Education and Career Forum

How much does it cost to start cultivation business in Canada?

How much does it cost to start cultivation business in Canada?

Warehouse rent – $70,000
Build out, improvements – $50,000
Growing equipment – $150,000
Lighting system – $120,000
Alarm & Security System – $40,000
Licensing & legal fees – $50,000
Direct costs (first months before profit) – $200,000
Administrative expenses – $50,000
Other expenses, incl. salaries – $100,000
Total = $830,000.

Health Canada requires micro cultivation sites to be built and operational prior to granting the actual micro cultivation license. While there are ways to stage building to curb start-up costs, micro cultivation facilities can cost $800,000 or more to build and license.

The cost of a cultivation license is $2500, payable to Health Canada.

This allows the license holder to grow cannabis plants for distribution to the legal market.

There is another $2500 fee for a micro-processing license, also payable to Health Canada.