States have an enormous influence on the trajectory of the emerging cannabis markets. Out west, states like Washington, Oregon, and Colorado have created a free-for-all in the legal market. This has led to a glut of surplus cannabis and extremely low wholesale prices. These conditions make it very difficult for legal cannabis businesses to stay afloat. The additional unsold product makes it tempting to sell it ‘out the back door’ in order to earn some much needed revenue.
Oklahoma may the next on this list. They are the very first state to start licensing cannabis establishments without having regulations in place. Further, there are currently more cultivation licenses than there are dispensaries and manufacturing facilities combined. This is surely a recipe for trouble and I fear that OK may be the next to join the likes of those other western states.
Meanwhile, states like Maryland and Ohio are at the opposite end. Government controls and bureaucracy are artificially making it difficult to produce and sell cannabis in general. Add to that mix the high taxes charged on top of the already high prices, a function of supply and demand, and you have a recipe for consumer dissatisfaction. Dispensaries are few and far between and people are turning back to the criminal market to try and get what they want.
Fortunately, Missouri is poised to shoot the issue down the center. A careful balance between over-regulation and under-regulation will allow medical patients to enjoy an ample legal supply of their recommended medicine. The Missouri Department of Health and Senior Services has repeated, many times, that their intent is to do what’s best for the patients. Let’s hope this isn’t lip service.
Further reading:
Boston Herald
Statistics Canada
MJBizDaily.com