SACRAMENTO, Calif. — This weekend marked a major milestone for the cannabis industry at the California State Fair.

Thousands of fairgoers visited the cannabis exhibit for the California Cannabis Awards on Saturday. The event returned for it fourth year, and for the second time, it included on-site sales and consumption. 

Saturday’s event also marked a celebration of the best in California cannabis, as winners were announced in the Cannabis Awards.

“It means a culmination of all of our efforts throughout the first three years of manufacturing. Putting blood, sweat, and tears from our whole team here,” said Edwin Chu, who is the COO of the Migraine Network. 

Chu and his team took home at least two of the nine Championship Golden Bear Awards. More than 600 entries competed this year, a 20% increase from last year.

“I just want to remind everyone, you know, the plants are here to help us, and when we open our hearts and we listen, then there’s a lot of powerful healing medicine that they can gift us in this time,” said Joseph Haggard, who is one of the co-founders of Emerald Spirit Botanicals. 

Dustin Moore, co-founder of Embarc, said the Golden Bear is one of the most coveted agricultural awards handed out at the fair.

“In this moment in time, where the cannabis industry is struggling, this is incredibly meaningful to be awarded golden bears alongside wine, cheese, olive oil, craft beer,” Moore said. “This is a 171-year-old competition, and the fact that we’re able to be able to celebrate California’s largest agricultural crop by dollar value is a very important thing for this industry in this moment in time.”

But the celebration comes amid new financial strain. California’s excise tax on legal cannabis recently increased from 15% to 19%. The excise tax is applied before standard sales taxes.

“The 4-percent is huge. I think it affects the consumer, the consumers the most,” Chu said.

Moore said the increased tax burden could push more people into the unregulated market and hit small growers hardest.

“The small growers are hurt the most because at the end of the day, a 4% increase in tax only further pushes people into the unlicensed market, and the people that get hurt the most are the small mom and pop farms,” Moore said. 

One of those small farms includes Emerald Spirit Botanicals.

“We need to discover what that balance is and if any party takes too much, then the other groups suffer,” Haggard said. “We need to come at this together to support each other and meet each other’s needs, but not, you know, take too much from the other parties.”

Moore said the State Fair also presents an opportunity for lawmakers in attendance to better understand the role cannabis plays in the economy.

“With the jobs that it produces and the economic stimulation. Our hope is that they hear and see this and recognize that we are just an agricultural crop and need to be treated in the same way,” he said.

Moore also encourages people to support the legal cannabis industry by ordering award-winning products from goembarc.com for home delivery. 

WATCH MORE ON ABC10 | A look at the California State Fair | Day One