George Robinson, chief executive officer of RavenQuest BioMed Inc., said Canadian bud manufacturers need to grow up to 6 million kilograms of cannabis yearly to satisfy the national demand for dried flower, edible goods and other extractables which are anticipated hit the industry later this season.
“It is the elephant in the room that nobody is speaking about,” Robinson said in a meeting with BNN Bloomberg. “What are we going to do if we must begin extracting [cannabis] stuff?”
Robinson, who’s worked with 13 of Canada’s top bud manufacturers, was among the nation’s first cannabis advisers following legislation has been passed to regulate medical cannabis in 2013.
Since his appointment, he’s replaced the organization’s top executives and states he’ll aid the company attempts to reestablish regulators’ confidence. At the same time, RavenQuest will be supplying management solutions for your company for the next 3 months,” he explained.
Because of this, many retailers have inadvertently closed down shops or laid off employees, states have suspended allocating new licences and Health Canada has hired more inspectors to issue longer cultivation licences.
Additional cannabis manufacturers estimated that Canada’s supply deficit will last between two to three years as more bud growing facilities open upward and refine their manufacturing procedures. But, Robinson said most manufacturers are underestimating the amount of cannabis biomass which will be necessary to satisfy the anticipated demand for raw products.
Robinson stated cannabis extraction efficiencies vary between 12 percent to 26 percent, based on what chemical compound can be utilized to separate the elements of cannabis and eliminate them in the plant to earn oils. Meaning that for each 100 g of cannabis, just 12 to 26 equal gram of cannabis oil is created.
Robinson noted that Canadian requirement for cannabis oil is predicted to reach roughly 1 million to 1.25 million kilograms as soon as it will become lawful after this year, translating into roughly 5 million kilograms of cannabis required to be made to fulfill it. At the same time, Canadian manufacturers are churning out about 400,000 kilograms of dried blossom this season, short of their 1 million kilograms necessary to satisfy national demand, he added.
“Five years to fulfill this requirement is more conservative, in my estimation,” Robinson stated. “What might happen is that we can not get the growing figured out, then Health Canada has no option but to open imported merchandise to the nation.”
From the 41 bud manufacturers that Robinson and his RavenQuest advisers have seen in the last couple of decades, he stated”none of them are climbing to their full capacity “