http://www.bloomberg.com/news/articles/2015-02-11/uruguay-marijuana-licenses-lure-bidders-from-canada-to-germany
If they can sell it there for .90 a gram, why not here?
If they can sell it there for .90 a gram, why not here?
Another shining example of how Tilray is screwing canadian medical patients
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doingdishes
Well-Known Member
that's affordable pricing but the Gov't won't allow that here...not enough $$ unless that tax it 500%..
Doobius1
Well-Known Member
Based on full legalization...
When them and countries like Jamaica get dialed in on their quality they will shut these Canadian LPs right down. The good old days might be right around the corner. Strains like Lambsbreath, Columbian Gold grown under the sun for a buck a gram?
Nobody grows indoor bananas and avocados do they? Theres no money in that. Importing is cheaper. I dont like comparing apples to oranges but it is just a plant after all.
Probition drove the plant indoors....a plant that can excel outdoors naturally and has for thousands of years.
Very soon, once production kicks in, supply will exceed demand and the price will plummet like oil. This is how I see it unfolding based on full recreational legalization thats coming to a country near you
When them and countries like Jamaica get dialed in on their quality they will shut these Canadian LPs right down. The good old days might be right around the corner. Strains like Lambsbreath, Columbian Gold grown under the sun for a buck a gram?
Nobody grows indoor bananas and avocados do they? Theres no money in that. Importing is cheaper. I dont like comparing apples to oranges but it is just a plant after all.
Probition drove the plant indoors....a plant that can excel outdoors naturally and has for thousands of years.
Very soon, once production kicks in, supply will exceed demand and the price will plummet like oil. This is how I see it unfolding based on full recreational legalization thats coming to a country near you
CannaReview
Well-Known Member
Well the interesting part for me is how Uruguay steps up to the plate to kill the black market pricing. They could have done the same thing here and if the LP's got out of the gates with $3 per gram the black market would have stayed at $900 per lb and eventually collapsed BUT that would mean a disaster for crime funding as they try to make us think that, when in reality all that money could have been used towards stopping real crimes.
CannaReview
Well-Known Member
Should add at $3 per gram I would have a hard time justifying saving $1500 to get a LB to get my price down when I could just mail order it.
Doobius1
Well-Known Member
Im only doing my Amazing Kreskin predictions. These countries will need lots of time to get it dialed in. Years maybe. I would be shitting if my money was invested in the LP system. Its doomed. People go on about Mexican schwag but its only schwag because of proabition (how the fuck do you spell that?). Mexico is going to be a big player in the legal cannabis game imho. I fully legal system is going to have to care about quality whereas the BM didnt have to care. Their only care is getting it across the border
how come? The article states that what ever company will be moving in on their market can expect to pay through the nose for electricity, one of the highest rates in the west. Electricity is a huge cost in running these companies. I understand that labour is also a huge factor however, with what they pay the average person at these L.P's it doesn't sound like they are being paid that well. So what else is there that is allowing them to sell in Uruguay for 1/14th the cost they sell for here? Nothing as far as I can see...except the government there set a max price and they are forced to work within that range. If they couldn't make a killing at $.90/g they wouldn't even entertain the idea of setting up shop down there.
doingdishes
Well-Known Member
why don't they take half or a quarter of the $$ they spend on "mj crimes" and invest in a model like that? that would make a safer & better market...and they get tax revenue! the BM would die out because they couldn't compete. you don't see too many people selling whiskey. a lot of home breweries for beer & wine though
I just thought, wouldn't it be a call to the RCMP because your neighbour who brews his own beer, smells up your house....haha
Bananas don't have a street value of $10 a gram do they? If they did you fucking better believe Theyd be grown indoors.
leaffan
Well-Known Member
First off they are not selling it for $1g, they said they would, but they haven't.
Many factors why LPs can't get below $1g cost, but the single biggest is the cost to conform to the regulations HC set out. I think the cost for LP is in the $1.75-$2.00 range.
Uruguay would not be making a killing selling at $1/g...they've said all along their intention is to wipe out the black market.
leaffan
Well-Known Member
Probably, but that's a long time away
Perhaps you didn't read my post...I'm talking about privateer holdings, aka tilray making a killing, not the government of Uruguay. If they were not going to make sizeable profits entering the Uruguay market they wouldn't bother. And since they have to work within the $.90/g model set out by the Uruguay government and they are working towards making it a reality it is obviously very doable. So, once again why would it cost 14x as much to bring it to market here when costs aren't that different? Throw in the cost of testing and slughtly higher labour i could see maybe $5/g tops. Also, why so quick to defend Tilray Leaf? It seems to me that this story just goes to show how badly patients are being overcharged in Canada, something I would have thought you and whomever else are gathering info for Conroy would find useful, no?
leaffan
Well-Known Member
Perhaps I misunderstood some of your post.
It was certainly not my intention to defend Tilray, I don't give a fuck about them.
After having done a detailed cost analysis I have a pretty accurate idea of what it costs to produce under the MMPR.
The cost of the paperwork required to conform is one of the single biggest costs to LPs that is often overlooked.
Security costs are huge.
Crop lost is huge ( I'm sure the mmj that might be grown in Uruguay won't be tested like it is up here, and every gram grown will be sold)
Correct me if I'm wrong, but I think the Uruguay operations were to be basically government run. A break even scenario.
I'm all for information and learning.
leaffan
Well-Known Member
...and I'm not happy that some patients are having to pay these outrageous prices.
If a company like Privateer was to enter the Uruguay mmj market it would be for other reasons than trying to make a profit selling to the locals at a buck a gram. They would have a lot more freedom to do uhhhh....research there.
If a company like Privateer was to enter the Uruguay mmj market it would be for other reasons than trying to make a profit selling to the locals at a buck a gram. They would have a lot more freedom to do uhhhh....research there.
leaffan
Well-Known Member
Implementation of the new law postponed[edit]
In July 2014 president José Mujica announced that the implementation of the law is postponed to 2015, "there are practical difficulties". Authorities will grow all the cannabis that can be sold legally. Concentration of THC shall be 15% or lower.[21]
In August 2014, an opposition presidential candidate claimed that the new law was unworkable and would never be applied.[22]
...not sure how accurate this wiki post is
In July 2014 president José Mujica announced that the implementation of the law is postponed to 2015, "there are practical difficulties". Authorities will grow all the cannabis that can be sold legally. Concentration of THC shall be 15% or lower.[21]
In August 2014, an opposition presidential candidate claimed that the new law was unworkable and would never be applied.[22]
...not sure how accurate this wiki post is