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Canada Is Drowning in Cannabis

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over supply of cannabis in canada

According to MJ Biz Daily, despite business failures and consolidation efforts, Canada’s unsold cannabis stockpile grew in the final quarter 2022. This alarming trend indicates that companies may face challenges due to declining prices and margins.

 

The latest data from Health Canada reveals that the combined inventory of packaged and unpackaged dried cannabis reached a record-breaking 1.47 billion grams (3.2 million pounds) by December 2022. This figure includes unsold stockpiles from licensed producers, wholesalers, and retailers, highlighting the significant amount of cannabis that remains unsold in Canada.

 

Canada’s whole population hovers around 38.3 million people, in comparison, the state of California alone has 39 million people.

 

Remember, that is just from the legal side of the Canadian market, that does not count any excess supply on the illicit market, which still controls a sizeable portion of the overall Canadian cannabis market.

 

The inventory of packaged and unpackaged cannabis has seen a notable increase from 1.3 billion grams in December 2021 to reach 1.47 billion grams by December 2022. Specifically, federally licensed cultivators held 1.39 billion grams of inventory, while wholesalers and stores held packaged inventory of 80.7 million grams.

 

These numbers highlight the persistent supply-and-demand imbalance within Canada’s cannabis industry, despite significant producers closing their largest cultivation facilities. One notable example of facility closures occurred last year when Aurora Cannabis shut down its flagship Aurora Sky facility in Edmonton, Alberta, which was among the largest in Canada.

 

The oversupply is believed to contribute to the downward pressure on cannabis prices. Statistics Canada’s Consumer Price Index indicates that the retail price of cannabis has dropped by nearly 30% since the legalization of adult-use sales in 2018. However, some estimates suggest that the price decline is even more significant.

 

According to the Canadian Cannabis Exchange (CCX), a live trading platform for B2B wholesale marijuana, wholesale prices in the country experienced a significant decline of over 40% in the past year alone. This substantial drop further emphasizes the challenges faced by the cannabis industry in Canada.

Heightened Competition

Businesses throughout the cannabis supply chain in Canada are facing challenges due to declining prices. Out of the 35 Companies’ Creditors Arrangement Act (CCAA) filings in Canada between January 1 and December 22nd of the previous year, fourteen were related to companies operating in the cannabis industry.

 

The filings in Canada can be compared to bankruptcy filings in the United States. Elad Barak, CEO of Djot, a Toronto company specializing in cannabis dispensers and pod systems for concentrates, expressed his perspective on the situation. According to Barak, the issue lies not in a lack of competition but in excess of competition.

 

He believes many companies focus on cannabis cultivation without considering the challenges of selling their products. As a result, some companies are going out of business, but the cannabis they produce remains in circulation. Barak mentioned that these unsold inventories are often liquidated as part of the bankruptcy process.

 

Referring to the most recent data from Health Canada, Barak highlighted that Canada currently has close to 1,000 licensed producers operating within different sectors of the federally regulated cannabis supply chain. This number has continued to increase since the legalization of cannabis in October 2018, despite some companies leaving the industry through consolidation or via the Companies Creditors Arrangement Act (CCAA).

 

As of last summer, 886 licensed cultivators, processors, and sellers were operating under Canada’s Cannabis Act. This figure was around 730 in 2021, 440 in 2020, and 206 in 2019.

Record ‘Croptober’

During last year’s “Croptober,” which is the season when the majority of outdoor cannabis harvest takes place in Canada, cultivators achieved a record-breaking production of cannabis. The combined, dried cannabis output for September, October, and November reached 640 million grams, marking a 14% increase compared to the previous year. In the corresponding three-month period of 2021, approximately 560 million grams of dried cannabis were produced.

Health Canada data shows approximately 2 billion grams of cannabis were produced throughout 2022. To provide context, in the same year, retail sales of dried flower and pre-rolls in Alberta, British Columbia, Ontario, and Saskatchewan amounted to around 360 million grams, as reported by Cooper Ashley, the analytics manager at Headset, a cannabis data firm based in Seattle. It’s worth noting that these provinces contribute to about three-quarters of the Canadian market.

Decrease in Cultivation Areas

Health Canada data indicates a continued decrease in Canada’s licensed growing areas for cannabis cultivation. As of December 2022, the total area within federally licensed sites dedicated to indoor and greenhouse cannabis cultivation measured 1,595,724 square meters.

 

This represents a nearly 30% decline from the previous peak of 2,217,216 square meters recorded in May 2020. Moreover, the proportion of cannabis greenhouse area to the overall greenhouse area, which includes vegetable cultivation, is also experiencing a decline.

 

In 2020, cannabis cultivation peaked, occupying slightly over 11% of Canada’s total greenhouse space. Presently, cannabis cultivation represents 7.6% of the country’s combined greenhouse and indoor cultivation area, indicating a reduction of over 30%.

 

On the other hand, the decline in licensed outdoor cultivation areas is occurring at a slower pace. As of December 2022, the area dedicated to outdoor cultivation measured 595 hectares (1,470 acres), which is approximately 16% lower than the previous peak of 713 hectares in December 2021.

 Adapting and Adjusting to Changing Circumstances

Certain businesses have implemented adaptive strategies to tackle the challenges posed by falling prices and increasing inventories. One example is SNDL, an Alberta-based cannabis producer and retailer, which introduced a temporary retail brand named Firesale Cannabis. These pop-up retail outlets are not intended to be permanent fixtures.

SNDL views this pop-up strategy as a solution to the sustainability issues faced by the cannabis industry. In their investor presentation, they described the pop-ups as a means to facilitate the sale of older inventory at significantly discounted prices, aiming to offer the most affordable cannabis products in Canada.

As of May 12, 2023, SNDL operates two Firesale stores. Adam Coates, the Chief Revenue Officer of Decibel Cannabis Co., which is among the leading cannabis producers in Canada in terms of sales, mentioned that the decline in prices within the discount and value segments had created challenges for the core and premium segments. This pricing pressure has impacted different components of the cannabis market.

Conclusion

The cannabis industry in Canada is facing significant challenges due to declining prices and oversupply. Despite efforts to address these issues, such as adopting pop-up retail strategies, businesses need help. The unsold cannabis stockpile has grown damaging companies’ profitability and margins. Additionally, the decline in cultivation areas and the increasing competition within the industry further compound these challenges. It remains crucial for businesses to adapt and find innovative solutions to navigate the evolving landscape of the Canadian cannabis market.

 

MARKET SATURATION HITS THE MARIJUANA INDUSTRY, READ ON…

CALIFORNIA OVERSUPLLY OF CANNABIS

DOES CALIFORNIA HAVE 16 TONS OF EXTRA WEED THEY CAN’T SELL?



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Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em

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On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!

Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:

  1. Panelists:
    • Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
    • Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
    • Fred Rocafort: Trademark attorney working closely with the cannabis team.
  2. Election Results Overview:
    • Most 2024 cannabis ballot measures did not pass.
    • Florida, South Dakota, and North Dakota saw failures.
    • Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
  3. Federal and State-Level Developments:
    • Medical use is currently legal in 38 states, and 24 states allow recreational use.
    • Republican support for marijuana legalization is growing.
  4. Federal Policy Implications:
    • Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
    • Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
  5. International and Domestic Trade:
    • Schedule III status could ease import/export restrictions on cannabis.
    • Unified control of House, Senate, and presidency might expedite legislative progress.
  6. Economic and Industry Impact:
    • Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
    • Federal legalization and banking reforms are crucial for industry stability and growth.
  7. Future Outlook:
    • The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
    • State-level initiatives and regulatory developments will continue to shape the industry.

Watch the replay!



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I Had Just One Puff

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one puff of a joint a drug test

“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.

 

The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.

 

Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.

 

Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.

 

THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.

 

THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.

 

The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.

 

The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.

 

Detection Windows for Various Cannabis Drug Tests

 

Urine Tests

Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.

 

Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:

 

– Single-use (e.g., one joint): up to 3 days

– Moderate use (around 4 times a week): 5–7 days

– Chronic use (daily): 10–15 days

– Chronic heavy use (multiple times daily): over 30 days

 

Blood Tests

Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.

 

Saliva Tests

THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.

 

Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.

 

In areas where cannabis is illegal, saliva testing is often used for roadside screenings.

 

Hair Tests

Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.

 

Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.

 

Factors Affecting THC and Metabolite Retention

 

The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.

 

Other factors are specific to cannabis use, including:

 

– Dosage: How much you consume

– Frequency: How often you use cannabis

– Method of consumption: Smoking, dabbing, edibles, or sublingual

– THC potency: Higher potency can extend detection time

 

Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.

 

How Quickly Do the Effects of Cannabis Set In?

 

When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.

 

The psychoactive component THC produces a “high” with common effects such as:

 

– Altered senses, including perception of time

– Mood changes

– Difficulty with thinking and problem-solving

– Impaired memory

 

Other short-term effects can include:

– Anxiety and confusion

– Decreased coordination

– Dry mouth and eyes

– Nausea or lightheadedness

– Trouble focusing

– Increased appetite

– Rapid heart rate

– Restlessness and sleepiness

 

In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.

 

Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:

 

– Cognitive issues like memory loss

– Cardiovascular problems including heart disease and stroke

– Respiratory illnesses such as bronchitis or lung infections

– Mood disorders like depression and anxiety

 

Cannabis use during pregnancy can negatively impact fetal growth and development.

 

Duration of Effects

Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.

 

Bottom Line

The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.

 

PEE IN A CUP COMING UP, READ ON..

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HOW LONG DOES WEED STAY IN YOUR URINE FOR A DRUG TEST?



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Is Kratom Addictive? Understanding Dependence, Risks, and Safe Usage

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Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.

From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.

However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.

Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.

Understanding Kratom: Origins and Prevalence

Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.

The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.

  • From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.

  • Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.

  • As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.

The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.

Is Kratom Addictive: Investigating the Substance’s Nature

The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.

How Kratom Works in the Brain

Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.

Patterns and Consequences of Long-term Use

  • Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.

  • Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.

  • Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.

Assessment of Addiction Risks

Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.

Physiological Effects: Kratom’s Impact on the Body

There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.

  • Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.

  • Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.

  • FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.

  • Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.

  • Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.

Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.

Conclusion

Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.

Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.

When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.

The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.

 

WHAT IS KRATOM ANYWAY? READ ON…

WHAT IS KRATOM

WHAT IS KRATOM AND WHY ARE YOU HEARING ABOUT IT NOW?



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