Wholesale Cannabis Prices in Michigan Show Signs of Stability

MICHIGAN – Wholesale prices for cannabis flower in Michigan have recently shown signs of leveling off and even a slight uptick, providing a glimmer of hope for producers who have endured a significant decline in prices over the past few years.

Michigan is a crucial market for the legal marijuana industry and is projected to rank second only to California this year in terms of annual recreational and medical cannabis sales.

Several factors have contributed to this cautious optimism and the modest stabilization of wholesale prices in Michigan:

1. Absorption of surplus outdoor cannabis from the previous season: The market has absorbed a surplus of outdoor-grown cannabis from the previous year, which has helped alleviate some of the downward pressure on prices.
2. Increased municipal approvals for retail sales: More municipal governments in Michigan have started permitting retail cannabis sales, expanding the legal market and creating more avenues for legal sales.
3. Crackdown on illicit activity: Authorities have been actively cracking down on illicit activities within the licensed market. By targeting those who sell non-compliant and illegal products at significantly lower prices, law enforcement efforts aim to safeguard the market’s integrity and stabilize pricing.

Narmin Jarrous, Chief Development Officer at Michigan-based cannabis operator Exclusive Brands, highlighted the negative impact of non-compliant products flooding the market at extremely low prices, emphasizing the detrimental effects on flower and distillate prices.

Despite these positive developments, downward pricing pressure is expected to persist due to ongoing significant outdoor cannabis production during the warmer months. Moreover, Michigan lacks a statewide cap on the number of cannabis business licenses, which raises uncertainty about the sustainability of wholesale price stabilization.

As the Michigan cannabis industry continues to evolve, producers navigate a landscape of both progress and challenges, hoping that the recent stabilization of wholesale prices will pave the way for a more sustainable and prosperous future