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California referendum could deal devastating blow to BC's lucrative marijuana export industry

In Vansterdam, pot growers are taking note of California's referendum and speculating on its economic impact on BC's biggest cash crop.

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British Columbia’s cannabis activists and law enforcement officials are bracing themselves for a political earthquake that’s set to hit California this fall when voters head to the polls to legalize marijuana. Vancouver-based activists fear BC‘s bud industry could be wiped out if California opens the door on pot decriminalization.

 

If the referendum passes next November, individual growers will be able to cultivate up to 25 square feet of marijuana while local governments would both regulate and tax the sale of cannabis.

 

“We’ve got to protect our pre-eminent position by legalizing now,” said Marc Emery, publisher of Cannabis Culture and "BC‘s prince of pot."

 

Speaking from his magazine office on Hastings Street, Emery (pictured below) said BC‘s marijuana industry could only compete with a possible pot haven in California if the province legalizes cannabis within the first two years of any such move south of the border.

If California legalizes, the demands for BC marijuana at $2,400 a pound will greatly diminish, said Emery, who faces a five-year jail term in the U.S. for drug trafficking and distributing cannabis seeds over the Internet. 

 

According to Emery, the homegrown market will evaporate if Canadian pot users flock to California for cheap, high-quality cannabis that could be available for a little as $10 per ounce, compared to the current rate of C$200 in Vancouver.

 

Should BC also decriminalize pot, Emery said the provincial economy could benefit from industry innovation focused on developing high-quality cannabis strains.

 

Hopefully, said Jody Emery (pictured below), Marc’s wife and fellow pot activist, “our politicians here can no longer say that Canada can’t legalize marijuana because the USA won’t let it happen.”

Jodie Emery

Jody Emery, a former organizer with the Marijuana Party and current Green Party candidate running on an anti-prohibition ticket in Fraserview, said legalization would decrease the influence of organized crime and cut into profits gleaned from the illegal market.

 

The BC marijuana industry is estimated at $5 to $8 billion and, if decriminalized, presents significant taxable revenue. William Austin, a BC Marijuana Party activist who phones MPs as part of the anti-prohibition drive, said the province and law enforcers are failing to see the bigger picture.

 

“The black market won’t go away but [legalization] will be a significant hit and it will allow the police to actually focus on more dangerous things like people-trafficking or weapons smuggling,” said Austin.

 

Jody Emery said that she and her husband bought weed from friends and acquaintances who grew marijuana in their homes, and were in the business to express their opposition to prohibition rather than to get rich.

 

“My role is to protect our industry and advocate for people not going to jail for a plant,”  said Marc Emery.

 

(4) Comments

There will be no '$10 an ounce' cannabis coming out of the U.S. First off, various communities, even in California, are doing their best to keep Medicinal marijuana in its place of shame and doing whatever they can to keep the hassle/fear level high. It's going to take more than a state law which only allows minimal personal production of MM- which most folks are simply unprepared to take advantage of anyway. Most will still buy the finished product from readily available sources. Demand is still exploding. Supplies, while keeping up with demand now, could still be outstripped by demand. Dispensaries often rush the growing/drying/curing process to keep up with the demand. Any guess as to some future average price per ounce also needs to take into account the growing assumptions that 'the potheads' are willing to pay all kinds of taxes. Politicians around here are throwing around possible taxes such as $35,000-$50,000 annual lic. fees for dispensaries and $50 an ounce tax at the retail level. Prices Should come down with legalization but it will still be very expensive compared to any other plant that can be cultivated. Folks rushed to beg for regulation, assuming that brings legitimacy. In case it's not been noticed, many political hacks are trying to get Their drug money from MM, while crying fowl over the entire concept of legally-accessible cannabis. All this confusion and leftover demonization of cannabis will keep prices higher than they should be for years to come.
giannitc2010 May 1st 2010 | 8:20 PM
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outerzone May 3rd 2010 | 4:16 PM
So what if the California referendum deals a devastating blow to BC's lucrative marijuana export industry! Is it not currently illegal in BC to grow and sell pot for recreational use? The growers have been making windfall tax free income for decades, with huge upside profits, and with very little downside as the police rarely prosecute small/medium grow ops in rural areas even if caught red handed – I know this first hand. In the legal business world what might happen in California would bring competition, supply and demand, what ever model you want to use. The tax free money reaped by those that grow and distribute pot today does little for society, i.e. social programs such as education, healthcare, homeless shelters (other than maybe contribute to filling them) … and of course fuels the international travel industry when the growers take those long deserved vacations in the tropics every year, which I assume is to help them launder some of the hard earned profits. Don’t get me wrong, I think pot should be legalized and regulated, just like the liquor industry but until then I won’t shed any tears for the local growers/dealers.