Strong Canadian dollar said hurting pot exports
Thu Sep 27, 2007 10:51pm BST
By Allan Dowd
VANCOUVER, British Columbia (Reuters) - The strong Canadian dollar has hit the illegal marijuana sector just as it has other industries that export to the United States, one of Canada's best known legalization advocates said on Thursday.
But western marijuana growers have also benefited from Canada's strong economy, especially the booming Alberta oil patch, which has increased domestic consumption, according to Marc Emery, a founder of the British Columbia Marijuana Party.
The Canadian dollar touched parity with the U.S. dollar last week, topping a rise of some 60 percent over the past five years. On Thursday, it was still hovering around par, at C$1.0014 to the U.S. dollar or 99.86 U.S. cents.
A stronger loonie -- so called for the bird engraved on the one dollar coin -- has cut the profit of selling potent "B.C. Bud" marijuana in U.S. markets at a time when producers in Canada struggle with tighter border security and competition in the United States with pot from other sources.
Top quality Canadian pot is selling for $3,500 (1,725 pounds) a pound in the United States, compared with C$2,400 (1,180 pounds) in domestic markets, according to Emery, who is also editor of Cannabis Culture magazine and fighting extradition to the United States.
Tuesday, October 2
For all you forex trading stoners out there...
I love how this story could very nearly have been written about oil, or aluminum. Allan Dowd, we salute you!