Bud Inc: Inside Canada's Marijuana Industry

Ann Turner is the financial and budget manager of the University of
British Columbia Library.

The economics of Canada’s most valuable agricultural product make for
a fascinating study in supply and demand. No, not wheat. Pot. The retail
value of annual domestic marijuana production in Canada has been
estimated at over $19 billion, all of it tax-free. Of course its
production, distribution, and possession are all illegal, but the size
and growth rate of the industry—more than tripling in British Columbia
in the past seven years—are overwhelming law enforcement’s ability
to contain it. To quote the author: “The law is no longer a risk to
growers, it is an operating cost.”

The industry developed from a primarily import-based economy in the
1960s to one of domestic production and export by the end of the 1980s.
The introduction of hydroponics technology increased productivity
dramatically. Economists suggest that the effects of marijuana
prohibition parallel those of alcohol in the past, serving only to
increase prices in compensation for the risk factor and making the
industry even more profitable and attractive to entrepreneurs.

Bud Inc. is an in-depth study examining all facets of the industry,
including the breeding and horticulture of marijuana plants, the
wholesale and retail markets for seeds and mature product, distribution
systems, international trade, the involvement of organized crime, the
law factor, and the political controversy over medicinal marijuana. It
is well-researched and well-written, and offers an enlightening look
into a shadowy industry that directly or indirectly touches many aspects
of Canadian life.