Billion grams of cannabis stored without being sold

by Team Inc.

2021-02-01-Billion grams of cannabis stored without being sold

BNN Bloomberg announced this week that one billion grams of legal pot in Canada unsold in warehouses across the country gathering dust. The question arises as to why this cannabis is not used to make CBD oil.

That's a lot of weed. A stock that should be enough to last three years. Due to the increasing demands that consumers place on their cannabis product, a lot of cannabis from the middle segment is now gathering dust in warehouses. “You can't give away mid-range THC products for a penny, though,” Peter Machalek, vice president of sales and partnerships at TREC Brand, told Bloomberg. “The market has become much more sophisticated and follows what consumers demand.”

CBD oil from unsold cannabis

It begs the question of why some of those billion grams were not used to make CBD oil. The non-intoxicating substance that is used for many people as a natural medicine for headaches, back problems, bad knees, arthritis, anxiety disorders and a host of other complaints, conditions and associated pains. It's a bona fide elixir for aging and pain.

The problem is that although CBD oil doesn't give you a high, it still falls under the Cannabis Law and is therefore just as tightly regulated as THC. A difficult market that prevents even the most modest forms of advertising and branding. David Clement, the North American businessman manager for the Consumer Choice Center, believes that the overabundance of cannabis products can be partially mitigated by removing CBD oil from the Cannabis Act. This allows certain extracts and drinks to be sold at regular retailers and in supermarkets.

“From a consumer protection and public health perspective, there is no reasonable justification for regulating CBD products as strictly as THC,” said Clement. “In our opinion, the Cannabis Act is too restrictive. When CBD products are removed from the legislation, CBD products would become more widely available, which could alleviate the problem of oversupply.

Surplus of cannabis products

“In addition, the federal government must relax the marketing, branding and packaging restrictions that currently apply to legal manufacturers,” said Clement. According to the Bloomberg report, Health Canada has finally released industry data for October showing that 1,1 million pounds of unsold cannabis has been stockpiled by producers across the country.

With Canada's monthly consumption of about 30.000 pounds, that means a three-year supply has been inactive. However, there seems to be light at the end of the tunnel to alleviate this problem. Health Canada will likely soon decide whether CBD oil can avoid over-the-counter health and wellness products. A formal decision is expected later this year. It's a wildcard that could be a game changer for the market, but it's still a longshot now.

Read more torontosun.com (Source, EN)

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