Key Takeaways:
- Village Farms International to convert 550,000 sq. ft. of Delta 2 facility to cannabis cultivation
- Expansion will add 40 metric tonnes of annual production capacity by Q1 2027
- Project budgeted at CAD $10 million, funded from existing cash reserves
- First planting scheduled for spring 2026; conversion begins November 2025
- Company to increase total operational cannabis production space by 33%
Village Farms International Expands Production Footprint
Delta 2 Greenhouse Conversion Announced
Village Farms International has announced plans to expand its cannabis cultivation operations by converting the remaining 550,000 square feet of its Delta 2 greenhouse facility in Delta, British Columbia. The decision was unanimously approved by the Company’s Board of Directors and marks a 33% increase in total operational cannabis production space.
The conversion is expected to add 40 metric tonnes of annual production capacity once fully ramped. The phased project will begin in November 2025, with the first planting set for spring 2026, and full operational capacity targeted by the first quarter of 2027.
Project Funding and Timeline
CAD $10 Million Investment Using Existing Cash
The expansion project is expected to cost approximately CAD $10 million, which will be funded entirely through existing cash on hand. Most capital expenditures are projected to occur during calendar year 2026.
Village Farms International stated that the investment aligns with its strategy of scaling in response to global demand trends, with the expanded facility helping to support both Canadian and international customers.
Village Farms Strategic Positioning and Market Outlook
Focus on Organic Growth and Global Demand
“We are pleased to announce this capacity expansion, which will enable us to continue supporting our Canadian and International customers with the consistent supply of quality products they expect from Village Farms,” said Michael A. DeGiglio, President and Chief Executive Officer of Village Farms International.
He added, “Our business is growing organically, with market conditions across the globe aligning favorably with the competitive strengths we’ve established through nearly 40 years in controlled environment agriculture. We expect these trends to continue, and that this investment will help drive profitable growth in 2026 and beyond.”
Once the project is complete, Village Farms International will operate 2.2 million sq. ft. of cannabis production. The Company also owns an additional 2.6 million sq. ft. of advanced greenhouse capacity at its Delta 1 facility, providing flexibility to scale further as global demand increases.
Village Farms Leadership Comments on Execution and Capacity
Operational Strategy Remains Disciplined
DeGiglio concluded, “I am very proud of our operating team’s discipline and execution, and the way our Canadian cannabis team has consistently and profitably matched our supply with demand over the past several years. We have always taken a crawl, walk, run approach to scaling our operations, and we are pleased to utilize the strength of our balance sheet and reward our team with the incremental capacity they need to continue building our leadership position in global cannabis.”
The expansion underscores Village Farms International’s commitment to long-term scalability and reinforces its standing as one of the largest cannabis producers globally.
Village Farms International
Village Farms International operates as a vertically integrated Controlled Environment Agriculture (CEA) company, supplying fresh produce and plant-based consumer packaged goods (CPG) across North America. The company is active in both traditional food markets and emerging categories such as cannabis and CBD.
Its Canadian subsidiary, Pure Sunfarms, is among the largest greenhouse-based cannabis producers, while ROSE LifeScience in Québec supports cannabis commercialization efforts. In the U.S., Balanced Health Botanicals manages CBD products and e-commerce. Village Farms also plans to enter the U.S. high-THC cannabis market, leveraging over 5.5 million sq ft of greenhouse space in Texas, pending regulatory developments.
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