Grower Shares How to Succeed in Canada's Cannabis Export Market at Grow Up Conference in Canada
Grower Shares How to Succeed in Canada's Cannabis Export Market at Grow Up Conference in Canada
Summary
The video features an interview with Jacob McCall, a legacy cannabis grower from California who now operates McCall Family Farms, a micro-cultivation facility in Ontario, Canada. Jacob shares insights about transitioning from illicit to legal cannabis markets, focusing on high-quality craft cannabis production and the emerging legal international export market. He discusses the challenges, regulations, taxes, and logistics involved in exporting cannabis from Canada mainly to Europe, highlighting how the industry has evolved and the opportunities ahead while emphasizing quality over quantity.
Key Points
Background and Business Overview
00:30
Jacob McColl introduces himself as a legacy cannabis grower with over 22 years of experience, now running a licensed micro-cultivation facility in Ontario, Canada, called McCall Family Farms.
01:59
The farm operates at the maximum size allowed for a micro-cultivation facility in Canada, focusing on high-end, craft-quality cannabis that tests well and looks and tastes good.
02:50
The farm is located in Ontario and can legally ship cannabis throughout Canada and export internationally to countries accepting such imports under certain permits.
Export Market and Legal Landscape
03:26
Exporting cannabis legally from Canada to other countries like Germany and the UK is a fairly new but lucrative market compared to the domestic Canadian market, particularly for bulk volumes.
05:10
Many countries around the world, especially in Europe and the Caribbean, are starting to accept cannabis imports, and the knowledge of these markets often spreads through personal connections and industry networks.
06:40
McCall Farms started exporting about a year ago to Germany and England, entering the market when prices were high, though prices are beginning to level off as more competitors enter.
Regulatory and Logistical Challenges
07:26
Exporting involves significant paperwork with import permits that can take about a month and export permits from Health Canada that take about 14 days.
08:00
On arrival, products must be retested for microbial contaminants, which is often the biggest delay, especially in the UK where irradiation before shipment and moisture control on arrival add complexity.
09:29
Germany does not allow irradiated products, so clean cultivation facilities are crucial for meeting their strict microbial requirements.
Market Dynamics and Pricing
04:08
The average sale price for cannabis in Canada is around $2 to $2.25 per gram, while international export prices can be significantly higher, sometimes reaching $3 to $6+ per gram depending on quality and demand.
05:25
Large volume sales (75 kilos and up) are easier to move internationally than domestically within Canada due to market saturation.
10:04
Paperwork and regulatory redundancies have improved but remain a notable pain point; taxes and lower price points compared to legacy days in California impact profitability.
Taxes and Financial Aspects
11:02
Exporting cannabis internationally involves no taxes, unlike domestic Canadian sales where excise taxes and per-gram charges apply.
11:35
GST/HST taxes also apply to bulk domestic sales in Canada, but these taxes do not apply to exports, making international sales more financially attractive.
Product Quality and Legacy Perspective
11:55
Jacob believes product quality varies by grower; McCall Farms’ products have consistently been top sellers in Atlantic Canada, demonstrating high consumer satisfaction.
12:51
The farm maintains a craft approach emphasizing quality over quantity, believing that high-volume production cannot match the quality of a smaller, dedicated operation.
13:25
California, Oklahoma, and Michigan grow some of the best cannabis, but many Canadian growers are capable of matching such quality.
Future Outlook and Business Philosophy
14:38
Jacob’s focus is on sustainable, family-run business growth with no desire to scale beyond their current micro-cultivation size.
14:52
The farm continually explores new opportunities and innovations like tissue culture but prioritizes maintaining product quality and manageable operations.
15:34
Although Jacob himself will not attend every industry event, his team stays connected globally to manage relationships and business development cost-effectively.
Personal and Industry Reflections
10:01
Reflecting on past illicit market days versus today’s regulated industry, Jacob appreciates improvements but acknowledges challenges remain such as taxes and paperwork.
14:11
Cannabis growing and the industry are Jacob’s lifelong passion, and he envisions a long-term future in the business alongside his family.
16:20
The video concludes with appreciation for Jacob’s expertise and an encouragement for others to connect with him to benefit from his deep cannabis industry knowledge.
