Medical Marijuana Canada
Medical Marijuana In Canada is a huge business. A $1.3 billion cache of medical marijuana will be launched by the Conservative government this Tuesday, thereby providing around half a million of Canadians with high quality weed. The old system of relying on pocket scaled homegrown marijuana, that is often times diverted into the black market —will soon be phased out. The system will be replaced by larger scale indoor marijuana farms that are RCMP certified. These farms will be given the go signal to produce, pack, and distribute the quality weeds at prices determined by the market. The first delivery is expected to ensue in the next few weeks, and delivered via secured courier.
In an interview, a senior official of the department commented, “We are confident that we now have a robust medical marijuana industry in place.” The legalization and free-trade of marijuana came about as a result of Conservative’s Liberal Leader, Justin Trudeau’s erstwhile campaign in legalizing marijuana for recreation.” At present, constructions of these highly capital intensive infrastructures are allowed, but will have the necessary checks in placed like vaults and security systems. Production for private use is not allowed, but imports from places like Netherland is given the go-signal. More than 100 firms applied for licensing as a producer and distributor, with the initial two companies being approved just last week.
Prior to these new set-up, production of marijuana consists of more than 4,000 growers that were licensed to produce for two patients each. However, there were several complaints made by the Mounties, that this cottage industry served as a front for criminal activities. There will be a transition period of six months as the old system is being phased out by Health Canada till March 31. Users of Medical marijuana are encouraged to register with this new system and to start buying from the newly accredited farms. There are around 37,000 users of marijuana, that is listed in the department. Users are expected to increase ten times or around 450,000 individuals by 2024. Estimated earnings from this endeavor are high. The dried marijuana bud sells for $10 per gram on the streets. The legal variety is estimated to average at $7.60 per gram, as prices are determined by market forces without government intervention.
Chuck Rifici, who is senior adviser to Liberal Party leader Pierre Trudeau and CEO of Tweed Inc., has applied for medical weed production using an abandoned Hershey warehouse in Smith Falls, Ontario. In a news released last Friday, Rifici was cited as regards the Liberal’s plan to push marijuana, without reference to Health Canadas’s encouragement to do the same thing. Rifici said in an interview, “ There is a need to educate people on what medical marijuana can do for them,” He expounded on the issue, that he is just providing jobs and helping patients get quality medication.
Tweed Inc. plans to produce 20 varieties initially, and will dole out ten per cent of production for impoverished patients. Patients are often given several grams to alleviate cancer and nausea. These patients will no longer be permitted to plant their own stock under the new scheme. Earnings in these new industries are projected to reach $1.3 billion per annum by 2024. Additional income is expected for these operators should marijuana be legalized for recreation, as it is in two American states.
Eric Nash of Island Harvest, applied for a new license, as he has been a licensed grower for ten years now under the current system. He said, “ There are vast opportunities, where we can see some movements in the industry – like mergers, acquisitions and inter-company alliances. This would be beneficial to patients, economy, and the general public.” Medical marijuana has been given to some patients though not on official status yet by the Veterans Affairs Canada. This was also done in some areas when many users are simply too sick to find jobs and rely solely on welfare.
Health Canada currently sells pot at $5 a gram, that is produced by Prairie Plant Systems under contract. They have relayed that the new system will cost more to patients. But Galarneau thinks otherwise. He says, “Prices will be determined by market forces. It may go down further to around $3 a gram, we never know.” Prairie Plant Systems, together with its subsidiary CanniMed Ltd., were the first two companies that were granted licenses under the new system. They are now doing full blast by marketing their products online. Targeted markets, include those patients who are under the present system. However, they have to get a medical doctor to prescribe to them the use of marijuana, using the government-prescribed forms. The medical marijuana program was created by Health Canada after being driven by a decision of the court that supported the rights of patients suffering from extreme medical conditions since 2001 .