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420 with CNW – Medical Marijuana Prices in Michigan Rise as Recreational Sales Near

The cost of cannabis flower in Michigan has risen by about 50 percent from the time medical marijuana became available in the state nearly ten months ago.

In August, the wholesale price of an ounce reached $249, the highest it has ever been from the time the regulated market was opened.

This increase in the price of marijuana flower comes as the supply is declining. This decline started in April and the numbers have been dropping to the lowest point in August.

The price hike comes despite the fact that while marijuana from caregivers is still dominating the market, the licensed cultivators have been getting a bigger share of the market. For example, the licensed growers only contributed 3 percent of the cannabis flower sold on the medical marijuana market in February. However, this proportion grew to 36 percent in August.

The regulatory agency released a statement in August showing that it was tracking the sales data in order to see how the licensed growers are progressing in addressing the supply needs of the market.

Some of the licensed growers say that they aren’t to blame for the price increases because the state government has continued to license provisioning centers at a pace that isn’t in tandem with the rate at which new growers are licensed. Consequently, there are many provisioning centers competing for the same supply of marijuana flower.

While there are 96 licensed medical marijuana cultivators to meet the demand of the 127 provisioning centers, it takes at least six months for a cultivator to grow their first crop and bring it onto the market.

State regulators made the decision not to prosecute licensed growers who buy medical marijuana products, such as cannabis flower, from the registered caregivers. Products from caregivers have been part of the regulated medical marijuana market from the very beginning, and many are of the view that this arrangement should continue.

Marijuana advocacy organizations, such as NORML, say that the licensed cultivators are still unable to meet the demand for products for both the medical and the recreational markets. These advocates therefore suggest that caregivers should continue supplying the market beyond 2020 as the regulators monitor the supply situation.

The regulators say that they are holding off making a decision on whether caregivers can be permitted to supply the recreational market with marijuana products. This decision will be made in November.

However, the data from other markets suggests that there is likely to be a decline in the number of patients using medical marijuana once the recreational market opens. Industry experts wonder what suggestions experienced industry players like Sproutly Canada Inc. (CSE: SPR) (OTCQB: SRUTF) (FRA: 38G) and Sugarmade Inc. (OTCQB: SGMD) can give as a way for the Michigan marijuana industry to work harmoniously with the caregivers.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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