Medical cannabis industry balks at proposal to increase grow space
Added on 16 June 2023
They say patient numbers in the state’s program appear to almost have peaked. But with new grow space that has come on line in the last two years, there’s now an oversupply of marijuana, industry groups say. One grower has said his unsold inventory is approaching expiration, but he’s unable to sell at a level that would recover his costs to produce it. Growers are only using 40% of total cultivation space permitted by the state, the industry says.
It’s hard to verify all these claims, as the marijuana firms, while highly regulated, do not have to disclose all aspects of their businesses. But a March update from the Ohio Medical Marijuana Control Program backs many of them. It also shows that with the oversupply, wholesale prices have dropped.
That may be good news for Ohio patients, who for years told researchers and program officials that retail prices are too high. Many have said they can get better deals in Michigan’s recreational program, which also has an oversupply of product at this time.
Yet Ohio’s industry warns that short-term gains from oversupply may hurt patients in the long run.
They predict some businesses may not survive if lawmakers expand grow space and the licenses of processors – the companies that extract the chemical properties from the plant and turn it into edibles, patches, oils and other products. A physician who recommends cannabis said the race to the bottom may result in lower-quality products.
Photo by CRYSTALWEED cannabis on Unsplash
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