Agriculture
Canopy ‘never been better,’ says interim CEO as investor set to take related loss
TORONTO — Canopy Growth Corp.’s interim chief executive says the mood at the cannabis producer has “never been better,” a comment that comes two months after its charismatic co-founder was ousted from the top job and as pressure mounts for the company to reach profitability.
Mark Zekulin said the Smiths Falls, Ont.-based company is shifting from “building” mode and hefty investments in infrastructure and expansion to “operating” mode.
However, he notes that the move is separate from the transition of leadership underway from the previous CEO Bruce Linton.
“This is actually the natural progression of where we should be, where we want to be, and how we maximize shareholder value,” he said in an interview.
His comments come one week after Canopy’s largest investor, Constellation Brands, said it expects to record a US$54.8-million loss in its current quarter from its $5-billion investment into the Smiths Falls, Ont.-based company.
The New York-based alcohol giant had said in June it was “not pleased” with Canopy’s earnings as it recorded a related US$106-million loss, and that it was working with the weed producer to “win markets” and pave a “path to profitability.” Linton’s surprise termination from the top job followed in July.
Canopy said in August, as it reported its latest quarterly earnings, that the cannabis giant expects profitability in three to five years. Its results for the first quarter of its 2020 financial year fell short of expectations, and some analysts said that Canopy was losing market share.
Zekulin said he believes Canopy continues to be “on top,” and this position will be further reinforced once its harvest of high-THC product from last quarter reaches shelves and when edibles are legalized.
“Our ability to put that into the system, plus to have the value added products that we have been working coming into the market, I’m very confident in our ability that we have the number one market share and will continue to have the number one market share in Canada.”
Zekulin said the company is “on pace” with the rollout of its products, such as beverages developed in conjunction with Constellation Brands.
The regulations for edibles and other types of ingestible cannabis products come into force on Oct. 17, but the earliest these items can be sold legally is mid-December due to the 60-day mandatory notice to be given to Health Canada.
“I think there will be some products in market for that Christmas, New Year’s cheers, but, ultimately most of those products will start to roll out later,” said Zekulin.
Zekulin, formerly co-CEO alongside Linton, said last month that he would leave the company once a suitable CEO is found.
He did not respond to a question on why he was leaving the company, and said the recruitment process was well underway.
“There are a number of excellent candidates and I’m really excited to see the calibre of people we attracted,” he said. “That being said, taking a step back, this company is bigger than one person. It’s not about Bruce, it’s not about Mark.”
Cannabis stocks have been under pressure in recent months from a variety of factors, including regulatory woes plaguing licensed producer CannTrust Holdings Corp. Health Canada has been investigating the company after the regulator discovered CannTrust was growing cannabis in several rooms at its Ontario greenhouse facility prior to receiving the appropriate government approvals.
Last month, CannTrust hired Greenhill & Co. to explore a sale of the company and other strategic alternatives.
When asked whether Canopy would be interested, Zekulin said he does not foresee the need for more Canadian assets.
“Without directly speaking to CannTrust and its portfolio… We have built all of the pieces that we need to succeed in the long-term.”
Companies in this story: (TSX:WEED)
Armina Ligaya, The Canadian Press
Agriculture
Why Canadians Should Care About Land Loss

Why Canadians Should Care About Land Loss
Developments are increasingly taking over Canadian farmland. Farms once took up much of Canadian land. However, that case is not true today. Only about 5% of Canada’s land is considered prime farmland. This prime land borders one of Canada’s fastest-growing regions, and once suburban development overtakes it, Canadian farmers will have a challenging time providing food for the cities.
Farmers in Canada make their livelihood by planting, growing, harvesting and distributing food to the Canadian populations. Without land, both farmers and the rest of those living in Canada will not get fresh, Canadian grown produce.
Here are some reasons why Canadian farmers should care about land loss:
- Farmland Provides Food
While this is an apparent reason, it’s an essential one. Prime farmland in Canada produces food for major Canadian cities. As farmers continue to lose land, they have to rely on a smaller acreage to make the same amount of food — if not more — for the growing population.
Over the past 10 years, almost 1 million hectares of agricultural land has diminished due to development and growing populations. Agriculture continues to adapt to land loss. However, further technological advancements must first take place to grow enough produce vertically rather than horizontally.
- Land Preservation Will Help the Economy
Farmland preservations come with a wealth of economic benefits. Agriculture contributes to the economy through the following ways:
- Sales: For the economy to survive, there needs to be consumer demands and sales. Almost everyone purchases produce, so there will always be a demand for those goods. Without land to grow agricultural products, no sales will be made, and the economy could suffer.
- Job opportunities: Less than 2% of Canada’s population works in the agriculture industry. While it’s not much, that’s still over 750,000 people. Preserving farmland shows a commitment to the industry. Land loss would create job loss. However, maintaining the farmland — and even reclaiming it, along with pastures — could boost the sector and, therefore, the economy. It would provide unemployed people with job security.
- Secondary markets: Farmers are just one part of the food business. Because of farmers and farmland, secondary markets can thrive. These would include processing businesses, restaurants, schools, grocery stores and even waste management companies.
Canadian farmers should care about land loss because standing back and allowing companies to overtake the farmland could seriously affect the economy.
- Farmland Benefits the Environment
Wildlife often depends upon farmland for both food and habitat. Various types of farmland create diverse habitats for many different species. Without land protection, these habitats and food sources would be destroyed, leaving many animals without a place to survive. Many would have difficulty finding a native habitat.
Additionally, growing crops helps eliminate some of the carbon dioxide released into the air. Air pollution could decrease for Canadian cities as long as no more farmland is used for development.
One major problem occurring with Canadian farmland is desertification. This happens when the soil loses nutrients and becomes barren. The urbanization of Canadian farmland is the primary contributor to desertification, which speeds up climate change and harms the environment. Keeping farmland as-is will slow down climate change.
- Land Loss Affects Farmers’ Jobs
Perhaps the main reason why Canadian farmers should care about land loss is because their livelihood could be taken away. If they don’t have the means to keep up with technological advancements in the agricultural industry, they will not be able to continue their jobs if they experience land loss.
Agriculture is an essential industry. Not everyone can pick up the skills needed to grow their own food, and so many people depend upon farmers for nutrition and goods.
Take a Stand to Preserve Farmland
Farmland is a worthwhile and precious resource for many people. Reduction in farmland acreage will hurt Canadian farmers and the rest of the population, the economy and the environment. Taking steps to prevent more land loss can slow the rates of destruction and keep natural habitats thriving for both humans and animalls.
Click here read more stories by Emily Folk.
I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.
Agriculture
Canadian Agriculture More Energy Intensive, More Efficient

Canadian Agriculture More Energy Intensive, More Efficient
It’s no secret that agriculture has contributed to climate change through various means. For example, you may know that livestock generates greenhouse gas emissions due to how farms process it. That said, it’s now clear that farmers have found sustainable ways to offset those contributions. In Canada, it’s all about energy use.
Here’s how Canadian farmers have become more efficient as they raise crops and livestock, setting a standard the world should follow.
Energy Demand and Consumption Have Fluctuated
The demand for energy has increased across the agricultural sector as a whole. However, it’s key to note that farmers have begun to use less energy despite that fact. That points to more efficient practices. The farmers who complete their work productively save time, money and energy. As a result, Canadian workers have reduced their energy consumption per dollar by 17%. That’s thanks to sustainability.
The most common energy sources include fuel, gas and electricity. It’s how farmers use those resources that counts. Combined with technology choices and new practices, it’s clear that efficiency is more achievable than ever.
What Contributes to This Phenomenon?
It’s crucial for people in agriculture to explore eco-friendly alternatives. The grasslands that many western Canadian farmers cultivate contains excess carbon, so you can imagine what the country as a whole holds underneath its surface. Farmers have now adopted new methods to adjust how they harvest their crops. These systems are better for production, as well as soil and seed health overall.
The agriculture industry has gone through many changes, too. There are fewer farms — but those that still operate have employed agricultural technology to be as efficient as possible. These tools include different equipment that cuts down on time to increase proficiency. Plus, it’s now more common to use solar power as an alternative to traditional energy solutions.
Why Accuracy and Precision Matters
It’s a lot easier to be energy efficient when you don’t waste your resources. The means farmers practiced before they used specific innovations often created a time deficit. If you have a smaller machine, you likely need to do twice as much work. However, when you have access to equipment that fits your field, you don’t have to be as wasteful. The accuracy and precision created by technology make this a reality.
Soil Conservation Is Led by Ranchers
Many farmers have looked to ranchers for help. It’s a native part of ranching to preserve topsoil and other elements that are inherently sustainable. As a result, it seems like ranchers have been leading the charge against climate change for decades. The tactics they use to avoid tilling soil, for example, help preserve the amount of carbon that lies underneath the Earth’s surface.
The “no-till” practice is efficient in its own right. Rather than till your soil to plant a new crop, you simply leave behind what’s already there. This method is much better for soil nutrition, and it can keep carbon exposure at bay. As a result, you have much fewer carbon emissions. In general, the idea of soil conservation isn’t a new one, but old tricks can still work alongside modern technology.
The Future of Agriculture in Canada Looks Bright
If farmers continue on this path, it’ll be clear that climate solutions are at the forefront of their minds. These efforts create more benefits for them as they save time and money. Plus, there’s always the responsibility of maintaining the planet’s health. After all, without a strong ecosystem, agriculture would suffer. Through means that are more accurate and conservative, Canadian farmers have been able to become more efficient. Click here read more stories by Emily Folk.
I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.