Michigan recreational marijuana business owners who gathered for a quarterly public meeting of the state’s Cannabis Regulatory Agency on Wednesday said unfair fines, falling prices and the illicit products showing up in the market are threatening their economic survival.
The business owners and other industry stakeholders who spoke during the 1½-hour-long meeting, held both in-person in Lansing and virtually, called for more effective enforcement and regulatory reform to stabilize the industry.
Their comments come as the price of marijuana flower continues to decline — dropping to its lowest level of $65.21 for an ounce of recreational marijuana flower in February — making it hard for businesses to make a profit. Cannabis companies that use undisclosed substances in their products to save money can undercut the prices of other sellers, making it tougher for businesses to compete, industry stakeholders said.
At the same time, a new tax on marijuana products, recently proposed by Gov. Gretchen Whitmer to fund Michigan roads, adds to obstacles for business owners. A cannabis attorney called that proposal a “very serious and existential threat” at the meeting.
Some of the concerns raised at the meeting on Wednesday include:
The cratering price of marijuana flower
Lindsay Feehan, who spoke in person and identified herself as one of the owners of Lansing-based Emerald Transport, said the fact that the average retail price for an ounce of recreational marijuana flower has dropped to $65.21 is a bad thing for everyone in the industry, including transporters.
“We are all losing,” Feehan said. “I don’t know who you could tell me is winning on that.”
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