Utah will license 10 cultivators to grow medical cannabis crops for the state’s medical cannabis patients, according to a KUTV report. Under the state law passed last year outdoor cultivators can grow up to 4 acres, while indoor grows are limited to 100,000 square feet.
Both the cultivation limits and the number of licenses will lead to over or undersupply, depending on who you ask.
Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, told KUTV that there would be an oversupply if all 10 cultivators were growing their max limits. Ure said the state’s 100,000 patient estimate is more than double what the department is planning.
Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, believes the state’s patient counts will reach 180,000, which means that Utah’s cultivators would not be able to meet the demand. He pointed to Connecticut and New Jersey – which have similar grower caps – and said “the lesson there is…the amount of market demand is underestimated.”
Utah dispensaries are slated to open next year – many advocates are worried, however, about the state law limit of just seven retailers for the entire state.
Get daily cannabis business news updates. Subscribe
End