Legal pot market an opportunity for First Nations: Fontaine
• Former Assembly of First Nations chief Phil Fontaine says his pitch to produce medical marijuana on reserves is getting lots of attention from Indigenous communities hoping to get into a potentially lucrative industry.
About 100 First Nations communities and business interests are keen on the enterprise, he said, though some stigma remains.
Fontaine’s company, Ishkonigan, launched a partnership in December with licensed weed producer Cronos Group, and will break ground on a flagship operation in Armstrong, B.C. this summer. Ishkonigan has a 51 per cent share of the venture, expected to be operational in about eight months.
The first location is not on a reserve, but the partners intend to franchise operations on Indigenous land, with communities owning big chunks of each franchise.
According to the plan for the fledgling business, called Indigenous Roots, each operation would initially have the potential to produce 3,000 kg per year or more, and serve about 8,000 patients. At full capacity it could expect to generate $1.5 million in monthly revenue and create 25 jobs at the facility, plus 15 more for education, outreach, marketing and customer service.
Fontaine said the private sector can be a major conduit for reconciliation.
“Clearly the revitalization of First Nations economies is one expression of reconciliation. And so that means that we ought to be able to participate and engage in every sector,” he said.
“It’s really about moving away from being dependent on government and creating our own capacity, our own source revenue so that we’re in a position to make our own investment decisions that will be beneficial to the interests of our communities and citizens.”
Many of the major industries located on Indigenous land are connected to resource development, with local communities typically not involved as owners or investors. But with medical marijuana, there’s an opportunity for those communities to get in at the beginning of an emerging market
He’s also optimistic the operation could reap rewards from the recreational market, which would open next July if the Liberals pass legislation introduced in the spring.
“When I think of reconciliation, I think of eradication of mass poverty in our communities. Poverty has paralyzed our communities for a long, long time and so we need to move away from that and create the kinds of economies that will generate … not just the interest but the kind of activity that will make our communities strong, healthy, vibrant places,” Fontaine said.