The general theme is that if Oregon and Canada were any type of test experiments, we are going to see massive oversupply in the legal, and certainly the illegal markets, hence, compressing margins in first world countries like the US and Canada. So how can you make money? Remember our article about when the price of cannabis the flower drops, how do you make money? Turn that plant flower into an ingredient and make a higher priced, higher margin product like an edible or oil. Think about what Hershey’s does with the commodity called sugar, they take a commodity, make it an ingredient in a higher priced, higher margin product, and then sell it. Cannabis is a commodity, it is a plant that grows in 12 to 16 weeks, indoors or outdoors, eventually it will be traded on with Future’s contracts just like sugar, lima beans, corn, flower, and coffee. My guess is that there will be three levels of quality traded in the future’s market, medical, recreational, and schwag, but I digress.
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