Oregon Cannabis Associations Merge Amidst Industry Challenges

LOS ANGELES- In a significant development within Oregon’s cannabis sector, the Oregon Cannabis Association and the Cannabis Industry Alliance of Oregon have decided to merge. The boards of both organizations approved this union last week, as reported by Oregon Public Broadcasting. The newly formed entity, named the Cannabis Industry Alliance of Oregon, will represent a substantial membership base of over 500 entities.

This strategic merger surfaces amidst a backdrop of challenges for Oregon’s cannabis industry. Key issues include an oversupply of product, stagnating demand, and plummeting prices. Hunter Neubauer, a board member of the merged group, conveyed to OPB about the industry witnessing two cycles of boom and bust already.

Supporting this sentiment, a report from the Oregon Liquor and Cannabis Commission (OLCC) in February indicated a rocky year ahead for an industry that’s nearly a decade old. The report underscored the troubling signs: “The overabundance of supply throughout 2021 and 2022 resulted in historically low wholesale and retail prices for both usable marijuana and concentrate/extract products. This dip in prices, paired with a slowdown in growth of quantities purchased, led to the industry’s first-ever decrease in annual sales, dropping from $1.2 billion in 2021 to $994 million in 2022.”

The OLCC further anticipates that these slim profit margins will persist unless there’s federal intervention, particularly in opening avenues for interstate commerce.

A look back reveals that the Oregon Cannabis Association came into being in 2014, following the state’s voters green-lighting adult-use cannabis legalization. On the other hand, the Cannabis Industry Alliance was established just last year, emerging from the amalgamation of three separate industry groups.

The merger of these two associations is seen as a strategic move to consolidate resources and present a united front in navigating the challenges and advocating for the needs of Oregon’s cannabis industry.