Warehouses in Canada were inundated with unsold cannabis after the country legalized the possession and use of marijuana for recreational purposes. As writes the Financial Times, the hemp stocks reached almost 400 tons — enough to cover demand for the next 2.5 years.
because of the abundance of goods, the price of marijuana has fallen sharply because of legal and illegal suppliers are fighting for their market share, the newspaper notes.
Canada became the first major economy to authorized use of cannabis on a nationwide scale, but the industry underestimated the ability of the illegal market to respond to competition and overestimated demand of consumers, emphasizes FT. According to Canaccord Genuity analyst Matt Bottomley, there is izbytok cannabis intended only for domestic demand.
