Posted by: CS | October 19, 2018

Poisoning Canadians for Profit — Part 2

As previously noted, Canada’s ten largest licensed Cannabis producers have a combined market cap of $35 billion, this supported by a horticultural business insignificant in comparison with Canada’s greenhouse vegetable industry. How does this make sense?

Consider the Cannabis market. Data published by the University of Ottawa indicate that there are approximately 2.3 million Cannabis users in Canada, consuming a total of 770,000 kg of marijuana each year, or just under one gram per user per day.

Now consider the licensed Cannabis industry. Cannabis yields around half a kilogram of bud per square meter per year. So the entire Canadian Cannabis demand can be supplied from around 144 hectares of greenhouses.

In contrast, the Canadian greenhouse vegetable industry has 53,000 hectares for tomatoes alone and a total greenhouse space of 140,000 hectares.

Now consider the value of the respective outputs. Altogether, Canada’s greenhouse vegetable growers generate approximately $1.3 billion a year in farm-gate sales.

How much Canada’s licensed Cannabis producers will net is less certain. However, on the first day of legal sales prices ranged from $5 to $17.5 per gram. So attributing 25% of sales revenue to the grow-op, the yield could be between $960 million and $3.3 billion.

This means that Canada’s licensed pot growers will likely generate more cash from around 144 hectares of greenhouses than Canada’s unlicensed greenhouse vegetable growers with their 140,000 hectares of greenhouses.

LOL. It sure pays to have friends in government when you need a license to print money, I mean sell drugs.

As for social consequences? Well, estimates based on experience in other jurisdictions indicated that legalization of pot will cause something like a 3% increase in road accidents, meaning that something like an extra 270 Canadians will die, and several thousand will be maimed each year for the profits of the Cannabis growers.

Many other harms will result from increased pot use following legalization. Work-place intoxication will be more common and more difficult to control. Marijuana addiction will become more widespread, and according to this study, the incidence of schizoprenia is likely to increases as a result of the damage that Cannabis does to developing neurons of the frontal cortex of adolescent brains.

But, hey, just look at those wonderful stock market capitalizations. How long before young Justin promises licensed production and sale of cocaine and heroin? Be sure to get in on the IPO.

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