In a concerted effort to address the challenges posed by market saturation, the Cannabis Industry Alliance of Oregon (CIAO) is actively advocating for the permanent extension of a licensing moratorium that is currently slated to expire in April. This development was reported by KLCC, shedding light on the CIAO’s strategic move to sustain industry equilibrium
Implemented in 2018, the statewide licensing moratorium came after over 3,000 licenses were issued for the production, manufacturing, and retail of adult-use cannabis products. With the moratorium in place, the industry experienced a temporary freeze on new licenses. Mike Getlin, the board chair for the CIAO, emphasized the challenges faced by businesses vying for market share in an oversaturated market, stating, “There are so many businesses competing for the same amount of market share that it’s just not feasible.”
As the fourth U.S. state to adopt cannabis legalization, Oregon initially did not place a cap on the number of available licenses. Since its inception, the industry has grappled with issues of oversupply, a lack of demand, and record-low wholesale and retail cannabis prices.
Mike Getlin expressed the urgency of addressing the licensing moratorium, stating, “What we’re fighting for is not to fix the Oregon system. It is simply to not accidentally have a big old knife stuck in its heart.”
With the licensing moratorium set to expire in April, the CIAO, representing over 500 cannabis operators in the state, is urging lawmakers to take action during the upcoming legislative session, scheduled from February 5 to March 10. Officials from the Oregon Liquor and Cannabis Commission have indicated they may lack the legal authority to extend the moratorium, adding a sense of urgency to the issue.
