Construction at the Aurora Sun facility in Medicine Hat. (CHAT News file photo)

By Alex McCuaig

Cannabis Boost

Cannabis production boosting national farm receipt totals

Jun 9, 2020 | 4:06 PM

MEDICINE HAT, AB – Crop revenues nationally saw an increase in 2019 but that uptick was due to cash generated by the first full year of legal cannabis production, according to Statistics Canada.

Crop receipts for 2019 amounted to more than $36 billion nationally, according to Statistics Canada, but that nearly four per cent increase from the year before is being attributed to the growth of cannabis. Without it, national crop revenues would have decline by a little more a percentage point.

Alberta and Ontario accounted for more than half the increase in cannabis farm receipts nationally.

John Carle, executive director of the Alberta Cannabis Council, said the industry has gone through some growing pains due to sharp and rapid growth. But stabilization in the sector will likely see the industry grow again in 2020.

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“This is an industry less than two years old and if you look at any industry sector – whether it be the internet, tech, any new sector that has developed over the last 30 or 40 years – they have a sudden rise right away, then the bubble pops and then the industry stabilizes and continues to grow,” said Carle.

Carle says the cannabis sector went through that cycle quickly and he anticipates solid growth over the long term on both the retail and production sides.

What the industry needs help with is tackling the black market, said Carle.

“We need the government to help us to educate consumers on the difference between the black market and the legal market, the dangers of some of the black market products that are not reviewed and approved from Health Canada,” said Carle. “And we need government to support the legal industry so we can finally that goal of putting an end to that black market.”

And with the end of that black market, the funding which supports less than desirable behaviours, added Carle.