California Growing Too Much Marijuana, Supply Stacks Up
California’s marijuana growers are producing far more pot than is consumed in-state, and will be forced to reduce crops under new regulations that ban exports.
Nevertheless, some marijuana growers are likely to stay in the black market and send marijuana to other states, activity that’s also illegal under federal law, warned the executive director of the California Growers’ Association.
“We are producing too much,” he told the Sacramento Press Club during a panel discussion, he added that state-licensed growers “are going to have to scale back. We are on a painful downsizing curve.”
Estimates vary for just how much surplus California produces, anywhere from 5 to 12X what is consumed in-state.
Prices should begin to dive.
Voters last November approved the legal sale and possession of an ounce of marijuana for recreational use.
Latest posts by Paul Ebeling (see all)
- LA: Legal Recreational Marijuana Sales Top Estimates - February 22, 2018
- Morning Briefing Global Stocks - February 22, 2018
- Gold, Silver, Copper and Crude Oil Briefing - February 22, 2018