The following is an excerpt from JORDAN WEISSMANN | October 16, 2018 | Slate.com |
Recreational marijuana sales are set to begin in Canada on Wednesday, which will officially make our northern neighbor the world’s second country after Uruguay to formally legalize the drug for non-medical use. But with the historic moment at hand, many are wondering: Will there be enough weed to go around?
It’s not just anxious stoners who are concerned. Cannabis producers and market analysts have have been warning for months about the possibility of shortages once legal sales get up and rolling. Growers are still scaling up their crops and production facilities, and likely aren’t ready to harvest the estimated 655,000 to 926,000 kilograms of dank, sticky green Canadians are expected to consume in the coming year. Researchers from the University of Waterloo and the C.D. Howe Institute, for instance, concluded that legal supply will meet just 30 to 60 percent of total demand early on, while the investment firm Mackie Research Capital has suggested that production won’t outstrip demand until 2020. As the CEO of cannabis producer Aphria put it on an earnings call, “Unless someone’s out there hiding 100,000 kilograms, we’re looking at a real shortfall.”
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