With Demand Outpaced by Provide, Oregon Weed Retailers Decrease Costs


Harvest and gross sales numbers each plunged final month in Oregon, and the outcome might be cheaper hashish for customers.

That’s the upshot of a report by local news station KOIN, which cited the Oregon Liquor and Hashish Fee’s information exhibiting “that in October 2021, almost $94 million went to the state’s hashish business,” whereas final month, the business acquired solely about $79 million in complete gross sales.

The station reported that the Oregon Liquor and Hashish Fee additionally “reported 5.3 million moist kilos harvested by all producers” in October of final yr, whereas final month, “that quantity fell to 4.1 million.”

“The September/October timeframe is a harvest ‘window’ for outside hashish grows in southern Oregon,” Mark Pettinger, spokesperson for the Oregon Liquor and Hashish Fee told the station. “The precise harvest time is predicated on when hashish farmers get their crop within the floor. Late rains pushed out the planting time this yr. Additionally, the prolonged sunny and heat climate this fall in all probability affected selections about when to reap.”

“On the demand facet, hashish gross sales noticed some important spikes throughout the pandemic when customers had fewer decisions on how you can use their discretionary revenue. Additionally, there was a good quantity of federal stimulus cash that in all probability accounted for a few of these will increase. Since legalization in 2016 Oregon hashish gross sales had been experiencing regular year-over-year will increase,” Pettinger added.

Certainly, after hashish retailers throughout the nation noticed a dramatic bump in gross sales within the age of quarantine, the business has careened again to earth in latest months, notably as inflation continues to tighten customers’ pocketbooks. 

KOIN reported in August that the “pandemic growth could also be coming to an finish for Oregon’s hashish business,” with the state experiencing a gentle decline in income from April onward. That downward pattern adopted two consecutive years during which the state topped $1 billion in gross sales.

“In June, gross sales totalled $82,723,244. It’s solely the second time gross sales have dropped under $84 million because the begin of the pandemic,” the station reported on the time. Consultants mentioned there are a number of elements contributing to the lower in {dollars} bought, just a few of which embrace client developments, the position inflation is enjoying available on the market and the value at which retailers can promote their merchandise.”

Oregon marijuana customers who’re feeling the pinch of inflation might get pleasure from some reduction from this pattern. As KOIN reported, the drop in costs “might profit customers who need the identical high quality of hashish for much less cash, however patrons and sellers within the business are put at an obstacle.”

“The best way that each one states have arrange their system is that no matter you develop and produce and do product manufacturing for and retail, all of it needs to be contained inside the state,” Beau Whitney, a hashish business advisor, told the native station. “When you could have an ‘every part contained within the state’ mentality, there’s not sufficient customers to go round to deal with all of that offer proper within the state… when there’s oversupply and never sufficient demand, then costs go down as a result of companies will get determined. They’ll wish to promote their product.”

“What cultivators have finished is that they’ve stopped cultivating,” Whitney added. “They’ve decreased the quantity of sq. ft or acres that they’re deploying for additional hashish cultivation as a result of in the event that they develop it, however they’ll’t promote it, then what’s the purpose? It’s identical to throwing cash down the bathroom.”

Oregon voters legalized adult-use hashish by approving a poll measure in 2014. Authorized pot gross sales started the next yr. 

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