Oregon Has an Oversupply of Marijuana, Most Goes Unsold
Commentary: The Oregon cannabis market is very much over-saturated. For consumers, this is great. One can walk into nearly any Oregon dispensary and find buy a gram of quality ‘bud’ for $5.00, and even concentrates are dropping in price. When the state began legal recreational sales in Y 2016, a gram of butane hash oil (BHO) wax or shatter went for a minimum of $40.oo in most dispensaries.
These prices were justified by the scarcity of flower, since concentrates require a lot of raw materials to refine.
But now that everyone’s had a chance to get in on the growing business, and bulk flower is readily available, the price of concentrates has taken a deep dive.
One can now find a full gram of BHO for $25.00 at any reasonably priced dispensary, and for even less for the adept bargain hunter.
Now 2 of the 1st states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market.
In both states the prices of marijuana have plummeted.
An Oregon report by law enforcement found nearly 70% of legal marijuana grown goes unsold, while a state-commissioned Colorado study released Thursday found most growers are planting less than 50% of their legal allotment and still meeting demand.
Oregon has a vast number of illegal marijuana grows competing with the legal market. But, in both states retail marijuana prices have fallen by about 50% since Y 2015.
The information offers case studies for California and other marijuana-friendly states as they ramp up their legal markets.