The amount of space licensed to grow cannabis in Canada is now heavily skewed toward outdoor cultivation instead of indoor for the first time, according to new data from Health Canada.
The federal regulator said it has licensed roughly 13 million square feet of indoor cannabis cultivation (including greenhouse), versus 19 million square feet approved for outdoor growing.
That might signal downward pressure on wholesale prices for inputs as soon as this year.
However, several factors challenging Canadian cannabis producers might limit the full effect that large-scale outdoor cultivation will have on the market, including a challenging capital environment and difficulties scaling production outdoors.
Mark Spear, founder and CEO of the Ottawa-area’s Wildfire Collective, expects it will be some time before the quantity of cannabis produced outdoors exceeds that of indoor.
Wildfire Collective, Canada’s first exclusively outdoor, multisite craft cannabis operation, hopes to be licensed for a partial crop this year.
Spear expects outdoor production will force down the price of low-quality flower, but the higher-quality, lower-cost outdoor producers will be able to easily complete with mediocre indoor production.
“Canada is known for some exceptional cannabis,” he said. “A lot of people think it’s all indoors, but people are going to find out over the next few years that some exceptional outdoor already comes out of Canada.
“When these (outdoor) producers can get into the legal system, it’ll really be a challenge for the indoor producers to justify their expenses versus the end results.”
Among other Health Canada data released Friday for the October 2019 period:
Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at [email protected].
渥太华地区野火集体创始人兼首席执行官马克·斯皮尔( Mark Spear )预计，户外大麻的数量将超过室内大麻的数量还需要一段时间。
加拿大首个专门从事户外、多地点工艺大麻生产的野火集体( Wildfire Collective )希望今年获得部分作物的许可。
MattLamers 是 Marijuana Business Daily 的国际编辑，位于多伦多附近。他可以通过[受电子邮件保护]联系.