Marijuana Prices Drop by Nearly Half

In previous posts, we discussed falling prices for grocery store items like milk, eggs, chicken and pork.

But price deflation has hit marijuana in an even bigger way in states where cannabis is legal for recreational use.

In approximately a year, the price for wholesale cannabis has tumbled by nearly half.

Get the details from this Sept. 1 Business Insider article:

In October [2015], the cost of a wholesale pound of cannabis was around $2,400 to $2,600. That price has almost been cut in half to between $1,400 and $1,600 last month, according to data from Tradiv, an online marijuana-distribution platform.

"In less than a year, we've seen wholesale prices drop to nearly half of their previous totals," [said the] director of sales at Tradiv. "We've never seen prices like this."

The reason prices are dropping so rapidly is because the market's getting flooded. As growers ramp up production, the huge amount of marijuana hitting the market in Colorado is causing a "steady decline" in wholesale prices regardless of demand, says Tradiv's director of sales.

The story's similar for Washington, where the price of legal marijuana has dropped precipitously since the first recreational dispensaries opened, according to The Cannabist. Wherever there's a legal market for marijuana, prices have been dropping. …

Though low prices are good news for consumers, cultivators will have to cope with lower profit margins on raw marijuana flowers.

You can read the entire article by following the link below:

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