Canopy Growth and several other licensed producers are in a rush to increase their production, as more evidence points to an imminent supply shortage in the recreational cannabis market due this summer.
Canada is only weeks away from legalizing recreational marijuana as the Bill C-45, also known as the Cannabis Act, is currently undergoing the third reading in the Senate.
There has been a lot of talk of how big the Canadian recreational market is going to get, how much weed should be produced and what is the equilibrium the producers are trying to hit.
The projected market size varies and there are multiple assumptions as to how large it will be. Most analysts agree that Canadians will need anywhere between 800 and 1000 tons of cannabis every year just for the recreational market alone.
Let’s take a look at the latest announcements from various producers who made it official that they are in the process of upgrading their production capacity.
Canopy Growth Corp
Canopy Growth has been on a rampage, building facilities left and right as the company is trying to achieve its goal of being a true coast to coast cannabis producers and bring more variety to their offering of strains.
They attempt to do so by having a significant footprint in most provinces. The latest approval will allow them to raise their 10th production facility.
Canopy Growth was recently approved from Health Canada to build a facility for the recently created Joint Venture called Les Serres Vert Cannabis, a 700,000-square-foot greenhouse in Mirabel, Quebec.
The company has seen its total licensed growing space triple this year as it went up to more than 2.4 million square feet.
GrowForce opts for Winnipeg
GrowForce Holdings Inc is a new Canadian cannabis company which announced that they will be opening a cannabis cultivation facility in Winnipeg as part of their expansion plans.
At full capacity, this production facility will be able of putting out 900 kg per month.
GrowForce is expecting to begin growing its first crop by Fall 2018, and they will be shipping to medical and retail purchasers in early 2019.
This will be the third production facility GrowForce plans on operating, as they’ve already purchased two facilities:
- ACMPR-licensed WILL Cannabis in Brampton, ON
- GrowForce GRO in Dunnville, ON— a late stage Health Canada applicant.
The Winnipeg facility renovations will be completed in several phases over the next 18 months, although small-time production might start in late-2018.
Sunniva goes big
Calgary-based Sunniva is planning on purchasing a property which formerly comprised the Weyerhaeuser mill operation, shut down in 2007.
The property in question is a 126-acre site in Okanagan Falls, BC which would host the 740,000-square-foot medical cannabis production facility if everything goes according to plan.
Sunniva founder Tony Holler said in an interview that the facility should be able to produce around 100 tons of dried flower every year, which would be a sizable amount of the recreational market.
Holler also said that the product made in this company will be meant for both the recreational and medical market.
He also said that the facility will bring a clean industry to the city which will provide new jobs and increase agriculture in the area. In fact, this facility will bring in 240 full-time jobs to the small town.
Harvest One makes a long-term deal
Harvest One, and its wholly-owned subsidiary United Greeneries, have concluded a deal in which they agreed to lease a facility in British Columbia known as the “The Aldergrove Site”.
This facility has a 30,000 square feet production space which requires minimal renovation in order to have it up and running.
The entire facility is over 59,000 square feet and will likely exceed the targeted capacity of 8,000kg/year, which isn’t necessarily a bad thing.
The Aldergrove site has expansion potential, as nearly 20 acres of land are available on the property which could be used to host greenhouses.
Lastly, this facility is perfectly positioned to lower the costs of transportation for Harvest One as the British Columbia provincial distribution center for cannabis and several distribution hubs are in the vicinity.