Is Canada’s Cannabis Industry Getting Better?

Weed, Marijuana

Shutterstock

Canada is the second country in the world to legalize both medical and recreational use of cannabis after Uruguay. The law that concerns Canada’s cannabis legislation is the Cannabis Act or Bill C-45. This definitely is a milestone in the legal history of cannabis in the country.

The main goal of the Canadian government when it comes to legalizing cannabis is to fight the black market. The country wants to basically shut the market off. Instead of losing money from illegal cannabis businesses, the government would rather regulate the industry and have it taxed for the benefit of the country.

The Cannabis Act allowed the use of cannabis for adults or individuals aged 18 and above in the country. Each individual can possess up to 30 grams of cannabis and purchases of such products should only take place at retail outlets or online stores with licenses. 

The provinces are the ones responsible for setting up a system when it comes to how the retail sales would work. It’s the federal government that is responsible for delivering the goods. 

Part of this law is how people are allowed to cultivate their own plants. Each person is allowed to grow up to four plants for their own use. This includes allowing the individuals to make their own edibles as well.

When you look at i49, you can see the kinds of seeds that can be purchased like feminized and auto-flowering seeds. It’s a great site for home growers to take a look at if they’re interested to grow their own cannabis plants at home.

Before the legislation, the national treasury projected that the country would earn up to 674 million dollars a year. The federal government has also agreed that 75 percent of the tax revenue from cannabis sales will be returned to the provinces and territories. This means that each local government has the decision as to how they would want to use the revenues.

Now, when Canada’s cannabis legislation happened in 2017, many were excited and looking forward to it. Expectations were high but there were also critics who thought that this could be a problem instead. If you’ve been following how the industry has been doing since it became legal, you probably already have an idea of its struggles.

Unfortunately, during the first year of the industry’s launch in Canada, things didn’t go as expected. There were constant supply issues that made cannabis products hardly available to many. This also affected the price of the products.

Because of this, many supporters still turned to the black market. Supplies don’t seem to be a problem with them as the prices of cannabis products in the black market are also cheaper than the legal products.

There were people who would rather buy from the black market because of the lack of legal supplies made it hard for buyers to get products. A typical scene at a Canadian dispensary includes long lines and people just don’t have the time and patience for it.

This problem continued until the second year of Canada’s cannabis legislation. However, there seems to be something that has changed in December or before 2019 ended. Statistics Canada has released the information on the industry’s monthly sales and it looks like the country is finally getting there.

The reports state that licensed cannabis store revenues increased a lot. In fact, it has surpassed what the US has been making for the first time. In December, Canada was able to make cannabis sales worth 110 million dollars.

This is a big leap from how much the country made from the industry at the beginning of the year 2019. In January of that year, the country made only around 41 million US dollars. It increased to 68.96 million in the middle of the year and it kept doing so until it reached 110 million US dollars of revenue in December.

There could be multiple reasons as to why this industry is finally getting there. Derivatives are now officially on dispensary shelves as of mid-December. These derivatives are of higher-margin products that would speak to younger cannabis users.

Another factor that helped the industry is how Ontario has left the lottery system to issue retail store licenses. The build-up of derivatives and the effects of having the traditional license application process can surely positively affect the cannabis industry growth in Canada.

However, it can’t really be expected that immediate growth will happen. Growth may happen gradually, but because of these, we can only expect that Canada’s cannabis business will continue to grow if they keep it up. From what’s happening, Canada’s cannabis industry is indeed getting better.

Jets awarded an additional sixth round pick for the NFL 2020 draft
Read More:
Other Sports,Weed