Global Ganja Report

Cannabis is turning into a key issue testing the limits of First Nations sovereignty in Canada—right up there with the long-standing struggles over oil, mineral, timber and hydro-electric development. At least one First Nation is operating a cannabis outlet without provincial authorization, in a direct challenge to authorities. And if accommodations are not reached with provincial and federal regulators, more may be set to follow.

New York state's second city of Buffalo has long been a national symbol of rust-belt economic and infrastructural decay. Now urban planners have approved a massive cannabis facility backed by California capital for the city's long-inactive waterfront. Buffalo's boosters say the project could turn the Great Lakes region into a leading global hub of cannabis output.

In a strange irony, Vancouver is shutting down its long-tolerated but unlicensed cannabis dispensaries, pursuant to a British Columbia high court decision upholding its right to do so—even as the province struggles to meet demand amid a dearth of licensed retail outlets.

From the the "Tulip Mania" in 15th century Holland to the Bitcoin bubble of 2017, high hopes for a commodity's market performance can lead to unsustainable overvaluation inevitably followed by a painful correction. Many observers believe that cannabis fell prey to this phenomenon in 2018—but are hoping for growth in a more rational and realistic market in the coming year.

Nationwide cannabis shortages since Canada went legal last month are causing some provinces to rethink their distribution plans. Alberta has just announced that retail outlets will be barred from purchasing online but must place their orders manually to prevent the computerized system from being overwhelmed. Provincial authorities are struggling to break the logjam in the supply chain, and keep enough product in stock for those who purchase either online or from brick-and-mortar outlets.

Amid the seemingly endless hype about CBD, its once better-known sibling cannabinoid THC seems to increasingly languish in the shadows—both in terms of media attention and industry investment.

On the first day of legal cannabis in Canada, many suppliers ran out of stock—pointing to challenges in meeting demand. Several provincial governments and private outlets turned to e-commerce company Shopify to help negotiate the initial tsunami of online sales.

Canada's postal unions are contemplating a nationwide walk-out—exactly as legal mail-order cannabis deliveries are set to begin. Talks are ongoing, but if the strike is not averted, cannabis consumers could be left high and dry—especially in those provinces that are relying mostly or entirely on home deliveries.