Recreational marijuana sales are set to start in July of 2018, but dispensaries may not be able to keep up with demand.
Supply and demand has been a tricky issue for states that have recently legalized recreational marijuana. Demand is most certainly there, but supply is becoming the real issue.
As we have covered, Nevada started recreational marijuana sales in July of 2017 but has been plagued with problems. Without enough transporters approved, Nevada shops have struggled to replenish their inventory.
Massachusetts could be heading for a similar fate. Last November, residents in Massachusetts approved Question, 4 which legalized recreational marijuana. Sales are expected to start in July of 2018, but there are already red flags.
Analysts are expecting a severe shortage when the program kicks off. It seems there simply will not be enough approved cultivation facilities to match demand.
“The first places to open up will sell out in less than a week,” said Peter Bernard, president of the Massachusetts Grower Advocacy Council according to Masslive.com.
Licenses for shops and growers are not expected to be issued until June 1 next year. This does not give the industry much turnaround time to start sales in one month later. For those who have to build new cultivation centers, it could take up to three years to get all of the necessary permits in place.
Existing medical marijuana dispensaries and grow facilities may have an advantage since they already are up and running, but it may not be enough.
“It’s highly likely in the first six to 18 or 24 months in the market there will not be enough cultivation space to support the demand,” said Brandon Pollock, CEO of Theory Wellness.