Marijuana: The #1 Profit Opportunity for Greenhouse Growers in the Next Decade

Marijuana
The #1 Profit Opportunity for
Greenhouse Growers in the Next Decade
WEBINAR

www.ggsstructures.com/mj
Cannabis Industry Potential
Research from Marijuana
Business Daily indicates that by
the year 2020, the marijuana
industry will have an economic
impact of $44 billion in the U.S.
alone.

A Better Solution to Opioids
Cannabis has great medicinal qualities when it comes to the management of
pain, treatment of chronic illnesses and other therapeutic benefits too
numerous to list.
According to the National Institute on Drug Abuse, there is a global problem of
prescription opioid abuse and addiction, and it’s estimated that up to 36 million people
abuse opioids worldwide. - National Institute on Drug Abuse Website
More studies are coming out suggesting that
medical marijuana is a potentially safer and
more effective means of treatment than
opioids. - Leafly Article

MMAR vs MMPR
Health Canada’s two medical marijuana programs are both very different to
each other.
MMAR
 28,000 Canadians hold an MMAR patients
license
 Licenses allow patients to grow a limited
amount of cannabis or have a designated
license holder grow for them
 The MMPR program was to replace MMAR
and prevent home grows but following the
Allard injunction case in March 2016 there is
no longer an expiry date for MMAR licenses
 Health Canada no longer accepts new
applications for MMAR licenses and there
are no ways to change current licenses i.e.
address changes
MMPR
 Over 30,500 Canadian hold an MMPR patients
license
 Patients must purchase medical cannabis
through a LP (Licensed Producer) authorized by
Health Canada
 Patients can obtain a referral from their Doctor
for access
 Currently there are 31 LPs, 18 of which are in
Ontario
 LP licenses are only issued to commercial
growers once they meet Health Canada’s strict
requirements on public health, safety & security

MMPR Regulation Requirements
The MMPR application process is strict and rigorous, and includes the
following regulations set forth by Health Canada:
 All production sites must be indoors and not in a private dwelling
 Physical security measures must be in place such as visual monitoring, intrusion detection
systems, visual recording devices, monitoring by personnel, and restricted access
 Applicants need to familiarize themselves with the regulations relating to “Good Production
Practices,” which include product testing, storage of dried marijuana, equipment, the sanitation
program, standard operating procedures, recall of product and
quality assurance personnel
 There is a very limited list of approved pesticides
allowed, and these are mild. Some growers have
chosen to go completely pesticide-free
 Zero mold or pesticide-residue on the finished
product is tolerated
 Strict odor control measures must be put into place

Recreational on the Horizon!
Beyond the medical program, one of the Liberal party’s campaign promises
is the full legalization of marijuana for recreational purposes.
Since the election, stocks in Canadian
medical marijuana companies have
continued to rise. Sales are projected to
be $5 billion annually if marijuana is
fully legalized in Canada, according to
CIBC World Markets. – CBC News

New Opportunities
Canadian Licensed Producers are already taking the next steps to capitalize
on the potential market.
Recently Tweed gained exclusive rights
in Canada to some of Snoop Dogg’s
brands and content. - Ottawa Business Journal
CannTrust has created a
cannabis-infused coffee pod that
can be placed in a Keurig
machine. - CannTrust

Rapidly Changing Cannabis Laws in the U.S.
Although cannabis is still federally illegal, states across the U.S. are rapidly changing their
marijuana laws. However, some states are opting to only allow CBD variants of cannabis under
strict practices.

Whose Next to Legalize?
Legalization for medical and recreational will only expand further, but who is next?
Recreational
These states are on the 2016 November ballot for recreational legislation:

Sales in the U.S.
To get a glimpse of what recreational legalization could be like, we can of course look to the US.
Recreational marijuana sales are legal in Colorado, Washington, Oregon, and Alaska.
Colorado was the first to legalize in
2012. Since then the industry has
skyrocketed:
 Colorado cannabis sales $996 million in
2015 – The Cannabist
 More than 2,500 marijuana business
licenses issued in Colorado – PotGuide.com
 Ancillary business cropping up such as
‘bud and breakfasts’, app-based
marijuana delivery services, consulting
companies, and even dating websites for
pot users
 Total marijuana sales in the US in 2015
were $5.4 billon (both medical and
recreational) - CNBC

California Hopeful
The Adult Use of Marijuana Act (AUMA) in California is steadily gaining popularity
amongst voters with up to 60% of voters supporting the bill.
 California was the first state to legalize medical
cannabis in 1996
 As of this month a measure to legalize
recreational marijuana has received enough
signatures and is headed for the November
ballot
 The cultivation, distribution and sale of recreational marijuana
would be regulated by the state, and exporting marijuana out of
California would be prohibited
 The independent Legislative Analyst’s Office is predicting that
annual new revenue under AUMA could reach up to $1 billion and
the state would save as much as $100 million a year on marijuana
enforcement – The Orange County Register

Worldwide Changes
More countries are looking towards ending prohibition and move forward with the medical benefits
of marijuana.
 Uruguay was the first country in the world to completely legalize marijuana for recreational
purposes
 Germany’s Health Minister has said the country will be legalizing medical marijuana in 2017
 This year Australia legalized marijuana for medical and scientific purposes
 Medical marijuana has been legal in Israel since the early 1990s, the country is regarded as an
innovation hub for medical marijuana programs and studies
 In the beginning of May, Jamaica’s Cannabis Licensing Authority has approved regulations for
licenses, permits and other authorizations for cultivation, processing, distribution, sale, and
transportation of marijuana

Comparing Legal Cannabis Growth to
Other Industries
Information from New Frontier shows that adult recreational use of cannabis has grown by 232%.

SWOT Analysis
Converting your existing greenhouse into a cannabis facility
Strengths
• Existing horticultural knowledge & experience
• Already have a greenhouse structure that can be
retrofitted for cannabis growing
• Existing supplier relationships (companies like
GGS).
• May not have the capital to cover costs of
becoming a licensed grower
• Marijuana is a completely different market than
traditional horticulture with differing customer
needs. Growers need to learn the business
Weaknesses
• Marijuana market in its infancy. More opportunity for profit at
this stage.
• We are just starting to see the end of prohibition. This is the
best time to build a marijuana brand
• Taking advantage of all the benefits of growing in a
greenhouse vs. an indoor grow (eg using natural sunlight to
reduce energy usage)
• In Canada, grocery and pharmacy leader Loblaw has
indicated interest in selling medical marijuana in its stores. If
this happens, greenhouse growers could potentially leverage
their existing supply chain
Opportunities Threats
• Big competition is coming
• Increased government growing regulations can be
costly to keep up with (eg. odor control, security
requirements, etc.)

Marijuana market is still in its infancy
 More opportunities for profit at this stage
 Prices in the Canadian MMPR program ranging
from $3.50-$15.00/gram with a typical price of
about $7.00/gram
 Pay off capital costs of your growing facility
while profits are high
 Major wave coming when recreational goes
through
 As a long term investment, it makes good sense
to build a state-of-the-art facility now
 Opportunity to build a brand

Already in the growing business
 Existing knowledge of horticulture can be
applied to growing cannabis
 Understanding of plant health
 Knowing how to operate automation systems
 Confidence in crop production
 Existing supplier relationships – you generally
know who to trust
 A lot of suppliers are trying to take advantage of
this new industry, adding high mark-ups and
substandard product or old technology

Using an existing greenhouse structure
Greenhouses can be retrofitted to accommodate cannabis growing.
 Should start with a quality
structure
 Ideally should be hard glazed
for ease of cleaning
 If there is an existing blackout, it
can be used provided that it is in
good condition without light
leaks

Greenhouse Size
Greenhouse Length
 Length of the greenhouse is a
consideration for ventilation
 Avoid greenhouses that are too long
when using fan ventilation
Greenhouse Height
 Taller structure gives a more stable
environment due to a larger air mass
 Supplemental lights should be plus or
minus 6 feet from the plant canopy

 Incredibly efficient and even way to
cool your greenhouse environment
when designed properly
 Very little power is needed to open and
adjust the roof vents to keep a
constant temperature in the
greenhouse
 In the traditional greenhouse market,
over 90% of what GGS sells is natural
ventilation
Ventilation

Light Deprivation
Light deprivation is nothing new, growers have been using it for years for crops such
as mums, kalanchoes, poinsettias, and other flowering crops.
 Add a horizontal truss in the greenhouse so the
light deprivation system can easily be added
 Avoid partially sloped systems to achieve
blackout
 For climates that need cooling during the
blackout period, light traps are used to allow
airflow through fans, vents and cooling pads
without allowing light through
 Reduce the amount of supplemental light
pollution coming out of the greenhouse at night
(be a good neighbour)
 Huge amount of energy savings – reflecting the
heat back into the greenhouse

Benching
Growing cannabis on benches allows for increased airflow to the plant, add a liner it’s the perfect
growing method for capturing run-off irrigation water.
 Use rolling benches to increase
production by up to 50%
 Create an aisle whenever you need to for
easy access to crop
 Production space is expensive, make the
most of it
 Grow net supports can be added to
benches to support top-heavy plants as
the buds mature, and minimizes the risk
of stem damage

Irrigation
Starting with reverse osmosis isn’t necessarily always the best option.
 Start with good clean water
 Reverse osmosis depends on the quality of your water to
start with. RO is an unnecessary expense if it’s
unneeded. However, if you need to clean up your water
it may be completely necessary
 PH levels need to be correct
 Accurate delivery of nutrients to your plants
 Capturing and recycling of nutrient water runoff is
sometimes mandated
 Containing excess moisture is good practice for
cleanliness and to reduce unnecessary humidity in your
growing environment

Heating
Hydronic or hot water heating is preferred.
 Greenhouse boiler and circulation system
 Maintain even temperatures
 Keep plants dry
 Unit heaters are an option for getting started
quickly
For more information on
heating visit:
niagrow.com

Lighting
Supplemental lighting is used for both photo period and to ensure the plant has the
ideal amount of photons on cloudy days.
 12 hours flower, 18-24 Veg
 Because it is supplemental and not the sole
source of light, spectrum and intensity is not as
important as indoor growing
 Consideration needs to be made regarding
location, climate conditions and cost of
electricity

HPS Lighting
HPS (High Pressure Sodium) is the most popularly used light source. When possible,
the new Electronic Fixtures are used
Information provided by
 1000W is most common
 HPS fixtures are used both in Veg and Flowering
Rooms
 Greenhouse structure operations do not need as
many supplemental HPS lights as indoor
operations because of the natural light provided
 Indoor applications may use Plasma Lights to
provide the necessary “Blue” light spectrum for
Vegetative Rooms
 Plasma Lights are very expensive.

LED Lighting
Cannabis growers were among the first adopters of LEDs. Yield benefits can offer beyond kWh
savings
Information provided by
 The wavelengths and intensity you need, when you
need them, with adjustable-spectra LEDs
 Like field crop solar radiation, only more
controlled
 Lifespan
 Longevity
 Reduced maintenance costs
 Novel Growing Styles
 Multiple level growing possible

The Cost of Indoor Production
Some facts on indoor cannabis production
Greenhouse cultivation uses up to
90% less electricity than indoor
1% of all power in the U.S. goes to indoor cannabis
production
3% of all power in
California goes to
indoor cannabis
production
3% of all power in
Washington goes to
indoor cannabis
production
Equal to
20 Trillion Watt
hours
OR
20 million
American
Homes

Sanitization
Be a clean grower to start with and keep a sanitary growing environment.
 Hard glaze greenhouse for easier clean up
 Keep floor clean of trimmings
 Remove debris
 Ensure workers / visitors are not
introducing foreign contaminants
 Virkon foot bath
 Hand cleaning
 Gowns, suiting up
 Humidity control – dehumidifying at night

Pesticide Free Growing
Pesticides are a hot topic in the industry right now, growing pesticide free may be the
best way.
 Clean
 Exclusion of insects
 Biological controls (predators – beneficial insects)
 Aloe concentrate – not palatable to pests

Odor Control
Challenging issue for marijuana growers
 Carbon filtration systems
 More effective for indoor grows
 Costly for greenhouse environments
 Filters need to be replaced often
 Odor neutralization systems
 Have potential for greenhouse
applications
 Destroys the odor compounds

Computer Controls
Whether you use a warehouse grow or a greenhouse, computer controls are the
brains of the complete marijuana growing system.
Monitor and maintain exact environment needs for growing rooms, cloning
rooms and flowering rooms as you need:
 Nutrients
 Lights
 Heating
 Light deprivation
 Humidity control
 Air circulation
 CO2
 Irrigation needs

Computer Control Interface

Final Thoughts on Greenhouses
 No such thing as “cookie cutter”
greenhouse design
 Consideration of climate – light, heat etc
 Make use of light when you can. It is a
greenhouse after all
 Cooling needs
 Do you have a quality, well sealed
greenhouse?

Conclusion
• Marijuana is definitely an opportunity worth considering, but with any
business, you have to evaluate what your core abilities are and what you
really want to be doing long-term
• The marijuana industry is not for everyone – do your due diligence

Contact us to help you grow:
mj@ggsstructures.com
ggsstructures.com/mj

Marijuana: The #1 Profit Opportunity for Greenhouse Growers in the Next Decade

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