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After last summer’s cannabis drought left California dispensaries upping their prices, we’re now seeking a considerable shift in cost as supply continues to exceed demand.
Three years after the state commenced legalizing marijuana, California has now managed to allot far more farms than retail stores. The California Department of Cannabis Control stated that there are 7,297 active cannabis farm licenses as of August 30th, 2021. On the other hand, the department also reported 1,130 retail stores and delivery licenses.
Due to the Covid-19 pandemic, there was a surge in demand and a severe supply shortage, which led cannabis farmers to increase growth to match consumer habits. Now distributors are witnessing a bounty of flowers thanks to the successful 2020 harvest, yet are worried if it will compensate farmers due to decreased demand.
Chief of Government & Consumer Affairs Tiffany Devitt of distributor/manufacturer Cannacraft mentioned that the cannabis market is severely “unstable,” leading to the “devastating” and shocking shifts in price.
“So even as the state has made good faith efforts to fix retail licensing, new licensees are just entering the same markets, slicing the market share pie there ever thinner, rather than expanding overall markets.
More flower going into the same size market is driving prices down, and that’s devastating California’s cannabis industry,” said Devitt.
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Take a seat, grab a cannabis-infused drink, and stay awhile.
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