Cannabis Markets: Medical or Recreational?
National legalization of cannabis in Canada has paved the way for other recreational markets, estimated at $10 billion in annual revenues over the next decade. Canada is well positioned to become the leading country in cannabis exports as more and more countries legalize medical cannabis and others consider adult legalization. Canadian companies now export medical cannabis to countries in South America, Europe, Australia, and Africa – most do not have their own domestic supply. Canadians are seizing the opportunity to enjoy first mover advantage in international cannabis markets.
Selecting the Cannabis License: Micro or Standard? Indoors or Outdoors?
There are many options to consider when establishing a cannabis business. Health Canada issues cannabis licenses for several types of production and processing operations, as well as licenses for medical sales, analytical testing, and R&D for medical and recreational products. Each option presents a different set of opportunities and challenges.
Among considerations will be whether your venture will be a standard or micro operation or an outdoor or indoor operation and whether you will need additional Health Canada cannabis licenses to accomplish what you want to do. Standard production and standard processing cannabis licenses allow large operations to produce industrial-scale quantities for domestic and export markets. Micro production and micro processing licenses enable smaller operators to create high quality products in lesser quantities for select markets.
Cannabis Regulations allow standard, micro, and nursery cultivators to grow outdoor or indoor crops. Outdoor crops refer to plants that are grown in open fields or in greenhouse (roof and walls) shelters. Indoor crops refer to plants that are grown in conventional production facilities or in (enclosed and controlled) greenhouses.Now that cannabis has been classified as an agricultural product, it can be grown in tandum with other agricultural crops typically grown by Canadian farmers. In fact, agricultural landowners across Canada have the option to consider cannabis or hemp cultivation on their properties.
C&G can help you make the choices that are best for you.