Cannabis in Canada

The Solution for a Rapidly Growing Industry

Cannabis legalization can be categorized for use medically or recreationally. Medical marijuana, which is available in whole, unprocessed form or from plant extracts are accepted for use following doctor’s recommendations to treat symptoms of illness. Over half of US states have legalized marijuana for medical purposes. Recreational use of marijuana is now decriminalized in over 9 states, which means that there is no jail time associated with possession; however penalties may still be incurred.

Currently in Canada, procurement of cannabis from a licensed producer is acceptable for medical purposes through authorization by a healthcare provider. Recently, following the appointment of the leader of the liberal party – Justin Trudeau brought forth the announcement on the legalization of Marijuana in Canada commencing October 17, 2018. The cannabis act will enable adults to legally purchase cannabis from licensed retailers and producers, grow cannabis from licensed seed, share and possess the commodity. Sales and marketing will be subject to provincial legislation; who will also determine supply by either private or public sectors. One year after the act comes into force, the manufacturing and production of cannabis products will also be legalized according to the Department of Justice.

As the first major economy to allow recreational use of cannabis, Canada will benefit from the act. The market is destined for growth; some of the projections are described as follows:

  • Legalization to create a multibillion dollar industry, addressing a $7 billion illegal market (New York Times, June 19 2018).
  • By 2025, the medical marijuana market is expected to reach $55.8 billion (Grand View Research, January 2017).
  • Worldwide consumer spending on legal cannabis is projected to reach $57 billion by 2027 with North America expending the largest volumes projected at $47.3 billion by 2027 (ArcView Market Research and BDS Analytics).
  • It is expected that 40% of the adult population of Canada will participate in the cannabis marketplace according to a survey, which includes the population of current users plus the population of adults who might try it upon legalization (Deloitte, 2016 as Referenced by Macleans, June 30, 2017).
  • Consumer demand by 2021 estimated by Cannacord Genuity and Neil Closer of RedLeaf Corp. to be 575 metric tons and 1000 metric tons respectively (Macleans, June 30, 2017).

It is expected that the legalization of Cannabis in North America for recreational use will also trigger global reconsideration of laws governing medicinal marijuana use according to ArcView Market Research and BDS Analytics.

Legalization of Cannabis in Canada will drive consumer demand creating opportunities for licensed growers and affiliated companies. The ability for individual producers to meet the growing demand may be challenging. Not only will growers need to scale up by increasing their operations but increased quality and production will also be necessary. According to leading cannabis producers, technology and innovation is among the key themes in providing opportunity for players in the industry (Ernest and Young Global Limited). Among many, specific growth strategies involve the following practices:

  • The use of high-tech equipment and spacious growth area.
  • Selection of locally adapted and favourable plant varieties.
  • Growth promoting environments with optimal lighting, temperature and water supply.
  • Grow medium supplied with necessary inputs.

Through the consideration of input use; phosphorus is one of the three most important nutrients in plant development and is important during the entirety of the plants life from germination to reproduction. Phosphorus drives photosynthesis, improves root growth, stem strength, disease resistance, nutrient uptake and overall yield. Optimal supply of phosphorus is most important during all stages of flowering to aid in bud health. Large production systems require high light intensities which drive photosynthesis and increase phosphorus utilization and need. Continuous watering leads to both phosphorus solubilisation and leaching from the soil while sub-optimal temperatures promote soil tie-up increasing the demand for additional sources. A phosphorus deficiency can be devastating to the plant; growth will slow, bottom leaves will turn dark green and show purple-blue coloration, wilting may occur and yields will decline. Fertoz supplies rock phosphate which is an effective solution for maintenance of soil phosphorus levels and provides a sustainable slow release source of phosphorus for continuous feeding. Our high quality rock phosphate products are more plant available than other sources, low in heavy metals, safe to use and easy to handle. Additionally, rock phosphate can be combined with other additives such as sulfur, biologicals and humates to improve soil health and crop utilization.

The implementation of natural, sustainable and organic production methods is important to feed the demand of a growing organic industry. Fertoz rock phosphate is an all-natural product that can be certified for use in organic production systems. The relatively low cost for Fertoz rock phosphate also make it a competitive product in conventional systems. Fertoz rock phosphate is the product of choice for a number of growers in this industry.



Government of Canada. Department of Justice Canada. Cannabis Legalization and Regulation. Accessed on June 23, 2018.

Ian Austen. The New York Times. Canada Vote on Marijuana Paves the Way for Legalization. June 19, 2018. Accessed on June 23, 2018.

Grand View Research. Home – Press Room – Medical Marijuana Market Size To Reach USD 55.8 Billion By 2025.
  January 2017. Accessed June 23, 2018.

ArcView. Market Data, Reports. Accessed June 23, 2018.

BDS Analytics. NEW REPORT: Worldwide spending on legal cannabis will reach $57 billion by 2027. Accessed on June 23, 2018.

EY. Building a Better Working World. Home – Industry – Consumer Products and Retail – Insights and Perspectives from Canada’s cannabis Industry Leaders. Canada is on the verge of legalizing cannabis. Access on June 23, 2018.

Maclean’s – Joe Castaldo. June 30, 2017. Canada. How big is Canada’s Marijuana Market, Really? Acessed on June 23, 2018.