B.C. becomes 2nd province to offer farm-to-gate cannabis sales

Mature cannabis plants are photographed at the CannTrust Niagara Greenhouse Facility during the grand opening event in Fenwick, Ont., on Tuesday, June 26, 2018. CannTrust Holdings Inc. is reducing its workforce. THE CANADIAN PRESS/ Tijana Martin

A new cannabis retail licence introduced in British Columbia is aimed at improving the quality of products in the legal market, plus supporting Indigenous and rural producers.

The producer retail store (PRS) licence will come into effect on Nov. 30, according to a statement released by the province on Tuesday. Successful applicants will be authorized to sell non-medical cannabis products from stores located at their cultivation site.

“We continue to look for ways to support growth of the legal market while providing safe and accessible options for British Columbians,” Public Safety Minister Mike Farnworth said in the statement. The new policy was announced just 13 days ahead of Canada’s fourth anniversary of cannabis legalization on Oct. 17.

B.C.’s current framework restricts cannabis producers from operating a retail licence, which Farnworth explains was meant to encourage competition. Ontario never had that restriction in place, making it the first and only province to allow for farm-to-gate cannabis sales.

“Four years ago, our priority was establishing retail stores so that consumers across B.C. would have access to legal cannabis products…At this point our retail store network is well established,” says Farnworth.

The launch of this new policy was three years in the making, and began with a government-to-government agreement between the province and Williams Lake First Nation, the latter of which opened B.C.’s first farm-gate production facility on Secwepemc Territory this year.

Daniel Penny, a project manager with the Williams Lake First Nation says cannabis users will notice the impact of this new framework as soon as it takes effect. Having worked at Unity, a cannabis retail store, and Sugar Cane Cannabis, the 7,000-square-foot production facility, he’s seen first hand how eager clients are to see where and how cannabis grows.

“If craft cannabis is going to have the same success as beer and wine, we need to continue evolving consumption spaces to give people opportunities to touch, taste and smell the product—where tours and testing products are part of the experience,” Penny says.

Not only will the legal farm-gate model allow producers to make meaningful connections with retailers and customers, Penny says it will also lead to higher quality products in stores.

“A lot of products coming into our retail store are about quantity over quality, and some sit on store shelves for months before reaching consumers,” says Penny.

In collaboration with the First Nations Leadership Council, B.C. created the BC Cannabis Products Program in January 2022, with the goal of supporting Indigenous cannabis producers in this budding industry. To date, six First Nations have signed s.119 agreements, including Williams Lake First Nation, though Farnworth says application processing timelines can vary due to things like security screenings and local government or Indigenous Nation recommendations.

While Penny believes there’s still plenty of room for improvement when it comes to B.C.’s legal cannabis market, he’s excited by the past four years of progress.

“We’re excited to continue to grow,” says Penny. “I think there’s a lot of untapped market and people who want to continue learning and getting involved with cannabis. We’ve come a long way in keeping people away from the illegal market and providing safe experiences for consumers.”