COMPETITION FOR MARIJUANA CONTRACT

Back in 2001, the year medicinal pot was first grown in Flin Flon, a
local novelty shop began selling t-shirts proclaiming the community
as the "Marijuana Capital of Canada."

Seven years later, there are concerns that title could wind up elsewhere.

Prairie Plant Systems, which currently grows the marijuana for Health
Canada in a vacant portion of the Trout Lake mine, is facing serious
competition from at least one organic grower from Vancouver Island.

Island Harvest, a company in the Cowichan Valley that already legally
supplies medicinal pot to a few authorized users, has reportedly put
in a bid for the federal contract, due to be renewed.

"We want this contract because we know that we can supply a
good-quality organic product to patients," Nash told the Canadian Press.

Nash told CP he wants to grow "strain-specific plants" tailored to
patients with different medical conditions, adding that the Flin Flon
product "is just one strain" that may not work well for everyone.

With good security a must for securing the contract, Nash's company
would use a metal warehouse surrounded by fencing, barbed wire,
security cameras and guards, according to CP.

Security isn't an issue for Prairie Plants. With its state-of-the-art
subterranean location, the company hopes to continue yielding pot
beneath Flin Flon after its current contract expires at the end of the month.

Company president Brad Zettl told CP the tendering process is about
meeting specific requirements laid down by the federal government,
not offering philosophical views on how the product should be produced.

Zettl credits his underground location as the reason his company beat
out nearly 200 competitors for the initial marijuana bid in late 2000.

The primary benefit of the site, he has said, is that it eliminates
the risk of modified plants spreading into the agricultural system.
The environment is also fully controlled and highly secure.

Perhaps one of Zettl's biggest challenges is public perception. His
company has endured years of media reports portraying the Flin Flon
marijuana as too weak or otherwise unsuitable.

Zettl has called the reports unfair, saying reporters have spoken to
a minority of dissatisfied patients without giving coverage to the
vast majority who are pleased.

He has said smaller medicinal growers on the West Coast "are really
feeling threatened" by the cheaper, government-approved marijuana.

"It's about protecting their turf," Zettl told a crowd in Creighton
last year. "It's a marketing thing, so they can make some wild claims
and in the meantime, Health Canada does not respond because they
don't think it's worth responding to. And then what happens? The
media report goes out and then everybody sees only a lie or the
posture or the allegation. They don't see the outcome or the other side."

Companies were given until September 29 to submit bids through Public
Works and Government Services Canada. A spokesperson for that
department was not available for further details.