More than a quarter of Maine's medical cannabis businesses have left the market since 2021, according to a report released Thursday.
A survey from the state's Office of Cannabis Police pointed to over supply of product, high utility costs and competition with the recreational market as the main reasons. Banking fees and regulations were also cited, an ongoing challenge as cannabis remains illegal at the federal level. Less frequent reasons included switching to the adult use program or the lack of a tracking and tracing program.
Only 8 percent of those who left the market responded to the survey.
The net loss of 800 caregivers in the last two years has put additional strain on remaining providers, the report says.
The Office of Cannabis Policy says it issued the survey to combat claims that overregulation were hurting the market. Regulation of the medical cannabis industry has become a testy conversation in the Legislature after it changed how the state makes rules for the program last year. Those changes have prevented the state from implementing measures like a track and trace program, which the office says has kept it from making sure providers are getting their product from a regulated grower and not from the illegal market.
"The oversupply in the MMCP has ultimately left businesses vulnerable to other market and business conditions," the report reads.
