Cannabis glut in the Portland market

[Jay Hinrichs]

Was in a meeting yesterday .. looks like the bloom is off the bud on the Cannabis at least as it relates to growing the flower.... prices quoted were down to 400 a lb.. from 2500.00

what are other seeing out there..

is the future of this in the OILs and medicinal .. not the actual flower and weed ???

not a user personally other than my wife likes some of the rollons for her arthritis.

I know there was a big rush to buy warehouse space.. not sure if you can make a profit selling it at 400 a lb.

my thought was once it became more main stream the bigger players jump in and it goes all the way down to the price of tobacco.. why not ? right ?  why artificial high prices..   ????  am I wrong ?

[Gordon Forbes]

I remember when all the little growers (who were the ones always going to jail) thought heaven had arrived on earth when it was legalized. They thought they were gonna do well. It won't take long till the mega factory farms put all the local growers out of business. And that includes you mid sized "lease a 50,000 sq ft warehouse" growers.

Can you grow anything (corn, wheat, soybean) in competition with agribusiness once agribusiness has had time to ramp up production? Enjoy the short lived niche opportunity while it lasts.... or has already passed.

Even the local dispensaries won't want to deal with local growers because the consumer will soon want potency and purity testing, consistency, and name branding etc., and the dispensaries will stock what sells and that will be "Willie Nelson's Best Weed" and not your "grown down on 5th street" brand. You want your margins to be even smaller?, then sell to the wholsalers who supply the name brands. A few locals will get a "Craft Beer" type niche following... a few.

Some locals will try to "grow it cheap and sell it on the street" meaning bypass the dispensaries who won't stock their stuff. That's still illegal.

Over time the "food industry" will eat its way up the "food chain" and take over the processed product categories one by one too, and for the same reasons.

At a moments notice, if the federal government decides to play rough, all they have to do is pass some legislation (or just threaten) to revoke the charter of any bank that accepts money from any pot related bussiness. 

The money in weed, just like the easy money in crypto currencies, has already passed by... IMHO.