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Market Report & Updates from the Cultivation Classic

Last week, we attended the Cultivation Classic and sponsored a couple of events—like the Grower’s Rendezvous and The Concierge Classic— to celebrate growers while connecting them with buyers.

 

Over three days, we talked with hundreds of people working at leading producers statewide, as well as with every type of buyer in the market we could find. We’d like to share a little insight with you about what’s happening in the Oregon cannabis market right now from the information we learned during many fascinating conversations.

 

  1. It looks like the worst of the oversupply problems and low prices are behind us as the Oregon market seems to be turning a corner.

 

In general, there’s an optimistic vibe among operators in the market, but it’s not quite time to celebrate. The last year has been rough for everyone, so naturally, no one is in much of a party mood (except for those winning awards). Sadly, many operators went out of business in the last year, yet current operators seem to feel stronger and better positioned than they have in a long time.

 

  1. In only a few months, Oregon went from having 6 years of oversupply to supply shortages in certain segments.

 

Outdoor flower is now virtually out of stock, reported by almost every buyer. The growing demand for pre-rolls and manufactured products created a supply shortage of low-cost biomass for processing (like trim, B-buds, and bulk outdoor). Additionally, many outdoor farms cut back production for the 2018 harvest, while others shifted to planting hemp strains, leading to less supply on the outdoor front.

 

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  1. Meanwhile, greenhouse and indoor flower is still very much in supply—receiving most of the demand these days. On average, prices are slowly increasing from lows of $300/lb for outdoor to $600/lb and $500/lb to around $800/lb for Greenhouse and Indoor flower.

 

Conclusion:

Looking at these market trends, those farms making it through the worst of the downturn should see better prices per pound, particularly outdoor producers, as demand is currently so high.

 

Our team of cannabis professionals in Oregon keeps an ear on the streets by meeting with every buyer we can. As we learn more information and identify further trends in the market, we’ll keep you updated!

Are you seeing anything different? Let us know here.