Oklahoma’s medical cannabis industry appears to be grappling with a significant overproduction issue, with diversion to illicit markets a major concern.
A study conducted for the state’s government by Cannabis Public Policy Consulting found the supply of regulated medical cannabis outpacing patient demand by a factor of 32.
For every gram of medical cannabis that a licensed patient in Oklahoma needs, 64 grams are being supplied. A healthy market would ideally maintain a supply-and-demand ratio of 2:1.
The study’s findings raise significant concerns, suggesting the immense oversupply of regulated cannabis may be contributing to an illicit market, both in cultivation and retail sales.
“This is not just about the sustainability of our medical marijuana market,” said Adria Berry, Executive Director of the Oklahoma Medical Marijuana Authority (OMMA). “It’s also about promoting public safety and combating the risks associated with illicit marijuana activity that all Oklahomans face.”
It’s estimated around 43% of the cannabis consumed in Oklahoma originates from illicit sources.
So, what is driving this oversupply? According to the study, a key factor is the lack of production management tools required by law, a loophole that has inadvertently stimulated growth.
Governor: “Way Out Of Control”
Back in March this year, Oklahoma Governor Kevin Stitt signalled his intention to implement stricter controls over medical marijuana in his state after learning there’s enough marijuana grown in Oklahoma to supply the entire USA.
“That’s not what that’s supposed to be,” said Governor Stitt. “This was supposed to be medical use in the state of Oklahoma, and it’s gotten way out of control.”
As at the beginning of June, there were 355,835 licensed patients in the state and 1,439 licensed caregivers.
The number of active licenses on the business side of things:
- 6,563 growers
- 2,852 dispensaries
- 1801 processors
- 148 transporters
- 27 laboratories
- 11 waste disposal
Licensing reports, tax revenue reports, and county totals can be found here.
Commenting on addressing the oversupply issue, Ms. Berry stated:
“OMMA stands ready to face these challenges head-on, equipped with new data, targeted insights, and the determination to build a thriving medical marijuana program for the benefit of Oklahoma.”
The full Supply and Demand Study can be accessed here, and OMMA’s strategic response here.
