New Mexico cannabis businesses prepare for six-day inventory system blackout
NM cannabis operators are raising concerns about revenue loss and layoffs as the state transitions to a new inventory system, which includes a six-day blackout period starting August 25.
ALBUQUERQUE, N.M. —
New Mexico cannabis operators are voicing concerns about a six-day blackout period starting August 25 as the state transitions from its current inventory system, BioTrack, to a new system called the New Mexico Seed-to-Sale System.
During this blackout, inventory cannot legally move between growers, processors and dispensaries, leaving dispensaries to sell only their current inventory.
The Cannabis Control Division said the change is necessary because the state’s contract for the existing seed-to-sale system will expire on September 15. The division has been searching for a replacement system since October 2024.
Cannabis business owners expressed frustration over the short notice, with some worried the blackout could extend beyond the planned six days if issues arise.
“We’re just doing the best that we can to navigate what’s been dealt to us,” Jon Updegraff, CFO of Verdes Cannabis, said.
Matt Kennicott, executive director and co-founder of the Cannabis Association of New Mexico, highlighted the financial impact the blackout could have on businesses.
“There’s one company that I spoke with. They’ll lose over $100,000 being shut down for six days and have to lay off 11 employees. I’ve spoken with mom-and-pop shops all throughout the state. One told me they’d have to lay off one employee, and another told me that they’d have to lay off six,” Kennicott said.
Updegraff said his company has been preparing for the transition.
“We have overstocked our stores, and we’re continuing to do that up until the date. We have expanded our vendor ordering,” Updegraff said.
However, Updegraff acknowledged that not all businesses have the resources to prepare in the same way.
“Not everybody has that privilege and that ability. So it’s going to have different impacts for different people,” Updegraff said.
The Cannabis Control Division said the timeline for the transition had to be “aggressive” due to the expiration of the current system’s contract. Communication with licensees began in June, and feedback was requested.
Kennicott said surveys and feedback alone are insufficient.
“Since February, we’ve been asking for stakeholder input, whether that be through trainings, testing or even coming to the table and helping out with features because we know what our businesses use every day,” Kennicott said.
The Cannabis Control Division said it will continue to listen and communicate openly with stakeholders and consider feedback as the new system is implemented.
