Medical marijuana supply chain and distribution at cross roads

It’s a tough go for legal weed growers. Today, the Canadian federal medical cannabis system, or Marijuana for Medical Purposes Regulations (MMPR) is struggling to compete with the unregulated dispensary supply chain.

Despite often lower prices, the tightest quality assurance in the world, and the draw of being able to offer cannabis purchased legally under federal law, the MMPR has been stymied as dispensaries have flourished over the last 18 months.

Some estimates suggest that dispensaries serve around 300,000 Canadians who categorize their cannabis use as medical, while the MMPR only serves around 40,000.

All told, dispensaries allegedly sell over 150 kg of cannabis per day through as-yet unregulated retail storefronts. The MMPR sells less than 40 kg per day through mail order exclusively. Consumers have spoken in word and deed, and today retail cannabis locations are preferred over mail order.

The MMPR is languishing as companies struggle with high...

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