Budder, made by whipping air into hashish oil and freezing it, is much more potent when smoked than regular marijuana joints and emerged in Vancouver in 2004, according to the Royal Canadian Mounted Police.
"The popularity of budder appears to be increasing among marijuana users," the Mounties said in their annual report on Canada's illegal drug industry.
The report said cheese is a deadly combination of heroin and cold medicine that is inexpensive to make and easier to use because it can be smoked or snorted rather than injected.
Cheese has been blamed for more than a dozen deaths in the United States and police are watching to see if its use will spread into Canada.
Canada remains a net exporter of marijuana with annual production of as much as 3,500 tonnes, most of it grown in British Columbia, Ontario and Quebec, according to the RCMP report that reviewed drug seizures in 2006.
Marijuana seizures in Western Canada have dropped since 2003, partly because growers have also exported their "technical expertise" to set up more production in the United States, the report said.