Travis Lane has three craft cannabis production licences in process for southern Vancouver Island. (Tom Fletcher/Black Press)

Travis Lane has three craft cannabis production licences in process for southern Vancouver Island. (Tom Fletcher/Black Press)

B.C. craft cannabis growers wind through layers of government

‘Farmgate’ sales eyed by Public Safety Minister Mike Farnworth

Second of a series on the development of B.C.’s craft cannabis production.

When Canada was approaching cannabis legalization in the fall of 2017, Travis Lane made a prediction: if underground producers were shut out, the country would be running out of legal marijuana within a month.

In the year since legalization actually took effect, in the fall of 2018 after a four-month delay, that initial shortage has led to a glut as large-scale greenhouse growers ramped up production. With its tax-heavy price and variable quality, legal cannabis has barely dented the market in British Columbia, one of the strongest and most famous in the world.

At that time, Lane was director of the fledgling B.C. Independent Cannabis Association, representing licensed medical marijuana dispensaries. As a long-time grower for compassion clubs and dispensaries, Lane was in the “grey market” that Premier John Horgan wants welcomed into the age of legalization.

“The last study I saw where the numbers looked realistic put it at about 12 per cent of sales in Canada were legal and 88 per cent were illegal,” Lane said in an interview with Black Press. “And I think that’s not a bad number for the first year, but it could be a hell of a lot better with regulations that are more business-favourable.”

Now Lane has three producer licence applications in to Health Canada, for facilities he wants to build in Greater Victoria. He says he can soon be in production as Whippletree Organics, Captured Light and Nuvem Nurseries, to provide more B.C. craft options for retail stores that are largely supplied by big producers.

The association has changed its focus to cannabis education, working on industry training with Camosun College and Kwantlen Polytechnic University. But Lane says they still do some government lobbying, speaking to Health Canada and B.C. Public Safety Minister Mike Farnworth’s ministry.

“It’s getting better,” Lane says of the licensing system. “The regulators are bureaucrats so it takes time to get through to them, but we have found that it is easier for small businesses to get into the space and operate.”

PART ONE: ‘B.C. Bud’ still underground, Horgan wants to save it

RELATED: B.C. marijuana dispensaries form independent group

Lane says he has financing for his three brands, but many small producers can’t afford to build their facility, get it federally inspected, and then wait even longer for a licence before they generate their first dollar.

“It might be easier to fill out the forms and figure out what you want to do and what licence to apply for, but people are still waiting nine months, a year for their licences to be approve, which leaves businesses in the lurch,” Lane said.

Farnworth agrees that Ottawa is making progress. He recently visited growers in the Kootenay region, which now has a $676,000 grant to help with the layers of federal, provincial and municipal licensing and zoning regulations. And he has been working with Health Canada on the financing issue.

“One of the things we have been saying is that they need to have a licensing and production regime that allows for small-scale production to take place, that is not too onerous,” Farnworth said in an interview. “Right now there are challenges with that, because you in essence have to have your facility built before they’ll give you a licence. How are you going to get financing if you can’t get a licence?”

By mid-November, B.C. had nearly 200 retail store licences issued, and was second to Ontario in the crucial federal production licences. Farnworth said the B.C. Cannabis Stores, the province’s monopoly wholesale and online seller of recreational marijuana, is still getting much of its product from large producers, some out of province.

Lane says Farnworth should reconsider “farmgate” sales for cannabis, as B.C. has done successfully with wine and beer. But Health Canada has kept its medical model strictly in place, with tobacco-style excise tax stamps and graphics restrictions, along with elaborate security packaging.

“I’m a craft beer guy,” Lane said, and one way B.C. craft beer producers have made inroads into a market dominated by multi-national beer companies is through edgy, innovative branding, and brewery tours.

“Those big public companies, they’re not necessarily interested in producing high-quality product,” Lane said. “They’re producing as much as they can. And there’s a place in the market for that, just like Budweiser, just like Coca-Cola.”

Farmgate sales is the key to craft producers getting traction, he says.

“There hasn’t been a whole lot of movement on it, but there aren’t a whole lot of local B.C. licensees yet,” Lane said. “And so it’s kind of a chicken or egg situation. Who are they going to give the farmgate licence to if we don’t have a half-dozen micros somewhere in Victoria and Vancouver? They’re going to end up giving it to Tweed or something like that, and that’s exactly what they don’t want.”

Next part: The Community Safety Unit cracks down, as edibles arrive.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Just Posted

Tammy Bradford, manager of the Creston Museum & Archives for the last 23 years, wants to welcome visitors to check out their exhibits and programs this summer. (Photo by Kelsey Yates)
Creston Museum encourages summer visitors to check out programs and activities

After some temporary closures of indoor exhibits due to COVID-19, the museum has re-opened to welcome visitors

The latest EKASS survey confirms a steady decline in substance use among EK youth over the years. (image compilation via Pixabay)
Latest survey shows steady decline in adolescent substance use over the years

Starting in 2002, the survey has been conducted every two years to monitor changes in substance use patterns, attitudes and behaviors amongst East Kootenay youth.

Nasukin Jason Louie of the Lower Kootenay Band poses under the mural in the administration building. The mural depicts past elders David Luke, Wilfred Jacobs, Isobel Louie, Charlotte Basil, and Louis White. (Photo by Kelsey Yates)
Lower Kootenay Band announces cross-border COVID-19 vaccine clinic

In partnership with the Kootenai Tribe of Idaho, the clinic will be held on National Indigenous Peoples Day

Protestors blocking Columbia Avenue Saturday evening. Photo: Betsy Kline
Old growth protesters begin 24-hour blockade of Castlegar’s main street

Members of Extinction Rebellion plan to stay overnight

Forty sled dogs were seized by the BC SPCA from a Salmo kennel in February. A recent ruling has decided the dogs won’t be returned. Photo: Gounsil/Flickr
BC Farm Industry Review Board rules against Salmo kennel after 40 sled dogs seized

Spirit of the North Kennels was also ordered to pay BC SPCA $64,000

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read