Oregon has over 1 million pounds of surplus cannabis which is driving down the prices of the drug in the state.
The situation is such that a tub of marijuana that normally costs $20,000 in New York is up for grabs for just $7,000 in Oregon.
“What we have is a market access problem and it’s a political problem,” believes Founder and Director of Craft Cannabis Alliance, Adam Smith.
What’s worrisome though is the fact that this weed surplus can’t even be exported to other states because marijuana still remains federally illegal and transporting it over state borders is a crime.
Experts believe that if the issue is addressed as a ‘surplus’ problem, the only measure that can be adopted at the moment is to cut down on production. However, doing that will put the livelihood of thousands of farmers at risk because people in Oregon have been involved in the cannabis industry for a longer period of time as compared to those in other states. Why? Because Oregon was the first U.S. state to decriminalize the possession of tiny amounts of cannabis, and among the first to authorize its use for medical purposes.
Imagine how much surplus cannabis would the state have had by now if it hadn’t put a halt on new marijuana licenses last year.
Since companies can’t move their cannabis across states, most of them are now resorting to ‘moving’ their brands. Grown Rogue, for instance, has 22 licenses in three different states and it is looking to acquire more. The company has found some success with this strategy on a small scale, but not every brand may want to follow suit.
Smith says that because of the present situation many small-scale cannabis brands are struggling and therefore the ‘giants’ are acquiring them for peanuts.
In order to tackle the situation, Smith and the Craft Cannabis Alliance are pushing Oregon to legalize interstate exports and convince other legal states as well to do the same, in spite of the risk of a federal crackdown.