Cannabis entrepreneurs are increasingly turning to smaller micro-cultivation facilities to manage costs and produce higher-quality marijuana at a time when the industry is facing a glut of “standard” product and falling prices.
That shift ultimately could help shrink some of the Canadian cannabis industry’s current supply glut, given that micro-class licensees operate smaller cultivation facilities.
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At the end of 2022, Canada’s total indoor growing area was 28% lower than the all-time high reached in 2020.
Canada’s federal government last year handed out only 58 standard cultivation licenses, the lowest annual total since recreational cannabis was legalized in late 2018.
Unlike standard-class licenses – which face no size limits – micro-class permits allow cultivation only within a surface area of up to 200 square meters (2,150 square feet).
In 2022, the 130 new micro licensees outpaced standard ones for the second year in a row, and experts
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