{"id":3483,"date":"2022-01-05T17:57:24","date_gmt":"2022-01-05T17:57:24","guid":{"rendered":"https:\/\/www.leafly.com\/wp-home\/?p=189687"},"modified":"2022-01-05T17:57:24","modified_gmt":"2022-01-05T17:57:24","slug":"tiny-but-mighty-micro-cultivators-dominated-2021","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=3483","title":{"rendered":"Tiny but mighty: Micro-cultivators dominated 2021"},"content":{"rendered":"<p>  <title>Tiny but mighty: Micro-cultivators dominated 2021 | Leafly<\/title>     <!-- This is Index Exchange, a script\/\/3rd-party integration that interjects GAM. It needs to be 'ahead' of GTM in the DOM, which comes from Cephalopod. GTM loads GAM. This script needs to setup it's interjection stuff before GAM loads. --> <!-- End Index Exchange --> <!-- Quotes = strings--><!-- No quotes = boolean-->\t   <!-- This site is optimized with the Yoast SEO Premium plugin v17.5 (Yoast SEO v17.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->                  <!-- \/ Yoast SEO Premium plugin. --> <\/p>\n<p> <!-- BEGIN Sailthru Horizon Meta Information --><\/p>\n<p><!-- END Sailthru Horizon Meta Information -->  <!-- Google Publisher Tag --> <!-- End Google Publisher Tag --> <!-- Google Tag Manager --> <!-- End Google Tag Manager --> <!-- Chartbeat --> <!-- End Chartbeat --><br \/>\n <!-- Google Tag Manager (noscript) -->   <\/p>\n<div id=\"copy_clipboard_success\" class=\"fixed top-0 left-0 right-0\">\n<div class=\"bg-white p-lg container mt-xl flex justify-between elevation-low rounded\"> <span class=\"flex items-center\">     <span class=\"ml-md\">Link copied to your clipboard<\/span> <\/span> <button id=\"copy_clipboard_close_btn\">    <\/button> <\/div>\n<\/p><\/div>\n<p> <!-- End Google Tag Manager (noscript) -->   <title>Leafly<\/title>     <title>Leafly \u00ae<\/title>                                                                                                                                                                                                                                                                                                                                                                                              <title>Loading\u2026<\/title>                <\/p>\n<div class=\"bg-white fixed flex hidden inset-0 items-start md:h-auto md:items-center overflow-auto\" id=\"age-gate-container\">\n<div class=\"bg-white md:h-auto mx-auto p-lg text-sm w-full\" id=\"age-gate\">\n<p><label for=\"select-country\">Where are you from?<\/label><\/p>\n<div class=\"age-gate__info\">\n<p><label for=\"select-province\">Which part of Canada?<\/label><\/p>\n<div class=\"age-gate__age hidden\"><\/div>\n<p class=\"error error--underage hidden\">Darn! You&#8217;re not old enough to use Leafly.<\/p>\n<p class=\"error error--unavailable hidden\">Sorry, Leafly isn&#8217;t available in your location yet.<\/p>\n<\/div>\n<p class=\"hidden age-gate__loading\">Redirecting you to<span class=\"redirect-domain\"><\/span><\/p>\n<p class=\"text-xs mt-auto\">By accessing this site, you accept<br \/>\nthe <a class=\"py-xl\" data-testid=\"tou-link\" href=\"https:\/\/www.leafly.ca\/info\/terms-of-use\">Terms of Use<\/a><br \/>\nand <a class=\"py-xl\" data-testid=\"pp-link\" href=\"https:\/\/www.leafly.ca\/info\/privacy-policy\">Privacy Policy<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"container my-xl\">\n<div class=\"row\">\n<div class=\"col md:col-9\" id=\"article-content\">\n<p>The past year was a big success for micro-cultivators as the number of licence holders across Canada continued to grow.&nbsp;Most licences are still for standard cultivation overall, but micro\u2019s are gaining momentum\u2014both in the industry and with consumers.<\/p>\n<p>The journey of a micro brand isn\u2019t an easy one. Maintaining a successful company with <a href=\"https:\/\/www.leafly.ca\/news\/canada\/excise-tax-reform-craft-cannabis-canada\" target=\"_blank\" rel=\"noreferrer noopener\">high taxes<\/a> and operating costs, <a href=\"https:\/\/www.leafly.ca\/news\/canada\/2021-cannabis-prices-race-to-bottom\" target=\"_blank\" rel=\"noreferrer noopener\">paired with low prices<\/a> for their products, can be a challenge. Despite these difficulties passion for the plant is prevailing, with larger cultivators and consumers are taking note.<\/p>\n<p>Micro-cultivators like <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=organnicraft\" target=\"_blank\" rel=\"noreferrer noopener\">Organnicraft<\/a>, <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=north%2040%20cannabis\" target=\"_blank\" rel=\"noreferrer noopener\">North 40<\/a>, <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=mtl%20cannabis\" target=\"_blank\" rel=\"noreferrer noopener\">MTL Cannabis<\/a>, <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=Weathered%20Islands\" target=\"_blank\" rel=\"noreferrer noopener\">Weathered Islands<\/a>, <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=origin%20coast\" target=\"_blank\" rel=\"noreferrer noopener\">Origin Coast<\/a>, and <a href=\"https:\/\/www.leafly.ca\/search?q=black%20kettle%20farms\" target=\"_blank\" rel=\"noreferrer noopener\">Black Kettle Farms<\/a>\u2014just to name a few\u2014have been making waves in the last year with new products on the market that have been dominating the online reviews in places like Twitter, Youtube, Reddit, Instagram, and TikTok.&nbsp;<\/p>\n<h2 id=\"h-smaller-batches-better-weed\">Smaller batches = better weed?<\/h2>\n<p>Cultivation licences in Canada allow for growing, harvesting, drying, trimming and packaging cannabis for bulk sale. To be licensed as a micro-cultivator grow rooms can be no larger than 200m\u00b2 in total. <\/p>\n<p>Of the more than 260 cultivation licences issued this year, about 130 were micros, of which 11 were <a href=\"https:\/\/www.leafly.ca\/news\/canada\/cannabis-nurseries-are-taking-off-providing-seeds-and-clones-to-growers\" target=\"_blank\" rel=\"noreferrer noopener\">nurseries<\/a>, making micros the most common licence issued in 2021 (albeit only by a few).&nbsp;<\/p>\n<p>So what makes micros so popular? The weed.<\/p>\n<p>Micro-cultivation of cannabis is like any other specialized crop, the yield is smaller but the quality is often higher. Led by a Master Grower, cultivation teams can spend more hands-on time with the plant in every stage of growth. <\/p>\n<p>According to consumers, micros grow more flavourful and potent cannabis than the larger-scale providers.<\/p>\n<p>Micro-producers in Canada are emerging as successful companies and brands, with products that are delighting connoisseurs and bringing more \u201clegacy\u201d consumers into the <a href=\"https:\/\/www.leafly.ca\/news\/canada\/pot-shop-panic-plagues-the-canadian-cannabis-industry\" target=\"_blank\" rel=\"noreferrer noopener\">growing number of retail stores<\/a>.<\/p>\n<h2 id=\"h-big-brands-can-be-partners-instead-of-competition\">Big brands can be partners instead of competition<\/h2>\n<p>The ability to produce a higher quality product than many of the larger companies appears to be a big advantage for a lot of micros. In some cases, larger licensed producers are reaching out to work with micros to bring their products onto the market under their guidance.&nbsp;<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThey told me, \u2018look, we can make the ketchup, but we can\u2019t grow the tomatoes\u2019. They have connections with provinces, some are even bigger buyers than the provinces. But we\u2019re the ones growing what consumers want.\u201d<\/p>\n<p><cite>Albert Eppinga, BC Cannabis Inc.<\/cite><\/p><\/blockquote>\n<p>This way micros can focus on high quality, small-batch products, the larger producers can rely on marketing, distribution, and relationships with provincial distributors and retailers, says Logan Dunn of <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=dunn%20cannabis\" target=\"_blank\" rel=\"noreferrer noopener\">Dunn Cannabis<\/a>, a micro-cultivator in BC\u2019s Lower Mainland.&nbsp;<\/p>\n<p>Dunn Cannabis is now working with another BC producer, <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=bzam\" target=\"_blank\" rel=\"noreferrer noopener\">BZAM<\/a>, who in addition to operating a handful of production facilities of their own, also source products from other producers to sell under their own array of brands.&nbsp;<\/p>\n<p>Dunn says he\u2019s found a happy home with BZAM after trying out a few different partners.&nbsp;\u201cThey\u2019re bringing scales of economy when it comes to things like costs of packaging and distribution,\u201d he explains. <\/p>\n<p>\u201cThat goes a long way. They really let us focus on producing products that are really good, they bring a sales force that helps push out our craft products across the country. And that is something that is invaluable for a micro.\u201d&nbsp;<\/p>\n<p>BZAM is not the only larger producer working with a micro. <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=aurora\" target=\"_blank\" rel=\"noreferrer noopener\">Aurora Cannabis<\/a> began partnering with Saskatchewan\u2019s North 40 Cannabis earlier this year, a micro-cultivator and processor.&nbsp;<\/p>\n<p>Aurora first <a href=\"https:\/\/twitter.com\/40cannabis\/status\/1438134523972182020?lang=en\" target=\"_blank\" rel=\"noreferrer noopener\">began<\/a> supplying North 40 with genetics from their own extensive genetics library this past year, ensuring their top-of-the-line genetics have a chance to be grown out with the specialized care a micro-cultivator can provide.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.leafly.ca\/search\/shop?q=delta%209\" target=\"_blank\" rel=\"noreferrer noopener\">Delta 9<\/a>, a larger licenced producer based in Manitoba, has also supplied distribution and logistical help to a dozen of licenced producers, helping them through the licensing stage, even supplying equipment and genetics, and then purchasing their products for distribution into their own networks and retail stores.&nbsp;<\/p>\n<h2 id=\"h-high-thc-genetics-are-still-in-demand\">High THC genetics are still in demand <\/h2>\n<p>Micros may have brought their interesting and unique genetics when they were licensed, but these cultivators aren\u2019t always capable of getting the high THC numbers provinces and consumers continue to demand.&nbsp;<\/p>\n<p>Strong industry relationships and partnerships are essential to ensure the kinds of genetics consumers are demanding, says Dunn. Something that is particularly important for micros. <\/p>\n<p>Albert Eppinga, who owns <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=BC%20Cannabis%20Inc\" target=\"_blank\" rel=\"noreferrer noopener\">BC Cannabis Inc<\/a>, a micro-cultivator on Vancouver Island, agrees that one of the big challenges for small producers is ensuring they have a high THC crop, and finding distribution deals that can provide timely payment.&nbsp;<\/p>\n<p>\u201cIf you\u2019re not growing top-notch stuff, with the right genetics, it can be hard. THC is key in the industry right now and needs to be at least 22-23% to get over $3 a gram. It\u2019s good work if you can find good genetics and produce a good high THC flower.\u201d&nbsp;<\/p>\n<div class=\"my-xxl wp-block-leafly-blocks-leafly-related-articles\">\n<p><h2>Related articles<\/h2>\n<\/p>\n<\/div>\n<p>Eppinga currently operates in partnership with a larger conglomerate of micro-producers in Sooke, BC on Vancouver Island, who then sell under one common brand in several provinces, including BC, Alberta, Saskatchewan, and Manitoba. <\/p>\n<p>Like Dunn, and a few other micros, he says he is also in talks with a few larger producers who are interested in distributing his products.&nbsp;<\/p>\n<p>\u201cThey told me, \u2018look, we can make the ketchup, but we can\u2019t grow the tomatoes\u2019. They have connections with provinces, some are even bigger buyers than the provinces. But we\u2019re the ones growing what consumers want.\u201d<\/p>\n<p>High-THC flower might get upwards of $3 or $4 a gram wholesale, Eppinga explains, but smaller buds might only get around $1 or could be rejected outright. After operating costs, it can be a good living, but it still requires a lot of hard work.&nbsp;<\/p>\n<h2 id=\"h-will-micros-continue-to-thrive-in-2022\">Will micros continue to thrive in 2022?<\/h2>\n<p>As flower prices continue to drop, micros must balance operating costs with an MRSP that is still enticing to consumers. Keeping a tight business model will be key to surviving this continued price compression and increased competition.&nbsp;<\/p>\n<p>\u201cI think 2022 will continue to be challenging for micros as we each try to find our place in the market,\u201d says Michael Fong, the owner of Origin Coast, a micro-cultivator and processor in Nova Scotia. <\/p>\n<p>\u201cLarge LPs will continue to source unique genetics and high-quality dried flower from [micros] but with higher specs as the market continues to chase high THC,\u201d explains Fong. <\/p>\n<p>\u201cOur operating margins will narrow as a result of dried flower prices [due to] the increased supply of high-quality product on the market and inflated costs due to supply chain challenges related to COVID.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"387\" alt=\"Prune Marijuana Plants ways. Harvesting and Processing Commercial cannabis\" class=\"wp-image-190138 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021-1.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021-1.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021-1.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021-1.jpg,compress&amp;w=1480 1480w\"><figcaption>Micro-cultivators grow weed on a smaller scale, allowing them to spend more one-on-one time with the plants. (contentdealer\/Adobe Stock)<\/figcaption><\/figure>\n<p>This sentiment is echoed by Kyp Rowe, director of cannabis at <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=shelter\" target=\"_blank\" rel=\"noreferrer noopener\">Shelter<\/a>, a distributor who works with numerous micro-producers for sales through provincial channels and their own medical platform, says the next year staying nimble and able to operate at a low cost is key.&nbsp;<\/p>\n<p>\u201cMicros are in a saturated state at the moment,\u201d says Rowe. \u201cWith over 200 across Canada the avenues to get products on shelves is becoming gridlocked with competition.\u201d <\/p>\n<p>\u201cFarmers in 2022 will need to grapple with low per-gram prices, the need for constant cultivar changes in a fickle market, and they will need to develop strategic partnerships with processors and distributors.\u201c <\/p>\n<p>\u201cThe key to navigating these waters is to first ask themselves, are we a brand or are we simply farmers?\u201d<\/p>\n<p>Kieley Beaudry, owner of Alberta micro-cultivator and processor <a href=\"https:\/\/www.leafly.ca\/search\/shop?q=parkland%20flower\" target=\"_blank\" rel=\"noreferrer noopener\">Parkland Flower<\/a> and President of the Alberta Cannabis Micro Licence Association (ACMLA), is optimistic about micro-cultivation in the upcoming year.<\/p>\n<p>\u201cThis will be the year of sales licences for many micros if they have survived the first two years that micro licences were allowed,\u201d she says. <\/p>\n<p>\u201cTenured micros will start processing for other micros and I believe we will start seeing smaller operations working together to fill SKUs of larger craft operators. Micro-processors will be bringing more unique artisan products to market, which I believe is a gap that is still not fulfilled or developed.\u201d<\/p>\n<div id=\"author-box\" class=\"p-lg my-xxl bg-white rounded border border-light-grey elevation-low\">\n<div class=\"mb-lg\"> <img decoding=\"async\" src=\"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021.jpg\" alt=\"David Brown's Bio Image\" class=\"lazyload inline-block mr-md rounded-full border border-light-grey\"> <\/p>\n<p>David Brown<\/p>\n<\/p><\/div>\n<p class=\"text-sm\">David Brown has been working in and writing about the cannabis industry in Canada since 2012. He was formerly the Editor in Chief and Communications Director for Lift Cannabis and Lift News, a Senior Policy Advisor for Health Canada&#8217;s cannabis legalization branch, and is the founder of StratCann Services Inc.<\/p>\n<p> <a class=\"text-sm font-bold underline text-green\" href=\"https:\/\/www.leafly.ca\/news\/author\/david-brown\">View David Brown&#8217;s articles<\/a> <\/div>\n<div class=\"leafly-sailthru-signup p-lg my-xl bg-white rounded elevation-low border border-light-grey\">\n<p class=\"text-xs pt-lg\">By submitting this form, you will be subscribed to news and promotional emails from <a href=\"https:\/\/www.leafly.com\">Leafly<\/a> and you agree to Leafly&#8217;s <a href=\"https:\/\/www.leafly.com\/company\/tos\">Terms of Service<\/a> and <a href=\"https:\/\/www.leafly.com\/company\/privacy-policy\">Privacy Policy<\/a>. You can unsubscribe from Leafly email messages anytime.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<p> <!-- Chartbeat --> <!-- End Chartbeat -->  <!--\nPerformance optimized by W3 Total Cache. Learn more: https:\/\/www.boldgrid.com\/w3-total-cache\/ Served from: _ @ 2022-01-06 01:54:50 by W3 Total Cache\n--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tiny but mighty: Micro-cultivators dominated 2021 | Leafly Link copied to your clipboard Leafly Leafly \u00ae Loading\u2026 Where are you from? Which part of Canada? Darn! You&#8217;re not old enough to use Leafly. Sorry, Leafly isn&#8217;t available in your location yet. Redirecting you to By accessing this site, you accept the Terms of Use and Privacy Policy. The past year was a big success for micro-cultivators as the number of licence holders across Canada continued to grow.&nbsp;Most licences are still for standard cultivation overall, but micro\u2019s are gaining momentum\u2014both in the industry and with consumers. The journey of a micro&#8230; <\/p>\n","protected":false},"author":1,"featured_media":3484,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-3483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marijuana_information"],"jetpack_featured_media_url":"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/tiny-but-mighty-micro-cultivators-dominated-2021.jpg","_links":{"self":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/3483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3483"}],"version-history":[{"count":0,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/3483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/media\/3484"}],"wp:attachment":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}