OR rec cannabis sales keep falling amid supply, regulatory issues

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.

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 7 Comments

  1. Morgan Glenn January 24, 2017
  2. Jd January 25, 2017
  3. Brad January 25, 2017
  4. Ed January 25, 2017
  5. Mark Allen, MD January 25, 2017
  6. Dani Smartt January 25, 2017
    • ron youngblood January 29, 2017

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