Too many producers: Analyst says market needs some pot growers to go out of business

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To many producers: Analyst says market needs some pot growers to fail

A cannabis conference brought bright, smiling young entrepreneurs to Vancouver this week but also analysts warning that the fledgling industry can expect more tough times in 2020.

Craig Wiggins of the independent analysis firm TheCannalysts brought more doom and gloom during a presentation at the expo on Friday. Meantime, licensed producers continue to harvest at a rate that far exceeds legal sales, about 4.42 kilograms for every kilogram sold, Wiggins lamented. Lucas McCann, chief science officer at CannDelta Inc., a cannabis consulting firm, said regulatory framework involving multiple levels of government is complicated and not working well, creating delays of up to a year before producers can get Health Canada approvals.

“It’ll be stored in the hallways and they’ll be conducting activities in rooms that aren’t licensed for those activities. They’re doing this because they’re trying to stay afloat. They continue to harvest and they must harvest — they’re paying these staff.”

 

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