A new article at MJ Biz Daily has detailed how Massachusetts is being added to the list of marijuana markets with prices dropping significantly due to too much supply.
This month last year, the average price for a gram of flower was averaging $14.38. This year, it’s at $7.76 for the same amount, about a 50% drop.
The same thing is being seen in more mature markets like Colorado, Michigan, Oregon and Washington.
The pattern of starting huge and slowly realizing that the outlook on demand was maybe a little overzealous might just be the pattern for new markets, meaning we’ll be seeing New Jersey and Connecticut in a similar boat about a year or two from now.
The problem comes when companies build their whole strategy based on those inflated numbers.
“The difficulty these folks have is it takes several years between when you have the idea to actually getting online, let alone the whole process to do your first harvest,” Dennis Curran, chief operating officer of operator Acreage Holdings tells MJBizDaily.
“In that interim period, when folks are doing their planning and construction, the market’s bottom started to fall out.”
Massachusetts has seen its first store closure since legalization in Northampton due to the bottoming of prices. Hopefully the rest of the dispensaries can course correct in time.
Read the full story at MJBizDaily.
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