Marijuana Shortages Point To A Developing Industry

Legalized marijuana has had its fair share of difficulties over the past few years. From legal battles to an ongoing debate over how federal law hampers innovation the marijuana market has been under a lot of pressure. However according to Kindman Cannabis CEO

, those issues are just the beginning as the recreational marijuana market opens up. His Colorado-based wholesale dispensary has seen steadily increasing demand as the drug becomes more and more acceptable to the general public, something growers haven't been able to keep up with.

Fox's business has invested in increasing the number of growing facilities as he says the industry is only likely to get bigger, and most dispensaries aren't prepared to handle any more growth in demand. According to Fox, the current market is only in its infancy and most firms' long-term plans are weak at best; but with recreational use spreading quickly, he says it's only a matter of time before other states follow Colorado's lead.

The weed industry in Colorado has faced shortages, especially after days like April 20 and New Years' when the state's legislation changed. In other places where marijuana was recently legalized like Washington D.C., shortages also became a problem as demand for the drug surpassed what growers and dispensaries had predicted.

For that reason, Fox said he sees marijuana evolving to trade like a commodity in the future once the industry has become more developed. Much like corn or coffee, marijuana crops are affected by a wide range of factors from weather conditions to pest problems and as the industry matures, Fox says investors will begin to value the drug as a tradable commodity.