Up to 200% of the profits to the producers of cannabis

News 16 January, 2018
  • Pierre-Olivier Zappa

    Tuesday, January 16, 2018 20:29

    Tuesday, January 16, 2018 20:30

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    A few months of the legalization of marijuana in Canada, licensed producers rub their hands. Some hope to achieve up to 200% of the profits by selling their products to the quebec Society of cannabis (SQC).

    Settling in Quebec, the company Hydropothecary benefits of production costs among the lowest in North America.

    “To produce one gram of cannabis costs us 89 cents,” said Pierre Killeen, vice-president for government relations, in an interview with TVA News. The company hopes to sell even a gram between $ 2 and $ 3 to the SQC, who will sell between $ 7 and $ 8 to the consumer.

    “We’re talking about a margin of profit between 100 % and 200 % for the producer,” pointed out Philippe Hurteau, researcher at the Institute of research and socio-economic information (IRIS).

    “Few companies can boast of doing as much of the profits. Cannabis is inexpensive to produce, particularly because of the low cost of electricity in Quebec”, explained the researcher.

    In Hydropothecary, one speaks of “the advantage of Quebec”. “It is with very low costs for hydro-electric power, a labour very well formed, and also an abundance of water. Really, we have the advantages to Quebec to become a world leader,” said Mr. Killeen.

    A major expansion of Gatineau

    The SQC is in search of 144 tonnes of cannabis in its first year of operation. Hydropothecary is currently negotiating to become a major provider in Quebec.

    “We have a plan to expand with facilities of more than one million square feet that will be in operation within a year,” explained the vice-president of Hydropothecary. The company is still awaiting the necessary permits from Health Canada to grow pot in his future greenhouses.

    If the company’s plans of Gatineau come to fruition, it will become one of the most important producers of cannabis in North America, with more than 110 tons of marijuana per year.

    It does not exclude the possibility of engaging in the retail trade by settling in the provinces that allows it, such as British Columbia. Within a few months, 200 workers are expected to work to produce medical pot and recreational.