Canada’s producers stockpiling cannabis ahead of legalization

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One year ahead of adult-use marijuana legalization, Canada’s licensed producers continue to bolster their inventories of cannabis, according to fresh data from Health Canada.

Despite the stockpiling, LPs still have a long way to go to meet anticipated recreational and medical demand. Adult-use legalization is scheduled to take effect in July.

Canada’s licensed cultivators had 25,077 kilograms (55,285 pounds) of dried marijuana in their vaults at the end of June, more than double what they had a year earlier.

LPs also are storing more cannabis oil than ever, with 6,713 kilograms in their vaults at the end of June, triple what they had a year ago.

But the stockpiles are a far cry from what Canadians are expected to consume next year. Demand could total around 150,000 kilograms of medical and recreational cannabis, according to Toronto-based Eight Capital, a full-service investment dealer.

Dried marijuana and cannabis oil are the only two forms of MJ that will be permitted under Canada’s adult-use program.

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