Idea of setting up a Co-Op of growers in Australia

[Easty]

Hi all,
I've been asked to do some consulting for a financier to set up a legal grow facility here in Australia and it got me thinking. If we could get enough small scale growers permitted to grow legal weed, we could set up a Co-Operative company similar to what they do with milk and fisheries. Have a board of directors made up of some of the growers and have all the product go through the Co-op. It would mean there would be a much bigger voice to lobby politicians and parliament and put big pharma companies on notice.

The financier I have is willing to put in $3-5M to get a grow facility up and running and get permits etc (permits are about $15-20k from TGA and local Govt here per year).

The more I think about it, the better it sounds but I wouldn't know where to start on the business side of things getting people on board etc ?

Someone please head check me, is this a dumb idea?

 

[Frosty78]

Hi all,
I've been asked to do some consulting for a financier to set up a legal grow facility here in Australia and it got me thinking. If we could get enough small scale growers permitted to grow legal weed, we could set up a Co-Operative company similar to what they do with milk and fisheries. Have a board of directors made up of some of the growers and have all the product go through the Co-op. It would mean there would be a much bigger voice to lobby politicians and parliament and put big pharma companies on notice.

The financier I have is willing to put in $3-5M to get a grow facility up and running and get permits etc (permits are about $15-20k from TGA and local Govt here per year).

The more I think about it, the better it sounds but I wouldn't know where to start on the business side of things getting people on board etc ?

Someone please head check me, is this a dumb idea?

There is a facility in Pakenham about ti come online one out Mildura way another near Daylesford all out Victoria way. The permits I believe and backgrounds behind it take a couple of years and you need security and a sizeable bank behind it. If it was ground up I'm not sure that would be enough mate. You need facilities under lock and key and full surveillance etc, guards, a contract to sell to the medical supplier as you can't do that yourself. It's been set up so pharma runs top end and if you can get your foot in you won't make the cream that the middleman man does. I don't mean to rain on your parade as I think it has great merits, it's just the game and rules have been slanted against you before you get the game running.

 

[spyralout]

This is not meant to jack your thread but to be a side complement of sorts. I too have been tossing the idea around about a FOOD CO-OP in my area. Things are still in the idea phase but in my area there are literally ZERO co-ops although we feed the entire world w our agriculture. Up north they have courses that you can go through to get started in such a thing. While it's food vs cannabis, there has to be some similarities since food has its own strict guidelines. The idea I have would involve local farmers, utilizing some of one of my blood brothers' parents' land, growing some ourselves, getting local farmers, fisheries, breweries, etc involved.

 

[Easty]

There is a facility in Pakenham about ti come online one out Mildura way another near Daylesford all out Victoria way. The permits I believe and backgrounds behind it take a couple of years and you need security and a sizeable bank behind it. If it was ground up I'm not sure that would be enough mate. You need facilities under lock and key and full surveillance etc, guards, a contract to sell to the medical supplier as you can't do that yourself. It's been set up so pharma runs top end and if you can get your foot in you won't make the cream that the middleman man does. I don't mean to rain on your parade as I think it has great merits, it's just the game and rules have been slanted against you before you get the game running.

Appreciate the reply mate, thank you! The permits and export licence etc is the least of my concerns, I can get them sorted pretty easily, having a background in permitting etc myself. As you say though, the ground up building of the facility/s and security etc is where I fall down a bit. I have building industry experience as well but not enough to know the ins and outs. The financier I've met with is willing to put in up to $5M, if I could work out all the business plan etc to make it work, I know I can get other people to weigh in as well. Maybe I just need to invest some time in building a plan and see how far I get with it hey! Never know if we don't try!

 

[Frosty78]

Appreciate the reply mate, thank you! The permits and export licence etc is the least of my concerns, I can get them sorted pretty easily, having a background in permitting etc myself. As you say though, the ground up building of the facility/s and security etc is where I fall down a bit. I have building industry experience as well but not enough to know the ins and outs. The financier I've met with is willing to put in up to $5M, if I could work out all the business plan etc to make it work, I know I can get other people to weigh in as well. Maybe I just need to invest some time in building a plan and see how far I get with it hey! Never know if we don't try!

I'm catching up with a mate in melb who worked on the build at Pakenham and run it past him on what that crew paid to get theirs going. They had massive rainwater tanks etc. The full she bang. I think permits all up are around 100k but it's the time eg background checks etc. It's federal and state checks. You'll need plans for security of premises and products and surveillance.
I know there is alot of hoops to jump through but you might get through with 5 mill. Rember you have to pay wages for everyone and premises etc before first harvest and you don't get to set the price for product. I'm certain it's the pharma company middleman that sets it. I'm not saying it's a bad thing. Shit I'd have a go if it wasn't a fuck around and I didn't need big $$$ to bank roll it till harvest. Nothing ventured is nothing gained so have a crack mate. I'll let you know the outcome of my pub business meeting with old mate on Monday night

 

[Easty]

I'm catching up with a mate in melb who worked on the build at Pakenham and run it past him on what that crew paid to get theirs going. They had massive rainwater tanks etc. The full she bang. I think permits all up are around 100k but it's the time eg background checks etc. It's federal and state checks. You'll need plans for security of premises and products and surveillance.
I know there is alot of hoops to jump through but you might get through with 5 mill. Rember you have to pay wages for everyone and premises etc before first harvest and you don't get to set the price for product. I'm certain it's the pharma company middleman that sets it. I'm not saying it's a bad thing. Shit I'd have a go if it wasn't a fuck around and I didn't need big $$$ to bank roll it till harvest. Nothing ventured is nothing gained so have a crack mate. I'll let you know the outcome of my pub business meeting with old mate on Monday night

Bro that would be sick, thanks so much! Definitely keen to hear how they did it all.
Background checks for me aren't an issue, I have clearance already at the top level so could get that done no probs.

I'm starting to do the maths on my head and sounds like wages alone for staff and security would be pretty big, but not out of control.

Thanks a lot for taking the time to respond mate, I really appreciate it! Definitely keen to explore this as far as I can hey, would be sick to get a co-op going by growers, for growers!

 

[Frosty78]

G'day Easty, sorry been a lazy cunt getting my arse down to melb. Gotta head down next week for a few things. I'll tee up seeing old mate and let you know what that joint in paky was costing to set up

 

[Easty]

G'day Easty, sorry been a lazy cunt getting my arse down to melb. Gotta head down next week for a few things. I'll tee up seeing old mate and let you know what that joint in paky was costing to set up

All good mate, no stress hey! Hope you enjoy the trip ?

 

[Ed Rooney]

Hi Easty, my daughter has a complex disability and uses 1000mg of cannabis oil per day. I mention this because it has allowed me to meet some if the company owners in the industry and get invited to functions to advocate.
A lot of what i see is a green pharma ponzi scheme.
There has been so much pump and dump with investors cashing in on the green rush.
if you look to Canada and the US Im sure someone can chime in on what has happened there and is sure to happen here in regard to pricing.
They open new facilities across the globe as their markets get set up to keep their investors dollars going before the price collapses again.
There are some ethical players doing living soil, organic principles but they are a rarity. If you know qld there is a massive facility being built in Toowoomba. My personal view is these facilities are contributing to ecoside.
Maybe a partnership or an IPO may be practical.
For risk mitigation an import licence would be my recommendation. Facility costs are less, margins on irradiated cannabis are good and the overheads are manageable.
If your investor actually has a heart and wants to work in the name of the plant, I would suggest what Australia really needs is a non profit cannabis company. NZ has an excellent working model that raised enough funds from community to get it going.
At the end of the day your investor is asking to start a farm, getting out and talking to some farmers should give them a dose of sobriety to their enthusiasm.