Prices of wholesale recreational marijuana in Michigan are now as low, or lower, than those in older adult-use states – underscoring how new markets are ramping up more quickly and, in some cases, becoming glutted.
Industry insiders say cannabis flower in Michigan is readily available for less than $1,000 a pound on the wholesale market – and often for much less – because of oversaturation as more and more cultivation companies come online in a state with no limit on business licenses.
Connie Maxim-Sparrow, a cannabis consultant and marijuana business license holder based in Muskegon, Michigan, characterized the state’s current market conditions as “unstable” – in particular, cannabis growers are spending at least $800 to grow a pound of flower and getting only $600 for it on the wholesale market.
According to Maxim-Sparrow, a year ago a midgrade pound of indoor-grown wholesale flower that tested at around 20% THC potency would sell for $1,800-$2,200.
Now, that same grower is lucky to get $600 a pound, and she’s heard of some selling for as low as $300.
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