CFN Media Group, the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing Village Farms International Inc.’s entry into the Canadian cannabis market. Village Farms has a 30-year history in large — some would say — mega-scale hydroponics, 750 years of combined master grower experience, and 10.5 million sq. ft. of greenhouse capacity, located in both Canada and the United States.
In its new joint venture, the company will apply its years of experience to the rapidly growing cannabis industry in Canada with the potential to scale up to more than 300,000 kilograms of production per year. That production level could be reached by converting all of Village Farms™ existing 4.8 million square foot greenhouse complex in Delta, B.C., the largest single site greenhouse operation in Canada, to cannabis.
The Canadian cannabis industry is projected to reach C$9 billion or more in sales over the coming years, not counting ancillary products and services. With recreational legalization coming later this year, many analysts are projecting an initial — and potentially protracted — shortfall in supply, despite rising production, funded expansions, and yield improvements.
The problem is that many licensed producers are struggling to effectively scale up their operations as they had originally projected, learning that theres much more to it than building a greenhouse. The risks are great, as in many cases supply agreements have been signed and large amounts of cannabis have been promised.
Village Farms™ Pure Sunfarms Cannabis Project
Village Farms is one of the largest producers of premium-quality, greenhouse-grown tomatoes, bell peppers, and cucumbers in North America — sold through the top grocers — and consumed by you and me and everyone reading this. These vegetables are grown hydroponically in a glass-enclosed high-tech environment using sophisticated computer systems to control irrigation, fertilizers, carbon dioxide, light, temperature, ventilation, humidity, and other climatic factors, which leads to superior taste, quality and consistency.
Now, with its deep history of success in large-scale greenhouse operations, Village Farms is ideally positioned to capitalize on the rapidly growing cannabis industry in Canada. The company has established a joint venture with Emerald Health Therapeutics, a licensed producer under the ACMPR.
Under the agreement, Emerald contributed C$20 million in cash and Village Farms contributed an existing greenhouse with 1.1 million square feet of capacity to a new entity called Pure Sunfarms that will become a vertically-integrated, large-scale, low-cost supplier of high-quality cannabis.
Leveraging Village Farms tremendous operational know-how and Emerald Healths significant cannabis expertise, the Pure Sunfarms goal is to produce high quality cannabis for less than $1/gram at full production. Conservative estimates place full production levels at more than 75,000 kg/year for the initial 1.1 million square foot facility.
Pure Sunfarms received a cultivation license in March, 2018, for the initial 1.1 million square foot greenhouse. Until last November, the greenhouse was a fully operational tomato facility but it takes some retrofitting…