OR rec cannabis sales keep falling amid supply, regulatory issues

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Oregon’s embattled recreational marijuana industry posted its second straight monthly sales drop in December, hit by a supply shortage and problems related to product testing.

Despite strong consumer demand, data from the Oregon Department of Revenue showed tax collections totaled $5.6 million last month, down 13% from November and a 28% dip from a high of $7.8 million in October, according to the Statesman Journal.

For all of 2016, however, tax collections totaled $60 million – well above the $43 million that state officials anticipated, the Statesman Journal reported.

A number of factors have contributed to the supply squeeze in recent months. A significant amount of cannabis failed to pass stringent state testing standards. Also, a shortage of operational testing labs severely crippled the state’s supply of marijuana. It was enough to shutter some marijuana businesses.

Add to that a slow licensing process, and the state’s marijuana industry hasn’t fully rebounded.