Canada racks up 400-tonne cannabis mountain after production binge
NZ Herald 25 November 2019
Family First Comment: This is the supposed ‘success’ of legalisation….
“Cannabis inventories came to almost 400 tonnes at the end of August, enough to cover two-and-a-half years of demand. Meanwhile the price of the drug has slumped as legal and illegal cannabis distributors grapple for market share. The stockpile suggests that one year after Canada became the first large economy to allow nationwide recreational use of cannabis, the industry has overestimated how much the country’s pot-smokers can burn through — and underestimated the illegal market’s ability to respond to competition.”
Don’t do it, New Zealand.
#saynopetodope
Warehouses in Canada are piled high with unsold marijuana after cannabis producers overestimated demand for the drug, which was legalised a year ago.
Across the country, cannabis inventories came to almost 400 tonnes at the end of August, enough to cover two-and-a-half years of demand, according to the latest government data.
Meanwhile the price of the drug has slumped as legal and illegal cannabis distributors grapple for market share.
The stockpile suggests that one year after Canada became the first large economy to allow nationwide recreational use of cannabis, the industry has overestimated how much the country’s pot-smokers can burn through — and underestimated the illegal market’s ability to respond to competition.
“There is a huge surplus of cannabis just for domestic demand,” said Matt Bottomley, analyst at Canaccord Genuity.
Canopy Growth, a company listed in Toronto under the ticker WEED, said it harvested 40,570kg and wrote down C$15.9m ($12m) worth of inventory in the three months to the end of September.
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