The wholesale price of marijuana in Colorado has continued to plummet since recreational use of the drug was legalized in 2014, according to a report by Business Insider on Sept. 1.
Data from Tradiv, a marijuana distribution platform, shows the price of one pound of marijuana has decreased by approximately 40 percent between October 2015 and August, from $2,400-$2,600 to $1,400-$1,600.
An increase in overall product supply is the main culprit for Colorado’s marijuana growers who are taking a hit in profit margin now, each being virtually unlimited in how many plants they can grow.
Marijuana’s downward price trend has also been seen in Washington state and Oregon, where recreational use of the drug is legal and commercial stores have been opened. Between July 2014 and January, the price of a gram of store-bought marijuana in Washington has dropped from $30 to $10, rivaling the lowest street prices of $7 per gram.
As a result, commercial sales are most profitable in pre-packaged marijuana products now, such as edibles, pre-rolled joints and liquid cannabis.
While currently four states and the District of Columbia have legalized recreational marijuana, Alaska and Washington, D.C., have yet to issues licences for the commercial sale of the drug.
On Wednesday, however, Alaska’s Marijuana Control Board began a two-day meeting where it is expected to formally approve the first marijuana retail licenses in the state. Stores are expected to open in the Last Frontier State by the end of the year.
The Board is also considering a proposal to designate areas within commercial marijuana spaces for the personal consumption of the drug, which would be a first in the U.S., but a formal decision on the question has been postponed until at least October.
[Business Insider] [The Cannabist] [Photo courtesy news.humcounty.com]