Oregon recreational marijuana companies are experiencing the best market conditions in years, with demand far outpacing supply because of the COVID-19 pandemic and more consumers forgoing the illicit market in favor of legal retailers. But the question remains whether the trend will continue once the pandemic subsides and state regulators offer additional production licenses to cannabis entrepreneurs. According to a recent supply and demand report conducted by the Oregon Liquor Control Commission (OLCC), cannabis production has increased 78% since 2019, while the amount of cannabis sold has skyrocketed by 150%. The report by the marijuana regulatory agency also shows the statewide market splitting into two separate, clearly delineated plays for cultivators: Some growers are targeting retailers’ top shelves to sell their flower, with the hope of fetching a higher price. Others are selling straight to the extraction market, which tends to offer growers a lower price.
Marijuana Business Daily, 02/17/2021 11:00:00