Oregon's Current Recreational Marijuana Inventory Expected to Last 6.5 Years

The Oregon Liquor Control Commission (OLCC) released the 2019 Recreational Marijuana Supply and Demand Legislative Report. The legislatively mandated report indicates that the recreational marijuana inventory as of January 1, 2019 will last the state for 6.5 years with the current level of demand . Oregon’s recreational marijuana growers produced 300,000 pounds in January 2017 and 900,000 pounds in January 2019 while wholesale prices for recreational marijuana has decreased significantly. Despite the bleak forecast for the cannabis industry, regulators are not concerned about marijuana being diverted to black market in surrounding states. The OLCC believes that most cannabis growers will continue to abide by the law in hopes of bigger gains when marijuana is legalized at the federal level and interstate sales of marijuana can occur. Marijuana market participants can access capital to help them through these tough times. However, the OLCC does not believe this will always be the case. The report states that the state faces policy considerations in order to create equilibrium in the recreational marijuana market. This might include placing limits on the amount of marijuana produced or placing a moratorium on the number of recreational licenses.