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Canada's Legal Supply of Marijuana Will Not Meet the Country's Demand When Legalization Begins

The date for when marijuana legalization will finally begin in Canada is a little over 12 days away (you can see the full countdown on the Civilized homepage), but it turns out many dispensaries may not be ready for that fateful day.

A new report from public policy think tank C.D. Howe Institute says that the demand for legal recreational marijuana will far exceed Canada's legal marijuana supply when legalization begins. In fact, the Institute says the country will likely not be able to meet demand for at least the first full year of legalization.

These findings are based of mandatory reports Canada's licensed cannabis providers must give to Health Canada, as well as forecasts and estimates of marijuana demand from Statistics Canada and the Parliamentary Budget Officer, as well as data from legalized states in America.

The C.D. Howe Institute says it won't necessarily be a problem Day One, so you won't walk into a dispensary to find all the shelves empty. But over the next few months, don't be surprised to see prices increase and/or a supply shortage at many cannabis businesses. 

As a result, the C.D. Howe Institute predicts that the Canadian black market for marijuana will still be alive and well for at least the first year of legalization as illegal dealers fill in the gaps while legal businesses ramp up production.

(h/t CBC)

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