Forgive Walker Patton for being skeptical about the provincial government's support for the cannabis industry.
Patton, the chief commercial officer at cannabis producer Woody Nelson, says the Nelson-based company can boast over $1 million in monthly sales. But nearly seven years after legalization in Canada, Patton says that isn't enough to compete against the unregulated, illicit market.
鈥淚t's like being told that you're performing in the top one percentile of the class, but you're still getting a D-minus, and you can't figure out why.鈥�
He's hopeful, however, that a small change by the provincial government leads to more bountiful harvests for B.C.'s industry.
Until last month, the Ministry of Public Safety was in charge of regulations related to policy and licensing for non-medical cannabis. That file now belongs to the Ministry of Agriculture and Food, although Public Safety Minister Nina Krieger will still oversee compliance and enforcement.
A spokesperson for the Agriculture Ministry said the change will "better align the interests of the cannabis sector with programs and policies in agriculture while focusing on economic growth.鈥�
鈥淚 am really looking forward to working with the cannabis sector and finding ways to enhance this growing industry that is contributing to local economies throughout the province," Agriculture Minister Lana Popham said in a statement to the Nelson Star.
Patton, who is also co-founder of the BC Cannabis Alliance that advocates for licensed craft producers, says he is "cautiously optimistic" about the change, which he characterized as a shift in optics.
鈥淥ur industry is moving from something that is to be feared and controlled as a result of that fear, to something that is to be developed and grown properly.鈥�
Legal cannabis in Canada and B.C. is a growing industry. National sales have increased by over $1 billion since 2021 to $5.2 billion for 2023-2024, according to Statistics Canada.
In B.C., total sales hit $791 million for 2023-2024, an increase of nearly $100 million from the year prior. The B.C. Liquor Distribution Branch (BCLDB) meanwhile reported 27.1 per cent increase in cannabis sales in its latest annual report as well as an $89-million jump in revenue.
But despite a cultivated reputation for being the home of Canada's best cannabis, B.C. sales still lagged last year behind Alberta ($910 million) and Ontario ($2 billion).
One major obstacle is Canada's illicit market. A report published by the accounting firm Deloitte earlier this year found a greater variety of products than legal stores, and at lower prices.
The B.C. Chamber of Commerce has also echoed these concerns in a policy paper that states illicit market pricing, excess taxation and a 15 per cent proprietary fee on orders placed and delivered by BCLDB's Direct Delivery program have meant the province's biggest producers are unable to turn a profit.
Patton says the industry hasn't been allowed to adapt under the direction of the Public Safety Ministry.
鈥淚t's their lack of action, their lack of recognizing these problems and a lack of solutions that has us perhaps most optimistic about the shift from public safety to agriculture, because at least now there's a fresh perspective. Now if we go the next seven years seeing the same degree of policy improvement that we saw under public health and safety, then the caution within our optimism would have been warranted.鈥�
Bo Chen is interim executive director for the Alliance of Beverage Licensees (ABLE BC), a non-profit lobby group that advocates for private cannabis retail stores.
Chen says the industry is in a healthier place now than it was for legal businesses in 2018, and describes the switch to agriculture as a progressive change by the government.
鈥淐annabis has long been a big contributor to the province, and it's nice to see that support coming from a ministry that has intentions for us to have more economic diversity and independence.鈥�
Popham has not yet announced any policy changes, but last month the Union of B.C. Municipalities circulated a discussion paper by B.C.'s Liquor and Cannabis Regulation Branch that suggests changes to market controls and event sales will be considered.
Those include a minimum set distance between cannabis retail stores (similar to the one-kilometre rule for liquor stores) and licensed cannabis sales at public events, the latter of which Chen says is a good idea.
鈥淎ny summertime big street party or parade, a lot of these massive gatherings where often we do see a lot of liquor activations and sales there, that's something that we've pushed for a long time. Now we are again in the official active engagement with the policymakers to bring this to the table and just get it done.鈥�
Patton agrees, and wants the province to improve its cannabis tourism efforts by allowing for on-site consumption at farm-to-gate stores. He also called for the BCLDB to end its ban on credit cards used for wholesale payments with the Direct Delivery program, which he said would offer relief for retailers short on cash flow.
But the change of ministries, Patton conceded, is a move in the right direction by the provincial government 鈥� provided it doesn't stop there.
鈥淲hile the government might come out and say that they are in support of cannabis, it's performative until they start really changing the policies."