Patrick Rohde 
Member since Nov 11, 2015


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Re: “Battle Royale Starts to Erupt Among California's Legalization Factions

What we are seeing in California is a war within the cannabis industry between the dispensary operators and the growers. Dispensary operators are using investor capital to run initiatives to control and co-opt California regulation of medical cannabis so they can form a de facto cartel of cannabis distributors. Why a cartel? So they can fix prices for both the growers and the consumers ie. Rig the regulatory system so they can always buy low and sell high while using the law to outlaw and criminalize competition in both the black and white markets. They feel the need to do this because they know by rigging prices growers will seek more competitive buyers either on the street or out of state as it happens now. But the dispensaries are delusional because supply is already well over California's demand and home grows will continue to expand supply and innovation regardless of what regulatory capture they are able to achieve. Outlawing small grows will only hand comparative advantage to other states with better regulatory structures like Oregon. Operators need to look at profits 10 to 20 years from now through developing the industry; most efforts now are based on near term planning and dreams of large corporate buyouts by large entities that have no idea how the marijuana market works. Its quite a tragedy and could be prevented if growers dropped egos and pooled resources to gain dominance as they did in Oregon.

Posted by Patrick Rohde on 11/11/2015 at 10:13 PM

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