MJ BIZ write
Canadian operators destroyed millions of packages of unsold cannabis products and a record amount of unpackaged dried flower in 2022 and the first half of 2023, largely because of years of imbalance in supply and demand, MJBizDaily has learned.
According to data shared by Health Canada, the federal cannabis regulator, 611.7 million grams (1.3 million pounds) of unpackaged cannabis was destroyed by licensed producers in 2022, an increase of nearly 44% over the 425.3 million grams destroyed the previous year.
The data suggests that Canada’s regulated cannabis industry continued to seek supply-demand equilibrium after licensed operators produced substantially more marijuana than what consumers were willing to purchase.
In 2022, the amount of cannabis destroyed was equal to about 16% of total production, which was approximately 3.8 billion grams.
Only partial data was available for 2023.
In the first six months of 2023, another 265 million grams of marijuana were destroyed by license holders, according to the Health Canada data.
No data is available for the second half of 2023.
But if a similar amount was destroyed between July and December 2023, it could signal that the industry already has reached its peak supply-demand imbalance and started inching closer to equilibrium.
For more insight on this situation, check our today’s featured story by MJBizDaily International Editor Matt Lamers.
