California Growing Too Much Marijuana, Supply Stacks Up

California Growing Too Much Marijuana, Supply Stacks Up

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.

Stay tuned…

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.