Posted on 02/05/2024 1:19:01 PM PST by NautiNurse
State’s licensing process has created too much product and not enough places to sell it, a consultant and retail-store applicant say
New York state has only opened about 50 legal stores, yet state-legal cannabis farmers grew enough product this past summer and fall to supply up to 1,500 stores, a consultant who works in the industry said.
[Snip]
Meanwhile, the illicit market continues to thrive, with thousands of unlicensed shops.
While the state has issued 460 retail licenses to nonprofits and people displaced by the war on drugs under its CAURD program, it’s been difficult for most licensees to find real estate and come up with the capital to open stores.
[Snip]
Jake Reinus, the chief executive and general counsel of the Highline Cannabis, said about 700 of the 1,500 applicants had potential real-estate locations lined up, but the state had not provided many of them with licenses.
Instead of awarding 700 or more licenses to the current crop of applicants, the state has said it plans to award 250, a number Reinus and others say is too low considering the current oversupply situation.
[Snip]
“Unwilling landlords” and “unwilling and unqualified real-estate brokers” are to blame, while some landlords simply cannot lease to these businesses because they have federally backed mortgages on their properties, Reinus said. Cannabis remains illegal at the federal level.
Overall, New York’s licensed cannabis market generated only $150 million in sales in its first year of operation in 2023 — less than the $274 million generated by the much smaller state of Connecticut, which also kicked off adult-use sales about a year ago.
(Excerpt) Read more at marketwatch.com ...
Yes cartels own that business states don’t have a chance California has so many illegal farms they can’t find them all.
I predict the surplus is soon to be lost in a boating accident.
Send it all to the Capitol...they seem to be smoking lots these days.
It’s inaccurate
I know growers in Michigan and colorado and Oklahoma delivering to Manhattan allowed but technically unlicensed pot stores every two weeks 50 pounds
2000-2400 a pound cash
Over twice what they fetch point of origin
It takes a lot of weed to satisfy the metro NYC market
I think 50 million people within 100 miles radius
Likely 20% smoke weekly
You can do the math
Ten years ago this weed sold for 3-4000 wholesale
These growers are happy to get 2000 or so now
Mostly indoor super high grade
Or meticulous grown and processed greenhouse herb
Real money
I’ve heard of decent weed in Poregon going as low as 350-400 each
Not worthy of growing indoor for that
Nobody knows where pot economy will land honestly
I’ve been aware of it since 71
This is the end
Lol
“Only the government can lose money in the pot business.”
Years ago The Mustang Ranch in Nevada was taken over by the IRS for back taxes. Of course they ran it into bankruptcy. A Senator remarked at the time something along the lines of “Only the government could lose money selling beer and *****. “
L
Pass the law, refuse to permit. Bootleg sales thrive.
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And taxes also. Why pay excessive state taxes when you can get it cheaper on the street?
Fascinating story. Never would have guessed this would happen in NY.
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I’m thinking it’s happened in California.
They surely act dopey.
Smuggle it into Mexico.
Even Tommy’s not stupid enough to still be smoking pot at his age, I hope.
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Willie Nelson is 90 years old. Still smokin’ and a tokin’.
I’m guessing it’s not like it disintegrates on the shelf but that the THC in it loses IT’S potency?
It’s a good thing God blessed him with a great voice or he’d be a walmart greeter at best.
There is nothing the government touches that either cost too much or fails completely.
This reminds of the story of the IRS taking over a legal brothel in Nevada and it ended up going bankrupt (may not be true but it is a good story).
Mustang Ranch
We always just split it up into baggies and stashed it in the back of the closet.
Captain Mucus: "You men go northwest! You men go southwest! I'm gonna walk around right here in a circle."
250,000 lbs of weed will require a very large closet.
Not that I’m aware of.
I’m no expert in the field tho.
L
If not stored properly, it can get mildew/mold.
Much of the overlarge crop will find its way to the black market.
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