Tuesday, April 16, 2019

Massive Therapeutics is the Real Cost-Efficient Contender in the Caribbean, While Indoor Cannabis Growers in North America Lose Their Competitive Edge

Read the Article in

“You wouldn’t grow bananas indoors in New York or Toronto, would you?”
– Bruce Caven – CEO of Massive Therapeutics

The US cannabis market is booming, climbing to a value of $125 billion as of 2018 , and is anticipated to top $146.4 billion by the end of 2025 . With such big bucks at stake, it’s little wonder why so many multibillion-dollar cannabis groups are setting up businesses across Canada and the Northern States.

But all isn’t quite as it seems. There are many pertinent questions to be asked. Why is the US and Canada thought of as an ideal location for cannabis farming? In particular, why wouldn’t you want to invest in a company that is growing cannabis cost effectively and in a market where cannabis is approved federally?

“Our relationship with several Caribbean markets stretches back three decades—one market is federally legalized and the other is expected to become so by the end of this year.”
– Bruce Caven – CEO of Massive Therapeutics

All About the Money? Cannabis, the Caribbean and Cost Efficiencies

As it stands, there are eight Canadian marijuana growers that are soon expected to top 100,000 kilograms of production each. The recent legalization of cannabis in Canada is also estimated to have added an additional $5 billion in revenue to the industry. It’s fair to say that this market is flourishing.

Canada isn’t the most obvious place that you’d associate with cannabis companies. Rather than being grown naturally under the sun, cannabis is instead grown indoors. Growing cannabis indoors requires lights (sometimes thousands), intricate ventilation, expensive insulation and 24-hour electricity and climate-control. All of which creates an irresponsibly large carbon footprint—and that’s just the start.

In comparison, hybrid greenhouses that are found in climates that lend themselves to healthy, fast and natural cannabis growth are driving operational cost efficiencies. And that’s before you even consider the lower labor,
taxes, materials and transport in such countries.

“The proposition of growing a cannabis crop indoors in North America is far too risky from a cost competitive standpoint. Think about it in terms of agriculture. Cannabis in our industry is a crop. Why would you purposefully grow a crop in an artificial environment, in a more expensive country?”
– Bruce Caven – CEO of Massive Therapeutics

Caribbean versus Canada and the US

Cannabis growing methods have matured and all companies have access to similar proven science. In essence, the production is the same, however in the US it can’t be shipped across state lines. The Caribbean also secures numerous efficiencies, as the product is grown and harvested at considerably lower cost.

Despite the efficiencies, the product is indeed of a comparable quality, with both US-grown and Caribbean-grown cannabis meeting the demanding Health Canada standards.

“There are no drawbacks to growing cannabis in the Caribbean—no need for artificial surroundings and no need to pay hand over fist for high operating costs. There is nothing that is lost in terms of quality or crop size, and much that is gained”.
– Bruce Caven – CEO of Massive Therapeutics

While companies jostle and compete to be next to set up in the US, business owners and investors alike would be wiser to take a step back from what’s becoming the world’s most over-rated cannabis play.
Instead, they should consider the obvious.

When we examine cannabis for what it is—a crop—it’s clear that the sky-scrapping buildings of New York, nor the bitingly cold climate of Canada are logical choices for cannabis cultivation.