1.3B medical marijuana free market coming to Canada

Discussion in 'Marijuana News' started by IIIQBIII, Sep 30, 2013.

  1. http://www.cbc.ca/news/canada/1-3b-medical-marijuana-free-market-coming-to-canada-1.1872652
     
    The Conservative government is launching a $1.3-billion free market in medical marijuana on Tuesday, eventually providing an expected 450,000 Canadians with quality weed.
    Health Canada is phasing out an older system on Monday that mostly relied on small-scale, homegrown medical marijuana of varying quality, often diverted illegally to the black market.
    In its place, large indoor marijuana farms certified by the RCMP and health inspectors will produce, package and distribute a range of standardized weed, all of it sold for whatever price the market will bear. The first sales are expected in the next few weeks, delivered directly by secure courier.
    "We're fairly confident that we'll have a healthy commercial industry in time," Sophie Galarneau, a senior official with the department, said in an interview.
    "It's a whole other ball game."
    The sanctioned birth of large-scale, free-market marijuana production comes as the Conservatives pillory Liberal Leader Justin Trudeau's campaign to legalize recreational marijuana.
    Health Canada is placing no limits on the number of these new capital-intensive facilities, which will have mandatory vaults and security systems. Private-dwelling production will be banned. Imports from places such as the Netherlands will be allowed.
    Already 156 firms have applied for lucrative producer and distributor status since June, with the first two receiving licences just last week.
    \t'Enormous' potential profitThe old system fostered only a cottage industry, with 4,200 growers licensed to produce for a maximum of two patients each. The Mounties have complained repeatedly these grow-ops were often a front for criminal organizations.
    The next six months are a transition period, as Health Canada phases out the old system by March 31, while encouraging medical marijuana users to register under the replacement regime and to start buying from the new factory-farms.
    There are currently 37,400 medical marijuana users recognized by the department, but officials project that number will swell more than 10-fold, to as many as 450,000 people, by 2024.
    The profit potential is enormous. A gram of dried marijuana bud on the street sells for about $10 and Health Canada projects the legal stuff will average about $7.60 next year, as producers set prices without interference from government.
    Chuck Rifici of Tweed Inc. has applied for a licence to produce medical weed in an abandoned Hershey chocolate factory in hard-scrabble Smiths Falls, Ont.
    Rifici, who is also a senior adviser to Trudeau, was cited in a Conservative cabinet minister's news release Friday that said the Liberals plan to "push pot," with no reference to Health Canada's own encouragement of marijuana entrepreneurs.
    Rifici says he's trying to help a struggling community by providing jobs while giving suffering patients a quality product.
    "There's a real need," he said in an interview. "You see what this medicine does to them."
    \tRevenue to hit $1.3 billionTweed Inc. proposes to produce at least 20 strains to start, and will reserve 10 per cent of production for compassionate, low-cost prescriptions for impoverished patients, he says.
    Patients often use several grams a day to alleviate a wide range of symptoms, including cancer-related pain and nausea. They'll no longer be allowed to grow it for themselves under the new rules.
    Revenues for the burgeoning new industry are expected to hit $1.3 billion a year by 2024, according to federal projections. And operators would be favourably positioned were marijuana ever legalized for recreational use, as it has been in two American states.
    Eric Nash of Island Harvest in Duncan, B.C., has applied for one of the new licences, banking on his experience as a licensed grower since 2002 in the current system.
    "The opportunity in the industry is significant," he said in an interview.
    "We'll see a lot of moving and shaking within the industry, with companies positioning. And I think we'll see some mergers and acquisitions, strategic alliances formed."
    "It'll definitely yield benefits to the consumers and certainly for the economy and society in general."
    \tCompetition to keep prices in checkVeterans Affairs Canada currently pays for medical marijuana for some patients, even though the product lacks official drug status. Some provinces are also being pressed to cover costs, as many users are too sick to work and rely on welfare.
    Health Canada currently sells medical marijuana, produced on contract by Prairie Plant Systems, for $5 a gram, and acknowledges the new system will be more expensive for patients.
    But Galarneau says competition will help keep prices in check.
    "We expect that over time, prices will be driven down by the free market," she said. "The lower price range will likely be around $3 a gram. ... It's hard to predict."
    Saskatoon-based Prairie Plant Systems, and its subsidiary CanniMed Ltd., were granted the first two licences under the system and are already advertising their new products on the web.
    Prospective patients, including those under the current system, must get a medical professional to prescribe medical marijuana using a government-approved form.
    Health Canada only reluctantly established its medical marijuana program, driven by court decisions from 2001 forward that supported the rights of suffering patients, even as medical science has been slow to verify efficacy.

     
  2. This article verifies exactly what I have said before...legal mj is coming to Canada soon.
     
  3. Well Canada is starting to sound better than the Us.


    In a lot of ways.
     
  4. Canada is a great country. I wont choose a favorite. IMO the only problem with the Canadian system is they are molding the growing/production/distribution system into a corporate one rather than one ran by local growers/small businesses. I read (with great interest) the HealthCanada regulations and requirements for requesting a permit to start a MMJ business. It is true any citizen with no criminal history can apply, but the financial requirements were astronomical which basically cut out 98% of all current growers permitted by the old HealthCanada scheme. The new scheme even went as far as to once again make it iIlegal for these once legal growers to continue on. I prefer the system Washington state has devised, where citizens were invited to participate in the rulemaking process, provide feedback through a series of town hall type meetings with the WSLCB. Many of the ideas presented by small time growers were implimented into the rules and low level/small business type operations will get the majority of the permits. This system is much better than  a handful of supergrows run by a handful of rich corporate interests.
     
  5. #5 smokinbudzzz, Oct 5, 2013
    Last edited by a moderator: Oct 5, 2013
    Harper is dumb. Legalizing weed would make more jobs available to Canadians. I have 1 question for Mr Harper, Do you drink alcohol? If that question is a yes then i can provide MANY legit studies on how alcohol is a WAY bigger problem to the individual and society then weed will ever be. Making weed legal would take it out of the hands of minors by a big margin. As for the adults, why does Harper care so much if an adult smokes some herb on this own free time? Weeds not okay but yes it's okay to have some cocktails though right, Mr Harper?
     
  6. That's great. I swear everyday some sort of medical/legalization occurs :) So awesome 
     
  7.  
     
    Yeah, what is it with the ban on private growing? That's just pissing me off and I've enever even stepped a foot in can(n)ada.
     
  8. There is nothing free market about this.
     
  9. this is retarded, ban on the blackmarket and force medicine users to have selected vendors. the gangsters will still have their growops with premium AAA buds.
     
  10. Hate this. Prairie plant systems is the first to be issued a licence...a Monsanto owned GMP facility. Fuck our gov't, boycott any commercially grown weed!


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  11. #11 Highlighter12, Oct 12, 2013
    Last edited: Oct 12, 2013
    Imports from the states should be a douzy!
     
  12. #12 Dubee604, Oct 15, 2013
    Last edited by a moderator: Oct 16, 2013
    Pollen All The Government approved Grow OP!Priaire Plant systems cant grow even decent weed.
     
  13. Can't wait to see the worlds first Marijuana industry IPO....huge expectations and super high risk would result in some interesting #'s
     
  14. The best situation we can hope for is one similar to beer production. If you want to do home brew in your basement, no problem there's a whole industry of supply stores for wine and beer. Just don't be selling it.

    Wanna sell beer, small microbreweries are all over the place up here, some are only 2 man operations, but they need licensing and have to adhere to the same standards as the big corps.

    Then you have the huge corporations , But you can easily draw analogues here. This is a free regulated market where the end user always benefits, has civil liberties and choice. Of course this requires legalization. What the Harper gov is doing now is trying to stack the deck in their corporate cocksucking favour while simultaneously shaking your hand and saying look at the good work we are doing.

    Just wait till the licenses start being rejected or awarded along party lines. Mark my words.


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  15. http://www.cannabisculture.com/content/2013/10/10/Prairie-Plant-Systems-Responds-Cannabis-Culture-Coverage

    Read the original scathing article first, lol


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  16. Licenses will all be revoked by the end of march 2014. They're already talking about stronger penalties for those that try to supply themselves.


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  17. This is amazing! Eventually we'll be able to smoke a joint in public without being arrested
     
  18. If you're a patient you can do that now.


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  19. I mean the production licences, like the one applied for by Tweed Inc. their CEO is an advisor to the Liberal party, all good until you have applied to convert the old Smith Falls Hershey plant into a corporate grow op (organic). I have to wonder what sort of obstructionist tactics Harper will use to ensure his cronies are the ones licences and not ranking members of the other parties.

    The old program MMAR is being replaced with the MMPR or vice versa, whatever but patients yes can still grow their or or designate a grower, not so come April 2014. After that they better have a pile of producers to choose from if they hope for this to fly. AFAIK only PRARIE PLANT SYSTEMS has been awarded license to produce at this time, many applications are pending under this new program. I have read the requirements and they are not something a mom and pop shop could start.

    Ultimately I think this is a civil liberty issue and legalization taxation and regulation is the proper solution. Harpers just playing fuck around as usual, evil fucking bastard.

    And this whole mandatory min sentencing is unbelievable. I see patients no longer being able to afford their meds, going back to growing themselves or buying through compassion clubs etc, the street. The tactic is apply pressure to the legit growers with stiffer sentences (appeals to the right wing base) while simultaneously capturing all production through a corp lic scheme (appeals to the corp shills). They are desperately trying to kill the personal grow. Fire and police applaud them, then go bust some grannie for a few plants in their backyard and trumpet their heroism. Then they go home and spark a doob. The patient ends up in jail. Brilliant really, lets group all the sick in super prisons instead of hospitals, awesome job Harper.


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  20. They expect a massive increase of licenses, whys that? Are the requirements to get a card going to become more lax because they can make money now?
     

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