State regulations causing supply problems for cannabis industry
On July 1st, a sweeping change was made in the California cannabis industry. New regulations went into effect which changed the processing, testing, and labeling of marijuana products. The aim is safety; the regulations are meant to inform would-be consumers of what they’re putting in their bodies.
Although the intent is noble, the new regulations have shop owners across the Coachella Valley abuzz with frustration. Their stocks have been depleted, not due to lack of supply, but due to lack of regulation-cleared supply.
“Days ago we had product filling every one of these shelves from front to back,” said Decklan Reilly, General Manager of Organic Solutions of the Desert. “Over the past few weeks, we have been combing over our inventory, going through every product from top to bottom…[to ensure they fit the regulatory requirements.]”
Unfortunately for Reilly, all of the products that were not up to code had to go out the door; Organic Solutions had to jettison more than half of its product thanks to the new regulations.
“There was a grace period from January one to July one and basically not everybody was ready,” said legislative director of the Coachella Valley Cannabis Alliance Network, Jocelyn Kane.
An additional issue arises when it comes to restocking. There are just 19 laboratories throughout the entire state of California used to test the products and the new regulations have jacked up the demand for the testing services. The testing gets backlogged and the cannabis industry suffers.
“Far too many trying to get their product labeled and tested to try to meet the standards of California,” said CVCAN president and founder, Jason Elsasser.
Elsasser said he understands the need for the new rules, so that users can know what is in the product they are consuming.
Industry experts warn that this is just the beginning of a long road.
“There’s going to be a lot that goes on, a lot that’s going to change and a lot of uncertainty, but that’s the nature of this beast,” Amanda Ostrowitz told KESQ News Channel 3’s and CBS Local 2’s Katie Widner. “I always try to tell people, this is just the first out in the first inning of a nine inning baseball game. We’re not even at the bottom of the first yet.”
Ostrowitz is the Chief Executive Officer of CannaRegs, which tracks laws across the country regarding the industry.
People interested in learning more about the Cannabis industry within the Coachella Valley, are invited to attend CVCAN’s July networking event Monday night.
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