As a cannabis business operator, it is important to know how all parts of the supply chain work from cultivation to manufacturing, distribution, and finally cannabis …
Would you say vertical integration makes sense and is lucrative in California as primarily a cultivator with a mfg distribution license? My facility is located in Southern California. I also recently did a 1 hr consult with Rachal from GG CPAs.
I've done my due diligence but have been challenged by a veteran of the Canadian market saying that it might not make sense to start a cultivation facility because they are seeing oversupply in Canada and they can buy products for cheaper than their total production cost, not variable cost(costs them $3-$4/g to produce).
Saying a more viable strategy could be to focus on distro and buy at low cost and resell assuming California could be in a similar oversupply situation. Based on my own research and experience I don't think market conditions are good for that model now nor have they historically been vs being vertically integrated. I am curious what your thoughts are.
Would you say vertical integration makes sense and is lucrative in California as primarily a cultivator with a mfg distribution license? My facility is located in Southern California. I also recently did a 1 hr consult with Rachal from GG CPAs.
I've done my due diligence but have been challenged by a veteran of the Canadian market saying that it might not make sense to start a cultivation facility because they are seeing oversupply in Canada and they can buy products for cheaper than their total production cost, not variable cost(costs them $3-$4/g to produce).
Saying a more viable strategy could be to focus on distro and buy at low cost and resell assuming California could be in a similar oversupply situation. Based on my own research and experience I don't think market conditions are good for that model now nor have they historically been vs being vertically integrated. I am curious what your thoughts are.