Hundreds of thousands of pounds of marijuana are sitting on New York cannabis farms without a single legal recreational dispensary ready to sell the product.
An estimated 300,000 pounds of weed are becoming a problem for farmers who planted the crop in the hopes of cashing in on the drug's legalization in New York state. The average wholesale value of $2,500 per pound is how much the lot is worth.
The recreational cannabis market is stagnant as applicants for the first 150 individual retail licenses are still waiting to hear back from the Office of Cannabis Management.
Melany Dobson, CEO of New York-based Hudson Cannabis, said it's not the only thing holding her and others back.
Dobson said it was an unclear path to market. The dispensary will open before the end of the year. I've acted like that's our sole source of proof, so we're prepared for that.
Farmers are working to extend the shelf life of pot as they prepare for the legal dispensary.
Dobson said that old cannabis started to have a brownish glow.
We're trying to keep as much quality as we can. It's not the way to do that.
According to Dobson, Hudson Cannabis won't start generating revenue in November. The chair of the Cannabis Control Board said in May that retail sales would begin in late 2022.
More daring entrepreneurs have taken advantage of the legal gray area around marijuana and opened their own retail storefronts without a license, according to a report from Ben Gilbert.
A non-refundable $2,000 is required to submit the application for becoming a legal retailer. If a person has experience owning and operating a business, they will be the first to get licenses if they have marijuana convictions.
The board will meet on Monday.
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