Good Sunday morning to you Oil! I have a confession (it is Sunday of course), I am going to back off dogpiling emus. I held a lengthy conversation with a farmer this weekend. We talked about cattle and various grains, etc. and he gave me a surprise regarding emus. He told me that they are extremely profitable. The red meat actually exceeds beef in pricing. I was shocked at what emu eggs are achieving. And of course there is the oil that I understand is a strong ingredient in many cosmetics. Outside of emus now being a TV commercial star, I asked, “If they are so profitable what happened to the market (back in the 80’s and 90’s)?” Here is where his answer parallels the cannabis industry, he said, “You will find it in the hype!” He continued by noting, “The consumer for emu products are loyal and will pay to dollar, but the market is small and confined.” He went on, “But remember, the hype promoted a very large and expanding market and drummed up a make-believe situation that fueled people leaving their jobs to farm gold from emus.” Based on speculation of demand exceeding supply, the industry went blind with the fact that there was an imaginary market and thus fueled the emu industry’s ultimate crash. Well, I asked, “How are emus profitable today?” The farmer’s answer was spot on, “The market just corrected back to serve the small but loyal demand.” The parallel with cannabis is shockingly similar! When all the hype falls away, and it is determined that there really isn’t any medical value in the product, then the market will correct back to the few loyal customers….on the other board. The Bible is correct, “There is nothing new under the sun!” This cycle has played itself out throughout history.
