Serious question - Do legit medical canna growers make good $$$ ?

[Sun Ra]

I have a foreign friend who also has Aust residency and is looking into investing in a legit agricultural kinda thing. They have money.

I've been telling them about what I've heard about the buying power of Coles and Woolies and what pricks they are ..... blah, blah, blah.

Then I thought maybe a medical canna thing might be something they would consider. Anyone heard if these dudes make much of a profit ?

 

[benn0]

Cann group isnt doing too well, they pumped a shit load of money into a cbd sleeping pill and nearly went under now they are asking for cash from their investors and new investors so maybe might be the time to jump on board with them but their past performance just growing is good its their branching out into pharmaceuticals that isn't.
Pretty sure the prescribing side of things is where the cash is at

 

[Sun Ra]

Pretty sure the prescribing side of things is where the cash is at

You talking D & D's ? [Doctors and Dispensaries] ?

 

[benn0]

yeh pretty much

 

[Sun Ra]

Hmmmm . I admit I know fuck all about this. Just thought there would be stand alone "legit" growers who supply the "legit" med scene and also do a bit of exporting to the OS "legit" med scene. I guess I'll need to go down the rabbit hole on this one ......

Figured there must be money in it.

 

[benn0]

Well I guess farming is farming and there is money in farming but the bigger margins would be in the D&D

 

[Sun Ra]

Well I guess farming is farming and there is money in farming but the bigger margins would be in the D&D

Yeah, and the thing is you're not farming cucumbers, tomatoes or carrots - which probably cost as much to grow in a greenhouse but cost way less in the retail situation, so, I'm thinking, there must be a decent profit margin here for growers ?

 

[Green Genius]

Lots to unpick here.

People really need to research on contract growing as it has a lot of history and lots of application.

Firstly while it’s more profitable per gram, remember tomatoes growers grow tons. So they are making it on volume. Plus more people eat tomatoes than smoke weed.

But with contract growing comes offtake agreements. And this is where is gets hairy. Before you start, you need a buyer. And growing contracts are fucked, so many ways the buyer can pull out or shaft you. And as a new entrant to the market you have no leverage.

Also remember during this entire process, you are subject to the TGA regulations and well as food regulations.

But we’ve gotten ahead of ourselves, we haven’t even talked about the 1-2mil required for a small grow operation to be built and licensed from scratch. Which if you aren’t a multimillionaire, is usually funded by debt which has to be paid back.

With the bottom end of the MC market approaching $100/oz or $3/g you need to either be growing monster outdoor fields or absolute top shelf exotic indoors on solar.

 

[Green Genius]

I believe the path to profitability for the small player will be breeding genetics that MC will pay for, or small private growing clubs in which genetics and a following would be key as well.

 

[SAW]

@Green Genius where is this $100/oz MC?

 

[Green Genius]

@Green Genius where is this $100/oz MC?

Keyword there was approaching. 8 months ago there were multiple brands at 89/15g. Botanitech, Pouch Red, Baggie Smalls. Consession pricing but subsidised sectors effect all market profitabIility. Im now hearing whispers of sub $70 15g...