A Vancouver-based company has launched a plant propagation service for the cannabis industry in preparation for the federal government’s legalization of cannabis later this year.
PUF Ventures Inc. has created Propagation Services Canada Inc. (PSC ) through a 50-50 partnership with Casey Houweling.
By outsourcing propagation services licensed producers of cannabis can significantly increase revenue while reducing the risk associated with cloning cannabis plants.
“Our partnership with Casey brings the science of plant propagation to the emerging cannabis industry in Canada on a large scale,” said Derek Ivany, president and CEO, PUF Ventures Inc. “We conducted a thorough analysis of the industry and identified how plant propagation will bring significant benefits to the many licensed producers operating in Canada.
“Not only does it simplify operations, the additional product gained from the repurposed square footage generates significant incremental revenue,” he said.
PSC has an exclusive 15-year license to Houwelings’ currently operating, large-scale, vegetable propagation, 2.2 million square foot greenhouse in Delta, BC.
Greenhouse plant propagation is a specialization that is used all over the world for a wide variety of plants. In Canada, the cannabis industry has become a significant economic force with the legalization of cannabis scheduled for October 17, 2018.
In a recent review of opportunities within the Canadian cannabis industry, the company determined flower-ready plants offer significant benefits. Plant propagation simplifies growing operations while significantly enhances top line revenue and operating profits.
Approximately 20 to 30 per cent of a license producer’s greenhouse is dedicated to cannabis propagation. By using third-party propagation services, this area can be repurposed to growing flowering plants and generate proportional topline revenue increases.
In addition, third-party specialized propagation can improve horticultural and operational challenges:
Propagation operations are complicated and require specialized knowledge and expertise to ensure high quality clones without disease and contaminates. Starter plants mitigate these challenges and allows cannabis cultivators to focus upon growing and processing flowering plants.
Through Propagation Services Canada, licensed producers can reallocate valuable greenhouse growing area, currently dedicated to mother cannabis plants and propagating clones, to growing flowering plants, the company says in a release.
PUF is the majority owner of AAA Heidelberg, an advanced Access to Cannabis for Medical Purposes Regulations (“ACMPR”) license applicant. In February 2018, AAA submitted a confirmation of readiness package for its facility in London, Ontario.