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 on “OR rec cannabis sales keep falling amid supply, regulatory issues
  1. Morgan Glenn on

    Add the fact that edibles and extracts require too many tests and the equipment and standards lobbied for by a couple labs to squeeze out their competition has not only limited capacity to test but skyrocketed the testing prices. This was all done to benefit a couple labs and price out their competition. That’s it. Hoodwinked. The tests done previously were robust and accurate. Now the sensitivity was increased so much they even get false positives all the time. The equipment to maintain that sensitivity is millions of dollars and this was a business strategy laced with lies and nothing more. Heads are gonna roll now that the legislature is back in session after an 8 month recess. Thanks for ruining a highly regulated, safe and successful industry just to monopolize and increase profits at the expense of every single grower and extractor in the state. Pathetic.

  2. Ed on

    Actually you have it backwards. There were many labs not testing properly on the correct instruments, thereby giving false results, and then undercutting the testing market prices. When it became properly regulated, those labs failed.
    So the question is – Would you pay more to know you are consuming pure cannabis, or pay less for a lie?
    Oregon has the most consumer protective cannabis program, and they should be proud of it!

  3. Dani Smartt on

    Well, first they threw the medical marijuana patients under the bus, so what did you expect?
    If you are not in a position to grow your own, it costs $550.00 to sign on a grower.
    If you want organic, you must find a grower who cares enough to do the extra work.
    Thank God for my stepson, who cares enough to grow correctly for me and one other person.
    Recreational cannibis profited at our expense and now they are getting $!/! $*! too.
    Money hungry State and money hungry businesses are at fault. Professional growers call it organic if they grow it that way after it goes to bud. They lie to you. It is only truly organic if it is grown that way from seed. Miracle Grow for the first few months does not qualify ANYTHING for organic EVER.
    Figure the black market will benefit, and more power to them from my point of view. At least they don’t try to b.s. you about how it is grown.

    • ron youngblood on

      I figured this would come about as in any industry money will pave the way for the ones that will control it and us. Legalizing was a good thing but the after affect of greed will harm all of us.

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