Unprecedented Overproduction Plagues Oregon’s Marijuana Market
Oregon's weed crops have seen a massive surplus, something unheard of before now.
With this oversupply of cannabis has come a drastic drop in prices for what was once the country's best weed. The Oregon Liquor Control Commission recently found that the state was producing twice as much marijuana as people were using, and many are blaming the state's accessibly open licensing policy for the problem.
Scott Phillips, co-owner at the Boring Weed Company, recognized the issue for what it is. He said, “Anyone with qualifying land and a clean criminal history was eligible to become a licensed producer.” The southern region of Oregon especially was a hotspot for the glut due to its great environment for outdoor growing.
Nick Kovacevich, CEO of KushCo Holdings, Inc, agreed that the numbers just don't add up. He said the situation is unique to Oregon in comparison to other states given its "relatively relaxed rules" on investing in the industry. Brad Bogus, VP of Growth & Marketing at Confident Cannabis, believes Oregon's long-standing history of production has put it in the difficult position it faces today.
He sees two solutions - transitioning to a commodities market or allowing for exporting the excess. The exporting measure could help Oregon financially but, due to federal regulations, cannot be implemented at the moment. It's possible this could happen within the next 3-5 years. Until then, though, consumers may not be the only ones effects. There is a very real chance craft growers will be unable to stay afloat either.