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Reports: Oregon has pot oversupply, Colorado hits the mark

JacksinPA

JacksinPA

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https://www.apnews.com/096eb1978080...on-has-pot-oversupply,-Colorado-hits-the-mark

PORTLAND, Ore. (AP) — Two of the first states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market. But in both states prices for bud have plummeted.

A new Oregon report by law enforcement found nearly 70 percent of the legal recreational marijuana grown goes unsold, while an unrelated state-commissioned Colorado study found most growers there are planting less than half of their legal allotment — and still meeting demand.
===============================================
Looks like what happens when government bureaucracy meets the free market. And happily it looks like in both states the consumer benefits.
 
JacksinPA said:
https://www.apnews.com/096eb1978080...on-has-pot-oversupply,-Colorado-hits-the-mark

PORTLAND, Ore. (AP) — Two of the first states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market. But in both states prices for bud have plummeted.

A new Oregon report by law enforcement found nearly 70 percent of the legal recreational marijuana grown goes unsold, while an unrelated state-commissioned Colorado study found most growers there are planting less than half of their legal allotment — and still meeting demand.
===============================================
Looks like what happens when government bureaucracy meets the free market. And happily it looks like in both states the consumer benefits.
Click to expand...

Red:
I wonder how much of that outcome results from organic economic processes and how much results from hybridizing the plants for bud production (quantity, density, and volume). (The current law is based on plants, not on pounds of final product.)
 
JacksinPA said:
https://www.apnews.com/096eb1978080...on-has-pot-oversupply,-Colorado-hits-the-mark

PORTLAND, Ore. (AP) — Two of the first states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market. But in both states prices for bud have plummeted.

A new Oregon report by law enforcement found nearly 70 percent of the legal recreational marijuana grown goes unsold, while an unrelated state-commissioned Colorado study found most growers there are planting less than half of their legal allotment — and still meeting demand.
===============================================
Looks like what happens when government bureaucracy meets the free market. And happily it looks like in both states the consumer benefits.
Click to expand...


On my way to Oregon to help them with their problem...

uhaul.jpg

See, Canada has always been there to offer America a helping hand... ;)

As for bud prices, yes, they should plummet...there's no reason in the world why pot should be as expensive as it is. I think it was a dumb move for producers to think they could get away with charging prohibition prices (or higher!).
 
Xelor said:
Red:
I wonder how much of that outcome results from organic economic processes and how much results from hybridizing the plants for bud production (quantity, density, and volume). (The current law is based on plants, not on pounds of final product.)
Click to expand...

I wonder how much is caused by overly heavy taxation of the legal reefer giving illegal reefer a competitive advantage. Pre-existing entreprenueral talent would have adapted to market forces and competitive demands to improve both product and distribution. Since I oppose burdensome taxation, then the regulatory bureaucracy gets what they deserve.
/
 
OlNate said:
On my way to Oregon to help them with their problem...

View attachment 67237395

See, Canada has always been there to offer America a helping hand... ;)

As for bud prices, yes, they should plummet...there's no reason in the world why pot should be as expensive as it is. I think it was a dumb move for producers to think they could get away with charging prohibition prices (or higher!).
Click to expand...

We always heard that prices would stay about what we were paying, the "might go to jail" tax exchanged for actual taxes.

So far here in Cali we're paying both.

Which is keeping the "black" market alive
 
What if...? said:
We always heard that prices would stay about what we were paying, the "might go to jail" tax exchanged for actual taxes.

So far here in Cali we're paying both.

Which is keeping the "black" market alive
Click to expand...

Yup...self defeating. I mean, prices up here have always been cheaper, but the proposed price when we legalize in September is $10 per gram. I just bout 4 ounces for $300 from "a guy"...and he was happy for it. Being greedy will doom this to failure...which will suck, because all the naysayers will be like "Told you so, there's still a black market"... That's not legalization's fault, that's idiot producers who want to get rich overnight.
 
DaveFagan said:
I wonder how much is caused by overly heavy taxation of the legal reefer giving illegal reefer a competitive advantage. Pre-existing entreprenueral talent would have adapted to market forces and competitive demands to improve both product and distribution. Since I oppose burdensome taxation, then the regulatory bureaucracy gets what they deserve.
Click to expand...

  • The article remarked that legal weed suppliers are meeting demand without exceeding their plant allotment. That those suppliers do so has nothing to do with the competitive advantage that illegal growers may or may not have. It has only to do with the production capacity and observed demand curves each legal grower faces.
  • What you're talking about, I think, is market share (not competitive advantage) by state between legal and illegal producers. I don't know the values for that metric, but you can probably find or derive them and then you'll no longer have to wonder.
  • I think you aren't really talking about competitive advantage because illegal producers don't have materially significant competitive advantages over legal ones. Whatever categories of competitive advantage "this" illegal producer may have had over "that" one were eliminated when pot became legal.

(Note: please don't reply to the above without reading the linked content.)
 
Xelor said:
  • The article remarked that legal weed suppliers are meeting demand without exceeding their plant allotment. That those suppliers do so has nothing to do with the competitive advantage that illegal growers may or may not have. It has only to do with the production capacity and observed demand curves each legal grower faces.
  • What you're talking about, I think, is market share (not competitive advantage) by state between legal and illegal producers. I don't know the values for that metric, but you can probably find or derive them and then you'll no longer have to wonder.
  • I think you aren't really talking about competitive advantage because illegal producers don't have materially significant competitive advantages over legal ones. Whatever categories of competitive advantage "this" illegal producer may have had over "that" one were eliminated when pot became legal.

(Note: please don't reply to the above without reading the linked content.)
Click to expand...

Only if you choose to ignore the TAX BURDEN as a fixed cost. Not a burden for privateers.
/
 
JacksinPA said:
https://www.apnews.com/096eb1978080...on-has-pot-oversupply,-Colorado-hits-the-mark

PORTLAND, Ore. (AP) — Two of the first states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market. But in both states prices for bud have plummeted.

A new Oregon report by law enforcement found nearly 70 percent of the legal recreational marijuana grown goes unsold, while an unrelated state-commissioned Colorado study found most growers there are planting less than half of their legal allotment — and still meeting demand.
===============================================
Looks like what happens when government bureaucracy meets the free market. And happily it looks like in both states the consumer benefits.
Click to expand...

I think i would credit a few additional years of experience in Colorado to adjust market supply and demand, rather than freemarket vs regulation.

Especially since the article states:

“From the beginning, Colorado had stricter regulations for its growers than Oregon did.”
 
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