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Budding U.S. industry hurts B.C. pot growers

Marijuana growers of the lucrative B.C. bud are falling on hard, high times these days, busted by two U.S. states where it’s no longer a criminal offence to possess the demon weed.
Zeminak, Rick 191007jer
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Marijuana growers of the lucrative B.C. bud are falling on hard, high times these days, busted by two U.S. states where it’s no longer a criminal offence to possess the demon weed.

The estimated $4-billion industry in B.C. is facing the prospect of offering fire-sale deals since Washington and Colorado voted last year to legalize pot, according to a recent report in the Toronto Globe and Mail.

Jodie Emery, a political activist and owner of the Cannabis Culture store and magazine in B.C., said the B.C. bud, once selling for $2,000 a pound, has dropped as low as $1,000.

Other observers predict a continuing decline in prices since Washington and Colorado pot users will no longer rely on the B.C. bud. It’s simple economics — supply and demand, they say.

Further, observers say the Washington and Colorado bud might eventually find its way into Canada, undercutting Canadian growers by offering lower prices.

Government-approved growers in those states, monitored under the new rules, will eliminate the middle-man in the pot trade, which figured prominently in high prices and major financial gains. And, if all goes as planned, the criminal element associated with the illegal grow-ops and distribution of marijuana will most certainly feel the pinch.

The governments in both states view the changes as a win-win situation: pot sales can now be taxed and the murdering drug gangs may soon be unemployed.

Canada would be wise to watch the outcome of this approach. Potential tax revenue aside, there’s the added bonus of freeing up massive expenditures spent on fighting the losing marijuana battle in which organized crime is still the key player.

Prime Minister Stephen Harper should take note, rather than wasting time poking fun at Justin Trudeau because he’s admitted to using pot.

The attempt drive to open up Harper’s eyes was an op-ed in the Globe and Mail, submitted by former B.C. attorneys-general Geoff Plant, Colin Gagelmann, Graeme Bowbrick and Ujjal Dosanjh (who was also a premier of that province for one year).

“The proof that cannabis prohibition has failed is irrefutable,” they wrote.

“We see the evidence on our streets, in our communities and on the nightly news — gang-related homicides and shootings, innocent victims caught in the crossfire, grow-op busts and violent grow-op thefts.”

They also took Harper to task over his government’s new, tough laws carrying mandatory minimum jail terms for growing as few as six marijuana plants.

“There will be massive provincial budget and expenditure implications from this bill and yet, our streets will be no safer,” they wrote. “It is time for a complete rethink.”

They further contended: “The loss of the massive illegal marijuana market in British Columbia would hobble gangsters involved in the marijuana trade while at the same time raising significant tax revenue.”

Central Alberta residents are no strangers to grow-op busts scooping up illegal drugs worth millions, and the confiscation of various weapons meant for only one purpose — and it’s not gopher hunting.

The B.C bud is known among users for its high potency. But could the honeymoon be over for its demand?

B.C. observers believe that could be the case, saying the price for consumers and income for producers has already gone down.

“Prices are going down in British Columbia,” said Dana Larsen, who opened a Vancouver dispensary for medical marijuana. Larsen told the Globe that prices at his dispensary have dropped about 20 per cent.

“They’ve got their own supply in Washington, so there’s less demand for B.C. bud,” he said. “And (for sellers) here, there’s less demand for our product in the States and so prices drop locally as people try to move their product. And I expect they’re going to stay in that range that they are, if not continue to go down.”

David Curylo for one wants a part of the action in Washington. The former B.C. resident has filed his application with the Washington government to open up a “cannabusiness.” Curylo’s enthusiasm is bolstered by current market trends.

He said there will never be another opportunity like this in his lifetime to take advantage of a burgeoning market — especially one that’s nipping the B.C. bud in the bud.

Rick Zemanek is a former Advocate editor.