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Cannabis Manufacturers In Trouble
The boom of recent years has resulted in overproduction. In January 2019 about 118 tons of cannabis were still stored unused in Canadian warehouses, according to data from Statistics Canada. Today, at 620 tons, this figure is significantly higher. In about one and a half years the volume stored has increased by 425%.
This could in turn cost producers dearly. In order to be able to achieve sustainable prices in the medium to long term, experts believe that production must be more closely aligned with demand. As mentioned above, demand is increasing steadily, but at a much slower rate than manufacturers are processing cannabis. As the infographic shows, industry experts are even considering destroying enormous quantities of marijuana.
The black market also continues to be a problem. Nearly 62% of cannabis is still sold on the black market, according to estimates by the Canadians.
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