According to Business News Australia, Medcan Australia has inaugurated its $12 million vertical farming facility in Heathwood, Brisbane. Claimed to be the southern hemisphere’s most technologically advanced, the 3,000 sqm facility can produce around 6,000kg of dried cannabis flower, potentially valued at $60 million.
While the company has been outselling its production capabilities, the new site is poised to double the current dried cannabis flower output. Craig Cochran, CEO of Medcan Australia, highlighted the advantages of vertical farming, noting its efficiency and reduced waste. The facility, which uses state-of-the-art LED lighting and an automated system inclusive of UV-sanitized reverse osmosis irrigation, is expected to generate up to 100 jobs when fully operational.
Cannabis Industry Experiences Contraction
The cannabis industry, once lauded as one of the fastest-growing sectors, has recently faced a significant contraction. Several factors have contributed to this downturn. First, the initial rush and excitement surrounding cannabis legalization led to overproduction in multiple jurisdictions. This overproduction, coupled with stringent regulations and high operational costs, put pressure on the profit margins of many producers. Additionally, as the market became saturated with various products and brands, companies found it challenging to differentiate themselves and secure a loyal customer base.
Furthermore, while the promise of international markets opening up was tantalizing for many producers, the pace of global legalization has been slower than anticipated. In some regions, illicit markets continue to thrive, offering products at a fraction of the price of legal alternatives and making it harder for legitimate businesses to compete. The high hopes investors had for the cannabis sector have been tempered by these realities, leading to reduced investment and, in some cases, businesses shutting their doors. It’s a pivotal moment for the industry, and only those companies that can adapt to these challenges will likely emerge more vital in the long run.
For the latest news, Follow us on Google News!