Canopy Growth Corp (WEED)

[Bonno]

For years now, MJBizDaily has tracked a growing accumulation of unsold cannabis in Canada’s legal adult-use market.

Now, the latest data on that stockpile is out — and, no surprise, it’s still growing.

As of December 2022, total inventory of packaged and unpackaged dried cannabis in Canada reached a high of 1.47 billion grams, or 3.2 million pounds.

That reserve of unsold weed has contributed to falling wholesale and retail prices, putting pressure on Canadian cannabis businesses of all kinds.

Meanwhile, licensed cultivation canopy continues to shrink.

As the U.S. cannabis industry hopes for federal legalization, Canada’s experience serves as a cautionary tale of what can happen when the national supply of regulated recreational marijuana greatly outweighs demand.