Addressing Dual Supply Chains: Challenges In New Jersey's Cannabis Industry

In New Jersey, the cannabis industry faces unique challenges due to the existence of dual supply chains for medical and recreational use. This regulatory split complicates operations, affecting businesses from seed to sale.

The Challenge of Separate Regulations

Susanna Short, a cannabis industry consultant and upcoming speaker at the Benzinga Cannabis Market Spotlight in New Jersey elaborates on the difficulties this system imposes: “From the moment a seed is planted, businesses must designate its end use—either medical or recreational. This early decision impacts the entire supply chain, from cultivation to sale.”

Implications for Business Strategy

The need to comply with two sets of regulations affects various aspects of business operations, including inventory management and product pricing.

Short describes the operational hurdles, “One of the things that I’d really like to see happen, and some of it may require a legislative fix, and some of it could be done by regulation is to unify into a single supply chain.”

Advocating for Regulatory Unification

Short advocates for a unified regulatory framework to streamline operations and reduce complexities. “You must always prioritize our patients and make sure that they have access to the greatest variety of payment of products at the lowest prices without taxation. But we need to… pull the two pencil cases down overall and be more efficient.”

Benzinga Cannabis Market Spotlight

The complexities of New Jersey's regulatory environment and their impacts on the cannabis industry will be further discussed at the upcoming Benzinga Cannabis Market Spotlight. Scheduled for June 17th at the New Brunswick Performing Arts Center, the event will feature discussions on regulatory simplification and support for the industry.

Short expresses gratitude for the focus on New Jersey: “It’s really, really helpful to us, you know, it’s always good to be able to get together and be with people and generate ideas and share stories and trade those practices.”

As the industry looks to the future, resolving the issues around the dual supply chain is crucial for the stability and growth of New Jersey’s cannabis market. Insights from industry experts at the Benzinga event will be essential in navigating these challenges.

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Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly for top executives, investors, advocates and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Photo: Courtesy of BublikHaus via Shutterstock