For the estimated 450,000 patients that comprise the medical marijuana market in Canada, there is some welcome news in the launch of a marijuana free market program costing $1.3-billion. An initiative of Health Canada, the program replaces the former system that relied heavily on small local growers working out of their homes. With the newer system, there is expected to be consistency and overall improvement in the quality of medical marijuana, and much less chance of legal marijuana ending up in the black market.
In place of the local home growing operations, the free market program will implement larger indoor grow lots, each of which will be subject to government standardization and certification. The program mandates the production and packaging of a line of high-quality marijuana products, which will be priced according to market factors.
One of the main drawbacks of the former system is that it basically relegated medical marijuana to little more than a cottage industry, despite its importance to the community. Grow operations were also limited to two patients each, and were often subject to accusations of criminal association. The new system is scheduled for full implementation by March 31, 2014, although growers are already encouraged to register anew and to make their purchases from the newly established legal farms.
With more than 37,400 medical marijuana users acknowledged by the program (this number is expected to grow to 450,000 by 2024), there is a lot of potential for big money to be made under the new system. At present, a gram of bud sells for an average of $10 on the street. When the legal marijuana begins to take over and growers begin to set their own price points, prices are expected to drop to as low as $7.60 a gram.
By 2024, the revenue from medical marijuana is expected to rake in over $1.3 billion annually. Furthermore, if and when marijuana is legalized for recreational use in the country, registered growers will be in the perfect position to take advantage of the new market.
This early on, many growers in the B.C. area are optimistic of the changes that the new system will bring, particularly with regard to increased profit potential. One such grower is Island Harvest’s Eric Nash, who is a longtime grower that has just recently applied for a license under the new program. Citing the increased opportunities in the medical marijuana industry, Nash expects the formation of “strategic alliances”, as companies position themselves for maximum leverage. Nash describes the opportunities in the medical marijuana industry as “significant”, and said that the program will benefit not only medical marijuana consumers, but the overall economy as well.
The medical marijuana industry offers plenty of profit potential for those who are willing to learn the ropes and to conform to government regulations. If you are interested to learn more about the marijuana trade and the cost of running your own medical marijuana business, call us today for some valuable information that you won’t get anywhere else!