Weed Shortage in Canada is predicted in 2018 upon the legalization on July 2018.
Health Canada is responsible for overseeing Canadian LPs. Health Canada has people working weekends to approve new licenses and help LPs expand, according to cannabis attorney Jonathan Sherman. “They’re working as hard as they can,” he says.
Estimates suggest that demand for weed in Canada will be about 795,000 kilograms (or 1.8 million pounds) in 2018. Right now, all the licensed producers (LPs) in Canada will be lucky to hit 100,000 kilograms by the end of the year. Just about everybody in the Canadian industry expects a weed shortage over the first few days, weeks, or maybe even months of legalization.
It is quite common to experience weed shortage once the legalization occurred. Colorado had a shortfall in 2014. Washington DC faced a similar problem the following year.
Bruce Linton, CEO of Canopy Growth, a large-scale licenced producer in Smiths Falls, Ont. puts demand, at least at first, at closer to 300,000 kilograms a year, and says that existing licenced producers can expand to meet it.
His facility, which is licenced to produce 31,000 kilograms a year, could provide twice that, and he hopes to raise it to 100,000 by legalization next July, he says.
“What I think over time will happen is that the diversity of products were permitted to make will increase concurrently with the rate at which the output is increasing. What we’re going to be allowed to sell is the dried cannabis products that we have, and the liquids in the format that we make.”
Some Weed Shortage provides excellent opportunities
Master grower Jon Bent inspects marijuana plants growing at a Bonify facility in Winnipeg, Manitoba, Canada, on Wednesday, July 12, 2017.
Canadian LPs will benefit from the weed shortage because investors have connected production output to value. That may not be a long-term solution, but it’s helping these young farms explode in size. “It’s almost like an arms race,” says Garbuz.
Medical Patients still be prioritized by the Government.
Canadian LP’s have announced to prioritize the patients who need marijuana for medical purposes.
Is it the end of Marijuana Black Market?
The weed shortage is terrible; dispensaries are going to be the only way to get weed for recreational purposes other than that soon-to-be-extinct weed dealer.
The black market is a continual concern for people in the legal industry. “If you don’t have enough supply, it’s one of many ways we cannot win fighting the black market game. You’re just not going to be able to win if the product isn’t there,” says Garbuz.
Weed Shortage is inevitable especially when the legalization will implement in 2018.[/vc_column_text][/vc_column][/vc_row]