We reported recently in our Los Angeles Cannabis Attorney Blog that a report from marijuana analytics team Vessel Logistics, showing that even if California cannabis farmers were to slash their production of the plant by 50 percent, we would still end up with a significant surplus of marijuana. This could have significant implications, potentially spurring cannabis companies at every leg of the supply chain to fold.
Pot Shops Bogged Down by Regulation, Cheap Black Market Competitors
Part of how we got into this mess was California’s historical reliance on black-market sales, including those out-of-state. Federal law prohibits transport of marijuana across state lines, considering it a serious felony drug trafficking offense. Prior to legalization (even after by companies that hadn’t yet obtained a permanent permit) businesses reportedly offloaded excess marijuana product (including that which failed to meet the strict lab testing guidelines issued/overseen by the California Bureau of Cannabis Control) to those willing to pay a little less for it on the black market. A lot of that product then went east, to states where the drug wasn’t easily found or where the only market for it is illicit. Continue reading