Business failures and consolidation failed to stop Canada’s stockpile of unsold cannabis from reaching a new high in the final quarter of 2022, the latest sign that shrinking prices and margins could continue to squeeze companies.
Packaged and unpackaged inventory of dried cannabis jumped to an all-time high of 1.47 billion grams (3.2 million pounds) as of December 2022, according to the latest data from Health Canada, which tracks overall unsold stockpiles of licensed producers, wholesalers and retailers.
That’s an increase from 1.3 billion grams in December 2021.
Federally licensed cultivators were sitting on 1.39 billion grams of packaged and unpackaged inventory as of December 2022, while stores and wholesalers held 80.7 million grams of packaged inventory.
The data suggests the country’s cannabis industry remains gripped by a supply-and-demand imbalance, even though many of the biggest producers have mothballed their largest cultivation facilities.