Canadian vegetable and grain farmers are looking to the impending legalization of cannabis to help reverse decades of declining margins, according to a recent news story.
The article in the Globe and Mail describes how greenhouse farms are forming growing partnerships with medical cannabis companies.
Greenhouse farming operations have been facing declining margins for decades now, thanks in large part to the availability of cheaper Mexican produce since NAFTA went into effect in 1994.
For their part, the cannabis companies prefer to partner with growers because it’s cheaper to convert existing greenhouses than build new ones. Also, existing operations come with experienced staff.
Canopy, described as “one of the most aggressive cannabis companies in Canada,” is partnering with various growers – or simply acquiring greenhouses – across Canada so that it can sell locally sourced product in all markets.
The article references partnerships in B.C., Ontario and Quebec, and notes that others are on the way.