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While Statistics Canada indicates that the consumer price index for tobacco, alcohol and cannabis products increased by 3.5% between August 2021 and August 2022, the CPI for recreational cannabis decreased. This is largely due to the fierce competition between companies. Furthermore, as Sylvain Charlebois of Dalhousie University explains, "In fact, the last thing you want to do is raise prices because the black market has adjusted very, very aggressively and black market cannabis is cheaper." However, with inflation, the situation may become unsustainable for producers. Especially as their producer profit margins have been shrinking for the past few years. For example, using Ontario as an example, licensed producers in Ontario saw their share of sales drop to 60.8 percent in April 2022 from 74.2 percent in July 2019. Over the same period, the share accruing to the federal and Ontario governments through excise taxes increased from 23.9 percent to 37.6 percent.

Dark CBD is an unprocessed variant of the usual extractions. Thanks to this, the product preserves the vitamins, flavonoids and other phytonutrients that are naturally present in hemp but are lost during the refining process. In addition, the botanical elements that give this type of CBD its muddy appearance has anti-inflammatory properties but also many antioxidants. Thus increasing the therapeutic properties of the product.

 

A study published in the journal Substance Use and Misuse shows that the use of cannabis in patients had reduced their consumption of traditional pharmaceutical drugs. These patients suffered from various symptoms including anxiety, pain, depression, sleep disorders and post-traumatic stress disorder. Nine out of ten patients (90.6%) reported that cannabis was "very or extremely helpful in treating their illness," and 88.7% reported that cannabis was "very or extremely important to their quality of life. In addition, 85.9% of those surveyed reported that cannabis effectively reduced their pain, and 79% of those who reported taking opioids for pain reported that they had reduced or stopped their use of medication because of medical cannabis. In fact, researcher Carolyn Pritchett concludes, "the use of opioid-based analgesics can be reduced or even discontinued, especially in chronic pain patients, through the use of medical cannabis." Thus, "if there is the possibility of using instead a drug with less harmful side effects, including a lower risk of overdose and death, then perhaps it should be considered."

As Delta 9's John Arbuthnot explains, "red tape, high taxes and low margins are hurting profitability. As a result, more and more of the industry's smaller companies are being bought out by the bigger players. He says, "Canadian cannabis and the retail segment are now reaching a saturation point. Consolidation is going to be a key theme going forward. But beyond that, he appeals to the government to cut red tape and taxes, one of the things that undermines the Canadian cannabis market the most: "We really need the government's support to come in and look at this overall structure that we've created for the industry in terms of regulation and taxation, say what's working and what's not and make some changes quickly."

In October 2018, the Liberals lifted a century-long ban on the use and sale of recreational cannabis, providing that they would review the law three years after it went into effect.

That review is nearly a year overdue.

The law stipulates that the federal government must investigate the impact of legalization on public health, youth use and Aboriginal people and their communities.

The review will also look at home-grown cannabis.

Health Minister Jean-Yves Duclos and Mental Health and Addictions Minister Carolyn Bennett must report back to the House of Commons and Senate within 18 months of the launch of the review.

The $54 million paid includes its net profits of $20.5 million as well as $33.5 million in consumption and excise taxes. The $20.5 million will be invested in prevention, research and substance abuse prevention. In other good news, sales have increased from $136.5 million to $139 million compared to the same period last year. As a result, a total of 25,050 kg were sold, mainly in branches.

 

The mini-home trend took off a few years ago. These homes have become popular for two reasons: because they are economical, but also because they are more environmentally friendly. Two Irish companies, Common Knowledge and Tigin Tiny Homes, have decided to collaborate to take the concept even further by creating mini-homes with hemp panel structures by combining a sugar-based resin from plant waste and cannabis plant fibers. This therefore reduces the carbon emissions of these constructions but also contributes to the circular economy. 

Germany imported a record amount of cannabis for medical and scientific use in the first half of this year, putting imports from the European Union's largest market on track to equal or exceed the 2021 total. However, while Canada still remains the largest supplier to the German market, it appears that its market share is shrinking as this highly prized but still small market intensifies. As a result, competitors such as Denmark, the Netherlands and Portugal are beginning to gain ground.

Akanda Corp. has announced that Terry Booth will join its advisory board. According to a company release, "Terry is an iconic figure in the regulated cannabis industry. After founding and leading Aurora, he brings his extensive expertise to a wide range of fast-growing organizations around the world," said Akanda CEO Tej Virk. "Having Terry on board as an advisor is a powerful validation of our strategy and potential to lead the emerging cannabis market in Europe. I look forward to his guidance as we continue to develop our European seed-to-patient distribution channel."

While the industry has managed to weather the COVID-19 crisis, rising inflation and the increasing threat of a recession in North America are beginning to put pressure on companies. As a result, many North American companies have been forced to cut hundreds of jobs, close outlets and facilities, and even shut down operations entirely. According to experts, the economic downturn in the cannabis industry is a consequence of several factors, including falling wholesale cannabis prices, declining consumer purchasing power, but also structural changes affecting the industry. The shortage of labor is a factor that affects the industry as it is the case for many industries. Added to this is the fact that there are also many companies that have begun restructuring procedures. As Daniel Summer, Professor of Agricultural and Resource Economics at the University of California, explains, "The declining costs of cannabis at the operating level is the reality of this sector. That's due to better management, but also technology. However, taking inflation into account, we now spend 10 percent of our income on food - not 4 percent as we did two generations ago - and there's no reason to think that cannabis won't follow that trajectory. 

A study from the University of Cambridge puts an end to one of the most widespread clichés about cannabis users: that consumption makes them lazy and demotivated. According to the results of the research, it would be the opposite: cannabis users have a level of anhedonia, which is a loss of interest in receiving rewards, which would show that they would be more capable of having fun than others. As for their levels of apathy, users and non-users scored equally. Thus, the researchers said, "(they were) surprised to find that there was really very little difference between cannabis users and non-users in terms of lack of motivation or lack of enjoyment, even among those who used cannabis every day. This is contrary to what we see on television and in movies. Interestingly, teens tended to have higher levels of anhedonia and apathy than adults, which would demonstrate that teens are no more vulnerable than adults when it comes to motivation. To corroborate their findings, the research team also examined the participants' fMRI images and noted no significant changes in brain activity in the ventral striatum, the region that regulates the brain's reward system.

While Germany has announced its intention to legalize cannabis and will become Europe's largest market (estimated to be worth over $100 million), it seems that the Canadian government has missed an opportunity to promote the industry and thus encourage exports to Germany. Especially when there is a surplus of Canadian supply. As the Canadian Chamber of Commerce explains in a statement to MJBizDaily: "As the first G-7 economy to legalize recreational cannabis, Canada has a distinct advantage and should promote the legal sector internationally. While cannabis was not on the agenda during German Chancellor Scholz's brief visit to Canada earlier this month, the Canadian Chamber's National Cannabis Working Group believes Canada should actively work to secure future meetings with countries like Germany to share industry best practices and facilitate trade opportunities, including the export of medicinal cannabis." Especially when the cannabis industry has contributed nearly $43.5 billion to the national economy.