Oregon trade group wants cap on marijuana business licenses

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The Cannabis Industry Alliance of Oregon (CIAO) wants state regulators to permanently restrict the number of marijuana business licenses available to operators in the state.

That’s because the CIAO believes it’s already too competitive for existing cannabis operators to serve Oregon’s consumers with out-of-state export of products still not allowed, according to Eugene-based radio station KLCC.

“There are so many businesses competing for the same amount of market share that it’s just not feasible,” CIAO board Chair Mike Getlin told KLCC.

There are roughly 3,000 business licensees for growing, processing and selling marijuana in the state.

Regulators have had a moratorium on new licenses since 2018, but the current restrictions are scheduled to expire in April.

The Oregon Liquor and Cannabis Commission has warned that it is legally obligated to start issuing licenses again should the moratorium expire.

Getlin is proposing that more licenses be made available only if the state’s population grows.

For example, there would have to be fewer than one license per every 7,500 adults in the state before a new one could be issued.

A similar proposal didn’t make it through an Oregon legislative committee last year.

Wholesale marijuana flower prices in Oregon have hovered around $850 per pound this year because the market is so oversupplied.