Canadian regulators accepted new cultivation area at a frantic pace within the months main up to legalization, however not quick sufficient to avert the extensively predicted shortage of authorized cannabis.
In the month earlier than the launch of Canada’s authorized leisure cannabis market, amenities licensed by the federal authorities to domesticate marijuana had surpassed a cumulative 13 million sq. ft, in accordance to knowledge offered to Marijuana Business Daily by Health Canada.
That’s about 20% greater than what was licensed in June and greater than six occasions the area that was licensed in May 2017.
In that point, the quantity of licensed producers almost tripled from fewer than 50 to 132.
Still, within the weeks after legalization, most provinces have seen vital shortages of cannabis merchandise, together with these for medical and leisure use.
Experts say the 13 million sq. ft is a small proportion of what finally will probably be wanted to handle demand of the 2 markets in the long term.
Deepak Anand, vice chairman of Toronto consultancy Cannabis Compliance, notes that the full doesn’t take into accounts the tons of of candidates which were within the queue for years – some of which have giant footprints.
As of August, 588 candidates have been ready within the LP pipeline, in accordance to Health Canada.
“We are seeing a lot of interest from new applicants for standard and micro-cultivation and processing (licenses), which are all going to add to this pool,” Anand stated.
“I think in a year we will see supply catch up to demand – pending Health Canada licensing of course.”
Matt Lamers could be reached at [email protected]
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