The Oregon Liquor Control Commission recently released a study. A study that says the state of Oregon is producing two times the amount of cannabis that consumers are demanding. It’s kind of like a reverse situation that’s happening in Canada. Instead of there being a lack of cannabis and cannabis products the state of Oregon has too much of the leafy green stuff.
Estimates say that the state of Oregon has produced so much cannabis that there’s over a 6-year supply of cannabis in storage. The oversupply has driven greatly down the price of cannabis products in the state. When the recreational program launched in Oregon nearly three years ago, the average price for a gram of weed was around $10 and today that price is $5 or less.
Good News for Consumers – Bad News for Regulators
While this is excellent news for consumers, regulators are expressing their concern. Their concern is with the oversupply of cannabis feeding the illicit black market. It’s in their opinion that more regulatory officials and inspectors are needed to track and monitor cannabis supplies. By doing this, it would allow the OLCC to regulate this relatively new market more effectively. Current suggestions say that only roughly a third of legal cannabis growers in Oregon and an estimated 3% of Oregon’s legal cannabis retailers have had any form of compliance inspection. This shows how extremely thin cannabis inspectors are.
Testing is a Vital Concern
The regulatory commission in the state of Oregon has also uncovered other issues that are drawing concern from both consumers and industry professionals. The lack of sufficient and creditable lab testing and mechanisms to verify these results are one of those issues. An audit performed on the medical cannabis industry in Oregon found that the majority of cannabis doesn’t even require testing. The testing that is done is insufficient due to the lack of credible and verifiable results.
Basically, this problem occurred because Oregon has very loose regulations. Regulations that allowed practically everyone to grow as much weed as they wanted. This is great for consumers but bad for the man, I mean industry. The industry has found the problem, the OLCC report straight outright says, “There’s just too much cheap marijuana in the state.” Like Ellen Bukstel said in her song Who’s the Pusher Now, “once you turn a market black, it’s hard to turn it back.”