COVID-19 Supply Chain Crunch Impacts Cannabis Space

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One of the great struggles of today’s legal, publicly traded cannabis industry is to wedge a perishable agricultural product into the shelf-stable, uniformly sized box of a consumer packaged good. This means that the modern cannabis industry is susceptible to the same COVID-19 supply chain crunch plaguing every other commercial sector. Automobiles are scarce and exorbitantly expensive because of a dearth of computer chips. New home prices have sky-rocketed because lumber and hardware are more costly. And in addition to increased fuel prices and the cost of maintaining fleets of delivery vehicles, cannabis companies are grappling with an increase in prices affecting pre-roll cones and the reservoir tanks for vaporizer-pen cartridges, as well looming shortages of more prosaic sundry items like the plastic lids for flower jars, according to interviews. But unlike consumers seeking Xboxes or pickup trucks, who have little option beyond paying more for a used good or waiting for a new one to become available, cannabis buyers can choose to patronize the traditional or illicit market. So the cannabis industry’s COVID-19 supply chain crunch comes at one of the worst possible times, as cost-conscious consumers continue to shop on the illicit market because of sticker shock at licensed retail dispensaries. Not Just COVID, But Holidays and Homogenization In some cases, items are slow to arrive or more expensive because of the COVID-19 supply chain crunch—but not always. In China, for example, premier Xi Jinping’s official policy on the virus has been “COVID zero,” which means that for every two weeks at work, port workers quarantine for three weeks to stop the spread of the virus. This policy upheld even after the more contagious omicron variant’s appearance, according to observers. But the bottlenecks already affecting the supply chain are poised to become worse over the next month, as…

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Source : COVID-19 Supply Chain Crunch Impacts Cannabis Space

reposted by Cannabis News World

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