Marijuana Business Magazine September 2018

CANNABUS¬NESS BY THE NUMBERS O regon cannabis farmers are growing far more marijuana than recreational consumers are purchasing. The glut of cannabis has caused wholesale prices to plummet and put significant financial pressure on cultivators. The oversupply also has drawn increased scrutiny from state regulators and the U.S. attorney for Oregon; both are concerned about excess marijuana making its way to the black market. While overproduction is a concern in major rec markets such as Colorado and Washington state, the problem is especially pronounced in Oregon, where more than 1,000 cultivators have been licensed to grow marijuana. Though regulators stopped processing new applications for marijuana business licenses in June, nearly 900 additional cultivation licenses are in various stages of the approval process – meaning Oregon’s oversupply issue is unlikely to subside anytime soon. Here’s a closer look at the situation: Cannabis Glut Plaguing Oregon’s Adult-Use Market 1.1 million Approximate number of pounds of recreational marijuana entered into the state’s traceability system at the beginning of 2018. The number reflects the amount of marijuana sitting in growers’ inventories – a figure that’s three times the amount of product sold at retail last year. 340,000 Total pounds of recreational marijuana sold by Oregon retailers in 2017. -44% Change in the wholesale price per pound of cannabis between April 2017 and April 2018. 1,061 Number of recreational marijuana producers currently licensed in Oregon. That’s up from 649 in July 2017 – a 64% increase. By contrast, Colorado had 744 licensed producers as of July 2, 2018. Colorado sold more than $1 billion worth of recreational marijuana in 2017, more than 2.5 times the estimated $404 million sold in Oregon the same year. Source: Oregon Liquor Control Commission, Headset, Cannabis Benchmarks 10 • Marijuana Business Magazine • September 2018