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The future of the cannabis supply chains

Is it time to break the cannabis supply chain into two separate discussions?

Prior to the passage of the Farm Bill late last year, marijuana and hemp were treated the same by the Federal government and by most states. But now that hemp production and commerce is legal across the entire US, we have to start talking about two different supply chains when we talk about cannabis. One is fully legal and federally regulated (hemp) and the other is locally regulated but remains illegal federally (marijuana). Talking about the “cannabis supply chain” (singular) no longer makes sense. In the rare instance where it still makes sense to use the term “cannabis supply chain”, it must become plural, because they must operate separately and independently.

More and more US States are legalizing marijuana for medical and recreational use. In fact, according to Wikipedia, marijuana is currently prohibited for all uses in only 3 states (Idaho, Nebraska and South Dakota). On October 17, 2018, recreational use of marijuana became legal in Canada. In Canada and in all US states where significant volumes of marijuana is—or will be—consumed, regulations require the careful tracing of marijuana-based products from seed planting, to the sale of finished products to the consumer or patient, and every significant step along the way. The goals of this requirement appears to ensure that illicit marijuana does not infiltrate the legitimate supply chain, and to prevent the diversion of medical marijuana into recreational uses in states where that type of use is prohibited.

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