Oregon to temporarily halt cannabis production

Oregon was one of the first US states to legalize recreational cannabis in 2014. Yet its domestic market is still not stable. Despite its five years of legalization, the state is experiencing huge overproduction Oregon would need 7 years to consume all the cannabis produced this year«.» we read in the press earlier this year. To find a solution, the state is considering a temporary freeze on cannabis production.

Too much cannabis in Oregon

«A good regulatory regime ensures that supply can keep pace with demand,» explained Canadian representatives of the Consumer Choice Agency on a trip to Luxembourg a few days ago. is currently preparing to legalize recreational cannabis.

Weak regulations have led to an imbalance in supply and demand in Oregon. Production is far too high, driving down selling prices and encouraging producers to sell their wares through illicit channels. In fact, Oregon has been called to order several times by its neighbors, as its overproduction feeds the black market in neighboring states.

To remedy this situation, Oregon came up with the idea of export its production to other countries of legal cannabis, but current federal laws prevent this. Nevertheless, legislators have drafted a law to this effect. It is intended to come into force with the end of federal prohibition.

Unable for the moment to export its production outside its borders, the state has simply decided to halt cannabis production. Last week, Senators voted 18-10 in favor of a temporary freeze on cannabis production. The text must now go before the House of Representatives.

The freeze is designed to maintain cannabis production at its current level for two years, by suspending the granting of new cultivation licenses. Only currently licensed growers will be able to renew their licenses during the freeze period. This should enable Oregon to determine the necessary or ideal level of production to meet demand for flowers and by-products.