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Biggest Issue Facing Cannabis May Be Market Saturation

The issues many Celoron residents raise concerning allowing cannabis to be sold in the village’s limits are the same ones we heard during the great opt-out debate of 2021.

There were concerns over a negative influence on village youth if cannabis businesses were to open in Celoron – particularly if a shop were to open too close to the Celoron Village Park. There were concerns over increased marijuana use in the village if the village lifts its prohibition on dispensaries and on-site consumption businesses and a potential increase in crime.

We haven’t seen many of those concerns born out as cannabis shops have opened in Jamestown over the past year or so. State regulations mean those who receive a license to sell cannabis do all they can to make sure the businesses both meet state regulations and improve the neighborhoods where they’re located. Given the strict licensing and oversight, shop owners won’t jeopardize their investment by selling to underage youth who frequent the park in Celoron.

We won’t say there’s nothing negative when it comes to cannabis businesses, but the doom and gloom that was part of the public discussion in 2021 in Jamestown and the surrounding area hasn’t come to fruition. Much like liquor stores, the reputation of ill repute is often worse than the issues they actually create.

In fact, perhaps the biggest issue for Celoron officials to consider is one that hasn’t been mentioned much publicly – market saturation. There are now two dispensaries open in Jamestown, two near Jamestown and three on neighboring Seneca Nation land. There are still black-market marijuana dealers operating in the area, siphoning customers from the legal dispensaries.

New York’s law does place some limits on dispensaries being too close to each other, but the reality is that the greater Jamestown area really operates as a cluster with a shrinking population. There will come a point where the market won’t support additional dispensaries.

Nationally, cannabis prices are dropping because too many dispensaries and too much cannabis have flooded many states’ markets. New York’s market is still in its relative infancy, but there will come a time when New York’s market is in the same position as California, Michigan, Massachusetts and other states with too many sellers selling similar products.

A glut in the market isn’t a concern for Celoron as village officials decide whether or not to rescind its 2021 prohibition on dispensaries and on-site consumption. But it should be a consideration of any entrepreneur thinking about opening a dispensary.

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