Canadians aren’t smoking enough to keep up with the supply
Wasted Weed: Canada's Disposal of 3.7 Million Pounds of Cannabis Since 2018 | High Times
Wasted Weed: Canada’s Disposal of 3.7 Million Pounds of Cannabis Since 2018 Oversupply has been a real issue for the cannabis industry.
How about we change the title juuuuust a bit...
It's a weird way to frame misspeculating and overestimating demand, but whatever makes you feel better, industry.
Hey man. I'm just like... Doing my best.
Me too, eh! Rolls another one, while singing "Oh Canada...".
You've been bested 😱 😜 😂
Weirdly phrased title. The Canadian government has no role in throwing away product or setting the price, that falls on the businesses that manufacture and sell the weed.
What if I told you Canada was a place?
hemp is king
It's probably got a lot to do with the market being relatively new. I imagine things will settle down in the coming years as producers gain real data to base demand estimates off of.
Also, I think initially some people were conflating support for legalization with actual demand. There are many people that support legalization who don't actually use the product.
This is me :)
Want to Chime in since there's a lot of weird misinformation and conjecture in the comments:
The over-production was a business decision by many of the producers. A bad one. But they knew they were producing more flower than the Canadian market needed at any price point. Dropping price down isn't going to dramatically increase the consumption as polling / research by stats can shows the people smoking todtay, are the same who were smoking illegally before, and that the overall Cannabis market (while huge) isn't something that was ballooning.
I had invested in numerous stocks in the industry back when legalization started to gain ground. As an investor and reading the reports, one thing was clear. Everyone of the biggest producers believed they were going to be international gods of pot and be able to sell world wide. Many hedged billions on producing enough flower for the American market with hopes that the US would follow along very shortly.
These poor business decisions led to the large producers, such as Canopy, and Aurora from making over-building production to the point that even if they shut several of their operations, they would still over-produce for the Canadian market.
at the end, this was some MBA deciding that profit margins would be higher by writing off the excess weed instead of spending additional resources to use it in other products (it still can be used for extracts and edibles even if low quality)
This is what happens when you create a new industry (Producers) and let it be run by the MBA's and giant businesses instead of those who are actually involved in the industry in the first place.
as soon as I saw these happening I sold out on their stocks. IOf you go look up these companies current valuations, they're almost worthless and worth pennies compared to when they started due to their horrific management. (Aurora Cannabis lost 1 Billion in a year)
Yeah, all very interesting Mr Canada Money Bags.
I just wanna know when you're gonna post me some free weed to the UK?
Well, not keen on being on an international criminal list for illegal exports of Cannabis products. I'm no Mark Emery (thats good).
But if you find yourself in the GTA, I would gladly take you to a pot shop and give you my recommendations.
Though even the derivative products are still competing with the other products. You don't really need to get high from flower and an extract. You might get both for variety, but consumption of one will slow consumption of the other.
And yeah, it was dumb to assume that even if the US legalized it that there wouldn't suddenly be a bunch of US producers wanting to get in on it. It's not hard to figure out how to produce it. The plant can grow in all kinds of conditions and the hardest part is keeping it from reproducing more than you'd like.
but consumption of one will slow consumption of the other.
Someone needs to tell my wallet this :p
Can they sell it to Michigan, or would that be a problem federally speaking?
Lower the price???
🫡 🫡 🫡
fr i'm a low thc enjoyer. i'll take a few kilos off their hands.
Can one compost old weed? Turn it into weed mulch? Could someone buy it wholesale and make something else? This feels like a problem a little R and D could solve.
In high school, weed mulch was all we had.
Turn it into hempcrete, and build some houses. I hear Canada needs some.
If nobody wants it I guess I could take it off your hands. 🤷🏻♂️
Yeah, its call puff puff pass for a reason. Sharing is caring!
ayo send me some I can pick up the slack
Sounds like the price is too high. Stupid fucking government. How dare you pride yourself on high prices. Are you not trying to disrupt the illegal trade? Why the fuck are you using their numbers, retards? GEE WHY ISNT ANYBODY BUYING OUR GREEDY FUCKING OUNCES and man, you should see the fucking website. Doug ford can go fuck himself with a forklift.
Try this amazing philosophy: if you can make that much, but can't sell that much, it's cuz it ain't worth that much not cuz nobody will buy it. Unless it's, you know, shit. AND FURTHERMORE, since clearly the government is going to read this, you might want to doublecheck that quality control isn't just taking the cheque and AFKing, cuz from this end that's how it looks!
There's a lot of misinformation in this post, clearly based on emotion rather than the reality:
Sounds like the price is too high.
While this is true in some cases, most of these LP's are producing flower that can be picked up for ~$100 an ounce. For Canadian Weed, that's great. Especially considering on legalization it was closer to $400. Not a single dealer I used to use pre-legalization can match the price point of legal weed right now.
This is also a luxury product. Not a necessity. It will be priced where the market bears. The problem with our current over-supply is manufacturer driven. Producing more weed than Canada would consume, even if it was free for "business" reasons.
Stupid fucking government.
Government doesn't set prices. Cannabis prices have actually bucked the inflationary trends and have gone down overall in the last couple years.
Are you not trying to disrupt the illegal trade?
The illegal trade isn't going to be shut down overnight. Especially given that most places allow personal growing, so it's going to happen with people selling to eachother. Even if it's technically illegal. However, the illegal criminal organizations that used to thrive and require pot sales? Those are decimated and their involvement in the Cannabis trade is decreasing year after year: https://www.publicsafety.gc.ca/cnt/trnsprnc/brfng-mtrls/prlmntry-bndrs/20200930/026/index-en.aspx
Why the fuck are you using their numbers, retards?
what? also really with the use of "retard"... really what are you. 12? Come on man. be an adult.
you should see the fucking website.
if you're basing your entire purchasing / and angry rant above entirely on the ocs website for purchasing, you're missing out 90% of the actual Cannabis market. Most sales are through retail. NOT online from the government. Yes the OCS is expensive as fuck. It's the government run retail outlet. Don't go there. Order from a local store. you will find much better pricing, and might even meet some wonderful people and budtenders too
Doug ford can go fuck himself with a forklift.
AMEN! 100%.
if you can make that much, but can’t sell that much, it’s cuz it ain’t worth that much not cuz nobody will buy it.
I highly recommend you to read why they were making that much. They never intended to sell that much to us Canadians. it' was stupid business decisions to try and pry into the US market before legalization even happened there. Even if they gave this stuff away for free, it would be more than Canadian's would consume because it's more than the demand. Cannabis isn't a staple or necessary daily product (for MOST people). it's a luxury and therefore there's a ceiling to the demand. Unlike staples and products we need to live, which has no ceiling.
AND FURTHERMORE, since clearly the government is going to read this, you might want to doublecheck that quality control isn’t just taking the cheque and AFKing, cuz from this end that’s how it looks!
Really? Have you had a really bad string of experiences with quality? I've been smoking for 20+ years, and the stuff I've gotten from the store, (while dry compared to older stuff), is 100x stronger, and a better smoke than anything I ever got illegally before. While much of the numbers are inflated (since we need better regulation on testing), the quality of weed now is truly astounding compared to how it used to be.
I can recommend you some amazing strains if you'd like.
Other than the primo strains, Canadian legal weed is cheaper than buying it from a dealer. I pick up ounces for $100.
Pot shop on every corner in Ontario. Shops are usually empty anytime I go in. Picking up whole ounces for $100. It was a scam run by the province to sell dispensary licenses because Doug Ford only knows how to run scams instead of doing good business based on good policy.
Really depends where you are. But there's a massive oversaturation in some areas. Downtown Stouffville for example has like 15 right now. Stouffville has a population of 40,000. but at the same time, they are also serving other areas who have no shops. For example Markham and Richmond Hill both opted to ban sales of pot in their areas, as well as public consumption (bylaw)
I hate Ford. But I don't have a problem with anyone who wants a license being able to get one. Cannabis is a luxury product and like all retail/consumer luxury goods, there's no need to regulate the business for "success". let the free market sort this out. Yes some of them will fail. That's free market.
If the shop you frequent is almost always empty, it's likely because it's not a well regarded shop or chain. The store I go to (not chain) always has people in it. Even when I show up at 9am for opening, there is always people in it. but it's also a little further away from any other pot shops and has a good reputation
Hey send some of that oversupply to me, yeah, thanks.
lol
I'll do my part!
We're smoking. It's just not that weed.
Absolutely. For many reasons. Quality, price, delivery options, selection. All beaten by the original market for such items.
😂 🤣 😅
I mean we throw away groceries in the same fashion, I think that's just how capitalism works
I've never used cannabis in my life, but last year I got a wild hair and decided to buy a gummy. It had no effect on me save for wanting to go to bed early, but I did my part y'all.
It's a well known phenomena that some people just don't get high their first time(s). I knew a guy since high school and years after that was basically immune to it. People gave him huge vape bags and massive doses of edibles and it never had an effect. Never saw the guy forget a single word. Then apparently at some point it did, because he smokes now.
There are also people who are terrible at metabolizing gummies. I'm not one of them. Give me 2mg and I'm good. Give me 20mg and I'm curled up in the fetal position in bed waiting for the visions and monsters in my head to go away.
Same experience. My gf felt like she had a cold. We both tried it 3x with same results.
My husband who has ED got a woody for the first time in a while lol.
You bought "a gummy"? i had no idea that they sold singles.
Yep - single 10 mg gummies are a thing. Less common than 2 x 5 mg but there's a couple.
The Health Canada cap is problematic - how much of this biomass could've been used to produce varying higher doses of edibles that actually match what most consumers want? (aside from cannabis newbies dipping their toe in - anecdote, not data, but those are the only folks I really see buying these. Everyone else makes their own or buys higher dosed ones off the unregulated market)
Yes they do!
Gummies in Canada have really really low levels of THC due to regulation. You have to eat like, a bunch to feel any kind of significant high.
Ok good to know. Maybe I'll try again.
Supply exceeded demand, it happens.
Demand increases to meet supply?
Only if suppliers decide to lower prices, and only up to a certain point.
Not all products have an infinite demand curve though. In this case, a luxury product with a finite consumer base. Even if they gave it away for free, there will still be the majority of the population who will not want to use it.
unlike things like groceries, which have a constant demand due to being staples and required for life sustenance. If you gave them away for free, you end up with Hoarding and unlimited demand.
I'll take some bricks right here.
Send it to Germany :)
We need it soon (hopefully)
Scholz's "Berlin-only-3-dispensary-see-how-it-goes" plan is insultingly bad. Clearly Germans want weed. Give it to them. Canadian productivity and Uruguayan productivity didn't slump when we legalized.
no, but if you listened to the advertising by my local MP's and Mayor, it destroyed the fabric of this country and the worst decision any government has done in Canadian history
They fucked everything up. I know there were big issues with major gangs making money ect..... but no one seems to get that there were soooooooo many mom and pop operations making a little tax free money that went direct into the communities. They were buying quads , snowmobiles from local dealerships. Paying cash to local restaurants. There were people who couldn't find other jobs for reasons that could trim and grow to support themselves. It was a great industry for the lower to middle class to rise up without being screwed .
There are 20 sqdc in quebec. Trois-Rivieres, my hometown, has a single one which is +- 20 min away from my house while Montreal, which has 10x more people than my town has only 8 of them.
Im unsure about the black market in other town, but my coworker still grow 30-40 tree/yrs outside.
Shops are everywhere in BC. I have two within walking distance.
Bring in the army before it's too late. /s
Oregon has way too much pot too. I'm starting to see signs for $20 ounces. Pretty soon they'll be giving it away free with a fill-up.
Yes, I realize it's illustrating how old I am to talk about fill-up freebees like it's still the 1990s.
Why not use it to build homes?
Hempcrete is a thing!
Ricky LaFleur is probably pissed.
Ricky LaFleur
It's like the weed version of Iceland's sheep
totally!
Time to repurpose the land for growing real food rather than pollutants.
Export or stop making so much (or discount it, or give it away).
«Industry expert and consultant Farrell Miller notes that the majority of this discarded product was destroyed for being too old and having too little THC. “There is no demand for old and low-THC products, so manufacturers of finished products are not buying this biomass as inputs,” she said. “It’s likely low-quality material with no value. “As consumers become more savvy with packaging dates on dried cannabis products, this trend will only continue.”»
They claim nobody wants it
That makes no sense. Low content strains are perfect for all sorts of concentrates.
So why is their hemp industry not thriving. They should be making fabrics and paper with it.
Supply and demand. No one wants it for the price they're charging.
they claim it, but it's just spin put on by the company. Any THC levels are usable in some fashion, even if not directly smok-able flower.
even 5% flower could be used to create potent extracts.
These are companies who bet big on production for international growth, and that never materialized. And now they're stuck with production capabilities that aren't profitable. Aurora Cannabis lost over $1 billion in 2022 over it's misguided growth plans and killed itself.
They could have free weed events for tourism. I’ve been meaning to drive up there.
They should've destroyed it by burning, a lot of people would come take a look