2 Million Kilos produced / year in Canada by end of 2019 Many of the 150 or so LPs will not have contracts or demand to sell all their recreational product (flower) by late 2019/2020. The rec market is only a portion of the market and is swamped by competition trying to make the fast buck while the demand is unmet. The oversupply in late 2019 will drive the price of bud down which will be really really bad for other LPs.
Those with contracts (medical) / global footprint / medical demands / extraction facility and products beyond just bud will flourish with limited competition. Aphria has everything in place to rise to the top once real competition sets in.
I see this industry having only 4 or 5 LPs by end of 2020. Many of these 150 or so LPs will sell for considerable less once oversupply sets in. Thoughts?