The price of retail cannabis in Michigan has reached record lows with the average cost for an ounce of cannabis flower dropping to $79.70 in July, according to a Crain’s Detroit Business report.
While cannabis prices spiked in Michigan late last year in the aftermath of enforcement actions against illicit operators, adult-use product prices have fallen nearly 14.5% in 2024. The previous record low for cannabis flower prices, set in January 2023, was $80.16 per ounce.
This year’s price deflation could be attributed to multiple issues including an oversaturated market, price compression as the industry prepares for the “Croptober” harvests of outdoor cultivators, and ongoing competition from unregulated sources, the report said.
“I have more and more indoor farms coming to me to try and get on our shelves and to do so are offering a low price point. They are still selling last year’s crop and they are selling it at $250 to $300 a pound, leading to that price compression we’re seeing. They have to clear their pipe before another 50,000 pounds [of outdoor product] hit their facility.” — Eric Klar, Quality Roots CEO, via Crain’s Detroit Business
Total cannabis sales in the Great Lakes State reached $268.4 million in July, only slightly trailing the state’s monthly sales record of $286.8 million, which was set in March when Michigan became the first state to surpass California in monthly legal cannabis sales since the launch of California’s legal market.
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