Due to the latest marijuana regulations in California, business owners and farmers in the cannabis industry were forced to hand over their remaining product that didn’t meet the new standards. The new regulations were implemented just six months after recreational sales became legal and took effect July 1. These regulations were designed to keep quality standards up to par and universal, ensuring that all marijuana products being sold are free of poisonous chemicals, mold, or pesticides. Sure, no one’s going to argue about the benefits of these regulation changes, so let’s take a look at the negative effects these regulations are having on the industry.
The new regulations, which business owners were warned about months ago, state that any untested marijuana remaining on the shelves after July 1st must be destroyed. To clarify, by “untested” we mean with the new tests by the new standards. These regulations made for crazy sales and rock-bottom prices at dispensaries the last weekend in June, trying to minimize the product waste and profit loss. This may not seem like that big of a deal, but it creates a domino effect that stands to cause a shortage in the marijuana industry. Every dispensary had to rid themselves of all products (flower, concentrates, edibles, etc.) that contained untested marijuana by July 1. This means every dispensary will need to fully restock all of their products with the newly tested marijuana products. This puts tested marijuana in high demand, concerning business owners that testing facilities won’t be able to keep up with the volume.
Experts predict that California’s marijuana industry could have to destroy more than $350 million worth of products, despite the sales to purge the supply before the regulations took effect. Despite the new regulations being started to protect marijuana users, most of this weed is perfectly safe for consumption. People all over the nation have been smoking untested marijuana for centuries.
Despite the state requiring all dispensaries to destroy their remaining stock of untested marijuana, they aren’t doing anything to help facilitate this mass destruction of products. What’s even stranger is that they’re requiring dispensary owners to video the destruction of all their remaining products to ensure it’s done and in the designated fashion.
While this is difficult for several dispensaries in California, officials are looking at the bigger picture. With all the growing excitement for marijuana legalization, the market is getting rather saturated. There are more and more dispensaries seeming to crop up each month and, believe it or not, the illegally operating dispensaries are outnumbering the legal ones in some regions. The shortage and financial strain that this regulation change is causing could help to weed out some in the market and make it less saturated and lessen the risk of failure for marijuana-related businesses.