In North America, two of the world’s biggest countries are highly considered as The Powerhouses of the Marijuana Industry- Canada and the United States. The enthusiasts of these countries are tirelessly working for the growth of this Industry which now generates billions of dollars annually.
However, there is a striking difference between the two, though they share in common in providing livable spaces for Cannabis growers and users, which the world can notice for a long time. Both of them may excel but the prices of their products define how their marijuana seeds grow and develop in their countries.
How Much Money are they Generating?
Upon making Marijuana legal in Canada, earlier estimations say that their Cannabis Industry will create $6.8 Billion by the year 2020. This is possible due to the increasing trend that their Industry is witnessing now.
Canada has been tough in making the Marijuana items legal, making their government possible to regulate, intervene, and check the transactions that their citizens engage with. This bold move by their government earned appreciation by the rest of the world in their efforts to suppress the Black Market’s presence and activity in their country.
Meanwhile, in their neighboring country, the United States gears up for better growth in Marijuana sales. They expect that their Cannabis sales will hit $77 billion by the year 2022. This economic trend continues even though they have contrasting Federal and State Laws which hinder their citizens to have full access to the Cannabis items which are publicly sold online or in their local establishments.
Both these nations experience a tumultuous growth in their economic projectiles because of the Cannabis advocates. They even give valuable and essential money to their countries!
With these figures, a strong question is clearly asked to the public, do Americans have lower prices and more accessible Cannabis items than those in Canada? Or is it just because of the population that makes the Americans grow their Marijuana production higher than what Canadians are doing?
Comparing the Prices
The Americans have a bigger Cannabis Industry because of the underlying fact that they pay more taxes compared with Canadians. According to a report, Marijuana products in Canada are 30% cheaper than those of the United States.
This rate may vary in the American States as they have different tax rates compared to the rest of the Canadian Provinces.
In key cities where Marijuana seeds and strains are more used and consumed, the comparison is brighter. In San Francisco for instance, their smallest ounces of Cannabis strain that cost $45 may cost only $27.45 in Vancouver- a 39% to 40% gap of the price is obvious.
In Ontario, the origin of the Canadian Marijuana Industry, a kilogram of Cannabis seeds may rise up to $100. Meanwhile, in California, that price may go up to $130- $140.
Obviously, Canadians produce cheaper crops and strains as to Americans but as you buy their products in bulk orders, the discounts grow minimal, while buying bulk orders in America means higher discounts.
Why is Cannabis Cheaper in Canada?
Three things could have affected their pricing- Supply, History, and Taxation.
In Canada, taxes are relatively higher than those in the United States. With this government rule, Canadians buy less of their marijuana strains and keep the supply high just to meet both ends and gain sustainable and cheap prices.
The supply chain of Cannabis is kept higher than the demands of Canadian citizens. Their high taxes helped the people to buy lower amounts of seeds compared to what Americans are currently practicing.
Apart from it, what helps the cannabis seeds and strains price lower is their long history of Marijuana consumption. Canada is known to use it since the 19th century, just like the Americans, but Canadians used this reason to make their retailers sell lower than their counterparts in Washington and California.
Then why do Americans Produce more Expensive Cannabis Stocks?
This is directly related to the politics of their nation. The American Government acts differently with Canadians. The national government they have does not support Marijuana Industry at all. In fact, they scrutinize everything just to make the country more secure against domestic and foreign Marijuana transaction deals done in some of their states.
With stricter regulation comes more scarcity in Cannabis Supply. The farmers can only plant seeds in 10 states that allowed usage for both medical and recreational purposes, and the rest of the 50? They are still hesitant about this herb.
Because of this, Americans have no choice but to accept higher prices that the retailers impose, or else, they will not reach the cloud nine that they dream and the benefits they crave to feel.
The Cannabis Seeds in the USA is more expensive than in Canada. This happens because of geopolitical reasons, especially when discussions about the regulations air from Congress. Canada has better and more lenient rules and regulations compared to the suppressive American Government.
For some medical and political reasons, they continue to hate and forsake Cannabis plants even though it took a turning part in their nation’s history. The farms are exclusively limited to ten states; delivery of shipments is nothing but a chase with policemen in every state border. Worse, the supply is running low, it may not meet the demands properly due to the legal conflicts.
America can make its Cannabis items as cheap as Canada’s but the process should start in their Congress, not in the stores.