beeg ones. So, they burned it ! Really !. The smoke travelled , and travelled. Second hand highs for many KM’s away. personally, I thought it was a huge forest fire. Basically the amount that California can grow in a season.
Oh, short growing season ?? I have seen a plant grow to 6 feet in several months.
And….30% of local consumption is grown locally… Oops, bullshit. 30 % or more is exported… BC Bus sells well in California.

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JBSK permalink

15 December 2017 2:54 pm

Rich I think you misread the information in the link provided. Canada is a net exporter of weed. 30% of Canadian production is consumed here 770,000 kg? The balance of the 2.6 million kg is exported. Firms are well along in ramping up production for the expected boom in legal supplies after July 1.

A friend pointed out that the anticipated price point for legal weed is about twice the street price for good home grown weed here in BC. I expect the black market to thrive if that becomes the case.

Jim

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