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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Paul Chiasson
39 new cases of COVID-19 in Interior Health region

The total number of cases in the region since the pandemic began is now at 7,334

The Skinny Genes Foundation is raising awareness and funds for a rare genetic disorder that claimed both his father and uncle.
NHL players, local businesses help Kootenay man raise funds and awareness for rare genetic disease

Signed NHL jerseys and local business donations up for auction in Skinny Genes Foundation fundraiser

The Columbia Basin Trust has announced grants for biodiversity initiatives. Photo: Submitted
Columbia Basin Trust announces ecosystem protection grants

Three projects are sharing a $1.35-million grant

Remi Drolet
Rossland skier competes at World Nordic ski championship

Remi Drolet was selected to Team Canada and will race at the 2021 FIS World Nordic Ski Championships

good lookin
West Kootenay pet shop owner petitions for end to pet mills

“Our companion animal laws are pretty lax right now, we need to bring more awareness to help SPCA”

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

Arrow Lakes Caribou Society said the new caribou pen near the Nakusp Hotsprings is close to completion. (Submitted)
Maternity caribou pen near Nakusp inches closer to fruition

While Nakusp recently approved the project’s lease, caribou captures are delayed due to COVID-19

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

Most Read