With a focus on local, budmail.life agriculture and cannabis production, the craft industry has grown to become an important part of the Canadian cannabis landscape. And with consumers showing a preference for diverse and regional products, it’s crucial that small producers maintain a strong presence in the regulated market.

But the process of obtaining micro cultivation licences has proven challenging for would-be producers, who are having trouble navigating municipal approval and zoning processes required to meet Health Canada’s criteria. While Health Canada wouldn’t specify whether any specific aspect of the process is stalling applications, would-be applicants say it’s becoming increasingly difficult to secure their licenses.

Crafting a Green Experience: Exploring the World of Craft Weed in Canada

As a result, despite high demand for their products from consumers, many micro cultivators are struggling to break even. And it’s not just because of the price tag attached to each product. Exorbitant taxes are also taking a toll on small businesses. Last month, Calgary-based producer Ogen closed its doors, putting 87 employees out of work. It was just one of dozens of companies to close in recent years due to overheated competition and the rising costs of labour, taxes and other business expenses.

But if they hope to survive, craft growers need the federal government’s help. Regulatory changes are critical, says Brazeau Seller Law’s Trina Fraser, who specializes in cannabis legal services including licensing and acquisitions. She argues that Canada’s excise tax on cannabis is unsustainable and could force small businesses to close.