LETTER: The case against legal cannabis production

From reader Tom Prior

Re: “Community Futures launches cannabis consultation program,” Nov. 21

Community Futures recently received $675,000 of taxpayers’ money to advise locals on producing legal cannabis. The best advice they could give a former illegal producer or a new investor at this point: don’t do it.

There is only one buyer for legal cannabis: some entity of provincial government, with Health Canada in Ottawa creating insurmountable expenses that is meant to drive the mom-and-pop West Kootenay cannabis producers out of business.

Sooner or later this arrangement is going to break down, if it has not already.

The cost of producing indoor legal weed in Canada is around $600 plus a pound. Not including the $2 million or $3 million infrastructure cost.

The cost to produce outdoor Canadian illegal weed is less than a $100 per pound. Simple capitalist economic logic speaks loudly regarding the steep hill a legal producer faces to compete with the black market.

At this point some of the major Canadian “legal producers” are setting up shop in Mexico, Central America and other places that can actually produce cannabis all year round; minus the cost of BC Hydro, accountants and all the other costs necessary to meet the three levels of government that are holding out their hands for a piece of the action. In Mexico there would only be the local criminal cartel to pay off.

It seems like the provincial, federal, and municipal pundits are trying to coax unsuspecting Canadian entrepreneurs into a market that will eventually be flooded with cheap third world cannabis.

Tom Prior

Nelson

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