MILDURA’S medical cannabis facility, set to be built next year, has slashed its initial production estimates by 65 per cent.
According to the website The Market Herald, the Cann Group will produce just 25,000kg of medical cannabis each year, cutting back its planned rates by 65 per cent, as part of the first stage.
The cannabinoid producer announced in August it would increase capacity by 40 per cent to 70,000kg at the Mildura facility, increasing its annual revenues to $280 million a year.
The new approach would allow the company to proceed in three stages so it can initially build capacity.
Chief executive Peter Crock said staging the commissioning of the Mildura facility over time would help ensure production capacity more closely matched anticipated growth in demand for medicinal cannabis, The Market Herald reported.
The cultivation of mother plants at the $130 million facility, which includes a 34,000 sq m glasshouse, is still expected to start in the third quarter of 2020.
