Too much weed: Canadian cannabis producers are sitting on a mountain of inventory, and it’s making some industry watchers nervous

Canadian cannabis producers and extractors are sitting on a massive stash of unfinished inventory that is growing so quickly that some analysts are concerned it could precipitate a price crash in the burgeoning industry. Since January of 2019, the amount of unfinished inventory of dried cannabis has nearly tripled, reaching a staggering 328,000 kilograms at the end of August. That compares to roughly 118,000 kilograms eight months earlier, according to Health Canada data. Health Canada defines unfinished inventory as the amount of cannabis held in stock by a “cultivator or processor that is not packaged, labelled and ready for sale.” It defines finished inventory, a figure pegged at 60,872 kilograms at the end of August, as product ready for sale that is held in the warehouses of provincial wholesalers and licensed producers. With sales of dried flower reaching just 13,000 kilograms in August, that means total inventory tracked by Health Canada was nearly 30 times the industry’s monthly sales rate. While it is unclear what percentage of the unfinished inventory consists of dried bud versus cannabis trim (leaves from the plant that can be used for extract products) or even potentially other plant waste, the rapid growth in the metric…

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