London-area pot grower secures OSC supply deal
WeedMD will double its workforce in preparation for marijuana legalization
With a new deal to supply Ontario’s government-run cannabis retailer, a London-area pot producer says it plans to double its workforce within the next year.
WeedMD, a licensed producer with operations in Aylmer and Strathroy, announced Thursday it has reached an agreement to supply the Ontario Cannabis Store (OSC) when recreational marijuana is legalized on Oct. 17. “Our employment count now stands at over 100 people. It has tripled over the past year. It will double over the year ahead,” chief executive Keith Merker said Thursday at WeedMD’s Strathroy greenhouse, where dignitaries gathered to celebrate the facility ’s first harvest.
With little more than a month before recreational marijuana becomes legal, a new Health Canada report suggests there could be a shortage of the drug.
Using a 2017 federal survey on cannabis, Health Canada calculated that 926,000 kilograms of marijuana will be needed to meet demand for recreational and medical use. That figure is 41-percent higher than the estimate of 655,000 kilograms by the Parliamentary Budget Officer in 2016. “We’re going to see a supply shortage in this country,” said Merker, whose company also has signed supply deals with British Columbia, Alberta and Nova Scotia.
WeedMD has a contract to supply Shoppers Drug Mart with medicinal marijuana, though the pharmacy chain is still awaiting approval from the government to become a distributor. Sitting on a sprawling 99-acre property west of London, WeedMD’s $15-million greenhouse is equipped with computer-controlled lighting, shades, air-conditioning and irrigation, Merker said, adding water is sourced on the property that’s outfitted with a solar array.
While marijuana companies are expanding and hiring (one recent report suggested the industry could create 150,000 jobs in the next few years), a cannabis consulting company is sounding the alarm on a looming labour shortage.
Few workers have the right skills and necessary experience to work in the emerging industry, said Brian Wagner, the chief executive of Cannabis Compliance, which advises on marijuana production and retail licences.
In Ontario, cannabis will be sold legally only through the Ontario Cannabis Store online service until April 1, when privately-owned brick-and-mortar stores will be allowed to sell.
So far, the Ontario Cannabis Store has made supply deals with 32 companies, including seven with operations in Southwestern Ontario.