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Flooding in BC – How will this affect the cannabis industry?

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Due to the flooding all across the province. a state of emergency has been declared in British Columbia. Massive floods have led to mudslides and the devastation is widespread; Thousands of people have been affected and many have had to evacuate their homes. Major highways have been wiped out and many have lost their livelihoods. For the cannabis industry, the impacts of this emergency have only just begun. Here’s a look at the impact the flooding in BC has had on the industry so far and what consumers can expect going forward.

Supply

The expectations for delays in delivery have already been set, meaning that supply is going to take a hit. With so many highways being washed out, the supply chain has ground to a halt. The question is for how long? 

flooding

Heavy rains triggered landslides throughout the Lower Mainland, including near the Agassiz exit along Highway 1 east. (Photo/Joonrym Koo)

Short term – There will be delays in restocking products. Retail stores will not be getting their orders on time and when they do, they could be missing a few items. There are concerns about getting products to and from the Provincial Distribution Branch but in the meantime, the word is to wait; this will apply to both wholesale and individual orders.

Long term – Emergency road crews are still working to clear away floodwaters and once that’s finished the repairs can start. Until then, traffic will move at a trickling pace. Thanks to heavy regulations, there are limited options for transporting cannabis products. For licensed production facilities, this means waiting for supplies, thus, production stalls. The only alternative is to transport products by air; while this might be feasible for some large companies, it’s not a solution for smaller organizations or individual orders.

Jima Cannabis – Abbotsford

Jima Cannabis is a dispensary chain with a location in Abbotsford BC. Because of rising water nearby, they’ve had to shut their doors. While the store is not underwater, the surrounding community has been evacuated since Tuesday. Monday’s extreme weather submerged a part of a nearby Highway and emergency crews are still working to clear the area. For Jima Cannabis, this means not only a disruption of business but also supply; the impact of this will be determined by the time it takes for deliveries to resume and the Abbotsford location to reopen.

Jima Cannabis

Dunn Cannabis

Dunn Cannabis is a licensed producer with two cultivation sites in the lower mainland. Luckily, both of them are completely fine thanks to the elevation of their location. However, the biggest concern for them is delivery delays and the effect that will have on smaller producers. According to Chief Executive Logan Dunn, “The larger players have a lot more ability. The small producers and our partners like processors might not have that ability to get products where they need to go in a timely manner.”

Cannabis industry

Chief Executive of Dunn Cannabis, Logan Dunn, at the Langley facility.

The flooding in BC is going to have a direct effect on the cannabis industry and some will feel it more than others. It’s a tough situation but, many are remaining positive; according to Logan Dunn, “It’s really hard for a lot of people, but we can always grow pot again.”

Footnote(s)

https://www.theprogress.com/news/update-multiple-vehicles-washed-off-lougheed-highway-rockwell-drive-closed-due-to-landslide/
https://globalnews.ca/news/8380618/british-columbia-state-of-emergency-floods/?utm_source=site_banner_persistant
https://www.guelphtoday.com/national-business/bc-pot-sector-bracing-for-delivery-challenges-and-shortages-after-extreme-weather-4767260
https://www.nsnews.com/cannabis-news/the-latest-news-on-mudslides-and-flooding-in-british-columbia-for-nov-16-2021-4763588





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