Oregon has experienced a price spiral following the legalization of recreational cannabis in 2014. California, despite its population of over 39 million people and many tourists, may face the same problem. Oversupply is the primary market condition that has driven prices in Oregon.
However, the scenario of a California cannabis price spiral is unlikely. Now there is a push for federal laws to fully legalize cannabis and enable the interstate trade to fulfill demand across state lines. The basic economics of supply and demand – with cities and counties restricting the sale of cannabis – provide an optimistic outlook for entrepreneurs.
There are many other factors that impact cannabis markets that are changing constantly. To read more about these factors, with some additional insight from Dope CFO’s Andrew, Hunzicker, read “Could California’s Pot Industry Hit The Same Wall As Oregon?” from The Business Journal.
The average price of a gram of marijuana has dropped 50% in Oregon, going from $14 in 2015 to only $7 in 2017-2018. Oregon’s U.S. Attorney Billy Williams voiced his frustration over the matter in a recent statement he released.
“In my view, and frankly in the view of those in the industry that I’ve heard from, it’s a failing of the state for not stepping back and taking a look at where this industry is at following legalization,” said Williams in an interview with the AP.
“What is often lost in this discussion is the link between marijuana and serious, interstate criminal activity,” Williams added. “Overproduction is rampant and the illegal transport of product out of state — a violation of both state and federal law — continues unchecked. My ask continues to be for transparency, responsible regulation, adequate funding, and a...