In the years before legalization, investors had invested millions of dollars in infrastructure to grow cannabis on an industrial scale. By the end of last year, there were more than a billion grams of legal cannabis in storage facilities across Canada that could not be sold. Approximately 30 million grams are consumed every month in Canada. Cannabis growers were growing at a high rate even before stores were licensed to sell it and opened. They harvested about 360 million grams of the crop last year.
The fact that the marijuana business is regulated differently in different provinces of Canada also played a role. For example, in Alberta, applications for licenses have been accepted since March 2018, so cannabis shops opened quickly.
In the most populous province of Ontario
, retail licenses were issued much more slowly. And the sale is regulated differently here: The Ontario government cannabis store (OCS) buys cannabis from licensed growers, sets a price for the product, and then sells it to private retail stores.