Why it matters: The number of caregivers applying to supply medical cannabis in Maine has plummeted, with regulators blaming oversupply in the state’s medical industry and other issues for the drop. A spring report from the Maine Office of Cannabis Policy describes a “mass exodus” of 1,350 caregivers since the end of 2021 through end-January 2023; despite the number of people joining the industry, from the end of 2021 to the beginning of 2023, there has been a net loss of about 950 caregivers.
What they are saying: The report highlights multiple reasons as to why the “mass exodus” occurred, including supply being overstocked, competition with the adult-use market, steep utility and business costs, banking restrictions and legislators refusing to update statutes since 2017.
The big picture: The medical cannabis market in Maine has been drastically impacted by oversupply, which has led to a collapse in wholesale prices, making it difficult for registrants to manage their energy costs and other market conditions. The report identifies several things that need to change to boost the state’s medical cannabis industry.
What to watch: Caregivers’ exit from the program has resulted in unsubstantiated claims about why this trend occurred; however, the report outlines the reasons in detail. It is important to note that the response rate of the caregiver survey was just 8%, and the industry will need to find other ways to engage caregivers to understand the reasons for their departure. Legislators may also need to consider updating statutes to make the industry more viable.
My take: The state’s medical cannabis industry has been severely impacted, with wholesale prices collapsing, making it unviable for many registrants. While the report identifies several problems that need remedying, lawmakers must consider updating the state’s laws to accommodate this industry better. A reduction in the oversupply could stabilize the medical cannabis industry and make it more competitive by increasing prices, which could help professionals in this industry cover their expenses.
