A group of cannabis growers have formed a collective; the BC Cannabis Alliance, and have launched a campaign to clarify the economic challenges of the cannabis industry, including how revenues are distributed throughout a complex supply chain. The campaign is aimed to inform retailers, consumers, and the general public about just where each dollar spent on cannabis goes.
As one example, for every $10 spent on cannabis in the legal market, only around one to two dollars ever makes it to the grower, and often only months after having "sold" it. While consumers might see retail prices and think the industry is doing well, the reality is that it is often just the government making the bulk of those profits—from taxes as well as from distribution markups.
The BC Cannabis Alliance is highlighting the challenges faced by small-scale BC growers and processors due to the 15% "Proprietary Fee" imposed on direct-to-retailer sales. This program was introduced to support BC's craft growers. However, because this 15% markup is paid to the BCLDB, many small businesses are unable to benefit from the program as intended.
Alannah Davis, CEO of Dabble Farms said: "The addition of this 15% markup to be paid to the government, despite them not ever handling the product at any point in the supply chain, is an example of the government saying one thing 'to support small farms' and doing the opposite."
This high fee directly impedes small producers' ability to deliver quality cannabis to consumers at a fair price, further reducing the already limited margins for these businesses. Lower tariffs stimulate commerce. The International Trade Administration found that a 1% tariff reduction typically results in a 2% increase in imports. While the context differs here, the underlying economic principles remain consistent. By improving conditions for small-scale producers, we can enhance the selection, quality, and affordability of quality craft cannabis for consumers.
"We, the passionate producers of BC's cannabis, urge the Finance Minister to consider reducing this "Proprietary Fee", contributing to the welfare of small cannabis producers, and to the wider BC community. By signing this petition, you stand with us in requesting a fair and competitive environment for cannabis producers. Please, lend your voice today.
For more information: 
BC Cannabis Alliance
bccannabisalliance.com