Cannabis Prices Maintaining With a Promise of an Increase, Says Marijuana Business Daily
This week, Marijuana Business Daily announced that cannabis prices are “holding steady” and demand is growing. The article states,
The positive upward trend of both prices and demand has some businesses maxing out capacity and increasing production.
Growers in the state report pounds of wholesale cannabis flower are selling for:
- Indoor: $1,800-$2,200 (similar to this time last year)
- Greenhouse: $1,150-$1,300 (up 30% from last year)
- Outdoor: $900-$1,100 (similar to this time last year)
A number of those quoted expect prices to rise through the spring. One person, Graham Farrar, president of Glass House Group, noted, “There are less cultivation licenses today than there were in 2018.”
Another, Autumn Shelton, owner and CFO of Autumn Brands, said that the outdoor harvest appears to have not produced as much as usual relative to the need.
“We’ve seen a huge uptick in demand, and prices already starting to go back up again,” she said in the article. “That’s unusual.”
The article reports that growers say hurdles that need to be overcome include…
- More retail outlets are needed to create an adequate marketplace.
- The majority of municipalities across the state haven’t got on board with licensing cannabis businesses.
- Taxes are too high. Flower is taxed at about $150 regardless of the price it fetches on the market, which cuts into profits.
- The illicit market continues to thrive, both in the cultivation and retail sectors.
Check out the whole article here and let us know how this compares with what you are seeing?