A recent article in MJBusiness Daily by John Schroyer and Bart Schaneman speculates on the impact coronavirus might have on various areas of the marijuana industry.
Of course, by now you have figured out that the shutdown of China’s manufacturing plants in many parts of that country has had worldwide effects. This has disrupted the supply chain for numerous products like iPhones and computers, but it also may affect the marijuana grower.
Higher Prices for Tools?
Almost all LED Grow lights are made in China or made with parts from China. The same goes for vaporizers, grinders, and many of the smaller tools used by growers. With these supply chains running out of product or unable to ship, it is possible that US manufacturers and suppliers will pick up the business. If that happens, you can expect to see prices for LED Grow lights rise in the short term. Whether the US manufacturers will be able to take away some of the Chinese business permanently depends largely on a huge unknown: How long will the coronavirus scare last?
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Less Cannabizness Investment
Another likely effect, probably already baked into larger cannabiznesses, is the stock market deep dive from this past week. With investors losing money on nearly every class of investment from stocks to corporate bonds to gold, it is probable that further investment in highly volatile cannabiznesses will dry up. In a period of investment uncertainty, the “irrational exuberance” of a rising DowJones Index is replaced with FUD–fear, uncertainty, and doubt.
Cannabiznesses are no longer the darlings of the stock market that they were last year. Even though investment advisers keep pushing them and you will still see emails touting the “biggest indoor cannabis greenhouse in the world”, just remember that the job of an “investment adviser” is to — sell stocks. As the saying goes, stocks are not bought–they are sold.
Shortage? Get Your Stuff Now.
And finally, another strange unintended consequence–running out of the hazmat-like suits and masks that you see cannabis growers wearing in the greenhouse. There are reports even in the US of hospitals unable to find N95 masks, the masks that filter particles.
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Some growers use this kind of mask to protect greenhouse workers from overpowering weed odors in an enclosed space. Working in a cannabis greenhouse can have respiratory effects beyond just getting high from being essentially a “passive toker.” (See the infographic at the top of this page.)
Typically, these respirator masks are made in Asia and imported. With the coronavirus panic closing down Chinese supply chains and with the unexpected demand, you can be sure that this equipment is going to be selling for a higher price than usual. That is certainly going to cut into grower’s profits, which are already under stress from the overabundance of marijuana and the overreach of regulators.
So what to do? Obviously, get your LED lights now before prices go up; get your N95 masks now before suppliers run out.
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What About CBD?
Finally, is CBD known to have any antiviral effect? The answer is no (unless you are doing what the CDC suggests and washing your hands thoroughly before and after everything, including touching anything to your face, like a CBD cream.)
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However, the price for raw hemp products may increase, since China apparently supplies much of the hemp we use for CBD production in the US. (Organically grown? Free of toxins? Hmm–interesting question.) . For pure hemp products, MaryJane Farmer recommends our friend Anthony Phillips at PureSource Labs. You can read our interview with Anthony here, where he explains how he sources his hemp.
Last update on 2023-02-20 / Affiliate links / Images from Amazon Product Advertising API
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