marijuana: the #1 profit opportunity for greenhouse growers in the next decade

MarijuanaThe #1 Profit Opportunity for

Greenhouse Growers in the Next Decade

WEBINAR

www.ggsstructures.com/mj

Cannabis Industry Potential

Research from Marijuana Business Daily indicates that by the year 2020, the marijuana industry will have an economic impact of $44 billion in the U.S. alone.

A Better Solution to OpioidsCannabis has great medicinal qualities when it comes to the management of pain, treatment of chronic illnesses and other therapeutic benefits too numerous to list.

According to the National Institute on Drug Abuse, there is a global problem of prescription opioid abuse and addiction, and it’s estimated that up to 36 million people abuse opioids worldwide. - National Institute on Drug Abuse Website

More studies are coming out suggesting that medical marijuana is a potentially safer and more effective means of treatment than opioids. - Leafly Article


https://www.drugabuse.gov/about-nida/legislative-activities/testimony-to-congress/2016/americas-addiction-to-opioids-heroin-prescription-drug-abuse%23_ftn1



https://www.leafly.com/news/health/the-medical-minute-cannabis-and-opioids

MMAR vs MMPRHealth Canada’s two medical marijuana programs are both very different to each other.

MMAR 28,000 Canadians hold an MMAR patients

license

Licenses allow patients to grow a limited amount of cannabis or have a designated license holder grow for them

The MMPR program was to replace MMAR and prevent home grows but following the Allard injunction case in March 2016 there is no longer an expiry date for MMAR licenses

Health Canada no longer accepts new applications for MMAR licenses and there are no ways to change current licenses i.e. address changes

MMPR Over 30,500 Canadian hold an MMPR patients

license

Patients must purchase medical cannabis through a LP (Licensed Producer) authorized by Health Canada

Patients can obtain a referral from their Doctor for access

Currently there are 31 LPs, 18 of which are in Ontario

LP licenses are only issued to commercial growers once they meet Health Canada’s strict requirements on public health, safety & security


MMPR Regulation RequirementsThe MMPR application process is strict and rigorous, and includes the following regulations set forth by Health Canada:

All production sites must be indoors and not in a private dwelling

Physical security measures must be in place such as visual monitoring, intrusion detection systems, visual recording devices, monitoring by personnel, and restricted access

Applicants need to familiarize themselves with the regulations relating to “Good Production Practices,” which include product testing, storage of dried marijuana, equipment, the sanitation program, standard operating procedures, recall of product and

quality assurance personnel

There is a very limited list of approved pesticides allowed, and these are mild. Some growers have chosen to go completely pesticide-free

Zero mold or pesticide-residue on the finished product is tolerated

Strict odor control measures must be put into place


Recreational on the Horizon!Beyond the medical program, one of the Liberal party’s campaign promises is the full legalization of marijuana for recreational purposes.

Since the election, stocks in Canadian

medical marijuana companies have

continued to rise. Sales are projected to

be $5 billion annually if marijuana is

fully legalized in Canada, according to

CIBC World Markets. – CBC News


http://www.cbc.ca/news/politics/pot-revenue-government-5-billion-1.3423705


New OpportunitiesCanadian Licensed Producers are already taking the next steps to capitalize on the potential market.

Recently Tweed gained exclusive rights in Canada to some of Snoop Dogg’s brands and content. - Ottawa Business Journal

CannTrust has created a cannabis-infused coffee pod that can be placed in a Keurig machine. - CannTrust

http://www.obj.ca/Local/2016-03-10/article-4462601/Tweed-Snoop-Dogg-joint-partnership-earns-kudos: ‘A-smart-move,’-advertising-exec-says%0D%0A/1

https://canntrust.ca/medical-marijuana-in-a-cup-canntrust-stirs-up-new-dosage-controlled-treatment-with-concept-launch-of-first-medical-cannabis-beverage-pods-in-canada/


Rapidly Changing Cannabis Laws in the U.S.Although cannabis is still federally illegal, states across the U.S. are rapidly changing their marijuana laws. However, some states are opting to only allow CBD variants of cannabis under strict practices.


Whose Next to Legalize?Legalization for medical and recreational will only expand further, but who is next?

RecreationalThese states are on the 2016 November ballot for recreational legislation:


Sales in the U.S.To get a glimpse of what recreational legalization could be like, we can of course look to the US. Recreational marijuana sales are legal in Colorado, Washington, Oregon, and Alaska.

Colorado was the first to legalize in 2012. Since then the industry has skyrocketed:

Colorado cannabis sales $996 million in 2015 – The Cannabist

More than 2,500 marijuana business licenses issued in Colorado – PotGuide.com

Ancillary business cropping up such as ‘bud and breakfasts’, app-based marijuana delivery services, consulting companies, and even dating websites for pot users

Total marijuana sales in the US in 2015 were $5.4 billon (both medical and recreational) - CNBC

http://www.thecannabist.co/2016/02/09/colorado-marijuana-sales-2015-reach-996-million/47886/

https://www.coloradopotguide.com/colorado-marijuana-blog/2015/december/26/more-dispensaries-in-colorado-than-mcdonalds-starbucks-combined/

http://www.cnbc.com/2016/02/01/legal-us-pot-sales-soar-in-2015.html


California HopefulThe Adult Use of Marijuana Act (AUMA) in California is steadily gaining popularity amongst voters with up to 60% of voters supporting the bill.

California was the first state to legalize medical cannabis in 1996

As of this month a measure to legalize recreational marijuana has received enough signatures and is headed for the November ballot

The cultivation, distribution and sale of recreational marijuana would be regulated by the state, and exporting marijuana out of California would be prohibited

The independent Legislative Analyst’s Office is predicting that annual new revenue under AUMA could reach up to $1 billion and the state would save as much as $100 million a year on marijuana enforcement – The Orange County Register

http://www.ocregister.com/articles/marijuana-707424-legalization-california.html

http://www.ocregister.com/articles/marijuana-707424-legalization-california.html


Worldwide ChangesMore countries are looking towards ending prohibition and move forward with the medical benefits of marijuana.

Uruguay was the first country in the world to completely legalize marijuana for recreational purposes

Germany’s Health Minister has said the country will be legalizing medical marijuana in 2017

This year Australia legalized marijuana for medical and scientific purposes

Medical marijuana has been legal in Israel since the early 1990s, the country is regarded as an innovation hub for medical marijuana programs and studies

In the beginning of May, Jamaica’s Cannabis Licensing Authority has approved regulations for licenses, permits and other authorizations for cultivation, processing, distribution, sale, and transportation of marijuana


Comparing Legal Cannabis Growth toOther IndustriesInformation from New Frontier shows that adult recreational use of cannabis has grown by 232%.


SWOT AnalysisConverting your existing greenhouse into a cannabis facility

Strengths

• Existing horticultural knowledge & experience

• Already have a greenhouse structure that can be retrofitted for cannabis growing

• Existing supplier relationships (companies like GGS).

• May not have the capital to cover costs of becoming a licensed grower

• Marijuana is a completely different market than traditional horticulture with differing customer needs. Growers need to learn the business

Weaknesses

• Marijuana market in its infancy. More opportunity for profit at this stage.

• We are just starting to see the end of prohibition. This is the best time to build a marijuana brand

• Taking advantage of all the benefits of growing in a greenhouse vs. an indoor grow (eg using natural sunlight to reduce energy usage)

• In Canada, grocery and pharmacy leader Loblaw has indicated interest in selling medical marijuana in its stores. If this happens, greenhouse growers could potentially leverage their existing supply chain

Opportunities Threats• Big competition is coming

• Increased government growing regulations can be costly to keep up with (eg. odor control, security requirements, etc.)


Marijuana market is still in its infancy

More opportunities for profit at this stage Prices in the Canadian MMPR program ranging

from $3.50-$15.00/gram with a typical price of

about $7.00/gram

Pay off capital costs of your growing facility

while profits are high Major wave coming when recreational goes

through As a long term investment, it makes good sense

to build a state-of-the-art facility now Opportunity to build a brand


Already in the growing business

Existing knowledge of horticulture can be

applied to growing cannabis Understanding of plant health Knowing how to operate automation systems Confidence in crop production

Existing supplier relationships – you generally

know who to trust A lot of suppliers are trying to take advantage of

this new industry, adding high mark-ups and

substandard product or old technology


Using an existing greenhouse structureGreenhouses can be retrofitted to accommodate cannabis growing.

Should start with a quality structure

Ideally should be hard glazed for ease of cleaning

If there is an existing blackout, it can be used provided that it is in good condition without light leaks


Greenhouse Size

Greenhouse Length

Length of the greenhouse is a consideration for ventilation

Avoid greenhouses that are too long when using fan ventilation

Greenhouse Height

Taller structure gives a more stable environment due to a larger air mass

Supplemental lights should be plus or minus 6 feet from the plant canopy


Incredibly efficient and even way to cool your greenhouse environment when designed properly

Very little power is needed to open and adjust the roof vents to keep a constant temperature in the greenhouse

In the traditional greenhouse market, over 90% of what GGS sells is natural ventilation

Ventilation


Light DeprivationLight deprivation is nothing new, growers have been using it for years for crops such as mums, kalanchoes, poinsettias, and other flowering crops.

Add a horizontal truss in the greenhouse so the light deprivation system can easily be added

Avoid partially sloped systems to achieve blackout

For climates that need cooling during the blackout period, light traps are used to allow airflow through fans, vents and cooling pads without allowing light through

Reduce the amount of supplemental light pollution coming out of the greenhouse at night (be a good neighbour)

Huge amount of energy savings – reflecting the heat back into the greenhouse


BenchingGrowing cannabis on benches allows for increased airflow to the plant, add a liner it’s the perfect growing method for capturing run-off irrigation water.

Use rolling benches to increase production by up to 50%

Create an aisle whenever you need to for easy access to crop

Production space is expensive, make the most of it

Grow net supports can be added to benches to support top-heavy plants as the buds mature, and minimizes the risk of stem damage


IrrigationStarting with reverse osmosis isn’t necessarily always the best option.

Start with good clean water

Reverse osmosis depends on the quality of your water to start with. RO is an unnecessary expense if it’s unneeded. However, if you need to clean up your water it may be completely necessary

PH levels need to be correct

Accurate delivery of nutrients to your plants

Capturing and recycling of nutrient water runoff is sometimes mandated

Containing excess moisture is good practice for cleanliness and to reduce unnecessary humidity in your growing environment


HeatingHydronic or hot water heating is preferred.

Greenhouse boiler and circulation system

Maintain even temperatures

Keep plants dry

Unit heaters are an option for getting started quickly

For more information on heating visit: niagrow.com

http://niagrow.com/


LightingSupplemental lighting is used for both photo period and to ensure the plant has the ideal amount of photons on cloudy days.

12 hours flower, 18-24 Veg

Because it is supplemental and not the sole source of light, spectrum and intensity is not as important as indoor growing

Consideration needs to be made regarding location, climate conditions and cost of electricity


HPS LightingHPS (High Pressure Sodium) is the most popularly used light source. When possible, the new Electronic Fixtures are used

Information provided by

1000W is most common

HPS fixtures are used both in Veg and Flowering Rooms

Greenhouse structure operations do not need as many supplemental HPS lights as indoor operations because of the natural light provided

Indoor applications may use Plasma Lights to provide the necessary “Blue” light spectrum for Vegetative Rooms

Plasma Lights are very expensive.


LED LightingCannabis growers were among the first adopters of LEDs. Yield benefits can offer beyond kWh savings

Information provided by

The wavelengths and intensity you need, when you need them, with adjustable-spectra LEDs

Like field crop solar radiation, only more controlled

Lifespan

Longevity Reduced maintenance costs

Novel Growing Styles

Multiple level growing possible


The Cost of Indoor ProductionSome facts on indoor cannabis production

Greenhouse cultivation uses up to 90% less electricity than indoor

1% of all power in the U.S. goes to indoor cannabis production

3% of all power in California goes to indoor cannabis

production

3% of all power in Washington goes to

indoor cannabis production

Equal to

20 Trillion Watt hours

OR

20 million

American Homes


SanitizationBe a clean grower to start with and keep a sanitary growing environment.

Hard glaze greenhouse for easier clean up

Keep floor clean of trimmings

Remove debris

Ensure workers / visitors are not introducing foreign contaminants

Virkon foot bath Hand cleaning Gowns, suiting up

Humidity control – dehumidifying at night


Pesticide Free GrowingPesticides are a hot topic in the industry right now, growing pesticide free may be the best way.

Clean

Exclusion of insects

Biological controls (predators – beneficial insects)

Aloe concentrate – not palatable to pests


Odor ControlChallenging issue for marijuana growers

Carbon filtration systems More effective for indoor grows Costly for greenhouse environments Filters need to be replaced often

Odor neutralization systems Have potential for greenhouse

applications Destroys the odor compounds


Computer ControlsWhether you use a warehouse grow or a greenhouse, computer controls are the brains of the complete marijuana growing system.

Monitor and maintain exact environment needs for growing rooms, cloning rooms and flowering rooms as you need:

Nutrients

Lights

Heating

Light deprivation

Humidity control

Air circulation

CO2

Irrigation needs


Computer Control Interface


Final Thoughts on Greenhouses

No such thing as “cookie cutter” greenhouse design

Consideration of climate – light, heat etc

Make use of light when you can. It is a greenhouse after all

Cooling needs

Do you have a quality, well sealed greenhouse?


Conclusion

• Marijuana is definitely an opportunity worth considering, but with any business, you have to evaluate what your core abilities are and what you really want to be doing long-term

• The marijuana industry is not for everyone – do your due diligence


Contact us to help you grow:[email protected]

ggsstructures.com/mj

http://ggsstructures.com/mj

