Major Updates to Canada's Cannabis Regulations: Cultivation Area Quadrupled, Simplified Trade, and Approved Pollen Sales

Major Updates to Canada's Cannabis Regulations: Cultivation Area Quadrupled, Simplified Trade, and Approved Pollen Sales

On March 12, 2025, Health Canada introduced significant updates to the Cannabis Regulations, Industrial Hemp Regulations, and the Cannabis Act. These changes aim to simplify compliance, reduce industry burdens, and support the legal cannabis market's growth.

Key Regulatory Changes

1. Expanded Cultivation and Production Limits

• Micro-cultivation site limits increased from 200m² to 800m², and processing capacity rose from 600kg to 2,400kg.
• Nursery cultivation area expanded from 50m² to 200m², though harvested cannabis flowers must still be destroyed.

2. Eased Import, Export, and Sales Rules

• Removed entry/exit port requirements from cannabis and hemp import/export licenses, streamlining trade.
• Cannabis pollen sales are now permitted among licensed businesses, offering more options for cultivators.

3. Adjustments to Quality Control and Security

• Removed the cap on the number of alternate Quality Assurance Personnel (QAPs), allowing greater management flexibility.
• Companies can now conduct cannabis remediation (e.g., irradiation) without security personnel on-site.
• Certain site security requirements, such as continuous video surveillance and intrusion detection, have been lifted.

4. Changes to Packaging and Labeling

• Transparent windows on cannabis packaging are now allowed for better product visibility.
• THC content limits on individual packages have been relaxed, allowing for more flexible packaging.
• QR codes and fold-out labels are now permitted to enhance consumer access to information.

5. Simplified Record-Keeping and Reporting

• Removed certain sales record requirements, reducing administrative burdens.
• Eliminated the annual promotional spending report requirement, though companies must still keep internal records.

Impact of the New Regulations

These updates are expected to save the cannabis industry approximately $18 million annually in compliance costs while improving market competitiveness. With more flexible cultivation licenses, streamlined import/export processes, and reduced administrative burdens, Canada is poised to become an even more attractive hub for cannabis production and trade.