New Mexico is expected to run out of cannabis when legal sales begin

New Mexico could get into trouble when it comes to cannabis availability. In a recent hearing, experts said New Mexico is likely to run out of recreational cannabis products within the first week of sales.

Linda Trujillo, Superintendent of the Regulatory and Licensing Division, spoke to the Economic Development and Policy Committee on July 26, saying the state is likely to experience what she calls “Krispy Kreme Syndrome” – or high demand in opening a Krispy Kreme franchise.

Obviously, regarding the future of cannabis sales, Trujillo said they assume they won’t have enough products to meet demand by the time the program starts next year. “It is very likely that we will run out of cannabis in the first week, if not the first two weeks,” she said at the meeting. Your information is based on the first few weeks of other states’ recreational cannabis induction programs.

According to Trujillo’s estimate, the state would need to ensure it planted 500,000 plants to meet expected demand. However, it is not that easy to increase this amount; Trujillo also noted that they should see a growth rate of at least 18 percent.

New Mexico is getting ready for the onslaught

New Mexico’s Recreational Cannabis Act officially went into effect on June 29th, but New Mexico’s deadline for obtaining cannabis licenses is September 1st. However, the Regulatory and Licensing Department has not released details of the proposed retailer rules, nor have any individuals been selected to run the Advisory Committee on Cannabis Regulation.

“I thought we did this months ago,” said Trujillo. “It’s a bit of a disappointment to me that it took so long.” New Mexican lawmakers, who approved legalization in a special session in early April, set strict deadlines for all aspects of the industry, including manufacturing, testing facilities and retail operations.

The most recent regulatory move included the change in plant-related regulations by the Cannabis Control Division (CCD). The CCD decided to increase the number of plants a breeder can grow from 4,500 to 8,000, plus an additional 500 per year for four years, for a total of 10,000 plants.

New Mexico is expected to generate $ 50 million in cannabis revenues in the first year and create approximately 11,000 jobs. While interest in cannabis will not be lacking, Trujillo’s primary concern is how to facilitate access to the cannabis industry for locals who do not have the financial means to succeed in the industry.

“Access to capital is almost unavailable,” said Trujillo. “My fear is that people interested in entering this industry will take action such as paying out their retirement pension, taking out second mortgages on their home, or withdrawing their family savings.”

Matt Muñoz, a partner at Carver Family Farm who wants to own a micro cannabis business. According to Yahoo! Finance, he believes the state should help residents who want to get into the industry by giving them the first priority for business licensing. He defends his position by pointing out the high cost of both getting a license and building a regulated cannabis business.

Availability is also limited in New Mexico. In Albuquerque, the vacancy rate is around two percent, according to Muñoz, which would make it both difficult and expensive for a resident to run a cannabis business there. He also expressed concern about the burgeoning black market for cannabis in Oklahoma, whose cannabis program has been live for three years.

The Cannabis Control Division’s next public hearing is scheduled for August 6th. Meetings with numerous government organizations will continue until April 2022, when recreational cannabis sales begin.