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Wednesday, May 25, 2022

Will oversupply markets eliminate smaller state markets if interstate marijuana trade is legalized?

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He has written a lot, especially in Cannabis.net, about the benefits of interstate marijuana and hemp with full federal legalization of the plant, but many small market growers in places like New York and Massachusetts are concerned that oversupplied areas of the West Coast may flood their markets with cheaper cannabis and cannabis. In the transition to a fully functional pricing market nationwide, will the oversupply of cannabis and hemp on the West Coast lead to massive price drops in the product as it is shipped to the East Coast?

Hemp growers in New York They fear that they are about to be marginalized by the newly established recreational cannabis industry. Their biggest concerns revolve around the idea that the industry will be saturated with large cannabis producers, and that small farmers like them will have little or nothing. profitable. The entry of large companies will start a competition that small cannabis growers do not have the resources to win.

The medical cannabis industry has had a place for social justice participants and small business owners, but the recreational industry is an entirely different ball game. New production companies will not only retain a large proportion of recreational consumers, but may also try to delve into the medical industry.

Pam Schmiel, Reporter at GreenEntrepreneur I recently had an interview with the president of the New York Cannabis Growers and Processors Association, Alan Gandelman. In the following paragraphs, I will highlight the main points raised during the interview. (Full disclosure, GreenEntrepreneur promotes Cannabis.net content on its site)

About Alan Gandelman

Gandelman Big strides have been taken behind the scenes to ensure that small business owners have a level playing field with large corporations to battle customers and interstate transactions. He has been a cannabis grower for a long time, and is the co-founder of the Head and Heal brand. He calls for help and cannabis fixes whenever and however he can. For now, his focus at the moment is making sure that other cannabis growers and social justice business owners are fully prepared when the entertainment industry begins operations.

Show Alan Fey Federal Certification and Interstate Commerce

During the interview, Pam and Gundelman talked about the looming federal legalization and interstate trade in cannabis products.

Gandelman said he feels that interstate commerce and federal legislation are unnecessary at this time. According to him, interstate commerce through a profitable enterprise can lead to the collapse of the business of small farmers and members of social justice.

The lecturer, Pam, used the current case of oversupply in California and Oregon to advance her view that state borders are opening up to interstate commerce. Mr. Gandelman went on to explain that while interstate trade has helped California and Oregon get rid of the problem of oversupply, it will also make it very difficult for newly ratified states intending to meet California’s current level of production. For example, it may take years to develop greenhouses and large-scale outdoor cultivation of hemp.

Not to mention the fact that these two states are currently selling at the lowest possible prices to consumers. Only large companies with ample financial credit can face such a challenge. Give it five years from now, most states will be on a uniform starting line. This would be the best time to implement trades between countries, and it might be later than that, but certainly not before five years.

He also added that MSO’s operations must be halted for some time so that farmers in the industry can put the appropriate infrastructures in place to keep pace with their production. Interstate commerce has negative effects that many people overlook. It is time for the government to amend cannabis laws to protect small businesses.

Cannabis growers will need help transitioning to new legislation

When asked about the New York Farmers team’s willingness to legalize, Gandelman said the people hired for the organization were those who already had greenhouse and extraction facilities operating in the state. These current growers own the hemp and CBD production sites that have been in operation for three to four years. Despite this, they still find it very difficult to compete against the next big companies.

“Businesses will look for the cheapest manufacturers if the borders are opened”

Gandelman made this statement when asked about the interstate cannabis trade. He stated that it would make more sense if CPG brands partnered to manufacture their products. If trade between nations is encouraged, many will lose money. When the medical cannabis industry was developed, interstate trade in hemp and CBD was allowed and ended badly. At the time, almost everyone grew up on the planets because it was cheap, and then to mitigate the oversupply, they had to sell CBD hemp for pennies on the dollar. The same would happen if the same were allowed for weeds that adults use.

He emphasized that in the case of international trade, countries prefer importing from Colombia over importing from neighboring countries. Columbia grows cheap; dollar to pound. Talk about his brand known as Hemp and Heal. The New York Corporation produced hemp oil among other brands. Using his company as a focal point, he said, these partnerships would be a more reasonable business model compared to interstate commerce. Hemp and Heal is one of twelve existing Hemp farms with extraction and distribution infrastructure, so they have CPG brands calling for partnerships.

Social Equality Programs in New York

Allan Gandelman is very active in his support of social justice programs throughout the state.

During his interview, he indicated that the state is working on developing several training and educational programs for social justice initiatives. They have an affiliation with the Hope Program in the Bronx where previously incarcerated people are equipped with skills related to advocacy, delivery services, dispensary operations, and cannabis cultivation practices. The state will also fund education and job training programs for selected social equity applicants.

He also added that cannabis degrees are being included in undergraduate programs across the state. Syracuse University already has a high school degree in cannabis.

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The state stumbles on preparatory activities for the implementation of the entertainment bill. Farmers and other operators are putting their brands on the front lines for high revenue. The New York Cannabis Growers and Processors Association is primarily tasked with preparing educational events, better networking among growers, and ensuring that even the smallest voices in the industry are heard by everyone.

Marijuana is shipped via a state line that is already legal, watch it below…

Is the interstate marijuana trade legal?

Is Interstate Commercial Marijuana Really Legal, Right Now? Professor Mikos Speaks!

Grow guide for marijuana beginners.
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