Marijuana legalization: a modern industry in business

Nearly a year or so ago, the Canadian authorities made marijuana use illegal. Despite the business’s expectations, why isn’t cannabis production growing as fast as usual?

The Modern Marijuana Business

The medical use of marijuana was made legal in Canada in 2001. And as of October 2018, the channel was the first major nation to make legal marijuana use illegal. The new law will allow individuals to buy cannabis for their personal use at authorized vendors and carry around 30 g in a public area.

Before legalization, the channel was among the highest consuming nations per head of the population. Various assessments put the black book’s yearly black book sales at 4 bln Europeans. Clearly, the conversion of the edibles online business to a legal one gave the businesses engaged in it a lot of excitement.

“There s a spirit of a gold fever in this industry,” said Mark Randall, an industry economics observer for one of Canada’s biggest newspapers, the Globe and Mail. – It’s not very often Canada takes the leadership role in something.

Businesses that specialize in marijuana

Several businesses started making arrangements to work in this area before free sales of hemp were allowed – at considerable risk because it was long unknown if legalization would occur. It was one of the campaign pledges made by current prime minister Justine Trudeau. He argued it was the better way to fight the illicit sale of marijuana as well as its use by young adults.

The legalization is the result of a complicated trade-off among the many political interests. It is striking when one looks at the legislative basis regulating the area. Every lawful manufacturer or supplier must obtain a Federal Licensing. Each region of this country is responsible to regulate the marijuana industry and determining the age of entry for the user.

Although the market for the product is in high demand, it is not moving as fast as anticipated. In order to raise cash from investor funds, businesses have been shown to offer the promise of a goldmine, yet in fact, it will take another three years at minimum for legal production to meet popular needs, Mark Rendell thinks.

Licensed marijuana trade

Businessmen are in line to obtain a new license The market promises big profits but isn’t growing too fast. There are several reasons. First, growing cannabis is a new business for legal growers. It requires special equipment, giant greenhouses, and qualified personnel.

All this requires a lot of expenses. In addition, in the first years, it is not always possible to achieve a high yield and appropriate quality of growing cannabis. And large corporations are not investing a lot of money in production yet, waiting for the results of the experiment with the legalization of weed online. Will we be able to squeeze the black market?

And most importantly, will the new measures really contribute to the fact that the number of marijuana users will not increase and among young people will not decrease at all? And won’t the new big players in cannabis production and sales in Canada be a willy-nilly contributor to the spread of drug abuse in the country? There is not enough time since the new law was passed to provide definitive answers to these questions.