this post was submitted on 10 Jan 2024
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Wasted Weed: Canada’s Disposal of 3.7 Million Pounds of Cannabis Since 2018 Oversupply has been a real issue for the cannabis industry.

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[–] [email protected] 25 points 10 months ago (4 children)

Want to Chime in since there's a lot of weird misinformation and conjecture in the comments:

The over-production was a business decision by many of the producers. A bad one. But they knew they were producing more flower than the Canadian market needed at any price point. Dropping price down isn't going to dramatically increase the consumption as polling / research by stats can shows the people smoking todtay, are the same who were smoking illegally before, and that the overall Cannabis market (while huge) isn't something that was ballooning.

I had invested in numerous stocks in the industry back when legalization started to gain ground. As an investor and reading the reports, one thing was clear. Everyone of the biggest producers believed they were going to be international gods of pot and be able to sell world wide. Many hedged billions on producing enough flower for the American market with hopes that the US would follow along very shortly.

These poor business decisions led to the large producers, such as Canopy, and Aurora from making over-building production to the point that even if they shut several of their operations, they would still over-produce for the Canadian market.

at the end, this was some MBA deciding that profit margins would be higher by writing off the excess weed instead of spending additional resources to use it in other products (it still can be used for extracts and edibles even if low quality)

This is what happens when you create a new industry (Producers) and let it be run by the MBA's and giant businesses instead of those who are actually involved in the industry in the first place.

as soon as I saw these happening I sold out on their stocks. IOf you go look up these companies current valuations, they're almost worthless and worth pennies compared to when they started due to their horrific management. (Aurora Cannabis lost 1 Billion in a year)

[–] [email protected] 16 points 10 months ago (1 children)

End stage capitalism: when you realize the population you’re selling to has a finite number and neglect to scale to parameter and still feel like you’re owed.

[–] [email protected] 4 points 10 months ago (1 children)

This is a huge problem I have with America. It's okay to stop growing at a certain point. Increases don't have to be infinite.

[–] [email protected] 1 points 10 months ago

Yeah there is a lot of toxic beliefs surrounding money there. Take the stock market for example: where they count ‘potential gain’ as their money before it has a chance to pan out. counting their chickens before they hatch and if it doesn’t come true then they expect insurance on it as if it’s a true loss and they’ve been a victim of robbery.

And Bail outs shouldn’t be a thing. Especially on businesses that abandon their employees to rely on tipping culture. That’s the wrong definition for bailing out someone.

[–] [email protected] 5 points 10 months ago (1 children)

Yeah, all very interesting Mr Canada Money Bags.

I just wanna know when you're gonna post me some free weed to the UK?

[–] [email protected] 3 points 10 months ago

Well, not keen on being on an international criminal list for illegal exports of Cannabis products. I'm no Mark Emery (thats good).

But if you find yourself in the GTA, I would gladly take you to a pot shop and give you my recommendations.

[–] [email protected] 5 points 10 months ago (1 children)

Though even the derivative products are still competing with the other products. You don't really need to get high from flower and an extract. You might get both for variety, but consumption of one will slow consumption of the other.

And yeah, it was dumb to assume that even if the US legalized it that there wouldn't suddenly be a bunch of US producers wanting to get in on it. It's not hard to figure out how to produce it. The plant can grow in all kinds of conditions and the hardest part is keeping it from reproducing more than you'd like.

[–] [email protected] 3 points 10 months ago

but consumption of one will slow consumption of the other.

Someone needs to tell my wallet this :p

[–] [email protected] 2 points 10 months ago (1 children)

Can they sell it to Michigan, or would that be a problem federally speaking?

[–] [email protected] 1 points 10 months ago (1 children)

Not under current US Federal regulations. While individual states have somewhat legalized it. US Federal regulations have it strictly prohibited and illegal. So it is illegal to import.

these companies had banked on US federal deregulation happening faster.

[–] [email protected] 0 points 10 months ago (1 children)

They over estimated America's intelligence.

[–] [email protected] 2 points 10 months ago

more like underestimating republicans stupidity