Canadian cannabis wholesale prices tumbled more than 40% last year as companies continued to work through stubborn supply gluts and struggling cultivators chose to sell off their unsold marijuana instead of destroying it.
Looking at the latter part of 2023, some industry experts see the oversupply of wholesale cannabis easing somewhat as more licensed producers leave the market and the remaining cultivators adjust growing volumes to match demand.
But others are more bearish and foresee wholesale prices continuing to fall.
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“Oversupply and excess capacity have resulted in high-quality flower being widely available and sold well below the marginal cost of production,” Zach George, the CEO of cannabis producer SNDL, said in a news release this week.
Citing industrywide overproduction, the release noted that SNDL is eliminating about 85 employees and scaling back activity at a production facility in Olds, Alberta.
MJBizDaily previously reported that the total amount
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