MARIJUANA TAKES HIT FROM HIGH DOLLAR

(Reuters) -- The strong Canadian dollar has hit the illegal marijuana
sector just as it has other industries that export to the United
States, one of Canada's best known legalization advocates said Thursday.

But western marijuana growers have also benefited from Canada's
strong economy, especially the booming Alberta oilpatch, which has
increased domestic consumption, according to Marc Emery, a founder of
the British Columbia Marijuana Party.

The Canadian dollar touched parity with the U.S. dollar last week,
topping a rise of some 60 per cent over the past five years.

On Thursday, it was still hovering around par, at $1.0014 Cdn to the
U.S. dollar or 99.86 U.S. cents.

A stronger loonie -- so called for the bird engraved on the one
dollar coin -- has cut the profit of selling potent "B.C. Bud"
marijuana in U.S. markets at a time when producers in Canada struggle
with tighter border security and competition in the United States
with pot from other sources.

Top quality Canadian pot is selling for $3,500 a pound in the United
States, compared with $2,400 Cdn in domestic markets, according to
Emery, who is also editor of Cannabis Culture magazine and fighting
extradition to the United States.

"When you factor in all the risk and transportation, that (higher
export price) is not a big deal any more," said Emery, adding that
when the Canadian dollar was weak exporters could double their money
selling into the United States.