British Columbia Announces New Cannabis Retail License – Cannabis | weed | marijuana

British Columbia’s provincial government has announced a new cannabis retail license. This license allows licensed growers to sell directly to customers through shops on their farms.

The so-called “farm-to-gate” license was previously in a test pilot program with the Williams Lake First Nation.

This new cannabis retail license is open to all growers.

British Columbia Announces New Cannabis Retail License

The new cannabis retail license will be known as the Producer Retail Store (PRS). The PRS will come into effect on November 30, 2022.

Applications are available through the Liquor and Cannabis Regulation Branch (LCRB) Liquor and Cannabis Licensing Portal.

Only state-licensed manufacturers can apply. This includes standard production licenses, micro-growing licenses and nursery license holders.

The government says this license is part of the province’s commitment to “support a robust, diverse and sustainable legal cannabis economy that includes indigenous and rural communities.”

Mike Farnworth, Secretary of Public Safety and Attorney General, said in a press release:

“The fourth anniversary of BC legalization of cannabis is fast approaching and we continue to look at ways to support the growth of the legal market while providing safe and accessible options for British Columbia residents.

“The PRS license is another way we are working to support the success of BC-based producers.”

New cannabis retail license to ditch provincial distribution?

BC’s new cannabis retail license means direct producer-to-consumer supply. The direct delivery program also allows producers to ship directly to cannabis retail stores in BC

“The direct delivery program also allows smallholder farmers to build brand loyalty with licensed cannabis retail stores and their customers by offering their product in local stores, rather than distributing the same volume across the province,” the government press release said.

This license will be good news for retailers still affected by the BC government workers’ strike. Store shelves were emptied as private retailers did not have access to additional stock.

State monopoly traders have come under fire lately. As cannabis producers and retailers struggle to stay afloat, state-owned retailers have reaped record profits thanks to their legal monopoly status.

The push for more privatization has gained momentum in Ontario, where the state cannabis distributor is charging a 30% premium (compared to 15% in BC or 6% in Alberta).

There is no central distributor in Saskatchewan. The Saskatchewan provincial government regulates sales but allows retailers to deal directly with producers and private wholesalers.

Less government involvement = lower prices

“I’m a former politician,” George Smitherman, president and CEO of the Cannabis Council of Canada, told CLN over the phone. “I know how the finance department works. It likes the OCS like the LCBO because it’s one of fifty lines on its turnover chart.”

But Smitherman admits the margins are “ridiculous” and run counter to intended goals of eliminating the illicit market. “I think there’s a lot of room for reform,” Smitherman says.

Ontario Chamber of Commerce agrees.

When a cyberattack shut down cannabis distribution in Ontario, Daniel Safayeni, the chamber’s vice president for policy, said in a statement:

“This situation underscores the inherent risks of having the Ontario Cannabis Store (OCS) act as the province’s sole wholesale buyer and distributor of legal cannabis.”

The Chamber wants the Ontario government to follow Saskatchewan’s lead in allowing producers and retailers to have direct relationships.

They say this will allow them “to negotiate their own product mix, pricing and delivery terms, which would mitigate the risks of the current system.”

Farm-Gate Cannabis Retail License in British Columbia: The Beginning of the End?

Will British Columbia’s farm-to-gate cannabis retail license be the beginning of the end of the province’s wholesale monopoly?

One can hope. The tide is now turning in favor of decentralization.

footnote(s)

https://occ.ca/mediareleases/ontario-cannabis-store-delivery-stoppage-underscores-urgent-need-for-reform/https://news.gov.bc.ca/releases/2022PSSG0061-001490