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Canada Is Facing a Shortage of Legal Weed

  • Black Market to thrive as legal supply meets 30%-60% of demand
  • Production shortfalls will limit government tax hauls
Bloomberg business news
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The supply of legal pot in Canada will only meet 30 percent to 60 percent of demand after legalization, keeping the black market very much alive and stunting the government’s tax take, according to a new study.

Cannabis supply will reach about 210 tonnes, or 210,000 kilograms, in the first year after Canada legalizes marijuana this month, according to a study to be released next week by researchers at the University of Waterloo and the C.D. Howe Institute. Demand meanwhile, will be about 610 tonnes.