Tag: outdoor

Despite its lower production costs and sustainability advantages, outdoor cannabis cultivation has had a challenging go of it in Canada’s legal market. While large-scale indoor and greenhouse operations dominate, outdoor growers face unique challenges—from market oversaturation to unpredictable weather. Yet, those who have weathered the storm are beginning to see glimmers of opportunity.

Industry insiders are witnessing shifts that could signal a turning point for outdoor cultivation, but what are the biggest hurdles facing this important part of the sector, and what can be done about them?

“[A big challenge] has historically been the oversaturation of product,” said Che LeBlanc, Director and Founder of Rosebud Cannabis Farms. “A lot of large, broad-acre producers saturated the market with a medium-quality product. We are still facing some of that, although it is lessening all the time.”

LeBlanc added that from his perspective, things are getting better for outdoor producers, but he doesn’t recommend that anyone get a fresh license at this time. However, he sees a trajectory to potential profits mainly because many larger producers have closed or shifted to international sales.

“That’s the big change I’m seeing right now in our industry. A lot of our product is moving internationally, with more all the time. This means there is less product available here, less of a saturated market.” he said. “Also prices are slowly returning as well in the domestic market.”

LeBlanc said that international sales as a current moneymaker, until the domestic market strengthens, is an effective way to pull in some revenue, which is why Rosebud does take advantage, with two SKUs in Australia under a co-branding opportunity. There are also a number of other opportunities in different international markets they are currently considering.

That being said, he added that Rosebud’s heart is in their community, which is where they want to sell their product. They just need to ensure everything is profitable at the end of the day.

“International sales is a great opportunity,” he said. “If it’s not panning out to line up that opportunity as an independent, then it would make sense to work with another company.” He added that there are now a number of companies acting as conduits to international sales.

McIntyre Creek Cannabis is another strong player in the outdoor cultivation sector that is taking advantage of other countries’ needs for quality products, but CEO Colin Davison points out that it may not be for everyone.

“Export is definitely not going to be for every level of outdoor grower, because it does present a level of quality complexity,” he said. “We definitely need to touch the flower more in order to meet the medical requirements of shipping to Germany, United Kingdom, South Africa, and Australia, which are the four primary places that we ship.”

Davison added that the price they make for their products abroad justifies the added quality control.

B2B Bread and Butter

So beyond export, where is this outdoor cannabis all going, and how does it fit into the big picture for the Canadian market? Davison said the vast majority of outdoor producers are focused on supplying for domestic B2B.

“There are still some LPs trying to integrate growing, processing, and marketing brands, however I would say that’s the outlier. Most companies are not finding profitable success in that fashion.”

To that point, several outdoor cannabis operations attached to larger companies have ceased in the last few years due to financial pressures and industry challenges. For example, Canopy Growth shut down its outdoor cultivation operations in 2020, citing oversupply and cost-cutting measures. Phoena Group (formerly CannTrust) wound down operations in 2023, and Auxly sold its outdoor facility in Nova Scotia in 2022. 

Most recently, however, innovations in genetics and cultivation are helping, and outdoor flower is seeing a renaissance of sorts in domestic bagged consumer SKUs.

“You can get high-potency THC distillate or high-potency THC diamonds and you can inject that into flower,” said Davison. “The knock on outdoor sometimes is that it’s not as potent as indoor, but we’ve seen the evolution of genetics. I can grow 24% – 28% THC flower outdoor now, whereas in the first few years [of legalization] we struggled to get 21% THC, so genetics have come a long way.”

Outdoor flower has also traditionally been a great input for solventless products, and as such, live resin and live rosin have been obvious transactions. Davison pointed out that there has now been a “big switch” to put outdoor flower in pre-rolls, particularly infused pre-rolls.

“There isn’t really the demand to grow indoor flower for infused pre-rolls [anymore]. The flower and the infusion now typically come from outdoor flower, whereas just two years ago infused pre-rolls had indoor flower and the infusion came from outdoor.”

The bottom line is that both domestically and internationally, Davison feels there’s enough room for every outdoor operation to succeed.

“All outdoors are not trying to grow the same thing. There are outdoors that grow specifically for the distillate market, which is much more of a high-volume, low cost model. Then there are more craft growers, and then there’s the in-between.”

The Future of Outdoor Cannabis in Canada

While outdoor cannabis cultivation in Canada has faced its share of obstacles, there are clear signs that the sector is adapting and evolving. The shift toward international markets, the increasing role of outdoor flower in infused pre-rolls and solventless extracts, and improvements in genetic potency all point to a more sustainable future for outdoor growers.

The market will likely continue to separate into distinct segments: large-scale producers growing for extraction, craft cultivators focused on premium flower, and those navigating a middle ground. As consumer preferences evolve and regulatory frameworks shift, outdoor cannabis could carve out a more significant role in Canada’s legal industry, not just for its cost-effectiveness but also for its potential to meet the growing demand for high-quality, sustainable cannabis products at home and abroad.

Adaptability and strategic partnerships will be key for those still in the game. Whether through export opportunities, B2B supply chains, or premium niche markets, outdoor growers who can differentiate themselves and remain financially viable will be the ones leading the charge in the years ahead.

Featured image via Dabble Cannabis

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