Article by Bruce Ryan, High! Canada
A massive wave is poised to wash over the cannabis landscape a few short months from now. The Perfect Storm. Billions are at stake, the existing industry players are digging in and the capital investors are circling like sharks. Chatting with one investor last week was quite fascinating. He sees only the top, public layer and wants to invest in a Canopy/Tweed company: in spite of the fact that the fundamentals are way out of whack. Dude stands to lose a lot of money. A few years from now we will call it the pot.com boom after the dotcom disasters. A bit like that moment just after a serious earth tremor …the water rushes out to sea ….and then returns to shore with an avenging force sweeping away the existing landscape. Those on higher ground are safe. Those on shore are washed out to sea. It is indeed inevitable as the coming dawn tomorrow.
Federal legalization of cannabis across Canada in 2018, the first G-7 nation to do so, will send shock waves throughout the UN and every country that has gone along with the cannabis prohibition hysteria agenda for decades. I predict a wholesale retreat from global prohibition to follow. A bill has just been introduced in the US Congress that targets the racist, discriminatory and economic warfare that IS prohibition at it’s core base roots. Punishes the States (via federal funding) that continue to arrest cannabis consumers. Using cannabis arrests to extort, assault, demonize and then incarcerate minorities, human rights & ’counter-culture’ activists has run rampant since the 1960’s. Time to end the entire charade and bring the Fruits of Prohibition home to those who create & maintain this abject social disaster. Inevitable as karma. Existing cannabis cultivators in the industry are not simply going away, like magic, under the Liberals legalization scheme. I recall an estimate published in the Star that the Toronto/GTA was home to an estimated 25,000 grow rooms ~ large & small. Far too many for the police forces to even begin to “deal” with the problem, much less ind and shut them all down. How will this change under legalization? Given the fact that homegrown costs between 10 cents – 30 cents per gram… there is no incentive to buy retail from expensive, overregulated licensed producers. I predict a steady decline in wholesale prices, just like Colorado. Lots of cultivation facilities are for sale there. I can get ya one for $10 million USD. (seriously!). Industry consolidation they call it. (I might have a few more choice words for the scenario. 😉 ) I’ve seen folks growing twenty foot tall cannabis TREES in their backyard for personal use. Only four plants yielding pounds and pounds of ganja. In some areas of Colorado, according to my close sources, the “underground” continues to flourish because some towns won’t allow retail sales. Dumb as a brick. Twice as thick.
It is just as inevitable that farmers across North America will grow cannabis in massive quantities. Fields and endless fields. The genie is out of the bottle. You can get seeds f rom around the planet: medical, recreational, industrial. Long before the advent of modern lighting systems, greenhouses or indoor growing, all cannabis was grown outdoors. All of it. Some of the best I have ever smoked Ever. Some of those strains would grow easily to 14+ ft tall – plenty of stalk left over for industrial uses. In fact, hundreds of kilos of stalk we have sourced recently for our current industrial machine testing project was grown for its THC levels. This stalk is no different than the European, low THC strains forced on farmers in Canada. Everything we have today, including everything from modern strain breeding, is a direct result of the 32 million of years of evolution of Cannabis Sativa (L) around the planet. From the highest Sativa to the most Industrial strains out there, it is the astonishing array of cannabis genetics, courtesy of Mother Nature, doing the real work. The artificial divisions and draconian governmental regulations simply impede the inevitable.
Moving toward that elusive goal of 214 million acres I mentioned last month, every little bit helps. We estimate (generously) that humanity might have achieved about 1% of that shining objective. China is responsible for a large portion of that number. They grow 70% of the global supply ~ primarily for textiles in-house. Here, we currently grow 31 million acres of wheat. Reaching 22 million acres of cannabis crops in Canada would be a good start: about 10% of the global goal. Today, we have perhaps a mere 150 thousand acres growing from coast to coast. Yes, cannabis seed is more profitable than growing corn or canola, but the markets are restricted. Yes, the draconian rules & regulations have kept most farmers out of the sector for two decades. Yes, those that do grow cannabis are producing seed grain ~ not for fibre or core materials. Yes, that factor would double their farm income. The markets have been crippled for two decades. There is far too much red tape and nonsense for a simple agricultural crop. Recently more farmers are starting to look closely at the sector as legalization moves forward. These folks feed the world and do not take kindly to police & politicians with an agenda. Talking with a farm group with 4,000 acres later today – moving it up to the inevitable.
Imagine the cannabis sector with over 214 million acres under cultivation. I know a farmer with 7,000 acres who is thinking the same thing.