VANCOUVER — As marijuana farmers in Oregon say a flood of supply is killing their businesses less than three years after recreational cannabis was legalized, economists say it’s a warning to Canada.
Stephen Easton, professor of economics at Simon Fraser University and senior fellow at the Fraser Institute, says large fluctuations in price and supply are bound to happen when you create a legal market where an illegal market already exists.
“There is no reason to think it won’t happen here as well. In a broader sense, we are adding legal production to an already robust illegal production,” Easton said.
“Consumption may simply not increase in proportion to our ability to grow.”
Robin Cordell, owner and grower at Oregon Girl Cannabis Company, said she saw the influx of supply coming on social media that would choke out her farm.
“I saw just massive fields planted on Instagram, just huge acres and I just knew that was going to be the result,” she said in an interview.
While she once sold her pot to a wholesaler for $2,200US per pound, she said that dipped to $600 per pound.