How Canada’s Cannabis Industry Is Dealing With Its Massive Waste Problem

Canada’s cannabis industry is facing a huge challenge: how to dispose of millions of pounds of unsold, unpackaged dried flower that have accumulated since legalization in 2018.

According to data from Health Canada, licensed producers destroyed 425 million grams of dried cannabis in 2021 alone. That’s equivalent to about 937,000 pounds, or enough to fill more than 18,000 garbage trucks.

Since 2018, the total amount of destroyed cannabis has reached 1.7 billion grams, or 3.7 million pounds. That includes approximately 24 million packages of cannabis products that were never sold or consumed.

Why is there so much cannabis waste in Canada? And what are the environmental and economic impacts of this problem?

The Causes of Cannabis Oversupply

One of the main reasons for the oversupply throughout Canada’s cannabis industry is the mismatch between supply and demand. The Canadian cannabis market is highly competitive and fragmented, with almost 5,000 cannabis licenses issued by Health Canada as of June 2021. These licenses cover cultivation, processing, sales, research, and testing of cannabis products.

However, the demand for legal cannabis has not met the expectations of the industry or the government. According to Statistics Canada, the sales of cannabis for non-medical purposes totaled $2.6 billion in 2020, which was lower than the $3.1 billion forecast by the federal government.

Another reason for the cannabis oversupply is the inefficiency of the supply chain. The current system involves multiple intermediaries, such as wholesalers, distributors, and retailers, who each take a cut of the profit margin. This reduces the incentive for producers to lower their prices or offer discounts to consumers.

Moreover, the supply chain is plagued by bottlenecks and delays, which affect the availability and quality of cannabis products. For example, some provinces have strict regulations on the packaging and labeling of cannabis products, which can cause backlogs and waste. Some retailers also face inventory shortages or surpluses, depending on the demand and preferences of their customers.

The Impacts of Cannabis Waste

The waste problem has significant environmental and economic implications that stretch beyond Canada’s cannabis industry. On the one hand, the disposal of cannabis waste poses a challenge for the industry and the regulators, who have to ensure that the waste is handled in a safe and compliant manner.

According to Health Canada, cannabis waste must be rendered unusable and unrecognizable before it is disposed of. This can be done by mixing the cannabis waste with other materials, such as paper, plastic, or food waste, and then sending it to a landfill, a compost facility, or an incinerator.

However, this process can have negative effects on the environment, such as greenhouse gas emissions, water pollution, and soil contamination. For instance, landfills produce methane, a potent greenhouse gas that contributes to climate change. Incinerators emit toxic substances, such as dioxins and furans, that can harm human health and wildlife. Compost facilities can leach nutrients and contaminants into the groundwater and surface water.

On the other hand, the cannabis waste problem also represents a lost opportunity for the industry and the economy, who could benefit from finding alternative uses for the excess cannabis. For example, some cannabis companies are exploring ways to recycle or repurpose their cannabis waste, such as turning it into animal feed, biofuel, bioplastics, or building materials.

These initiatives could create new revenue streams, reduce production costs, and enhance the sustainability and competitiveness of the cannabis industry. They could also generate social and environmental benefits, such as creating jobs, reducing waste, and saving resources.

The Solutions for Cannabis Waste

The current waste problem amongst Canada’s cannabis industry is not insurmountable. There are several possible solutions that could help the industry and the government address this issue and improve the efficiency and profitability of the cannabis market.

One solution is to adjust the supply and demand of cannabis products, by aligning the production capacity with the consumer demand, and by diversifying the product offerings and distribution channels. This could involve reducing the number of licenses, consolidating the market, and creating incentives for producers to lower their prices or offer discounts. It could also involve expanding the access and variety of cannabis products, such as edibles, beverages, and concentrates, and allowing online sales and home delivery.

Another solution is to optimize the supply chain of cannabis products, by streamlining the processes and regulations, and by enhancing the quality and consistency of the products. This could involve simplifying the packaging and labeling requirements, standardizing the testing and tracking methods, and improving the inventory management and forecasting systems. It could also involve investing in research and development, innovation, and education, to ensure that the products meet the needs and expectations of the consumers.

A third solution is to find alternative uses for cannabis waste, by exploring the potential applications and benefits of cannabis byproducts, and by supporting the development and adoption of circular economy practices. This could involve conducting studies and trials on the feasibility and viability of cannabis waste recycling or repurposing, and creating guidelines and standards for the quality and safety of the products. It could also involve providing funding, incentives, and recognition for the cannabis companies that implement sustainable and innovative solutions for their cannabis waste.

The Future of Cannabis Waste

The cannabis waste problem that Canada’s cannabis industry is currently experiencing is a complex and multifaceted issue that requires the collaboration and cooperation of various groups. This includes everyone from stakeholders, industry professionals, the government, to regulators, researchers, and consumers.

By addressing this problem, Canada has the opportunity to become a leader in the global cannabis industry, and a chance to demonstrate its commitment to environmental and economic sustainability.

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