Trinity County – Without Distributors

Trinity County – Without Distributors

Trinity County – WIthout Distributors the regulatory whirlwind that swept through California’s marijuana industry since the newly regulated market launched in January continues to fan many companies’ anxieties – especially those smaller farmers that are more focused on cultivation than mainstream business savvy.

In particular, the state requirement that all growers use licensed distributors as middlemen to get their product to market has resulted in a bottleneck in many rural marijuana farming areas, especially Trinity County, which is famously remote and therefore was a perfect stomping ground for illicit cannabis growers for decades.

But now, that remoteness has become a liability instead of an advantage. Trinity, which often plays third fiddle to its more famous neighbors in the famed Emerald Triangle – Humboldt and Mendocino counties – is home to 205 state-licensed cannabis farms, but it has zero distribution companies, a major obstacle for growers trying to get their product to retailers’ shelves.

It means the county’s growers may be left out of the legal supply chain, which curbs the supply of product to retailers. 

Trinity’s pain is something the state’s entire industry should pay attention to for these reasons:

Trinity County – Without Distributors

1. Distribution is an ongoing challenge across California – compounding the problem of retailers that suffer from bare shelves.

Thanks to roadblocks in California’s regulations, Trinity’s lack of distributors has led to “thousands of pounds” of cannabis from the 2017 harvest going unsold via legal channels, said local industry consultant John Brower.

“Right now, there’s empty shelf space in retail, and there are licensed cultivators up here that are fat with the product and desperately trying to find a white-market home for it,” Brower said.

“Harvest starts in two weeks, and many of these people haven’t moved product from last year.”

Brower testified in front of the Bureau of Cannabis Control and the Department of Food and Agriculture in Sacramento in August in an attempt to bring attention to the issues that have left scores of farmers without any way to get their product into the legal supply chain.

2. Local regulatory hurdles are significant and aggravate distribution challenges statewide.

Continue Reading here.

Source: How ‘thousands of pounds’ of California cannabis may be left out of the legal supply chain

Trinity County – WIthout Distributors

Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA