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

Parksville Coun. Doug O’Brien. (PQB News file photo)
Parksville Coun. Doug O’Brien explains opposition to 4-way stop at high-traffic intersection

‘None of us on council have the education or training to recommend traffic control systems’

The Parksville Civic and Technology Centre at 100 Jensen Ave. Chesapeake Shores film crew will be on location from May 17 until May 19, 2021. (PQB News file photo)
‘Chesapeake Shores’ to film at Parksville Civic and Technology Centre starting May 17

Public parking limited on Jensen Avenue and Craig Street during filming

Arrowsmith Search and Rescue manager Ken Neden, as he goes over the events of the Qualicum Falls river rescue on Dec. 12, 2020, for a United Kingdom television program “Unbelievable Moments Caught on Camera’. (Mandy Moraes photo)
UK TV show spreading news of daring Qualicum Falls river rescue across the world

Arrowsmith SAR trio share their accounts for ‘Unbelievable Moments Caught on Camera’

(PQB News file photo)
Nearly 1,500 ballots cast during advance voting to fill vacant slot on Qualicum Beach council

Officials expect ‘historic high voter turnout’ to continue

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
MISSING: Salt Spring RCMP find woman’s car, still seek Island resident

Sinikka Gay Elliott is 5’3” with a slim build and dark brown short hair

A Saanich man received almost 10 years in Supreme Court in Courtenay for a shooting incident from 2018. Record file photo
Shooting incident on Island nets almost 10-year sentence

Saanich man was arrested without incident north of Courtenay in 2018

Bradley Priestap in an undated photo provided to the media some time in 2012 by the London Police Service.
Serial sex-offender acquitted of duct tape possession in B.C. provincial court

Ontario sex offender on long-term supervision order was found with one of many ‘rape kit’ items

Rich Coleman, who was responsible for the gaming file off and on from 2001 to 2013, was recalled after his initial testimony to the Cullen Commission last month. (Screenshot)
Coleman questioned over $460K transaction at River Rock during B.C. casinos inquiry

The longtime former Langley MLA was asked about 2011 interview on BC Almanac program

Steven Shearer, <em>Untitled. </em>(Dennis Ha/Courtesy of Steven Shearer)
Vancouver photographer’s billboards taken down after complaints about being ‘disturbing’

‘Context is everything’ when it comes to understanding these images, says visual art professor Catherine Heard

Trina Hunt's remains were found in the Hope area on March 29. Her family is asking the public to think back to the weekend prior to when she went missing. (Photo courtesy of IHIT.)
Cousin of missing woman found in Hope says she won’t have closure until death is solved

Trina Hunt’s family urges Hope residents to check dashcam, photos to help find her killer

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Most Read