Oregon has more weed than they know what to do with. From an outsider’s perspective, that might not seem like such a bad problem to have; that is, of course, until you realize what effects this surplus is having on the rest of the cannabis industry. Since it is still illegal to transport cannabis between state lines (for now), the cultivated cannabis is stuck in perpetual limbo confined within the state. This has led to state officials putting a
Is Cheap Cannabis Bad for the Industry?
According to several recent reports, Oregon has produced enough cannabis to supply state consumers at their current consumption rate
While cheap cannabis sounds like a godsend initially, the implications of such an extreme nadir are far-reaching. Operating at a loss stagnates business growth, impacts wages, and decreases job growth across the country. It also affects the national industry price per ounce averages while also affecting the prices of neighboring states dramatically.
Data from a recent study by the
Colorado, on the other hand, has been dealing with
What’s the Word on Interstate Cannabis Export Legalization?
Currently, cannabis companies that want to sell their products in different legal markets have to set up entire supply chains, from manufacturing to packaging, in each state. If Oregon were able to export their cannabis, it would save these other states from having to implement their own complex seed-to-sale tracking systems. If Oregon can legalize and implement out-of-state sales, it would be a move of major significance for the state and the entire cannabis industry.
The Oregon Legislature is considering a bill that would allow for an interstate compact with states that have legalized marijuana and share borders. This would allow neighboring states to share cannabis between themselves, thereby helping to combat overproduction issues and spillage into black and gray markets. This legislation could position Oregon to be a leading exporter of cannabis in the future if it were to pass and could possibly lead to other states following the state’s lead.
What Can Oregon Do If Export Legalization Doesn’t Come to Fruition?
This cannabis surplus problem begs to question whether Oregon has too much weed or not enough people to consume it. State lawmakers felt that limiting the supply of cannabis is so important (even in times of severe surplus) that they