The first year of legal cannabis in California has come to a close and here we are in 2019. Coming into the new year the BCC has proposed their new permanent regulations which will be adopted very shortly. All licensees who have followed the rules will soon be converted from temporary licenses to permanent bringing an end to the Emergency Regulations Transition Period. Now is the time to shore up any loose ends and make sure you are 100 percent in compliance.
Change is in the wind as businesses move to prepare for what is to come. Currently pricing for flower has stabilized and Distributors are making grabs for good deals before the fresh on hand inventory dwindles. This is shaping up to be a prime time for getting exceptional deals on fresh flower as cultivators are motivated and in fierce competition for market share and legal sales to secure their places in the legal market.
Surprisingly for the first time Trim and blasting material sales have slowed and prices are falling due to an abundant supply of crude. Distillate sales are still holding strong but the industry bottleneck seems to be getting crude winterized and converted into distillate to keep pace with crude production which is now far outpacing distillate production.
Blasting material prices are still strong currently hovering between $80 and $90 but are expected to rebound as inventory falls over the next several months. It won’t be long before processing trends between crude and distillate catch up and balance out.
Permanent regulations are coming folks, very shortly everyone will be required to be on Track and Trace. If you have not done so, start to learn about Track and Trace immediately and have a plan for implementation. There are many 3rd party software options available that integrate with Track and Trace designed to make your user experience easy and streamlined.
Everyone is experiencing the growing pains of conversion into the legal market and now is crunch time for those who will be awarded the permanent licenses. Stay ahead of the game and make sure you’re familiar with what changes apply to your business.