B.C. cannabis growers say the recently tabled Cannabis Act final report is a step forward, but more needs to be done to address the industry’s challenges.
Industry Reactions to the Report
The government released its final report of the legislative review of the Cannabis Act in late March, more than five years after cannabis was legalized in Canada. The report includes over 50 recommendations addressing public health, Indigenous communities, the cannabis industry, and medical access.
“I was quite pleased with some of the recommendations in the report,” said Deepak Anand, principal of ASDA Consultancy Services. He noted that if implemented, some recommendations could positively impact Canadian and B.C. cannabis businesses. For instance, the report suggests allowing pharmacies to dispense medical cannabis, which is currently only available online from licensed producers. Anand also welcomed recommendations about removing taxation for medical cannabis and reviewing the excise-tax model based on today’s lower average product prices.
Economic Concerns
“The government is making more money than the businesses themselves,” Anand said, highlighting the financial struggles of cannabis cultivators. He pointed out that over 50% of bankruptcies in Canada last year were cannabis companies, stressing that more needs to be done to adjust taxes.
Support for Communication and Packaging
Julia Cameron, a spokesperson for Pure Sunfarms and a board member of the Cannabis Council of Canada, praised the report for addressing administrative complexities and improving how businesses can communicate information about their products. “We’re happy to see that there’s an increased ability in the design of packaging to communicate information about the products to the consumer,” she said, noting that this could help differentiate legal products from those in the illicit market.
Support for Small-Scale Producers
The report recognized challenges faced by small-scale producers, who make up around one-third of B.C.’s cannabis producers. It recommends provinces consider allowing direct-to-consumer sales from smaller cultivators and processors to help them generate more revenue. Sarah Campbell, director of the Craft Cannabis Association of BC, welcomed this recommendation, saying it could help small businesses stay afloat. “We would absolutely welcome any opportunity for us to keep a little bit of money in our pockets,” she said.
Remaining Challenges
Despite positive steps, the report did not address all industry concerns. Anand noted the lack of recommendations to increase the permitted THC level in cannabis products. Currently, legal products can include up to 10 milligrams of THC per package, whereas illicit products can contain up to 100 milligrams.
Kirk Tousaw, CEO of Great Gardener Farms, expressed disappointment that the report did not propose concrete actions to reduce paperwork burdens for micro-cultivators. He emphasized the disproportionate impact of compliance requirements on small businesses, which cannot afford dedicated compliance officers. “When I have to spend three, four hours a day on what I consider to be mostly useless paperwork, it’s a challenge,” Tousaw said.
The industry urges the government to implement the report’s recommendations to help address these ongoing challenges and support the growth and sustainability of Canada’s legal cannabis market.
