Amid ongoing cannabis price compression and fierce competition with the illicit market, University of California, Davis economists Daniel Sumner and Robin Goldstein have been analyzing these industry challenges to assist plant-touching and ancillary cannabis businesses, politicians and regulators.
In February, Meg Sanders, CEO of Massachusetts-based Canna Provisions, wrote an article for BusinessWest.com urging licensed cannabis business operators to rethink their strategies for the tough road ahead. With an imbalance between supply and demand—and an influx of licensees yet to open their doors—the cannabis market, from Massachusetts to California and back again—is facing tough times.
Despite steady growth in patient count in Pennsylvania’s medical cannabis program, executives from vertically integrated operators Ethos Cannabis and Jushi Holdings say that price compression and competition from a still-thriving illicit market continue to put pressure on the state’s regulated industry, which launched in early 2018.
It’s no secret that price compression has become a significant challenge for cannabis operators over the last several months.
In May 2021, Boris Jordan, executive chairman of the board at Curaleaf, announced the multistate cannabis company’s plans to acquire Colorado’s Los Sueños Farms, a $67 million deal for one of the largest legal outdoor cannabis cultivation sites in the U.S.
JOIN YOUR PEERS IN PERSON! Join other cultivators for candid conversations about navigating the industry's most pressing challenges and opportunities, from price compression and production costs to pest pressures and genetic selection at Cannabis Conference's inaugural VIP Cultivation Roundtable, Aug. 15, 2023, at the Paris Las Vegas Hotel & Casino. Topics include many of the pain points operators note in these articles, and more. View the full agenda at: CannabisConference.com/page/viproundtable/
