this post was submitted on 19 Aug 2023
38 points (91.3% liked)

Canada

7241 readers
120 users here now

What's going on Canada?



Related Communities


🍁 Meta


πŸ—ΊοΈ Provinces / Territories


πŸ™οΈ Cities / Local Communities

Sorted alphabetically by city name.


πŸ’ SportsHockey

Football (NFL): incomplete

Football (CFL): incomplete

Baseball

Basketball

Soccer


πŸ’» Schools / Universities

Sorted by province, then by total full-time enrolment.


πŸ’΅ Finance, Shopping, Sales


πŸ—£οΈ Politics


🍁 Social / Culture


Rules

Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage: lemmy.ca


founded 4 years ago
MODERATORS
 

With high taxes, a saturated market and few options, some of Canada's legal cannabis producers are struggling.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 41 points 1 year ago (5 children)

Maybe I don't get the nuances, but isn't this just the free market?

It gets legalized, tons of shops open up. Turns out after the initial rush it's not very profitable to have half a dozen shops in the same town? Everyone competes, lowers their prices, some shops have to close (the ones with the worst locations). Duh?

[–] [email protected] 35 points 1 year ago (2 children)

Exactly. You shouldn't get a bail-out because your risky investment failed.

[–] [email protected] 22 points 1 year ago (3 children)

Yeah!

We only do that for airlines. And oil. And housing.

[–] [email protected] 11 points 1 year ago

Gotta help out the little guys!

[–] [email protected] 4 points 1 year ago

Don't forget cable/internet/cellular companies.

[–] [email protected] 1 points 1 year ago
[–] [email protected] -1 points 1 year ago (1 children)

Or because you are fighting to keep the cost of your moldy shitty weed sky high, behind the thin veil of government protection, from a free market that can kick your ass at half the cost, to the benefit of the consumers?

[–] [email protected] 9 points 1 year ago* (last edited 1 year ago)

Yup. Just like any new market/product. A pile of people rush in, a pile fail, and the rest consolidate into a few well established players and dominate the market.

In a previous career, I was involved in salmon aquaculture in the Bay of Fundy. When I first got in, along with dozens of other companies, we were getting $8.50/lb at the farm. Five years later, we were struggling to get $2.50/lb, which wasn't enough to cover production costs. Thirty years later, there's basically one company dominating in the area. Profitability is still dodgy.

StatsCan has been doing a fair amount of surveying on cannabis in general. They found that 69% (nice) of users buy from legal storefronts or legal websites. Another 25% was home-grown, or from friends/family. The remaining 6% was from dealers or illegal shops/websites.

https://www.canada.ca/content/dam/hc-sc/images/services/drugs-medication/cannabis/research-data/canadian-cannabis-survey-2022-summary/fig12-eng.jpg

https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/canadian-cannabis-survey-2022-summary.html

[–] [email protected] 5 points 1 year ago

Yes, it’s how things are supposed to go

[–] [email protected] -5 points 1 year ago (1 children)

Except black market is still cheaper and has more options, so by that logic all the legitimate shops will end up closing.

[–] [email protected] 3 points 1 year ago* (last edited 1 year ago)

black market

That's all you needed to say. A black market fundamentally cannot exist in a free market. A black market is only able to emerge beside a regulated market as ignoring regulations is what sets a black market apart from other markets.