Cultivating for the Market – Rethinking Costs in Cannabis Production, Part II
Panelists:
- Tom Devost – Founder & President, Golden Peak Cannabis
- Jacob Toth – Plant Science Manager, Organigram Global
- Chris Mitton – Category Manager at Nova Scotia Cannabis
Setting the Stage
At the StratCann Growing Relationships event in Moncton, NB, CANNA hosted the latest installment of CANNAtalk, an in-person continuation of our panel series exploring the realities of cannabis production today.
The discussion came at a critical time: the Canadian cannabis industry is navigating turbulence in international markets. With tighter import controls in Portugal, shifting demand in Germany toward lower-priced flower, and increasing competition from countries with significantly lower production costs, Canadian producers are under pressure.
The result? Accelerated price compression, intensified domestic competition, and a consumer base that is increasingly price-conscious and convenience-driven.
Perception vs. Reality in Consumer Priorities
Many Canadian producers continue to invest heavily in labour-intensive, “craft” practices like hand trimming, hang drying, or maintaining mother plants but the panelists noted that these practices often fail to translate into higher sales.
- Blind testing has revealed that consumers often cannot distinguish between hand- and machine-trimmed flower.
- The ROI on artisanal post-harvest processes is questionable, especially when those practices add cost but not consumer-perceived value.
Instead, the panel highlighted that the most sustainable returns come from:
- Aligning genetics with facility design and workflow.
- Climate-controlled drying and curing for consistency.
- Investing in efficiency technologies that directly impact quality and cost.
If post-harvest budgets had to be cut by 20%, panelists agreed that the first step would be scaling back or eliminating labour-heavy trimming and packaging processes.
Market Trends to Watch
- Convenience products are king. Infused pre-rolls and vapes are outselling other categories by nearly 10x.
- Dried flower sales remain steady, but growth is slow.
- Craft SKUs remain low velocity, as today’s consumer seeks the intersection of price and quality rather than artisanal positioning alone.
Reaching Consumers and Building Market Share
Consumer decisions remain driven by THC percentage, price, and brand familiarity. Retailer education around post-harvest practices is limited, meaning budtender influence is crucial.
“Consumers often buy based on budtender recommendations alone. That’s why your story has to resonate, not just with consumers, but with the budtenders who guide them.”
The panel emphasized:
- Storytelling must move beyond claims like “hand-trimmed” to explain tangible benefits (e.g., “we cure our flower to retain aroma and smoothness”).
- Building direct relationships with retailers; through visits, sell sheets, QR codes, and pop-ups is critical.
- However, high budtender turnover makes these relationships fragile, requiring ongoing investment and attention.
Alternative Models & Future Strategies
The panel explored innovative approaches for sustainability and scalability:
- Cross-provincial trade may improve distribution and brand visibility, particularly for producers in saturated regions.
- Co-operative post-harvest models such as shared drying and trimming facilities help smaller producers reduce costs while maintaining quality.
- Seeds vs. clones: Organigram shared that 40% of its production now begins with seed. This strategy reduces the labour and costs of maintaining mother plants, lowers contamination risk, and creates opportunities for genetic optimization and scalability.
Key Takeaways
- Artisanal practices don’t guarantee traction unless consumers clearly understand the value they provide.
- Efficiency + storytelling deliver better ROI than overbuilt, costly processes.
- Invest in retailer and budtender relationships, but use tools (e.g., QR codes) to scale education and hedge against turnover.
- Consumers ultimately purchase based on value = quality ÷ price, not romanticized production methods.
CANNAtalk continues to bring honest conversations to the forefront of the cannabis industry, bridging producers, retailers, and consumers to rethink what truly matters in cultivation today!
