Canadian producers no longer required to store cannabis in bank-like vaults


A new security measure has been introduced by Health Canada that could save early cultivation applicants several thousand dollars and enhance operational efficiencies for current producers, according to analysts.

Effective after a press release on Jan. 23, marijuana producers will no longer be mandated to store their inventory in bank-like vaults, which can cost upwards if $405,000. Cannabis will now be stored in a “secure” area, based on the new requirements.

Also, licensed producers (LPs) will no longer be required to maintain 24/7 video surveillance inside rooms where cannabis is cultivated.

Security consultant with David Hyde & Associates, David Hyde, said Health Canada made the new changes in anticipation of marijuana legalization this summer so producers can have an easy transition.

Rather than make people keep spending money on vaults and cameras, things that won’t be required in July or August, they decided to make the pre-emptive move now so that people can have an easier transition,” he said.

With the numerous health benefits of products such as CBD crystals, demand is bound to grow and producers can now expect to witness operational efficiencies from a more convenient use of space.

Omar Khan, vice president of public affairs at Hill+Knowlton Strategies, a strategic communications consultancy, said the new measures is bound to save LPs “significant” costs going forward.

The security changes also states that, “records of anyone entering or exiting a storage area must be kept, and access to those areas must be restricted to those whose presence is required by their work responsibilities.”

Also, “all access points to cultivation, propagation and harvesting rooms will continue to be subject to 24/7 video surveillance.”

Producers must still always continue to secure their site from unauthorized access—and the reporting of cannabis production, inventories and shipments, will continue to be required and verified by Health Canada.


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