Canadian cannabis industry in ‘peril’: industry leaders
Canadian cannabis business owners are calling for help from the federal government, saying high tax rates and strict rules have left their businesses struggling to survive.
Five Canadian cannabis sector CEOs joined a press conference, organized by the Cannabis Council of Canada, Wednesday on Parliament Hill to discuss the extent of layoffs and facility closures in the industry.
“You’re hearing from producers here today because we as growers and manufacturers sit at the heart of the cannabis supply chain,” said President and CEO of British Columbia company Pure Sunfarms, Mandesh Dosanjh. “We need to be healthy in order for the whole system to thrive but that’s not reality. Producers stand here in peril. Canadian cannabis is in peril.”
Canopy Growth Corp., one of Canada’s largest cannabis producers, recently announced it would be laying off 800 workers – 35 per cent of its workforce — and closing one of its facilities in Smiths Falls, Ont.
High excise taxes have been one of the biggest challenges for businesses, the CEOs said in Wednesday’s press conference, adding the 2.3 per cent excise tax rate has become too costly, particularly after a year of increased inflation rates.
Jonathan Wilson, CEO of New Brunswick company Crystal Cure, called for the federal government to reconsider the tax rate as he says it’s not only pushing away current businesses but eliminating the path for new producers to enter and grow the sector.
“It’s not only a significant burden for producers like us, but it’s a barrier of entry for new producers to come into the legal market,” Wilson said.
MARKET DISPARITIES BLAMED FOR SINKING PROFITS
Since the legalization of cannabis in 2018, there have been growing disparities between the legal cannabis sector and the illegal market, as well as the alcohol and tobacco industry, President of the Cannabis Council of Canada, George Smitherman, said.
“We’re paying a regulatory fee, which was premised on a profitable industry, which tobacco and alcohol don’t pay,” Smitherman said Wednesday.
Additionally, strict rules on THC levels of certain products and high tax rates have taken a hit on investors and business owners as they say non-regulated stores have profited from not having to abide by the rules.
A 2022 report found that Canadians investing in cannabis businesses collectively lost more than $131 billion. Industry leaders said they built their business on the federal government’s promises for a profitable industry but now that profits are shaking, they’re hoping for immediate action.
“What happened to Smiths Falls can happen to any entity in Canada,” CEO of Truro Cannabis, Leonard Walter, said. “There [are] federal and provincial regulations that both need to be worked on. There [are] solutions, we just need folks talking.”
After a nearly 12-month delay, Health Canada announced in September 2022 it would be conducting a legislative review of the Cannabis Act.
Smitherman said while there has been data collected and surveys created to increase awareness on the problems in the industry, he hopes it’ll be enough to be taken into consideration ahead of the 2023 budget.
Twenty-six organizations call for MSI for migrant workers in Nova Scotia
Halifax, NS (March 21, 2022) – Today, as the spring session of the Nova Scotia legislature opens, twenty-six organizations have published an open letter calling for healthcare access for Kerian Burnett and all migrant workers in Nova Scotia. Today is also the International Day for the Elimination of Racial Discrimination.
The signatories to the letter include the Antigonish Coalition to End Poverty, Central Kings Community Health Board, CUPE NS, King’s Students’ Union, National Farmers Union – Nova Scotia, No one is illegal – Nova Scotia, Nova Scotia Health Coalition and Western Kings Community Health Board.
In some provinces, migrant workers have access to public healthcare on arrival. In Nova Scotia, migrant workers must have a one-year work permit to be eligible for public healthcare coverage (MSI). This means that Caribbean and Mexican workers who come to Nova Scotia under the Seasonal Agricultural Workers Program (SAWP) are not eligible, because their contracts are a maximum of 8 months of each calendar year.
“Nova Scotia’s MSI eligibility criteria shuts out this racialized workforce. This is a blatant example of systemic discrimination, which can and must be immediately redressed,” said Stacey Gomez, Manager of the Migrant Workers Program with No one is illegal – Nova Scotia.
Migrant workers in the SAWP only have access to private health insurance, which is tied to their employment.
“Private health insurance from employers and restrictions on eligibility for MSI prevents migrant workers from accessing the care they need leaving them vulnerable and falling through the cracks of our public healthcare system. The NSHC signs onto this letter and supports the call for all migrant workers, especially seasonal agricultural workers, to be eligible for MSI immediately upon arrival in Nova Scotia. Access to free, universal, public healthcare is the right of every human being, regardless of immigration status. We must do better,” said Alexandra Rose, Coordinator of the Nova Scotia Health Coalition.
Ms. Burnett, who was diagnosed with cervical cancer after arriving in Nova Scotia as a migrant worker, now has a Temporary Resident Permit until January 10, 2024. However, she still does not have medical coverage in Nova Scotia. She was advised by her doctor to remain in Canada to undergo life-saving treatments and for follow-up care. Ms. Burnett is currently hospitalized.
– 30 –
No one is illegal – Nova Scotia
Telephone: (902) 329-9595
Canada's inflation rate cools more than expected – Financial Post
OTTAWA — The annual pace of inflation cooled in February as it posted its largest deceleration since April 2020.
Statistics Canada said Tuesday its consumer price index in February was up 5.2 per cent compared with a year earlier.
Analysts polled by Reuters had expected the annual rate to fall to 5.4 per cent.
The reading compared with an annual inflation rate of 5.9 per cent in January and was the lowest annual inflation rate since January 2022 when it was 5.1 per cent.
Statistics Canada noted that the decline was due to a steep monthly increase in prices in February 2022 when the global economy was significantly affected by the Russian invasion of Ukraine.
Despite the overall cooling, grocery prices remained elevated and outpaced overall inflation.
Prices for food purchased from stores in February were up 10.6 per cent compared with a year ago, the seventh consecutive month of double-digit increases.
Which food items went up in price in Canada – CTV News
Inflation for goods in Canada is cooling but prices for food remain high, Statistics Canada’s latest report shows.
The Consumer Price Index (CPI) for February was at 5.2 per cent year-over-year, a decrease from January’s 5.9 per cent year-over-year increase.
“This was the largest deceleration in the headline CPI since April 2020,” the StatCan report reads.
Energy reflected the cooling as prices fell 0.6 per cent year-over-year. Gasoline prices are leading the drop, StatCan says, with a 4.7 per cent difference year-over-year — “the first yearly decline since January 2021.”
“Inflation is cooling more than what was typically expected,” David George-Cosh, BNN Bloomberg reporter, told CTV News Channel on Tuesday. “But when you drill down into some of the details, it’s unlikely to really convince Canadians that the worst is really behind us.”
Despite the overall signs inflation is decreasing, Canadians are not seeing this reflected at grocery stores, where food prices rose 10.6 per cent year-over-year in February. This is a slight decrease from January, which saw a 11.4 per cent year-over-year increase.
FOOD PRICES REMAIN HIGH
February marks the seventh consecutive month of double-digit food inflation, StatCan says.
This pressure is largely due to supply constraints from extreme weather in some regions and higher costs of animal feed, energy and packaging materials.
Pasta products continue to increase in price, with a 23.1 per cent year-over-year difference in February. This is an upward trend from January, which had a year-over-year increase of 21.1 per cent.
Fruit juice had the largest increase in price from January to February 2023, data from StatCan shows. In January, the product had a year-over-year difference of 5.2 per cent; this rose to 15.7 per cent year-over-year in February.
According to StatCan, the quick rise in the cost of fruit juice is led by the increased price of orange juice specifically.
“The supply of oranges has been impacted by citrus greening disease and climate-related events, such as Hurricane Ian,” the CPI report reads.
William Huggins, lecturer of corporate finance and business economics, explained supply chains are under pressure from many areas.
“We’ve had, for instance, problems with avian flu…There are problems with African swine fever in China, we’ve had trouble getting enough employees to come back post pandemic with their steel supply chains,” Huggins told CTV’s Your Morning on Wednesday. “We’ve seen this not just in Canada, but also in the United States as well. So rather than people thinking it’s very much a homegrown problem, it’s much more of a North American logistic problem.”
Oranges on their own have not increased quite as dramatically between January and February of this year. According to the data, in January oranges had a year-over-year increase of 14.1 per cent, which rose to 15.1 per cent year-over-year in February.
Similarly, apples rose in price year-over-year to 16.6 per cent in February, a 4.5 per cent increase from January.
Some areas did see prices slowing, StatCan said.
Meat products decreased to 6.2 per cent year-over-year, though this is a smaller decrease than in January.
But Canadians aren’t seeing decreases in all types of meat.
Fresh or frozen poultry remained high, as StatCan pegged the year-over-year increase at 10.7 per cent in February, a slight increase from January.
Fish, seafood and other marine products increased by 1 per cent from January’s year-over-year marker to 7.4 per cent year-over-year in February.
Fresh or frozen beef saw a reduction in February, with a year-over-year increase of 2.4 per cent compared to January’s 3.7 per cent difference.
Buyers of some types of produce are seeing a cooling effect as well, including the costs of lettuce and tomatoes.
Lettuce in January rose to 32.8 per cent year-over-year, but dropped the next month to 20.2 per cent compared to February 2022.
Tomatoes in January had a 21.9 per cent year-over-year increase, which dropped to 7.1 per cent year-over-year in February.
STUDY SHOWS MISTAKES ON RECEIPTS
Many Canadians are now acutely aware of how much food items cost, so they can ensure they are not paying more, but a new study shows two-thirds (67 per cent) of people have seen a mistake on their grocery receipts in the last year.
Dalhousie University’s Agri-Food Analytics Lab polled 5,525 respondents.
According to the survey, 78.5 per cent of those who noted a mistake reported the most common error was that the price at the cash register was not the same price displayed on the shelf. About one-third of respondents said the daily discount was not applied and a total of 31.4 per cent claimed the cashier scanned an item too many times.
A majority of people said they check receipts for mistakes as they exit the store, before getting home. However, the survey notes not all Canadians have the habit of checking for mistakes; only half said they always check, while 3.3 per cent never do.
“As for frequency of mistakes, 79.2 per cent of respondents claim that they find at least no mistakes on their receipts, at least 10 per cent of the time,” the press release reads. “A total of 15.2 per cent will find at least one mistake on their receipt, 25 per cent of the time.”
Food inflation tracker
Note: data for some specific grocery items are available only nationally, and are not available by province. Can’t see the interactive above? Click here.
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