Some interesting numbers - MMPR pending

Assuming the PM Justin Trudeau makes good with his governments promises, a move to recreational use this sector can anticipate staggering growth.

In Q1 2015 Health Canada reported the production of 2,212 kg of medical marijuana by licensed producers. The current sales are 1,371 kg per quarter with an average daily consumption rate of 1.1 g per client—for clarity Health Canada compiled the daily prescription rates to the registered licensed users.

Assuming that 10% of Canadians would use recreational and medical marijuana at the same rate, the demand would increase to 356,400 kg/quarter or 1,425,600 kg per annum. In contrast the reported production in Q1 2015 was 2,212 kg, which is equivalent to 8,848 kg on an annualised basis. Therefore using the 10% user rate and 1.1 gram per day assumptions, the current production rate (but not capacity) can only meet 0.62% of the potential Canadian demand.

Let’s assume is sold at $5.00 per gram. Then the market is worth $7.128 B per annum with direct tax benefits of $499 M per annum to the federal government alone (7%).