As British Columbia begins the method of securing supplies of leisure marijuana for sale later this yr, concern is rising amongst executives that the province is lowballing cultivators.
That might restrict the standard of merchandise obtainable within the authorized market and bolster the black market, one business government warned.
In conferences between the BC Liquor Distribution Branch (LDB) and licensed producers, the wholesale costs being mentioned may be too low for companies to supply something however low-quality “commodity grade” product, in response to executives acquainted with the talks.
The LDB is accountable for securing a provide of leisure marijuana for sale in each personal and government-owned shops.
“The BC LDB cannabis store risks being branded by its patrons as a place to get boring weed, and if you want to get good weed you have to go to the black market,” stated one government, who requested anonymity due to the continued negotiations.
“If the black market is seen as better quality and price, we’re going to continue to perpetuate what’s going on.”
Another supply stated it “simply doesn’t make a lot of sense” for licensed producers to be partaking in transactions with the LDB on the numbers being mentioned, as a result of producers can get larger costs from different wholesalers.
British Columbia is claimed to offer producers between 2.50 Canadian dollars and CA$four per gram wholesale ($1.94-$three.11), whereas different provinces are prepared to pay between CA$5-CA$6 per gram.
Moreover, some Canadian producers are getting round CA$20 per gram for medical cannabis in export markets like Germany.
“So why would (a licensed producer) want to engage in a price war with the LDB when you can be making more elsewhere?” the supply stated.
“BC has to understand that, at the end of the day, there is a limited number of LPs that will have sales licenses by September, so they’re not fully understanding that there’s a limited supply. And that supply can ship to other provinces or countries.”
Matt Lamers could be reached at [email protected]
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