Testing rules sinking Oregon marijuana sales, report shows

Marijuana sales in Oregon have been sliding since the state implemented stringent new testing rules on Oct. 1, dropping 8.5% to $29.5 million that month.

The October decline marked the first time since May that the market posted sales below $30 million, according to a new report.

The report, by Colorado-based BDS Analytics, shows the impact of the new testing rules, which the state tweaked on Dec. 2 in a bid to offset supply shortages that arose after the regulations were introduced.

The sales decline worsened in November, BDS said, based on a pool of dispensaries that report sales to the company. From September to November, same-store sales declined 21%, while some stores saw a drop of more than 60%.

Hardest hit, according to the BDS report, was the edibles sector, which saw sales decline by a third, to $2 million in October from $3 million in September. That’s the lowest level since Oregon adult-use stores started selling edibles in June.

BDS’ report showed the Oregon market’s weekly sales averaged $7.6 million July through September. That number increased to $7.6 million in the first week of October, then declined in the ensuing weeks to $6.9 million, $6.1 million and $6 million. BDS attributed the spike in the first week of October to “savvy consumers (anticipating) the coming supply challenges.”

Before the Oregon Health Authority implemented the new testing rules, monthly sales had averaged $32.6 million between July and September after hitting $31.5 million in June.

 

6 comments on “Testing rules sinking Oregon marijuana sales, report shows
  1. Gary Goodwin on

    What and why would the new testing rules have an effect on sales? If your saying laboratories can’t conform, then you’ve got a laboratory problem, not a testing problem.

    Reply
    • O Lai on

      New on the fly regulations from the Oregon government that were implemented on this past October 1st means products that was once on the shelves complia has to be pulled to be compliant to these new rules. Back log of testing means, products are delayed from getting approved and therefore you have a shortage in product availability.

      Reply
  2. Ma Dang on

    Thank you Gary !
    The answer is NOT reducing health requirements, but rather moving to governmental agency testing (like other regulated industries in the state: alcohol and food products) or encouraging and allowing / licensing more Laboratories would be a better solution than reducing health provisions for the sake of sales numbers. This would increase competition, ensure higher industry standards AND lower sampling costs !
    This is not only a laboratory problem, it is a Grower problem, caused by those who put profits above the health of their patients and customers by using less than ‘best practices’ and resorting to illegal products to solve poor farming techniques.

    Reply
    • Gary Goodwin on

      Thanks Ma Dang. After being in the laboratory business for over 30 years, Ive seen way to many shortcuts taken by laboratories. You’re correct in that the agencies are not taking the industry seriously. I was just at the show in Las Vegas and the Laboratory Equipment Manufacturers that were their, one in particular was trying to sell equipment on the idea that all you need to do is put in a sample, read the results and make money. Left out the fact that, you need to establish Reporting Limits, and each day you need. instrument calibration standards, calibration curves, blanks, spikes, matrix spikes, and continuous calibration spikes and matrix spikes every 10 or so samples. These are basics in the Environmental Laboratory Industry, and should be adopted. I’m also very frustrated that Laboratories are be blocked from starting in this industry. I’m been fighting with Nevada since we sold our business three years ago, and the only thing I’m told is, “we had an application period and it’s closed.”

      Reply
  3. ryan on

    So much more plastic is being used now! I was relieved when I discovered a company out of eugene called re-stash.compages/oregon-compliance on the approved OLCC list. Our dispensary now uses these as a container for the cannabis and an exit bag.

    Reply

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