Community Futures Central Kootenay is here to help local cannabis producers, processors, and retailers.
Our intensive Cannabis Business Transition licensing Initiative ended in 2021, however we still support licensed recreational and medical sectors within the Regional District of Central Kootenay. Commercial lending for your facility, the Self-Employment Program for your business plan, Entrepreneurs With Disabilities program, and community business counselling are all available to eligible cannabis producers, processors and retailers. The Export Navigator program can also help producers and GMP processors. No stigma here -we treat the cannabis clients just like those from other regulated sectors like microbreweries and distilleries.
Stepping into the legal recreational production market is not a decision to be taken lightly, as the economics of legal production are still shaky at best. We strongly recommend taking a critical look at your site start-up budget, cashflow forecast and sales prospects before making the decision to step in and spending money. Compliant production, distribution and selling costs will be far higher than you may be accustomed to in the legacy market, and there are added risks with lab testing and recall that mean your crops may not get to market, or you may not get paid for a crop. Insurance costs are extremely high, and your home insurance, if on the same property (but a different address of course), may be put at risk.
Product prices are also declining in the legal market, and this is compressing cultivation margins the most compared to medical or legacy markets. If your planned facility is unable to breakeven at $1.75-$2.00 per gram wholesale price (to a processor) in the legal market, you may want to re-evaluate the model or explore other options. Building efficient high yield / low risk cultivation capacity, producing amazing bud, and having good relationships with processors (or developing processing capacity yourself) will be extremely important for business viability going forward. If you still want to jump in despite the challenges, and you have a great production track record and access to at least some of the capital you’ll need to get started, please give us a call!
Client Success Story: SenPharm
SenPharm worked with our Cannabis Business Transition Initiative and lending teams to get licensed as a legal producer of organic, craft cannabis. Their micro-cultivation facility in Crawford Bay, BC, created 6 full-time and 10+ part-time jobs in the community. They process and distribute through Shelter. SenPharm co-owner Kevin McBride says, “I don’t think we would have got our project off the ground if it wasn’t for Community Futures.”
Helpful links for the cannabis cultivation and processing sectors
- Health Canada: Cannabis Overview
- Health Canada: Cannabis Licensing Guide
- Health Canada: Regulations
- Health Canada: Good Production Practices
- Health Canada: Physical Security Measures
- Health Canada: Edibles Overview
- Health Canada: Understand the License Process [presentation]
- Health Canada: Registered Pesticides list
Canada Revenue Agency
- Federal Excise Tax Collection: Obtaining & CRA Cannabis License, & Collecting Duty on Cannabis
- CRA Cannabis Taxation presentation
Government of British Columbia
- How to Become a Licensed Producer in BC
- BC PST Bulletin on Cannabis
- WorksafeBC for Cannabis Cultivation (subsection of Agriculture, floriculture)