Both Canada and New York are struggling from having too much stock of cannabis, causing concerns for businesses, in particular the farmers growing the crop.
Issues are arising from both places not having enough sellers, which appears to have caused the backlog in supplies.
For Canada, the failure of many cannabis businesses has led to stockpiles reaching new highs in the final quarter of 2022 according to MJBizDaily.
In New York, a similar problem has occurred according to ABC News. With only around 12 dispensaries, there are not enough places for the farmers to sell their product.
With more than 200 farmers still producing in New York, the producers of cannabis are losing money.
Both Canada and New York are struggling with supply and demand issues. This might be good for consumers in pushing prices down, but the businesses are suffering.
Retail prices of cannabis in Canada have fallen 30% since 2018 while wholesale prices have fallen further at 40%.
Within New York there are estimates that approximately over $100 million worth of cannabis remains unsold, around 80% of this is in the form of cannabis oil.
Farmers in New York and Canada are not the only ones feeling the pinch. In the western states of the U.S. there are also concerns that the black market and low prices, coupled with high state taxes have made it difficult to turn a profit.
There is also the issue of cannabis still being illegal at a federal level, making banking rails and exporting the product difficult.
Canada and New York are attempting other strategies to boost the flailing farmers. New York has provisionally approved 50 new dispensary licences while Canada is allowing for pop-up retail outlets.
