Posted by: Tony Carson | 28 September, 2007

BC Bud, less bang for the buck

The forgotten peril of the evaluating loonie is the price paid by ma-and-pa entrepreneurs.

Like the dopies, for instance, Strong Canadian dollar said hurting pot exports.

A stronger loonie — so called for the bird engraved on the one dollar coin — has cut the profit of selling potent “B.C. Bud” marijuana in U.S. markets at a time when producers in Canada struggle with tighter border security and competition in the United States with pot from other sources.

Top quality Canadian pot is selling for $3,500 (1,725 pounds) a pound in the United States, compared with C$2,400 (1,180 pounds) in domestic markets, according to Emery, who is also editor of Cannabis Culture magazine and fighting extradition to the United States.

“When you factor in all the risk and transportation, that (higher export price) is not a big deal any more,” said Emery, adding that when the Canadian dollar was weak exporters could double their money selling into the United States.

A study in 2004 estimated the street value of British Columbia’s annual marijuana crop at more than C$7 billion, which would make it one of the western Canadian province’s largest industries.

But a healthy Canadian economy has allowed marijuana producers to sell more at home. “They’re making a lot of money on those oil rigs, and everywhere Canadians are making decent money they are doing a lot of drugs,” Emery said.

Canadians have the highest rate of marijuana use in the industrialized world, according to a United Nation’s study released in July.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: