California Growers Remain Optimistic Amid Encroaching Market Obstacles

California Growers Remain Optimistic Amid Encroaching Market Obstacles

<![CDATA[Full Moon Farms Another spring planting season for California’s legal cannabis growers is a time for optimism, an outlook curbed by a bevy of issues holding back the industry from its full potential.Operators interviewed by Cannabis Business Times pointed to an ongoing supply glut, ever-changing state regulations and the still-thriving illegal market as obstacles negatively impacting their work this year. Yet, cannabis entrepreneurs continue to stay nimble in their daily functions as they wait for the pendulum to swing the other way.Full Moon Farms, a small-scale business with three separate properties in Humboldt County, has 2.6 acres of sun- and greenhouse-grown cannabis canopy. Owner Nik Erickson works from a trio of disparate microclimates in growing strains such as Ice Cream Cake and Northern Berry. Erickson enjoyed a hot sales year in 2020 before backsliding somewhat in 2021 with a declining market share for flower that remains a thorn in the side of California’s licensed cultivators. According to the California Cannabis Industry Association (CCIA), flower sales in March 2021 totaled $207 million, or just above 43% of total sales. In 2022, flower sales totaled about $150 million, or 37% of total sales.“Farms got stuck sitting on product, which hit the bottom line for smaller operators that don’t have the wiggle room of the bigger, well-financed farms,” says Erickson. Even as legal cannabis sales in the state increased by 7% from February 2021 to February 2022, transactions on a month-to-month basis over that time have contracted to pre-pandemic levels. Additionally, an unequal balance of supply and demand has created a bottleneck for businesses in Humboldt County and elsewhere. Roughly 1,000 brands in California have created a surplus for approximately 850 licensed retailers, making it difficult for Full Moon and others to gain much-needed market access.“Ask an L.A. dispensary for Humboldt County sun-grown and…

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Source : California Growers Remain Optimistic Amid Encroaching Market Obstacles

reposted by Cannabis News World

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