Got Surplus Cannabis? Make Society Better and Give It Away!

There is a big problem looming in the Canadian cannabis industry. With legalization and cannabis production ramping up, it seems no one is talking about the economic problem, which will result from a rapid and massive increase in cannabis production in Canada. What we have to remember is that cannabis, like any other agricultural crop, is a commodity. Just like wheat or cabbage, the price of cannabis will be determined, not by the growing methodology or the marketing of the company growing it, but by the market price.

Canada is now home to the largest and most high tech cannabis growing facilities in the world, and several more cultivators are being licensed each month. According to a recent report by Arcview and BDS Analytics, the Canadian cannabis market could be oversupplied very soon. The question is when all of these growing facilities are working at full capacity, will Canadians be able to consume all that Cannabis? As a matter of national pride, we are certainly up for the challenge. However, despite our best efforts, there is an excellent chance that a cannabis surplus will become a significant issue for the Canadian market.

In the short term, while new cannabis growers are coming online and getting up to maximum production levels, there is a shortage of legal cannabis for the regulated market. Even now, only…