Does California Need to Worry about the Demand of Cannabis after Legalization?- September 01, 2017
The legalization of cannabis in certain states has really helped improve the lives of the people that it has touched. Long gone are the days when one could get arrested or incarcerated for consuming cannabis medically.
But will this help people get more medical cannabis products or will it result in fewer products that are more expensive?
The legalization of cannabis comes with some pitfalls, yes you will have to pay taxes on it, you may also have a buying limit; and with the number of consumers on the rise, there may not be enough stock left for everyone. In addition, you may not be able to find many strains you prefer amongst the recreational cannabis products available.
But, the good news is that having a medical card in 2018 will help you save an average of 14% on taxes and even more, depending upon the city. Cardholders will have access to more dispensaries and products, with the added benefit of getting higher growing & carrying limits. Medical cards will also patients to carry cannabis when driving or flying.
But How will this Affect Californians?
Cannabis laws have been in place in the state since 1996, but few issues arising now are the fewer growers, high demands of the public and supply constraints, all of which would result in consumers turning to illegal means to obtain cannabis.
Many growers are facing problems due to the licensing fees being too high, resulting in a low count of growers and fewer plants on the whole. This will, in turn, affect the number of products that can be made and thus result in a poor inventory at dispensaries and stores. This is a fundamental problem that will affect everyone from the suppliers and growers to the consumers.
Now, Let’s Look at the Bigger Picture
California is as of right now producing 13.5 million lbs. of cannabis per year, which is 5 times more than what the current demand is. But we also have to remember that only 14.2 % of Californians were using cannabis up till now.
The new estimates are now saying that up to 19 % of Californians will start using cannabis in January 2018, after the legalization of recreational cannabis. This will mean an additional amount of 700,000 lbs. Tourists visiting the state will also add to a load of California demands by an amount of 250,000 lbs. at minimum each year.
All in all…
So there is no need to really worry as California is producing more than enough supply to meet the state’s demand for the beginning of next year. However, this increase in the number of cannabis users is just an estimate. If we look back at what happened recently in Nevada (with all the cannabis ending in the state in roughly 3 days), the State should be prepared for anything. This supply of legal cannabis would greatly help to shut down illegal operations in the state, where a whopping 5000 tons is still being produced.
Even the government has a lot to gain in the form of tax revenue estimated at $885 million each year. This will also assure proper channelized funding for the research and development of the medicinal value of cannabis.
Kick Back and Relax
So, all the Cali cannabis family doesn’t really have to panic, as its fairly clear that the legal marijuana industry has strong roots in this state and is here to stay, as it has established an economically lucrative business that is going to be beneficial to all who have been involved with it.