Will Cannabis Demand Fail to Meet Supply?Demand isn't anywhere close to forecasts while supply is set to surge. An updated list of the top producers that now forecast annual production of at least 2.5 million kg or over 2.5x the projected demand that isn't even materializing.
- Aurora Cannabis - 662,000 kg
- Canopy Growth - 550,00 kg
- Aphria - 255,000 kg
- CannTrust - 200,000 to 300,000 kg
- The Green Organic Dutchman - 219,000 kg
- HEXO - 150,000 kg
- Aleafia Health - 138,000 kg
- Zenabis Global - 131,300 kg
- Cronos Group - 117,500 kg
- OrganiGram Holdings - 113,000 kg
Most are also planning to go the oil extraction route.
The bottom line.
What can 48North do to overcome this anticipated excess inventory situation?
Is extraction-based brands the solution?
Is the entire cannabis market vulnerable?
Will companies be forced to sell flower at prices below cost to generate cash?
Is it oil extraction capacity that sparates the winners from the losers?
Many questions for which investors need answers.