Since July 2021, the price-per-pound of cannabis in Oregon fell nearly $1,000 from $5,433 to $4,536, KATU reports. Total sales also fell substantially during that time from $103 million to $82 million.
Marissa Rodriguez, the COO of Nimble Distribution, said that amidst the coronavirus pandemic, cannabis farms “ramped up demand” which has led to an oversupply and, while sales were strong then, consumer demand has since dropped.
The U.S. is also in the midst of record-setting inflation, hitting 9.1% from June 2021 to June 2022.
“At least once a week I hear about a small business that is shuttering and just hoping to hold on to their business license long enough that when the market recovers, they are still in a position that they could maybe reopen.” — Rodriguez to KATU
Ian Millhollen, manager at Treehouse Collective, told KATU that they have stayed afloat due to their “very devoted client base,” and said that the reduced demand is likely in part due to the end of the pandemic-era stimulus checks.
“There was more stuff to do,” he said. “People are traveling again [and] spending money on other things.”
In April, Oregon enacted a moratorium on new cannabis licenses for any license applications submitted after January 1, partly due to oversupply issues.
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