Why it matters: This article highlights the phenomenon of “ghost towns” in Colorado that have been left vacant due to the decline in the cannabis industry. It raises questions about the sustainability of the cannabis boom and the challenges faced by cannabis growers in the state.
What they are saying: The town of Ordway, Colorado, experienced a cannabis boom a few years ago, with a peak of 56 active growing facilities. However, it has now become a ghost town, with only around 20 grow operations remaining. Cannabis operators in the area are struggling, with the price of wholesale cannabis reaching record-low prices and a decline in dispensary sales. Some growers have abandoned their operations, leaving behind vacant properties.
The big picture: The decline in the cannabis industry in Colorado has resulted in the emergence of ghost towns, similar to what occurred during historical gold rushes. The promise of lucrative profits in the cannabis industry has not lived up to expectations, and many growers have been unable to survive. This raises concerns about the long-term sustainability of the industry and the potential for significant changes in the future.
What to watch: It will be important to monitor the trends in the Colorado cannabis industry and how they may impact other cannabis markets. The decline in cannabis sales and the resulting ghost towns raise questions about the viability of the industry and the challenges faced by growers. Additionally, the article suggests that dramatic changes could occur in the industry, highlighting the need for caution and adaptability for cannabis businesses.
My take: The emergence of ghost towns in Colorado due to the decline in the cannabis industry is a concerning development. It highlights the challenges and uncertainties faced by growers and the potential risks associated with investing in the industry. This serves as a reminder that the cannabis market is still relatively new and evolving, and success is not guaranteed. It is crucial for businesses in the industry to carefully navigate these challenges and adapt to changing market conditions.
