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Health Canada, the federal agency that oversees the country’s cannabis producers, reported that as of April 2020, licensed producers (LPs) held in excess of 600,000 kilograms of unpackaged dried cannabis and an additional 46,413 kilograms of packaged flower. (This is not counting what is being held in stock by distributors and retailers) … I spoke about this surplus with multiple Canadian sources (who asked to remain anonymous), all of whom explained to me that the overstock cannabis held in storage by Canadian LPs is over a year old. They expressed that most of it would be considered undesirable to potential customers … If I were hoarding old cannabis, I could investigate the possibilities of profitably extracting or isolating alternative cannabinoids and research all potential alternatives for various applications. Otherwise they will end up disposing of it or turning it into compost because customers in the current adult-use cannabis market will not buy it, nor will it pass testing standards.
Cannabis producers in Canada and the U.S. alike may have read these proposals for the use of surplus cannabis and thought they sounded extremely appealing. With cannabis inventory still far outmatching (legal) demand across the continent, utilizing surplus stock before its shelf life is up would be ideal. And now, the move represents an even more important tactic in a time when many are facing financial constraints and calls for increased revenues.
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