Canadian producers no longer must store cannabis in bank-like vaults

Health Canada has introduced new security measures that could save early stage cultivation applicants hundreds of thousands of dollars and improve operational efficiencies for current producers, according to analysts.

Effective immediately, marijuana producers will no longer be required to store their inventory in bank-like vaults, which can cost up to 500,000 Canadian dollars ($405,000).

Instead, they will be required to store their cannabis in a “secure” area.

LPs also will no longer be required to maintain 24/7 video surveillance inside rooms where cannabis is being cultivated.

David Hyde, security consultant with David Hyde & Associates, said Health Canada made the changes ahead of legalization this summer so producers have an easier 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.

Producers can expect to see operational efficiencies from a better use of space.

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

More takeaways from the security changes:

  • 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.
  • All access points to cultivation, propagation and harvesting rooms will continue to be subject to 24/7 video surveillance.
  • Producers must continue securing the perimeter of their site in a manner that prevents unauthorized access, ensuring that the perimeter is visually monitored.
  • Reporting of cannabis production, inventory and shipments to Health Canada will continue to be required and verified.

Matt Lamers can be reached at [email protected]

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