RE:RE:A production questionIn addition to what I said below, the maximum capacity of 400,000 to 500,000 kg is a lofty assumption. Consider that any would need to have all of their facilities at full capacity which may be a bit of a stretch as follows:
1. They would need to hire all the qualified staff they need which will take years given the number of staff currently needed and the competition from other LPs for the same staff.
2. They would have to have the processing capacity (equipment/staff) for all that harvested material to turn into dried flower/oils/capsules.
3. In addition to all of their harvested product, they need capacity to process all the product supplied by their numerous Canopy Rivers supply agreements.
4. Depending on the demand in Canada and their total exports to other countries, there may be an over supply so that maximum capacity of 500,000 kg is not needed. It has been stated that 800,000 kg per year may be the eventual maximum amount of supply needed for Canada. If you assume Canopy will have a 30% market share then its 240,000 kg @ $7/g, it equates to almost $1.7 Billion.
Finally, these are all nice problems to have! Don't forget about edibles and drinks.
ledzep4u wrote: Kris, not quite sure how you arrived at the numbers, but based on what I've read, their production capacity of about 5.7 M ft2 is 500,000 kg. Of that 500,000 kg, the net for sale would be around 400,000 kg because not everything that is grown ends up in "Finished Goods" in their inventory. That's because about 20% could be spoiled/damaged/doesn't meet quality standards etc.
Even at 400,000 kg @ $7/kg = $2.8 Billion. I use $7 because rec. may be cheaper but medical is higher. German medical was over $10 if I recall.
Keep in mind all the above numbers are Canopy Canada only and does not include all the supply agreements that Canopy Rivers has signed/going to sign which are/will be substantial. Also, Canopy is in over 10 countries and they will also be growing/processing/selling medical and some rec. in those countries.
https://finance.yahoo.com/news/8-canadian-marijuana-growers-expected-122100756.html
https://grizzle.com/canapocalypse-canopy-growth/
krisruna wrote: Last Q report said "Amount harvested is 15.5 Tons'. That is a yearly rate of 62 tons/year. Our production capacity is supposed to be approx 750 tons/year (from 5.4 M ft2, now 4.2 M ft2 licensed). This looks like a big mis match.
Is this the plan that we have Cultivation area licensed, but we only harvest just before we need it. I thought shelf life is in years.
Any wise words of wisdom here. ACB harvested much lower numbers. I think Canopy has no reason to need more than what we have planned (i.e 5.4 M ft2).