Think tank warns Canadian cannabis production won't meet demand
A report by a think tank warns that Canada's supply of legal cannabis at current production levels will meet just 30 to 60 per cent of total demand.
The report is from the CD Howe Institute.
It says by the end of the first year of legalization, the amount of commercially produced legal cannabis will total about 210 tonnes, while the estimated demand will be 610 tonnes.
The report to be released next week forecasts that there will be 97 licensed producers during the fourth quarter 2018, up from 45 during the first quarter but fewer than the 144 expected by the third quarter of 2019.
Canada is preparing to legalize cannabis for recreational use on October 17th.
The report warns that the shortage of legal pot will steer users back to the black market.