Joint effort

Cannabis industry leader urges co-operation

As the country nears the legalization of cannabis, someone who has worked in the field for years is warning that governments exclude the current underground marketplace producers at their peril.

Rosy Mondin, president and CEO of Quadron Cannatech Corp. and the executive director of the Cannabis Trade Alliance of Canada, told the Atlantic Cannabis Forum Thursday that those working in what was alternatively described as the black or grey cannabis marketplace have done so for years, at great personal risk.

Cannabis is due to be legalized across Canada by July. It’s up to the provinces to decide how it will be distributed.

“I would say that the government will lose if they try to compete with the unregulated market,” Mondin said.” I say that we have to find a way to allow them to cross over, bring them in, that’s where the expertise is, the government should regulate them.”

Consumers will then decide which players will remain in the market, Mondin added.

“If you fully shut people out, you won’t put a dent in it.”

A problem with the underground market is they can’t get testing for their product, she aid, adding that simply turning cannabis sales over to say the liquor distribution branch, for example, is lazy policy-making.

“I actually have enough problem with the hybrid model,” Mondin said. “Don’t shut the industry out, they’ve been doing this for so many years, they’ve been doing this under threat of criminal prosecution, do you really think they’re going to stop now, all of a sudden?”

Setting up distribution systems is costly, especially on the front-end, Mondin said.

Demand is expected to outpace capacity in the first few years after legalization. If production at the federal level doesn’t meet demand Mondin said she can foresee lobbying for licensing at the provincial level, as is done for products such as craft beers.

“Engage with the government, don’t be quiet,” she said. “I think the most important thing as industry, what I’ve learned is if you don’t talk to the government and you don’t work with the government you are going to be stuck with whatever they hand you.”

Greg Engel, CEO of licensed producer Organigram, said a key investment is in environmental controls, controlling humidity and temperature, which will prevent pests, mildew and contamination. There are also significant security measures that have been required of them which are expensive.