A report released earlier in the spring indicates that nearly $1 billion in black market cannabis was exported out of Canada last year. The vast majority of these shipments were illegal, according to Stat Can’s Head of National Economic Accounts. As the industry prepares to take on the black market, this report is disheartening for both lawmakers and cultivators working to supply Canada’s impending recreational boom. Most Canadians opt for black market sources, and with the price forecast for recreational cannabis, this may not change anytime soon.
According to the report, less than 1 percent of Canadian cannabis exports last year were from legal cannabis suppliers. To go one step further, only 10 percent of Canadians actually report using dispensaries to get their bud. Instead, these citizens prefer to buy from their local hook-up or dealer. The black market is currently set at a bit over $6 per gram across Canada. When legal weed comes through, the price per gram should be around $10 in the recreational market. This report shows that despite the legality of cannabis, the black market could continue to thrive for some years if the price discrepancies continue.
This is especially prevalent in provinces like Ontario, Nova Scotia, and Quebec. Their laws, when enacted, will shut down all privately owned dispensaries and will allow the sale of cannabis from government-licensed dispensaries only. Based on the data and what we have already seen in the recreational markets in legal states in the U.S, there will be a lot of pushback from the black market as they fight to stay in business.Posted: Tuesday, June 12th, 2:10am 4 months ago
Cara Wietstock is a native Californian living in Washington state with almost a decade of budtender experience and even more stoner experience. While she's not pontificating on the current state of cannabis for Roottie, she is practicing yoga, sipping CBD infused teas and hiking through the Pacific Northwest.