Why it matters: Cannabis cultivators in New York are struggling with a surplus of product due to the limited number of legal dispensaries in the state.
What they are saying: Cultivator Seth Jacobs of Slack Hollow Organics confirmed that due to the limited number of legal dispensaries, he has a significant amount of cannabis that he cannot sell. Brittany Carbone of Tricolla Farms also reported storing a large amount of product. Issues with prioritizing social equity applicants are another potential delay.
The big picture: Legal cannabis product in New York is estimated to be worth hundreds of millions of dollars, with 80% of it being cannabis oil. The state is taking steps to alleviate the problem, such as approving 50 dispensary licenses and allowing cultivators to partner with retailers in a farmer’s market-style of sales.
What to watch: Will additional dispensaries open up in New York to alleviate the surplus product problem? Will private investments come through to help social equity applicants? Will the farmer’s market-style of sales be successful in helping cultivators sell their product?
My take: The surplus of product being stored by cultivators in New York highlights the growing pains of legalizing cannabis. The state needs to prioritize opening up more legal dispensaries to help these businesses succeed and prevent a potential loss of revenue. The farmer’s market-style of sales is an innovative solution that could help, but long-term solutions are needed to ensure a sustainable cannabis industry in New York.
