B.C. pushes for black market cannabis to go legal, faces criticism from craft growers

The British Columbia government has convinced many illegal cannabis growers to begin selling legally in an effort to squeeze out illicit marijuana from the marketplace, but the efforts have faced criticism from the craft growing industry.

It has been three years since recreational marijuana was legalized in Canada, with the provinces managing retail sales while Health Canada is responsible for production licences.

In B.C., the effort to turn black or grey market growers on to the legal retail market has focused on the Central Kootenay region through a pilot project and business supports.

This includes helping aspiring producers navigate the federal licensing process as well as assisting growers with marketing development and security licensing, the province says.

Solicitor General Mike Farnworth said in an interview that regulations could be less restrictive to encourage growth in the sector.

"It's still very much a work in progress three years in," he said.

"There's still some challenges for the craft side and producers."

Farnworth said he's heard from industry members who have expressed frustration over the regulations surrounding getting cannabis to market as well as from retailers who dislike the security measures, such as frosted glass for their storefronts.

Farnworth said he sees "a lot of potential" in the sector and the loosening of regulations would help marijuana farmers in the future.

Monthly retail sales have risen substantially every year, from $1.2 million in December 2018 to about $18 million in December 2019 and to $48 million in December 2020, he said.

He said the province's farm-gate program, which would allow cannabis growers to operate a retail outlet on their property or deliver directly to a retail store, would help craft growers as well as encourage those operating illegally to make the switch.

Farnworth said he expects the program to come into effect in the spring.

"We're trying to work with the industry (and) identify some of the challenges we can deal with."

Abra Brynne of the Kootenay Cannabis Economic Development Council was part of the team that helped black market growers transition to the legal model.