rdon the cliche, but the marijuana industry appears to be the greatest thing since sliced bread. Although the cannabis industry has existed for decades behind the scenes, the legalization of recreational weed in Canada, along with more than 40 countries giving medical marijuana the green light around the world, has opened the floodgates for legal revenue to flow into the industry.
But, as is common with any nascent and fast-growing industry, it’s dealing with growing pains. This is especially true of our neighbor to the north, Canada.
Marijuana Shortages Seriously Constrict Canadian Sales
Over the past two months, Statistics Canada has reported that retail sales figures for cannabis stores have declined, with February’s total sales slotting in 13% lower than what cannabis stores brought in during December. This decline is the result of a persistent shortage of marijuana in Canada that’s caused by a combination of factors.
To begin with, Health Canada is contending with a massive backlog of cultivation, processing, and sale applications. As of January, the regulatory agency had more than 800 applications in backlog, with the average cultivation application taking many months, and the average sales application taking close to a