MJ Biz reports
That’s counter to some estimates that the regulated market “wiped out half the black market” in the first year of legalization, as claimed by the former principal secretary to Prime Minister Justin Trudeau.
Cannalysts researcher Craig Wiggins arrived at the 14% figure by comparing sales to the projected overall demand of cannabis.
Regulated medical and recreational sales in June were 11,178 kilograms-equivalent, he said. That’s only 14% when measured against total cannabis demand – medical and adult-use – which Health Canada estimates at about 77,000 kilograms-equivalent per month.
The report also estimates monthly harvests in the legal market at over 62,000 kilograms, “and increasing rapidly.”
That already represents 81% of Health Canada’s projected total demand, Wiggins writes.
After outdoor production is added to the mix this fall, he expects harvests to reach 95% of projected annual demand.
The report says there is “an 892-day supply glut of existing inventory in the legal market versus legal sales to the above mix.”
Read more details here. The message is clear though, further steps and proactive ones at that are going to have to take place ensure quicker movement towards regulated cannabis. Will these mean, like California, more enforcement?
It appears that Canada is falling short on the enforcement side both in the regulated market (CannTrust) and on thinking of ways to tackle and reduce supply from the black market
Here’s MJ Biz’s report
Canada ‘falling woefully short’ of displacing illicit cannabis market, researcher says
