U.S. Cannabis Companies Putting Mexican Growers Out of Business

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Cannabis growers, processors and retailers in the United States are doing something the Drug Enforcement Administration never could: putting Mexican marijuana dealers out of business.

About a third of marijuana consumed in the U.S. is now produced domestically, up from a sixth in past years, United Nations data show. The high quality of marijuana grown in the U.S. is undercutting Mexican cultivators, so much so that many have switched to vegetables or heroin poppy production, Bloomberg reported.

That’s good news for the U.S. marijuana industry, which can point to the data when arguing in favor of cannabis legalization.

While cannabis is illegal in Mexico, pro-marijuana advocates believe the country will have no choice but to allow dispensaries if California legalizes adult-use in 2016.

Entrepreneurs are already preparing.

Bloomberg reported that at least four grow shops that sell lamps and nutrients for cultivation have already opened in Mexico City. Pepe Pallan told the news company that he is trying to build a business connecting doctors with patients, and wants to attend Oaksterdam University in Oakland, so he is ready to start a legitimate business if legalization occurs.