Health Canada released its updated figures for cannabis demand and supply within Canada on Friday, highlighting that inventories of finished goods are at record highs as of September across both licensed producers as well as provincial distributors. Noteworthy however is that unfinished inventory of dried cannabis decreased among federal producers for this first time since the government began releasing data.
With respect to total cannabis sold during the period, the data matched previously released retailer data, which indicated that less product was sold on a month over month basis when compared to the month of August. During the month of September, 11,707 kilograms of dried cannabis was sold through recreational markets, while 1,215 kilos of medical product was sold. This compares to August’s figures of 11,762 kilograms and 1,210 kilograms respectively. While not as significant of a drop when compared to retailer data, sales nonetheless decreased.
Total finished goods inventories sat at record levels during September as well, with licensed producers reporting 33,518 kilograms of dried cannabis on hand, and provincial retailers and distributors reporting a further 30,633 kilograms on hand. Unfinished inventory meanwhile decreased from 328,186 kilograms to 316,515 kilograms.
In terms of oil products however, results were mixed across the board when compared to that of dried cannabis. Non medical sales of oil products continued to post segment growth, with the month of September seeing 6,305 litres of recreational product sold, the highest ever. Medical sales saw month over month growth as well, with total litres sold increasing to 4,882 from 4,560. The best month for medical oil sales however remains as May 2019, which saw 5,688 medical litres sold.
Finished inventory of oil products saw a new all time high for licensed producers with 64,759 litres on hand compared to 63,125 litres in August. However, retailers and distributors showed a continued decline in inventories held at 37,301 litres compared to 37,835 litres in August. Unfinished inventory hit a new high at 62,711 litres.
Current finished goods inventory for oils is the equivalent of 9 months worth of consumption across the country. For dried cannabis, there is currently enough finished goods inventory across the country to supply the market for just under five months.
Information for this briefing was found via StatsCan. The author has no securities or affiliations related to any organization discussed. Not a recommendation to buy or sell securities. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
