Study shows depth of Oregon’s cannabis glut, illegal transport

A new report on Oregon’s marijuana industry sheds more light on the massive oversupply there and the huge illegal trade across state lines, issues that need to be addressed immediately, the state’s top federal law enforcement official said.

The report “confirms what we already know – (the industry) is out of control,” Oregon U.S. Attorney Billy Williams said in a statement Thursday.

The study, released by the Oregon-Idaho High Intensity Drug Trafficking Area – a coalition of local, state and federal agencies – found:

  • As of 2018, only 31% of available cannabis inventory was distributed, meaning nearly 70% of legal recreational marijuana grown went unsold.
  • There is one cannabis grow site for every 19 users – another reflection of massive overproduction.
  • The cannabis glut has caused a 50% annual price drop since 2016.
  • From 2011 to 2016, illicit grow sites statewide produced $2.1 billion worth of cannabis.
  • Between July 2015 and January 2018, authorities seized nearly 15,000 pounds of marijuana heading to 37 other states. The confiscated cannabis had a street value of $48 million.
  • During the same period, Oregon investigated at least 64 clandestine cannabinoid extract laboratories.

Williams, who previously has expressed his frustration about Oregon’s inability to get control of the situation, again called on the state to get its act together and address the problems.

By comparison, a Colorado study released Thursday found the Centennial State has a relatively well-balanced market, albeit with gradually falling marijuana flower prices.

The Colorado study – conducted by researchers at the University of Colorado Boulder’s business school and the Marijuana Policy Group – found most of the state’s growers are planting less than half of their legal allotment – and still meeting demand.

Licensee compliance also is improving, according to the study.

– Associated Press and Marijuana Business Daily

7 comments on “Study shows depth of Oregon’s cannabis glut, illegal transport
  1. Maxcatski on

    Legal cannabis and a free market will address all these issues. Look to Canada as an example. There are no production limits for the legal providers. I expect to see huge price improvements over the first two years. And no issues with diversion to the black market.

    Reply
    • Will Hobbs on

      That’s fine to say in the counter factual eventuality of cannabis being able to legally cross state lines but until then we have an economic situation unique in human history with the possible exception of colonial mercantilism where all the supply, processing and consumption must take place within a defined, confined and, let’s be honest, rather arbitrary geographical border. The states were never intended to act as entirely separate economic units and the situation in Oregon is a perfect example of why not.

      Reply
  2. Clifton Middleton on

    The Federal Government is out of control. All of the marijuana laws are arbitrary, irrational and capricious pieces of racist propaganda and should be abolished, completum ampliato . Next will come reparations to the victims of this 70 years old war against the people for the Truth. 40 million citizens have suffered harm and will someday be justified.

    Reply
  3. Hastings RH on

    The US Attorney should go after the cartels flooding this country with violence, death, heroin, meth, cocaine..

    Reply
  4. Roland on

    It certainly seems to be out of US Atty Billy Williams’ control. That’s a good thing, he should get used to it. Why does he hate capitalism? Maybe the prison-industrial complex stock options aren’t worth what they used to be. Support your local farmers.

    Reply
    • buford lee on

      Jimi
      If you have anymore 250.00 and 500.00 unit Please get back in touch!!!!
      2765964400
      we spoke earlier this yr.!!!!
      Thank You SIR:

      Reply

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