Foothills County may be a prime location for cannabis suppliers as Alberta faces a shortage of marijuana, according to a former provincial cabinet minister, who is helping those interested in getting into the now legal business.
“Southern Alberta is some of the most successful farmers in the country,” said Lindsay Blackett, with Arete Cannabis Consulting.
“Having been in Longview a couple of months ago talking to members of council and some of the local community, I saw a huge interest in micro-cultivation, specifically from many of the farmers and ranchers.
“Because of the entrepreneurial spirit in the Foothills area, I think it is a great hotbed for potential.”
Blackett, the former minister of culture under premier Ed Stelmach, will make a presentation about cannabis production Feb. 21 at the Foothills Centennial Centre at 7 p.m.
“We need to take the message to the different communities,” Blackett said. “Just to let them know what the opportunities are out there, what kind of suppliers, what kind of costs are entailed, what kind of requirements are necessary to move ahead.”
He said he believes Foothills County’s regulations concerning becoming a cannabis supplier are business friendly.
“Every municipality is looking for an increased tax base,” Blackett said. “If we can get people up and running successful enterprises, they are going to be employing people, they are going to be paying taxes and that helps the municipalities and it helps the community, because that money will most likely be spent in that community.”
Blackett doesn’t envision the large production supply plants such as from Aurora and others for the Foothills, but more likely micro-cultivation facilities. A micro-cultivation facility can be no larger than 200 square metres, according to regulations.
“Any plant that is growing can only be within that 200 square metres [2,154 sq. feet],” Blackett said.
More suppliers are needed.
“Health Canada has 145 large producers, but they are having a hard time keeping up with the demand.”
He said a micro-cultivator could also provide better product, like the craft beer market.
Maybe a Big Rock Bud isn’t too far down the line.
“I think as we start having local growers, there will be a demand to have those supplied in local stores,” he said. “We are going to need it over time and I think people will want to source local product rather versus buying a product from Ontario or some of the other jurisdictions.”
He said Arete is a consulting firm with its main purpose applying to Health Canada for licences to grow or process cannabis. Cannabis became legal in Canada in October 2018.
“Our focus is more on the production and processing side,” Blackett said. “It’s my belief that retail is the thin edge in that those people who have retail licences some are doing alright now, especially in the shortage cycle, but their margins are going to be 12, 15 per cent.
“The AGLC has said a lot of you [retailers] are not going to make any money for a lot of years. So, from an investment perspective a grow operation, whether you are a licensed producer, a micro-cultivator, the profit margin is larger than in retail.”
Blackett said the profit margin for cannabis could also be much higher than traditional crops from the Foothills such as barley and wheat.
As cultural minister, he said he visited several rural communities and saw the entrepreneurial spirit in small-towns areas that have been hit hard by the drop in the Alberta economy.
“We need to encourage and bring opportunities to rural Alberta in whatever form that is,” Blackett said.
Tickets for the presentation are $20 and are available by going to www.aretecannabis.ca/ Speaking Engagements
