Too much production, not enough retail: how marijuana producers - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Too much production, not enough retail: how marijuana producers keep making green

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PROSSER, WA - Jeremy Jacola, the CEO of FourDub Farms, has grown his marijuana farm from a Tier 1 to a Tier 3 in the last four years. 

(Tier 1 allows for two thousand square feet or less of dedicated plant canopy. Tier 2 allows for between two thousand square feet and ten thousand square feet of dedicated plant canopy. Tier 3 allows for between ten thousand square feet and thirty thousand square feet of dedicated plant canopy.)

But it turns out, other farms across Washington and Oregon are facing a harsh reality: there are more producers and processors than retail stores. 

There are roughly 500 retail stores in Washington, and around 1,500 producer processors. So they're forced to sell their product for less, just to make a profit.

But there's also another route: the black market, where there isn't a 37 percent tax.

Jacola said there can be loop holes in the producer processor's tracking system that some may take advantage of to make more money on their product. But Jacola said they get rid of their product through strong relationships between the retail stores, advertising, and by utilizing the concentrate business.

"That actually has a more different user base," said Jacola.

And at the end of the day, it comes down to building a brand and making good connections with the stores. 

"We feel that building strong partnerships at the retail level will help us not only keep our brand name strong, but will actually help get higher prices at the retail level," said Jacola.