“As in all businesses, the performance of the business against increasing competition and increased customer choice will determine its success.”
By Sophie Nieto-Munoz, New Jersey Monitor
New Jersey’s marijuana production is being questioned by the decision of New Jersey’s biggest marijuana company to reduce production at its second facility in four-months.
Curaleaf announced that it was laying off 49 employees at its Winslow Township facility, citing “ample supplies” of marijuana for the current market needs. Marijuana advocates say that claims of a sufficient supply of cannabis are in conflict with the stubbornly high price in New Jersey and that closing the Winslow plant will cause problems for customers as more small dispensaries start to open.
Chris Goldstein, regional organizer for the National Organization for the Reform of Marijuana Laws, said that “you don’t need a degree in economics to understand that New Jersey is not a good deal.” It doesn’t make sense that they would close the grow and lay off all of these employees just as small business licenses are being issued and these products could be purchased.
New Jersey is home to some of the nation’s most expensive marijuana. Curaleaf’s New Jersey stores sell recreational marijuana for up to $60 per eighth ounce. This is compared to the underground market where an eighth ounce of marijuana costs $40. Curaleaf also sells eighths at $10 in states like Oregon that are experiencing a massive marijuana oversupply.
Why are New Jersey residents paying so much for weed while Curaleaf shuts down facilities, claiming that there is more than enough in the state? Advocates pointed out the lack of knowledge about New Jersey’s supply, and the overwhelming corporate control over the industry.
Leo Bridgewater is a cannabis activist who has been active for many years. He said that if New Jersey grows so much cannabis, Curaleaf could shut down two facilities, then prices in the United States should be lower. He said that what the company says and what they do are “two completely different things.”
Bridgewater stated that “This is more of a reflection on Curaleaf, as a business, than the New Jersey cannabis sector as a group.”
Curaleaf has decided to shut down its Winslow facility four months after the state’s Cannabis Regulatory commission revoked Curaleaf licenses for three facilities, citing a clash with unionization and a lack transparency with officials. Four days later the agency reversed their decision and renewed licenses.
Curaleaf’s CEO Matt Darin stated in a press release that the company had complained to the New Jersey commission about “difficult conditions on the market”. He noted delays in the approval of licenses as well as a lack enforcement of the illegal market.
The 35 licensed dispensaries that are currently operating in New Jersey do not meet the demands of a state of this size, and there are far fewer than we were told would open. The current market conditions make it impossible to produce cannabis products at the same level, forcing us to reduce production.” he said.
The commission disputes Curaleaf’s claims about New Jersey’s market. It believes that it is “growing significantly.” Spokeswoman Toni Ann Blake pointed out 138 new licenses for manufacturing and retail businesses who could be Curaleaf potential customers.
Blake added that the agency expects to “continue its growth” and said “as with any business, performance against increasing competition and customer choices will determine success.”
She said that recreational cannabis sales totaled approximately $474 million over the past 12 months.
Goldstein said that he regularly monitors New Jersey menu prices. He has not seen a significant drop in prices since April 2022, when the recreational cannabis industry was launched. He pointed out that corporate cannabis companies, which are multistate operators, hold the 15 active cultivation licenses. He added that they provide marijuana for the entire state, which limits consumer choices.
Goldstein wants to see the state publish information on its wholesale and retail pricing. Goldstein cited Pennsylvania, where Pennsylvania’s top medical marijuana official criticised dispensaries last year for overcharging customers. Dispensaries dropped prices a few weeks later.
He said, “There are two words to describe this kind of behavior: Market manipulation.” “Unfortunately, this is something we have become accustomed to in New Jersey’s marijuana industry.”
Curaleaf refused to comment on its cannabis supply when asked. The commission refused to provide details on the state’s cannabis supply.
Bridgewater defended Cannabis Regulatory Commission by saying that many delays in the increase of retail locations were out of their control. He pointed to the large number of New Jersey municipalities that have banned dispensaries.
He also said that there aren’t enough useful statistics on the cannabis supply in the state yet. He expressed his hope that the commission will track the supply and share information once it has a complete picture.
“I’d like to have that information…but we are only 15 months away from the event and only 35 retailers are involved.” Bridgewater stated that the sample size was not large enough for him to make any decisions or draw conclusions.
The original publication of this story was by New Jersey Monitor.
Medical Marijuana is Linked to Lower Pain and Reduced Dependence on Opioids and Psychiatric Drugs, Another Study Shows
The post New Jersey Marijuana supply levels remain in question as Curaleaf moves to lay off workers at Cultivation Facility first appeared on Marijuana moment.
