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Jenel Stelton-Holtmeier Ontario, Canada-based cannabis producer Canopy Growth’s announced production cuts could help ease the nation’s oversupply issues as well as offer lessons for other operators on how to compete in a newer market. The company is closing two greenhouses in British Columbia, which will result in 500 job losses. As a result, Canada’s total licensed indoor grow space also will decrease roughly 7%. Shareholders are now demanding returns on their investments beyond just promises, and that requires a shift in strategy for companies that haven’t been turning profits. “Canopy’s capacity cut represents some newfound discipline in an oversupplied market that is growing more slowly than expected,” said Mike Regan, an analyst with Marijuana Business Daily’s Investor Intelligence. “New CEO David Klein and his team have brought fresh eyes to the Canadian cannabis business and decided to eliminate more than half their indoor capacity and nearly a third of their total growing area, while significantly increasing lower-cost outdoor production – the exact opposite of what much of the industry has done for the past few years. Chart: What cannabis companies can learn from Canopy’s capacity cuts

thumbnail courtesy of mjbizdaily.com